Deed tax shall be levied in accordance with the provisions of the Act herein.
For transactions of immovable property involving sale, creation of Dien, exchange, bestowal, partition, or acquisition of ownership by virtue of possession, the taxpayer shall report the transaction and pay deed tax. However if the land is located in an area where land value increment tax is assessed, the deed tax shall be exempted.
The deed tax rates are as follows:
1. Deed tax on a sale: 6 percent of the value of deed.
2. Deed tax on a creation of Dien: 4 percent of the value of deed.
3. Deed tax on an exchange: 2 percent of the value of deed.
4. Deed tax on a bestowal or a donation: 6 percent of the value of deed.
5. Deed tax on a partition: 2 percent of the value of deed.
6. Deed tax on a possession: 6 percent of the value of deed.
The deed tax on a sale shall be filed and paid by the purchaser.
The deed tax on a creation of Dien shall be filed and paid by the Dien holder.
In case of an exchange, the parties to the exchange shall respectively appraise the value of the property received thereof and enter a deed contract for filing and paying the deed tax.
Where the aforesaid exchange involves payment for the discrepancy in the exchange values, the deed tax shall be imposed on the difference at the rate set forth for the deed tax on a sale.
In case of a bestowal or a donation, the donee shall appraise the value of the gift and enter a deed contract for filing and paying the deed tax.
In case the subject matter of a trust (trust property) is an immovable property and the trustee, by the purpose of the trust, transfers the trust property to a vested right holder other than the settlor, the vested right holder shall appraise the property received thereof and enter a deed contract for filing and paying the deed tax.
In case of a partition, the partitioner shall appraise the value of the property partitioned and enter a deed contract for filing and paying the deed tax.
In case of a possession, the person who takes possession of the property and legally acquires its ownership shall appraise the value of the property concerned and enter a deed contract for filing and paying the deed tax.
Where an immovable property is first placed under a Dien and then sold, the purchaser may offset the deed tax on a sale with the deed tax paid on the original creation of Dien, provided the Dien holder and the purchaser are the same person.
For publicly-owned property purchased or bid from the government agency and immovable property acquired at court auction, the purchaser shall file and pay deed tax.
In case the title of an immovable property is acquired by way of relocation, compensation, or other disguised means in lieu of payment, the person who acquires the title shall file and pay deed tax on a sale; in case a Dien is created by way of mortgage, loan, or other disguised means, the person who acquire the right to use the property shall file and pay deed tax on creation of a Dien.
Where an unfinished building is transacted involving sale, exchange, bestowal or donation that 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.
The value of deed is the standard price as determined by the local real property assessment committee. If the purchase price of the immovable property acquired under the condition as described in Article 11 herein is below the standard price, the value of deed is the purchase price.
The organization of real property assessment committee shall be set forth by the Ministry of Finance.
Deed tax is exempted in any of the following conditions:
1. Immovable properties acquired for public use by all levels of government, local autonomous agencies, and public schools, provided the properties are not used for business purpose.
2. Immovable properties acquired for business use by government-operated postal and telecommunications enterprises.
3. Immovable properties whose ownership is acquired through exchange of publicly owned immovable properties or through exchange of immovable property as a result of land consolidation to meet the needs of the government bodies.
4. A building that has the name of its builder changed prior to its completion. However this exemption shall not be applicable to the condition described in paragraph 2 of Article 12 herein.
5. A building in construction that has the name of its builder changed for the purpose of continuing construction and that the use license of the building upon its completion is acquired in the name of the second builder.
Transfer of title of immovable property under trust between the following parties in a trust is not subject to deed tax:
1. Between the settlor and the trustee at the time the trust is created.
2. Between the original trustee and the newly appointed trustee when there is change to the trustee during the life of the trust.
3. Between the trustee and the beneficiary when the trust ceases to exist, provided the trust deed stipulates the beneficiary of trust property to be the settlor.
4. Between the trustee and the beneficiary in a testamentary trust when the trust ceases to exist.
5. Between the settlor and the trustee when the trust is invalidated, voided, terminated or cancelled.
For immovable properties that are exempted from deed tax pursuant to the foregoing article, the taxpayer shall submit a Deed Tax Exemption Application, accompanied by the contract and support documents to the tax authority for issue of deed tax exemption certificate, and use the certificate for registration of title (right) transfer.
A taxpayer shall file a deed tax return, accompanied by the standard-form contract and support documents with the local tax authority within thirty (30) days from the conclusion of the contract for sale, creation of Dien, exchange, bestowal or donation, or partition of the immovable property, or from the date of applying for registration of ownership by virtue of possession. However if a building involved in sale, exchange, bestowal or donation, or partition has never had ownership registered, both parties to the contract shall jointly file the deed tax return.
In case of dispute arising from the transfer of an immovable property, the starting date for filing the deed tax shall be the date of final judgment rendered by the court.
For an immovable property purchased or bid from the government agency, the starting date for filing the deed tax shall be the date the certificate for transfer of title is issued by the government agency.
For an immovable property acquired at court auction, the starting date for filing the deed tax shall be the date the certificate for transfer of title is issued by the court.
For an unfinished building that is transacted involving sale, exchange, bestowal or donation that 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 starting date for filing the deed tax shall be thirty (30) days after the date a use license is issued by the competent building authority.
Upon receiving the deed tax return and the accompanied contract and support documents, the tax authority should immediately issue a receipt which is stamped with the seals of the agency and the person handling the receiving.
The tax authority shall, within fifteen (15) days of receiving deed tax return filed by the taxpayer, complete the examination, determine the amount of tax due, and issue a tax payment notice to the taxpayer for payment within a prescribed time limit.
A taxpayer shall pay deed tax in thirty (30) days after receiving the tax payment notice issued by the tax authority.
The application for registration of title transfer with the land administration agency due to sale, creation of Dien, exchange, bestowal or donation, partition or possession must be accompanied by deed tax payment receipt, deed tax exemption certificate or content to transfer certificate.
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.
A taxpayer who fails to pay the deed tax within the prescribed period shall pay a surcharge equal to one percent of the amount of tax due for every two days of delay. If the taxpayer fails to pay the tax and surcharge for belated payment or surcharge for belated filing for thirty (30) days or longer after the prescribed period, the case will be forwarded to the court for compulsory enforcement.
A taxpayer who intentionally evades or under-reports the deed tax and that such action is discovered by the tax authority at its own initiative or on information provided by another person shall, in addition to paying the tax due, be subject to a fine equal to one to three times the amount of tax due.
Deed tax shall be collected by tax administration under the municipal or county (city) government or by village, town, city or district offices on behalf of the local tax administration.
A taxpayer who is unable to file deed tax return or pay the tax due within the prescribed period due to force majeure shall, within ten (10) days after the cause of force majeure extinguishes, file a statement and be exempted from surcharge for belated filing or payment if the statement is found to be factual.
The tax authority may reward a person 20 percent of the fine imposed resulting from the information provided by said person on the tax evasion, concealment, under-reporting or other illicit activity of a taxpayer, and shall keep the identity of such informer totally confidential.
The tax authority should notify the informer to claim the reward before certain deadline in three days after collecting the fine imposed as described in the preceding paragraph.
The provision of reward stipulated in this article does not apply if the informer is a government employee.
This Act shall be in force on the date of promulgation.
The implementation date of this Act amended on May 29, 2001 shall be set by the decree of Executive Yuan.