Local Tax Bureau of Taichung City Government-News-Anti-hoarding policy 2.0 takes effect: Taichung’s Local Tax Bureau collaborates with the private sector to reveal key tax-saving tips!

(Taichung News) The anti-hoarding policy 2.0 took effect in July this year. Property owners are taxed based on all the non-owner-occupied residential properties they own nationwide, with tax rates potentially reaching up to 4.8%. This has raised concerns among property owners about facing steep taxes. Director Shen Cheng-An of the Taichung City Government's Local Tax Bureau recently visited land administration and accounting professional associations to explain the new tax regulations. He highlighted that to benefit from the lowest tax rates of 1% or 1.2% for owner-occupied homes, household registration must be completed by March 24 of the following year.
Director Shen noted that the recent amendments to the property tax system are significant. Starting from July 1, to qualify for the lower tax rate for owner-occupied houses, properties must not be rented out or used for business, and an individual, their spouse, and minor children must not own more than three properties nationwide. Additionally, the property must be the actual residence of an individual, their spouse, or direct relatives, with household registration in place. For houses valued below NT$100,000 used as residences, if owned by a natural person, up to three can be exempt from taxes. However, owning more than three such properties will result in taxation, with higher rates applied to non-owner-occupied residential properties.
Director Shen added that the Local Tax Bureau will send out reminder letters in August and September to remind the public not to miss updating their household registration. Given that land administration agents, accountants, bookkeepers, and tax agents are all professionals who play a crucial role as intermediaries between the public and government, Director Shen invited these professionals during his visits to work together to raise awareness and inform the public about ways to save on taxes.
The Local Tax Bureau reminds us that following the implementation of the anti-hoarding policy 2.0, owner-occupied houses must have household registration completed by March 22 next year (extended to March 24 due to the weekend) to maintain eligibility for the 1.2% tax rate. If an individual, their spouse, and minor children own only one house nationwide, the tax rate could be lowered to 1%. Any changes to the property's use for owner-occupancy must also be declared within this timeframe, or the new rate will take effect in the next tax period.