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(Taichung News) The revised house tax policy, effective starting from July 2024 and known as the House Hoarding Tax 2.0, primarily targets non-owner-occupied houses. These changes are expected to significantly raise the tax burden, impacting an estimated 97,000 households in Taichung. According to the Local Tax Bureau, owners of multiple properties can lower their house tax by renting out unused properties, provided specific conditions are met. Property owners are encouraged to utilize this tax-saving measure.
According to Shen Cheng-an, Director of the Local Tax Bureau, the revised house tax policy for this year brings substantial changes. Non-owner-occupied houses will now be taxed based on the number of properties one owns nationwide, with tax rates between 3.2% and 4.8%. This adjustment could lead to higher house tax bills for owners of multiple properties starting next May. However, property owners can reduce their tax burden by leasing out unused residential properties. By doing so, these properties will qualify for a single preferential tax rate and will not count toward the tally of non-owner-occupied houses.
Property owners can rent their properties legally to individuals who qualify for rental subsidies, thus becoming landlords of houses leased out for public welfare purposes, or they can participate in social housing leasing programs to benefit from the same preferential house tax rate of 1.2%, same as for owner-occupied properties. Alternatively, property owners can engage private leasing agencies to manage their properties and sign contracts for residential use that last at least one year with tenants. In this case, the house tax will be charged at a uniform rate of 1.5% during the rental period.
The Local Tax Bureau added that if property owners lease their properties as regular rental residences and report their rental income in line with the city's standard rental rates within the stipulated deadline, they can combine their properties with inherited co-owned properties when calculating the total number of taxable properties nationwide. This allows them to qualify for lower tax rates: 1.5% for owning up to four properties, 2.0% for owning five to six properties, and 2.4% for owning seven or more properties. Therefore, property owners need not be concerned about paying excessive taxes.
The Local Tax Bureau advises that house taxes are now collected annually. If there are any changes in how a property is used, property owners must report the changes to the tax authorities at least 40 days before taxation (by March 22, or March 24 in 2025, if the due date falls on a holiday). If the change results in a lower tax amount, the adjustment will apply for the current tax period. However, if the tax amount increases or the filing is late, the new tax rate will only take effect in the subsequent period. Additionally, once the property's usage is confirmed, property owners are not required to apply again unless there are additional changes.
New House Tax Policy Takes Effect: Taichung’s Local Tax Bureau Shares Tips on House Tax Benefits for Rentals
According to Shen Cheng-an, Director of the Local Tax Bureau, the revised house tax policy for this year brings substantial changes. Non-owner-occupied houses will now be taxed based on the number of properties one owns nationwide, with tax rates between 3.2% and 4.8%. This adjustment could lead to higher house tax bills for owners of multiple properties starting next May. However, property owners can reduce their tax burden by leasing out unused residential properties. By doing so, these properties will qualify for a single preferential tax rate and will not count toward the tally of non-owner-occupied houses.
Property owners can rent their properties legally to individuals who qualify for rental subsidies, thus becoming landlords of houses leased out for public welfare purposes, or they can participate in social housing leasing programs to benefit from the same preferential house tax rate of 1.2%, same as for owner-occupied properties. Alternatively, property owners can engage private leasing agencies to manage their properties and sign contracts for residential use that last at least one year with tenants. In this case, the house tax will be charged at a uniform rate of 1.5% during the rental period.
The Local Tax Bureau added that if property owners lease their properties as regular rental residences and report their rental income in line with the city's standard rental rates within the stipulated deadline, they can combine their properties with inherited co-owned properties when calculating the total number of taxable properties nationwide. This allows them to qualify for lower tax rates: 1.5% for owning up to four properties, 2.0% for owning five to six properties, and 2.4% for owning seven or more properties. Therefore, property owners need not be concerned about paying excessive taxes.
The Local Tax Bureau advises that house taxes are now collected annually. If there are any changes in how a property is used, property owners must report the changes to the tax authorities at least 40 days before taxation (by March 22, or March 24 in 2025, if the due date falls on a holiday). If the change results in a lower tax amount, the adjustment will apply for the current tax period. However, if the tax amount increases or the filing is late, the new tax rate will only take effect in the subsequent period. Additionally, once the property's usage is confirmed, property owners are not required to apply again unless there are additional changes.
- Data update: 2025-01-17
- Publish Date: 2025-01-13
- Source: Local Tax Bureau
- Hit Count: 99