Go To Content
:::
Current Location Home > Main Tree > News > News
  • print
  • Go Back

Builder and Funder Differ in Property Construction: Taichung’s Tax Bureau Reminds to File Deed Tax

(Taichung News) It is a common misconception that deed tax only applies during property transfers. The Local Tax Bureau of the Taichung City Government reminds the public that if the builder does not contribute actual funds during the construction process, it could be deemed as a sale or bestowal. To avoid potential financial penalties, individuals in such situations are advised to report the deed tax to the Local Tax Bureau after receiving the use permit.
The Local Tax Bureau noted that in accordance with the Deed Tax Act, where an unfinished building is transacted involving sale, exchange, bestowal, or donation the new owner becomes the original builder as stated in the construction license or the name of the builder changes, and the new builder later on receives a use license, the builder as stated in the use license shall file and pay deed tax. Therefore, if the actual funder of the construction pays the contractor but registers someone else as the builder on the construction license, the responsibility to file and pay the deed tax falls on the purchaser or donee after the use permit is received, as the registered isn’t the actual funder.
The bureau noted that a taxpayer who fails to file the deed tax return within the prescribed period shall pay a surcharge equal to one percent of the amount of tax due for every three days of delay, up to the amount of tax due. However, the amount of the delinquent reporting surcharge shall not exceed NT$15,000. To prevent fines, be sure to adhere to the filing deadline.
The Local Tax Bureau of the Taichung City Government cares about you. If you have any questions, you can visit the bureau’s website (https://www.tax.taichung.gov.tw/) or call the toll-free service hotline 0800-000321 or (04) 22585000, press 1 to connect to the A++ Station, where dedicated staff will be available to help.
  • Data update: 2025-01-17
  • Publish Date: 2025-01-13
  • Source: Local Tax Bureau
  • Hit Count: 95