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Chapter V Land Value Increment to the Public

Article 35
To implement the policy of accruement of land value increments to the public, the land value increment tax shall be levied, according to the provisions of Article 36, on the lands of which the owners have declared their land values. But public lands sold or donated by the government, and private lands donated to the government, shall be exempted from the payment of the land value increment tax.
Article 35-1
The land value increment tax shall be exempted for those lands donated privately. But the exemption shall be limited to those cases in accord with the following Subparagraphs:
1.The beneficiaries are foundations.
2.It is clearly written in the constitution of the legal person that, after the legal person dissolves, its remaining property belongs to the local government in that locality.
3.The donor does not obtain any interest out of the donated land by any means.
Article 35-2
The donation of land between spouses shall be exempted from the land value increment tax. But the calculation of land value increments shall adopt “the value of land originally assessed” or “the value of land at the penultimate transfer”, before the first donation of the land for the levy of land value increment tax, when the land is transferred to the third party.
Article 35-3
In case the land is of fiduciary property, the land value increments tax shall be exempted if the transfer of ownership is between the following persons with fiduciary relationship:
1.Between the trustee and the beneficiary due to the consistency of fiduciary act.
2.Between the original trustee and the new trustee when there is a change of trustee during the duration of the fiduciary relationship.
3.Between the trustee and the beneficiary in case the fiduciary contract clearly prescribes that the beneficiary of the fiduciary property will be the mandator when the fiduciary relationship is extinct.
4.Between the trustee and the beneficiary if the consistency of the trust is due to a testament, when the fiduciary relationship is extinct.
5.Between the trustee and the beneficiary when the fiduciary act is inconsistent, void, rescinded or nullified.
Article 36
The levy of land value increment tax shall be computed on the basis of the total amount of the increased value of land and shall accrue to the public at every transfer of land ownership or at creation of the right of dien except transfer through inheritance.
From the total amount of the increased value of land as referred to in the preceding Paragraph there shall be subtracted the cost for land improvement which the landowner has incurred and any construction benefit charge he has already paid.
In paying the land value increment tax at the time of the transfer of land ownership, the landowner shall, if his annual payment of the land value tax during the period of his ownership of the land has been increased owing to the reassessment of his land value, be permitted to credit such increased payment against the land value increment tax payable by him for the portion of his land which is transferred. But the amount to be credited against the land value increment tax shall not exceed 5 per cent of the total land value increment tax payable at the transfer of land ownership.
Rules governing the increased payment of land value tax to be credited against the land value increment tax, as referred to in the preceding Paragraph, shall be made by the Executive Yuan.
Article 37
The land value increment tax shall be paid by the original landowner. In case the land ownership is transferred without receipt of any payment, the said tax shall be paid by the person who has acquired the land ownership.
Article 37-1
The trustee shall be obliged to pay the land value increment tax sustained by the fiduciary property if he transfers ownership with consideration, creates dien over the land or transfers the land to be owned by himself according to the provisions of Paragraph one of Article 3 5 of the Trust Act.
If the fiduciary land is transferred, according to the objectives of the trust, to any obligee other than the trustee himself, the said obligee shall be liable to pay the land value increment tax incurred.
Article 38
When the land ownership is transferred, a land value increment tax shall be levied on the land if its current value at the time of land transfer exceeds either its original assessed value or the current transaction value of land declared at the time of last transfer after the deduction in accordance with the provisions of Subparagraph two of Article 36.
The original assessed value of land as referred to in the preceding Paragraph shall mean the value as assessed in 1964. In case the land value has been assessed according to the provisions of the Land Law before 1964 or assessed after 1964, the land value as assessed in the first instance shall be the original assessed value. The current transaction value of land declared at the time of last transfer as referred to in the preceding Paragraph shall mean the publicly announced current land value when the inheritance has come into force, in case the land ownership is transferred after the owner has acquired the land by inheritance.
Article 38-1
In case the land is exempted from the levy of land value increment tax, according to the provisions of Article 35-3, when its ownership is transferred, dien is created over it or its ownership is transferred to the trustee according to the provisions of Paragraph 1 of Article 35 of the Trust Act, “the value of land originally assessed” or “the value of land at the penultimate transfer” before the exemption of the land value increment tax shall be deemed as its “original value of land” for the calculation of its land value increments. But the definition of “the original value of land” for the condition, as prescribed by the provision of Paragraph 2 of Articles 42, shall be defined according to its provisions.
For the trust, where consistency is due to the testament and which takes land as its fiduciary property during its consistency, its “original value of land” denotes “the publicly announced current land value” on the day when the ancestor dies.
The provisions in relation to the reduction and exemption or imputation, as provided by Article 36, shall, mutatis mutandis, apply to the calculation of the amount of land value increment tax of the land referred to in the two preceding Paragraphs, if the mandator or the trustee has paid, during the existence of the fiduciary relation, the cost of land improvement as provided by Subparagraph 2 of Article 36, or additional payment of the land value tax as provided by Subparagraph 3 of Article 36
Article 39
The original assessed value of land or the current transaction land value declared at the time of its last transfer as referred to in the preceding Article shall be duly adjusted with the price index announced by the government, and the total amount of the increased value of land shall then be computed on the basis of the adjusted figures.
Article 40
The land value increment tax shall be levied at the following rates:
1.If the total amount of the increased value of land exceeds the original assessed value or the current transaction land value declared at the time of its last transfer by less than 100 percent, the rate of 20 percent shall be applied to the land value increment.
2.If the total amount of the increased value of land exceeds the original assessed value or the current transaction land value declared at the time of its last transfer by more than 100 percent but less than 200 per cent, besides application of the provisions of the preceding Subparagraph, the rate of 30 percent shall be applied to that portion in excess of 100 percent.
3.If the total amount of the increased value of land exceeds the original assessed value or the current transaction land value declared at the time of its last transfer by more than 200 percent, besides application of the provisions of the preceding two Subparagraphs, the rate of 40 percent shall be applied to that portion in excess of 200 percent.
Before the execution of revising Act Governing the Allocation of Government Revenues and Expenditures to enlarge the scale of the general allocation of tax by the Central Government, the physical loss of tax revenue for the Special Municipal Government or the County / City Government due to amending tax rate in the preceding Paragraph shall be made up by the Central Government. The amount for making up is not limited by the provisions of Article 23 of the Budget Act which prescribes that the proceeds from the issue of public debts shall not be used for ordinary expenditures.
Ministry of Finance will consult the Special Municipal Government or the County / City Government and calculate the physical loss in the preceding Paragraph.
The announced current land value shall not be lower than market value at a certain proportion.
The certain proportion in the preceding paragraph is decided after central competent authorities consult Ministry of Finance and the Special Municipal Government or the County / City Government. But the announced current land value should approach to the market value year by year.
When the land has been possessed over twenty years, the land value increment tax exceeding the portion of the lowest tax rate in the first paragraph is twenty percent tax-deductible.
When the land has been possessed over thirty years, the land value increment tax exceeding the portion of the lowest tax rate in the first paragraph is thirty percent tax-deductible.
When the land has been possessed over forty years, the land value increment tax exceeding the portion of the lowest tax rate in the first paragraph is forty percent tax-deductible.
Article 41
For self-use residential land sold by title owner, the land value increment tax shall be 10% of the total incremental value of the land for urban land up to 3 acres or for non-urban land up to 7 acres; the total incremental value for part of land in excess of 3 acres or 7 acres shall be taxed according to the rate schedule stipulated in the foregoing article.
The preceding provision does not apply to land that was used for business purpose or rented in the last year before its sale.
The provisions in the first paragraph hereof do not apply to land where the assessed value of the self-use residence thereon is less than 10% of the assessed present value of the land, unless the construction of the residence has been completed for more than one year.
Landowner may use the tax rate provided in the first paragraph hereof for calculation of land value increment tax once in his or her lifetime.
In the case that the landowner sells another self-use residential land after the terms of the preceding paragraph has been exhausted, the land value increment tax imposed thereon shall not be governed by the once in the lifetime restriction as provided in the preceding paragraph if the following conditions are met:
1) That the amount of the urban land sold doesn’t not exceed an area of 1.5 acres and that of non-urban land sold doesn’t not exceed 3.5 acres;
2) At the time of selling, the landowner, his or her spouse, and his or her minor children have no other house except the self-use residence sold;
3) The landowner has owned the self-use residential land for a period of over 6 years before its sale;
4) The landowner, his or her spouse, and his or her minor children have maintained their household registration at the location of on the self-use residential land and owned the self-use residence for a period of consecutive 6 years before its sale;
5) The land has never been used for business purposes or rented in the last 5 years before its sale.
Article 42
The land value increment tax shall be exempted when the land is compulsorily purchased.
The exemption of land value increment tax as provided by the preceding Paragraph shall, mutatis mutandis, apply to the land reserved for the public infrastructure designated according to the Urban Planning Law. But if it is transferred after being re-designated as non-public infrastructure land, “the value of land originally assessed” or “the value of land at the penultimate transfer” before the initial exemption of the land value increment tax shall be deemed as its “original value of land” for the calculation of its land value increments for the imposition of the land value increment tax.
The provisions of Paragraph 1 shall, mutatis mutandis, apply to any private land which may be compulsorily purchased according to law, when its landowner is willing to sell the land, by compensation for compulsory purchase to the competent authorities.
For the readjustment land, the land value increment tax shall be decreased by 40 per cent if the land ownership is transferred for the first time after readjustment.
Article 42-1
For the land compensated by cash due to zone expropriation, it shall be exempted from the liability of the land value increment tax as provided by Subparagraph 1 of the preceding Paragraph. But if its compensation is paid in cash due to the area of imputed land being less than the minimum unit area required for construction according to the provisions of Paragraph 3 of Article 54, then it shall be exempted from the liability of the land value increment tax too.
The land of zone expropriation shall be exempted from the liability of the land value increment tax if its compensation is imputed to land-in-lieu-of cash as provided by Paragraphs 1 and 2 of Article 54. But for the first transfer of the ownership after receiving the imputed land, the calculation of its land value increments, for the levy of land value increment tax, shall be based on the actual imputed land value as its “original value of land”, and Subparagraph four of the preceding Paragraph shall, mutatis mutandis, apply.
Article 43
Cancelled.
Article 44
Any landowner who sells his owner-occupied residential land, self-managed industrial land or owner-cultivated farmland, and purchases another piece of land for the same use as residential land, industrial land or farmland, may request the competent authorities to return the land value increment tax he has paid. Any landowner whose land referred to in the preceding Paragraph is compulsorily purchased, may request the competent authorities to return the land value increment tax he has paid after he has received the compensation for compulsory purchase and purchased another piece of land for the same use as his original land.
Article 45
When any farmland, used for agricultural purpose, is transferred to any natural person, an application may be made for exemption of the land value increment tax.
The purchaser of the land exempted from the levy of land value increment tax, as referred to in the preceding Paragraph, shall be liable to the levy of land value increment tax when he re-transfers the land, if he fails to use the land, during his ownership period, for agricultural purpose and when found out by the competent authorities, and if he fails to resume agricultural use for the land within the time limit set by the said authorities, or fails again to use the land for agricultural purpose, after he resumes agricultural use for the land within the time limit set by the authorities.
In case the purchaser of the land, who fails to use the land for agricultural purpose as referred to in the preceding Paragraph, mutually donates lands with his spouse, the land having been exempted from the levy of land value increment tax shall be taken into account together with all the other donated lands for the calculation of the total amount of land value increments.
In case the agricultural land used for agricultural purpose is transferred for the first time after the revision of this Act on January 6, 2000 comes into force, or is re-transferred after the acquisition with an exemption of the land value increment tax according to the provisions of Paragraph 1, then “the publicly announced current land value” on the revision day of the Act shall be adopted as its “original value of land” for the calculation of its land value increments so as to levy the land value increment tax if it is taxable.
Article 46
The Special Municipal Government or the County / City Government shall make regular investigation, by section, land categories and land grades, of changes in land value and of the market values of lands under their respective jurisdiction and shall once a year compile a table of publicly announced current land values for submission to the Land Evaluation Committee for assessment. The results of the assessment made by the said Committee shall be publicly announced on January 1 of each year to serve as a reference for the competent authorities to examine declared current values of lands at the time of changes in land rights and for the base of compensation for land compulsorily purchased.
Article 47
Whenever the ownership of any land is transferred or a right of dien is created over land, the obligee and the obligor shall apply for registration of change in land rights or for registration of the creation of a right of dien, with a copy of the contract and other relevant documents attached to the application, within 30 days from the day when they have signed the contract. At the same time, they shall declare the current transaction value of the said land. The obligee may solely declare the current transaction value of the said land if he may solely apply for the registration according to the provisions.
The obligee and the obligor shall declare of real estate transaction information of land and building to the competent authority of the municipality or county (city) after the ownership transaction registration is completed.
Government may utilize the registered transaction information of the preceding paragraph and provide public for inquiry without revealing personal data.
The registered real estate transaction price information shall become a basis for taxation only until complementary laws are enacted.
Rules of the registered types and contents in the second paragraphs and the provision of information contents, ways, fees and other matters to follow in the third paragraph shall be formulated by the central competent authority.
The competent authority of the municipality or county (city) may request the obligee, obligor, land administration agent, or real estate broking to access, obtain relevant documents or provide explanations in order to check the registered information. The central competent authority may inquire about and obtain documents related to price information from relevant agencies or financial institutions in order to check suspected price declaring information. The inspected person shall not evade, hinder or refuse the inspection.
The inspection in the preceding paragraph shall not exceed the necessary scope for the purpose of ensuring the correctness of the declared real estate transaction information.
Accepting the declaring real transaction information in the preceding second paragraph and the inspection in the preceding fourth paragraph, the competent authority of the municipality or county (city) may authorize its subordinate authority to handle the matter.
The district basis real estate transaction information provided prior to the enforcement of articles of this Act that were amended on 30th December 2020 shall be re-provided for inquiry in accordance with the preceding third paragraph.
Article 47-1
Whenever the ownership of any land is transferred or a right of dien is created over land, the base for the examination of the current transaction value of the said land is as follows:
1.In case the declarers declare the current transaction value within 30 days after making the contract, “the publicly announced current land value” at the date when the contract is made shall be the base.
2.In case the declarers declare the current transaction value more than 30 days after making the contract, “the publicly announced current land value” at the date of the declaration shall be the base.
3.“The publicly announced current land value” at the date when the predecessor died shall be the base for legacy.
4.“The publicly announced current land value” at the date when the declarer brings the case before the judicial authorities shall be the base for the transfer according to the decision of the court.
5.“The publicly announced current land value” at the date when the auction is certain shall be the base for the transfer according to the auction by the court. But if the price at auction is lower than “the publicly announced current land value”, the price at auction shall be the base. But if the created mortgaged loan and other debts have been subtracted from the price at auction, the amount calculated together shall be the base.
6.“The publicly announced current land value” at the date when the government purchases by agreement or at its declared value shall be the base for the land purchased by agreement or at its declared value. But if the price paid by the government is lower than “the publicly announced current land value”, the price paid by the government shall be the base.
If the current transaction value reported by the reporter, according to Subparagraphs 1 to 4 of the preceding Paragraph, is lower than “the publicly announced current land value” after examination, the competent authorities may purchase the land at the current transaction value reported by the reporter, or levy the land value increment tax according to “the publicly announced current land value”. If the current transaction value reported by the reporter is higher than “the publicly announced current land value”, the current transaction value reported shall be the base for the levy of the land value increment tax.
Article 47-2
Whenever the land is exempted from the levy of the land value increment tax, the competent taxation authorities shall approve the current transaction value and issue a certificate of tax exemption, according to the following provisions, for the registration of change in land ownership:
1.For public lands exempted from the land value increment tax according to the provisions of Article 35, the actual sale price shall be the criterion for approval. But for the land donated by or to the government at various levels, “the publicly announced current land values” at the date when the donation contract is certain shall be the base for the transfer according to the criterion.
2.For lands exempted from the land value increment tax according to the provisions of Paragraph 1 of Article 35, “the publicly announced current land values” at the date when the donation contract is certain shall be the criterion for approval.
3.For inherited lands exempted from the land value increment tax according to the provisions of Article 36, “the publicly announced current land values” at the date when the inheritance starts shall be the criterion for approval.
4.Lands for compensation exempted from the land value increment tax according to the provisions of Paragraph 2 of Article 42-1, the land values of the imputed land actually received back shall be the criterion for approval.
Article 47-3
Those who are responsible for the sale of pre-sale houses shall declare the building location, name of the project, sales location, sales period, numbers of households and formalized contract of pre-sale house in written form before the sale.
Those responsible for the sale of pre-sale houses should declare the real estate transaction information to the municipal, county (city) competent authority within 30 days from the date of signing the contract of pre-sale housing, unless the pre-sale case has been entrusted to real estate brokerage.
For reference in the first paragraph, the provisions of paragraph 3, 6 to 8 of Article 47 and the regulation in accordance with paragraph 5 of Article 47 shall apply mutatis mutandis, the content and the method to declare shall be prescribed by the central competent authority.
For reference in the second paragraph, the provisions of paragraph 3, 4, 6 to 8 of Article 47 and the regulation in accordance with paragraph 5 of Article 47 shall apply mutatis mutandis.
Those who are responsible for the sale of pre-sale houses or entrust the real estate broking to receive deposits or similar items from the buyer shall confirm the subject and the price of the transaction in a written agreement, and shall not make reservations for sale, reservation rights for signing contracts or other matters that are not conducive to the buyer.
The written agreement mentioned in the preceding paragraph shall not be resold to a third party.
Article 48
Cancelled.
Article 49
Cancelled.
Article 50
If in any transfer of land ownership through sale, the one due to pay the tax fails to pay the land value increment tax liable on the land within the set time limit, the said tax may be paid by the purchaser. The land value increment tax liable on the land shall be paid by the obligee instead, if he solely declares the current transaction value of the land according to the provision of Article 47.
Article 51
The revenue from the levy of the land value increment tax according to the provisions of this Act shall be used for such public welfare program as child welfare, care of the elderly, relief of disaster victims and the poor, and public health, for the construction of public housing units, for the compulsory purchase of land reserved for public infrastructure, for the construction of public facilities, for the promotion of agricultural development, the furthering of village and national education, and for the implementation of the equalization of land right.