The procedures for direct leasing of non-public use real estate are as follows:
(1) Lease application preparation.
(2) Receipt of application.
(3) Inspection.
(4) Examination.
(5) Notifying paying up the compensation for years of occupying period.
(6) Executing the lease.

In accordance with each of the Subparagraphs in Paragraph 1, Article 42 of this Act, the lessee of direct leasing is as follows:
(1) Subparagraph 1 applies to the original lessee or the successors of the original lessee. However, if the subjects of the lease are constructional improvements or constructional improvements with the building lots, the successors of the original lessee shall only be his/her inheritor.
(2) Subparagraph 2 applies to the current user. However, in the event there are non-national constructional improvements on the land, the constructional improvements are deemed to belong to the owner as recorded on the building registration transcript if the first ownership registration was completed. For constructional improvements that have not undergone first ownership registration, the owner of the constructional improvements shall be the original constructor who has contributed capital to construct the improvements, the inheritors, buyers, or donees who inherit the constructional improvements.
(3) Subparagraph 3 applies to the person who may purchase in accordance with this Act or other laws.

In accordance with Subparagraphs 2 to 5, Article 2 of the Regulations for the Enforcement of the Agricultural Development Act, for national non-public use lands that are agricultural land or special-use zones for agricultural or animal husbandry purposes already in use for agriculture or animal husbandry, lease agreements for agricultural or animal husbandry lands may be established, and the land may be leased in accordance with Subparagraph 2, Paragraph 1, Article 42 of this Act. If any one of the following applies, the land shall not be leased:
(1) Lands Reserved for Indigenous People.
(2) Location of land is within a designated Soil and Water Conservation Area.
(3) Location of land is within a Reservoir Storage Area.
(4) Location of land is within a certain distance from a Drinking Water Source Quality Protection Area or Drinking Water Intake Point.
(5) Protected forest.
(6) Location of land is within an Ecological Protection Area, Special Landscape Area, Historical Preservation Area, or a Recreation Area that, recognized by the responsible authority of a National Park, affects the management of the National Park.
(7) Slopeland that is utilized exceeding the Permissible Scope of Land Use.
(8) The site is in a Nature Reserve approved and announced under a Conservation Plan of Preserving the Natural Environment of Taiwan Coastal Areas.
(9) Lands that shall not be leased as stipulated by other laws.
Land that has been leased or has formed a leasehold relationship prior to the enforcement of the amendment of these Regulations on December 25, 2013, may be leased to the original lessee or his/her inheritors under the latest lease, if the land is still used for farming or animal husbandry. The land of lease for national farmland or leased national farmland that applies for The 37.5% Arable Rent Reduction Act which is still in use for agricultural or animal husbandry purposes, the original lessee terminated the lease according to Subparagraph 2, Paragraph 1, Article 17 of the aforementioned Act and then re-apply for leasing. The lessee who complies with Subparagraph 2, Paragraph 1, Article 42 of this Act, may be leased. However, if the law provides otherwise or if the target enterprise authority notifies that the land shall be recovered, the land shall not be leased.

In accordance with Article 2 of the Regulations for the Enforcement of the Agricultural Development Act, for national non-public use lands that are in a utilization zone or special-use zone for afforestation purposes, and already in use for afforestation, lease agreements for afforestation land may be established and the land may be leased in accordance with Subparagraph 2, Paragraph 1, Article 42 of this Act. If any one of the following applies, the land shall not be leased:
(1) Lands Reserved for Indigenous People.
(2) Location of land is within a designated Soil and Water Conservation Area.
(3) Location of land is within a Reservoir Storage Area.
(4) Location of land is within a certain distance from a Drinking Water Source Quality Protection Area or Drinking Water Intake Point.
(5) Protected forest, recognized by the responsible forestry authority that there is a need for protection or there is a risk of safety.
(6) Location of land is within an Ecological Protection Area, Special Landscape Area, Historical Preservation Area, or a Recreation Area that, recognized by the responsible authority of a National Park, affects the management of the National Park.
(7) Slopeland that is utilized exceeding the Permissible Scope of Land Use.
(8) The site is in a Nature Reserve approved and announced under a Conservation Plan of Preserving the Natural Environment of Taiwan Coastal Areas.
(9) Lands that shall not be leased as stipulated by other laws.
Land that has been leased or has formed a leasehold relationship prior to the enforcement of the amendment of these Regulations on December 25, 2013, may be leased to the original lessee or his/her inheritors under the latest lease, if the land is still used for afforestation. However, if the law provides otherwise, or if the target enterprise authority notifies that the land shall be recovered, the land shall not be leased.

In accordance with Article 2 of the Regulations for the Enforcement of the Agricultural Development Act, for national non-public use lands that are in a utilization zone or special-use zone for aquaculture purposes, and already in use for aquaculture, lease agreements for aquaculture land may be established and the land may be leased in accordance with Subparagraph 2, Paragraph 1, Article 42 of this Act. If any one of the following applies, the land shall not be leased:
(1) Lands Reserved for Indigenous People.
(2) Location of land is within a designated Soil and Water Conservation Area.
(3) Location of land is within a Reservoir Storage Area.
(4) Location of land is within a certain distance from a Drinking Water Source Quality Protection Area or Drinking Water Intake Point.
(5) Protected forest.
(6) Location of land is within an Ecological Protection Area, Special Landscape Area, Historical Preservation Area, or a Recreation Area that, recognized by the responsible authority of a National Park, affects the management of the National Park.
(7) Location of land is within the groundwater control zone. This does not apply to those who have been approved by the responsible fishery authority to be designated as aquaculture fishery production areas, or those who have been identified by the responsible authority to use seawater, surface water, or groundwater drawn from groundwater outside the control area.
(8) Slopeland that is utilized exceeding the Permissible Scope of Land Use.
(9) The site is in a Nature Reserve approved and announced under a Conservation Plan of Preserving the Natural Environment of Taiwan Coastal Areas.
(10) Lands that shall not be leased as stipulated by other laws.
Land that has been leased or has formed a leasehold relationship prior to the enforcement of the amendment of these Regulations on December 25, 2013, may be leased to the original lessee or his/her inheritors under the latest lease if the land is still used for aquaculture. The land of lease for national aquaculture land that applies for The 37.5% Arable Rent Reduction Act which is still in use for aquacultural purposes, the original lessee terminated the lease according to Subparagraph 2, Paragraph 1, Article 17 of the aforementioned Act and then re-apply for leasing. The lessee who complies with Subparagraph 2, Paragraph 1, Article 42 of this Act, may be leased. However, if the law provides otherwise or if the target enterprise authority notifies that the land shall be recovered, the land shall not be leased.

For national non-public use lands that are in use for buildings, lease agreements for building lots may be established and the land lot may be leased in accordance with Subparagraph 2, Paragraph 1, Article 42 of this Act. If any one of the following applies, the land shall not be leased:
(1) Lands Reserved for Indigenous People.
(2) Location of land is within a designated Soil and Water Conservation Area.
(3) Location of land is within a Reservoir Storage Area.
(4) Location of land is within a certain distance from a Drinking Water Source Quality Protection Area or Drinking Water Intake Point, , recognized by the responsible authority that there is a need for protection or there is a risk of safety.
(5) Protected forest.
(6) Location of land is within an Ecological Protection Area, Special Landscape Area, Historical Preservation Area, or a Recreation Area that, recognized by the responsible authority of a National Park, affects the management of the National Park.
(7) The site is in a Nature Reserve approved and announced under a Conservation Plan of Preserving the Natural Environment of Taiwan Coastal Areas.
(8) Lands that shall not be leased as stipulated by other laws.
Land that has been leased or has formed a leasehold relationship prior to the enforcement of the amendment of these Regulations on December 25, 2013, may be leased to the original lessee or his/her inheritors under the latest lease if the land is still used for buildings. However, if the law provides otherwise or if the target enterprise authority notifies that the land shall be recovered, the land shall not be leased.

In accordance with the provisions of Subparagraph 2, Paragraph 1, Article 42 of this Act, an application for the lease of non-public use real estate shall include the attached following relevant supporting documents, certifying the actual time of use. However, if the actual time of use can be examined and approved by the Lessor, attachment is exempted.
(1) Leased building lot: Household registration transcript, proof of house tax payment, receipt of water bill or electricity bill, copies of improvement ownership certificates, constructional improvements registration transcript, proof of an official address plate, graphic information taken by government agencies before July 21, 1993, or other supporting documents issued by other government agencies or government-owned enterprises.
(2) Lease of constructional improvements or constructional improvements with the building lots: Household registration transcript or other supporting documents issued by other government agencies or state-owned enterprises.
(3) Lease applications for other land shall have attached one of the following supporting documents:
i. Proof of agricultural or aquaculture power utilization issued by government-owned enterprises, graphic information taken by government agencies before July 21, 1993, or other certifying documents issued by local farmers’ and fishermen’s associations, townships, town, city, (and district) offices, or other government agencies.
ii. Certifying documents issued by Chiefs of villages who served before July 21, 1993, owners, or lessees of adjacent land who had the legal capacity to act.
iii. Certifying documents issued by lessees who had the legal capacity to act before July 21, 1993, of adjacent national lands that were in use before July 21, 1993, and were leased by the Lessor by direct lease or leasing.
The supporting documents stated in Item 2 and Item 3 or the preceding Subparagraph shall be published by the Lessor for 30 days, and shall be adopted if no objection is raised or if objection cannot be sustained.

The scope and procedures of the non-public use real estate that may be leased in accordance with the provisions of Subparagraph 3, Paragraph 1, Article 42 of this Act shall be handled in accordance with Article 43-2 of the Regulations for the Enforcement of this Act.

If the application form for the lease of non-public use real estate is not in format, or in the event of supporting documents inadequacy, the applicant shall be notified to make corrections within a limited period.

In the event that one of the following applies to the application for the lease of non-public use real estate, the application may be nullified, and the supporting documents attached to the original application may be returned:
(1) Notifications stated in the preceding Article were sent to notify applicants of the corrections required, yet corrections were not made within the given time.
(2) Real estate that is not handled by the administration authority.
(3) Real estate that shall not be leased, stipulated by the provisions of law.
(4) The utilization of the real estate is in dispute, or the ownership of the estate is not confirmed.
(5) The estate is planned for further specific use, utilization plan, or other handling methods.
(6) Overdue payment of compensation for years occupying period.
(7) Does not meet the criteria required for leasing, as stipulated by law.
(8) Contents of the supporting documents attached to the application form are not in conformity with the facts.

In accordance with the provisions of Paragraph 1, Article 42 of this Act, for the application for the lease of non-public use real estate, compensation for the occupying period shall be retraced and charged for the utilization of the real estate starting from the end of the month when the application is received. The compensation shall be calculated backward for up to five years. Within the period calculated, the rent or compensation for the occupying period already paid shall be deducted.Compensations shall be allowed to be paid in installments.
The aforementioned compensation for the occupying period stated in the preceding Paragraph shall be calculated and charged on the basis of the current rent for direct lease in accordance with the law, and the provisions of favorable rentals shall not apply.However, if the basis for calculating the compensation is determined by the court, it shall be calculated and collected according to the basis determined by the court.

The lease agreement shall set forth the following matters:
(1) The parties.
(2) The subject matter of the lease.
(3) The term of the lease.
(4) Rent and payment method, overdue liquidated damages, and the basis of rent calculation.
(5) Restrictions of use.
(6) Conditions of termination of the lease.
(7) Other contractual matters.

The rent for real estate for direct lease shall be calculated on the basis of the rent stipulated by law. Favorable rentals shall be applied in accordance with the law. In the event of natural disaster or force majeure that results in reduction in yield, or that the estate is severely damaged and can no longer be used, rental reduction shall apply. The basis of the calculation of rental reduction shall be stipulated by the MOF.
In the event of making an application for re-allocating the real estate for direct lease as the land reserved for indigenous people, the rent collection may be delayed during the application period. In the case of the re-allocated land approved by the Executive Yuan, its rent may be exempted, and the rent already collected shall be refunded without interest. The period, quota, method, and other affairs related to the delay of collection or refund of the rent shall be stipulated by the MOF.
It is stipulated by law that, for the period when the leasehold relation is still in force, in the event of change in the rental rate of direct lease, declared land value, the current announced annual yield of the principal product, or conversion standards for monetary substitution, the rent shall be adjusted accordingly.
For lease agreements for afforestation land signed before the time the amendment of these Regulations came into effect on March 3, 2021, the rent of the afforestation land where the felling of timber and/or bamboo continued after the amendment of these Regulations, up to the expiration of the lease term, may be charged as agreed in the lease agreement or based on rent calculation for afforestation areas as stipulated by the central forestry organization governing the timber disposition of forestry products of leased national forests at the time of felling of the timber or bamboo. The rent calculation method is the lessee’s choice.

The national portion of separate management of jointly owned national and private real estate, managed separately, may be directly leased upon the co-owners’ negotiation of the separation of management.

In the case of an application for the lease of national non-public use real estate in accordance with the provisions of Subparagraph 2, Paragraph 1, Article 42 of this Act, before the Lessor notifies the lessee of the payment of compensation for the occupying period and the lease signing, the application for the purchase of the same subject matter in accordance with Articles 50 to 52, Paragraph 2 of Article 52-1, Subparagraph 3, Paragraph 3 and Paragraph 4, Article 55-1 of the Regulations for the Enforcement of this Act, or other special legal provisions, shall be assessed and handled in priority. In the event that other lease or purchase cases with the same subject matter are competing, the cases will be processed in the order of application reception.

Upon the expiration of the lease term, unless otherwise provided by law, the leasehold relation shall be extinguished without further notice from the Lessor. The lessee shall return the leased property and terminate utilization of the leased property, in accordance with the lease agreement, and shall not request any compensation from the Lessor.
If the lessee intends to renew the lease, the lessee shall apply for a lease exchange within a certain stipulated time period, before the expiration of the lease.
The aforementioned stipulated time period shall be set by the administration authority, and shall not be less than three months.