Land that has been assigned a value shall be subject to land value increment tax based on the total amount of land value increment at the time of transfer of land title.
Land transferred by succession, public land sold or donated by all levels of government according to law, and private land transferred to any level of government by gift are exempted from land value increment tax.

Land donated for the purpose of establishing social welfare enterprises or private school according to law is exempted from land value increment tax, provided the donation meets the following requirements:
1. The donee is a non-profit juristic person (“NPJP”);
2. Its articles of incorporation stipulates that upon dissolution, the remaining property of the entity will be transferred to the local government; and
3. The donor did not receive any interest in the donated land in any manner.

Land bestowed to a spouse may apply for non–taxable status of land value increment tax. But if the land is subsequently transferred and becomes subject to land value increment tax, the original decreed land value or the latest approved declared transfer value of the land prior to its first non-taxable status shall be used as its original land value for calculation of the total incremental value and imposition of land value increment tax.
If the transferor or the transferee of the land in the preceding paragraph has, during the ownership of land, paid expenses for improvement of land according to Subparagraph 2, Paragraph 1 of Article 31 herein or supplemental land value tax according to Paragraph 3 of the same article, the provisions in the same article on tax deduction or offset shall apply to the assessment of land value increment tax when the land title is transferred again. If the land in the preceding paragraph is reconsolidated, the provisions on tax reduction as provided in Paragraph 1 of Article 39-1 herein shall apply. Where the land is transferred again and the title owner applies for the application of tax rate on land value increment tax as provided in Article 34 herein, the period of land that was not used for business purposes or rented in the last year before its sale shall be combined in the assessment of tax.

Transfer of land under trust between the following parties in a trust is not subject to land value increment tax:
1. Between the settlor and the trustee upon the creation of the trust deed;
2. Between the original trustee and the newly appointed trustee upon change to the trustee during the life of the trust;
3. Between the trustee and the beneficiary upon the extinguishment of trust, 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 upon the distinguishment of trust; or
5. Between the settlor and the trustee upon the unsuccessful creation, invalidation, cancellation or nullification of the trust.

When a Dien is created on land with an assigned value, the Dien maker shall prepay the land value increment tax according to the provisions herein.

When the land title is transferred or has Dien created, the present transfer value declared shall be subject to review by the following rules:
1. If the declaration is filed within thirty days from the date the contract was entered, the assessed present value at the time the contract was entered shall be used as basis.
2. If the declaration is filed beyond thirty days after the date the contract was entered, the assessed present value at the time the declaration was received by the competent tax authority shall be used as basis.
3. For land transferred as gift causa mortis, the assessed present value at the time the legator passed away shall be used as basis.
4. For land transferred under court order, the assessed present value at the time the declarant filed action with the court shall be used as basis.
5. For land transferred under auction by court or local branch of the Administrative Enforcement Agency, Ministry of Justice (hereinafter referred to as the branch of the Administrative Enforcement Agency), the assessed present value at the time the sale was finalized shall be used as basis; but if the auction price is lower than the assessed present value, the former shall govern; if the auction price has deducted mortgages and other debts, the auction price plus such deductions shall govern.
6. For land acquired by government ad valorem or purchased at an agreed price, the assessed present value at the time of government acquisition or purchase shall be used as basis. But if the price paid by the government is lower than the assessed present value at the time of acquisition or purchase, the former shall govern.
If the land transfer value as declared by the declarant in Subparagraphs 1 ~ 4 of the preceding paragraph is lower than the assessed present value, the competent authority may purchase the land at the declared transfer value or impose land value increment tax based on the assessed present value. If the land transfer value declared by the declarant in Subparagraphs 1~3 of the preceding paragraph exceeds the assessed present value, the declared transfer value shall be used as basis for imposing land value increment tax.
For cases of land title transfer under court order, court auction, government-approved acquisition ad valorem, or government purchase under agreement that occurred from January 17 to October 30, 1997, but the tax on which has not been levied or determined by the end of the period, the provisions under Subparagraphs 4~6 of Paragraph 1 and the preceding paragraph hereof shall apply in the review of declared transfer value.

For land exempted from land value increment tax as provided by law, the competent tax authority shall determine its transfer value by the following rules and issue a tax exemption certificate to effect the registration of land title transfer:
1. For public land exempted from land value increment tax pursuant to the proviso in Article 28 herein, its transfer value shall be based on the actual sale price; for land given away or received by all levels of government by gift, the assessed present value of the land at the time the donation contract was entered shall be the transfer value.
2. For private land exempted from land value increment tax pursuant to Article 28-1 herein, its transfer value shall be based on the assessed present value of the land at the time the donation contract was entered.
3. For land in lieu of compensation exempted from land value increment tax pursuant to Paragraph 3 of Article 39-1 herein, the assessed transfer value of the land in lieu of compensation actually claimed at the time of zone expropriation shall be the transfer value.

For tax purpose, the total amount of land value increment shall be the balance of approved declared transfer value at the time of transfer or creation of Dien less the following deductions:
1. If the land has never been transferred after assignment of value, the original decreed value; otherwise the previous transfer value.
2. All expenses paid by the land title owner for improvement of land, including construction benefit charge, fees paid for land consolidation, and assessed present value of a certain portion of land donated for public facilities without compensation due to rezoning of land.
The “original decreed land value” referred to in Subparagraph 1 of the preceding paragraph shall accord to the provisions of the Equalization of Land Right Act; the “previous transfer value” shall mean the assessed present value of land at the time of succession if the land is transferred again after acquisition through succession. However, if the land transferred by succession is the land in lieu of compensation claimed under zone or section expropriation pursuant to subparagraph 3 of Article 30-1 herein before, and the value of the land in lieu of compensation actually claimed is higher than the assessed present value of the land at the time of succession, the original decreed land value shall be the higher one in the case that the land is transferred again after acquisition through succession.
For the purpose of tax payment at the time of land title transfer, if any supplemental payment of land value tax was paid consequential to the reassessment of land value during the ownership of land, tax thus paid prorated to the part of land being transferred may be deducted from the land value increment tax, but the total deduction thereof shall be limited to 5% of the land value increment tax payable.
The measure for deduction of supplemental land value tax paid as described in the preceding paragraph shall be prescribed by the Executive Yuan.

When the land which is not subject to land value increment tax pursuant to Article 28-3 has the title transferred, Dien created, or is changed to self-owned land of trustee pursuant to Paragraph 1, Article 35 of the Trust Act, the original decreed land value or the latest approved declared transfer value of the land prior to its first non-taxable status shall be used as its original land value for calculation of the total incremental value and imposition of land value increment tax. But in the case that meets the proviso in Paragraph 2 or 3 of Article 39, the original land value shall be determined accordingly.
In a testamentary trust where land is the trust property, when the land becomes subject to land value increment tax according to the preceding paragraph, its original land value shall be the assessed present value at the time of death of the legator.
Transfer of self-owned land for trust and the trust deed stipulates the beneficiary of trust property to be the settlor and to have interest in the entire trust, if the beneficiary of a trust dies during the life of the trust, when the land becomes subject to land value increment tax according to the first paragraph hereof, its original land value shall be the assessed present value at the time of death of the beneficiary; however, in case the settlor is discovered to have improperly evaded or reduced the tax burden for him or for other person(s) by the trust deed transfer, the forepart provision does not apply.
If the land subject to land value increment tax as described in the first paragraph hereof has the situation where the settlor or trustee had paid improvement expenses or supplemental land value tax as described respectively in Subparagraph 2 of Paragraph 1 or Paragraph 3 of Article 31 hereof prior to the creation of trust or during the life of the trust, the deductions provided in the same article are applicable; the trustee in the second and third paragraph hereof had paid the preceding expenses and the land value tax after the death of the legator or the beneficiary, the deductions provided in the same particle are applicable.
At the effective date of the amendment of this Act on July 1, 2015, the preceding two paragraphs shall be applicable to the cases not currently being assessed or pending final decision.

The original decreed land value and previous transfer value for determination of the land value increment tax as stipulated in Article 31 shall be adjusted by the consumer price index announced by the government, if any, in the calculation of total amount of land value increment.

The rate schedule and amount for land value increment tax are as follows:
1. If the total amount of land value increment is less than 100% of the original decreed land value or the previous transfer value (for calculation of then land value increment tax), 20% of the total increment.
2. If the total amount of land value increment is more than 100%, but less than 200% of the original decreed land value or the previous transfer value (for calculation of then land value increment tax), 30% tax rate on portion in excess of 100% in addition to the tax rate provided under subparagraph 1 above.
3. If the total incremental value is more than 200% of the original decreed land valueor the previous transfer value for calculation of then land value increment tax, 40% tax rate on portion in excess of 200% in addition to the tax rate provided under subparagraphs 1 and 2 above.
The actual loss in tax revenue to municipal or county (city) governments resulting from the tax reduction stipulated in the preceding paragraph will be made up by the central government. The aforesaid dedicated funds for making up lost tax revenue shall not be restricted by Article 23 of the Budget Act which forbids the use of proceeds from the issue of government bonds on current expenditure prior to the implementation of the amended Act Governing Allocation of Government Revenues and Expenditures which expands the scale of tax revenues under the allocation of central government.
The calculation of actual loss in tax revenue described in the preceding paragraph will be decided by the central competent authority together with the municipal and county (city) governments through consultation.
The assessed present value of land should be adjusted to fair market price.
When the national average of assessed present value of land has been adjusted to more than 90% of the fair market value, the rate schedule stipulated in the first paragraph hereof will be reviewed and amended.
For land that has been owned for a period of over 20 years, its land value increment tax on the portion exceeding the lowest tax rate above shall be reduced by 20%.
For land that has been owned for a period of over 30 years, its land value increment tax on the portion exceeding the lowest tax rate above shall be reduced by 30%.
For land that has been owned for a period of over 40 years, its land value increment tax on the portion exceeding the lowest tax rate above shall be reduced by 40%.

For self-use residential land sold by title owner, the land value increment tax shall be 10% of the total incremental value of the land for urban land up to 3 acres and for non-urban land up to 7 acres; the total incremental value for part of land in excess of 3 acres or 7 acres shall be taxed according to the rate schedule stipulated in the foregoing article.
The preceding provision does not apply to land that was used for business purpose or rented in the last year before its sale.
The provisions in the first paragraph hereof do not apply to land where the assessed value of the self-use residence thereon is less than 10% of the assessed present value of the land, unless the construction of the residence has been completed for more than one year.
Landowner may use the tax rate provided in the first paragraph hereof for calculation of land value increment tax once in his or her lifetime.
In the case that the landowner sells another self-use residential land after the terms of the preceding paragraph has been exhausted, the land value increment tax imposed thereon shall not be governed by the once in the lifetime restriction as provided in the preceding paragraph if the following conditions are met:
a) That the amount of the urban land sold doesn’t not exceed an area of 1.5 acres and that of non-urban land sold doesn’t not exceed 3.5 acres;
b) At the time of selling, the landowner, his or her spouse, and his or her minor children have no other house except the self-use residence sold;
c) The landowner has owned the self-use residential land for a period of over 6 years before its sale;
d) The landowner, his or her spouse, and his or her minor children have maintained their household registration at the location of on the self-use residential land and owned the self-use residence for a period of consecutive 6 years before its sale;
e) The land has never been used for business purposes or rented in the last 5 years before its sale.
The actual loss in tax revenue to municipal or county (city) governments resulting from the provisions in the preceding paragraph will be made up by the central government. The aforesaid dedicated funds for making up lost tax revenue shall not be restricted by Article 23 of the Budget Act which forbids the use of proceeds from the issue of government bonds on current expenditure prior to the implementation of the amended Act Governing Allocation of Government Revenues and Expenditures which expands the scale of tax revenues under the allocation of central government.
The calculation of actual loss in tax revenue described in the preceding paragraph will be decided by the central competent authority together with the municipal and county (city) governments through consultation.

When a landowner applies for assessment of land value increment tax based on the tax rate for self-use residential land, he/she shall indicate the wording of “self-use residence” in the application for declaration of land transfer value and submit a document evidencing building improvement; if the applicant fails to indicate such information in the application, he/she may apply to make up the information with the local tax authority before the deadline for paying the land value increment tax; no such application will be accepted past the payment deadline.
For cases of land title transfer where the right holder is required to declare the transfer value of the land being transferred independently or the transfer declaration is not required, the competent tax authority should take the initiative to notify the title owner; if the land in question meets the criteria for self-use residential land, the title owner shall apply for the application of tax rate for self-use residential land in thirty days starting from the day following the receipt of such notice; application made past the thirty-day deadline will not be accepted.

When a landowner who has sold his/her land acquires another parcel of land within two years following the completion of transfer registration, and the acquisition meets any of the following provisions, if the value of the acquired land is in excess of the balance of the original value of land sold less the land value increment tax paid, the landowner may apply to the tax authority for refund of the portion of land value increment tax paid to make up the difference to be paid for the reacquisition of land:
1.After self-use residential land has been sold, the original owner acquires another parcel of urban land not exceeding 3 acres or non-urban land not exceeding 7 acres for his/her own residential use.
2.After self-operated factory land has been sold, the original owner acquires another parcel of land for factory building in another industrial zone as designated by urban planning or on government-designated industrial land.
3.After self-tilled agricultural land has been sold, the original owner acquires another parcel of agricultural land for self-tilling.
The provisions in the preceding paragraphs apply if a landowner sells his/her land within two years after the registration of title transfer for the acquisition of another parcel of land is completed.
Provisions in subparagraph 1 of Paragraph 1 and Paragraph 2 hereof do not apply if the land sold or requisitioned was used for business purposes or rented in the last year before transfer.

The “original value of land sold” depicted in Paragraph 1 of the foregoing article shall be the land value used to assess the applicable land value increment tax for that transfer. The “value of the reacquired land” depicted in Paragraph 1 of the foregoing article shall be based on the land value used to assess the applicable land value increment tax for that transfer; for land subject to deed tax, the value of the reacquired land shall be the land value used to assess the deed tax for that transfer.

If the land value increment tax has been refunded to a landowner due to reacquisition, and the landowner transfers the reacquired land within five years from the day the transfer registration is completed for the reacquisition, said landowner shall be levied land value increment tax for subsequent transfer in addition to paying back the tax refunded; the preceding provision applies if the reacquired land is being used for purposes other than the original purpose.

(Deleted).

Requisitioned land is exempted from land value increment tax; if the owner of private land subject to requisition according to law voluntarily sells the land to the land use applicant, the forepart provision is applicable.
The provisions of the forepart of the preceding paragraph apply to the transfer of land that has been designated as reserved land for public facilities under urban planning, but not yet been requisitioned. But if the aforesaid land is transferred again after it has been changed to non-reserved land, the original decreed land value or the latest approved declared transfer value of the land prior to its first tax-exemption status shall be used as its original land value for calculation of the total incremental value and imposition of land value increment tax.
The provisions of the forepart of the first paragraph apply to the transfer of non-urban land that has been proven for use for public facilities constructed or under planning, and after designated by law, but not yet been requisitioned by a land use applicant. But if the aforesaid land is transferred again after it has been changed to non-public facilities use, the original decreed land value or the latest approved declared transfer value of the land prior to its first tax-exemption status shall be used as its original land value for calculation of the total incremental value and imposition of land value increment tax.
The certification of the issuance of the procedure and other related matters under the preceding paragraph shall be stipulated collaboratively by the Ministry of Finance and the relevant authorities.
At the effective date of the amendment of this Act on May 21, 2021, the third paragraph shall be applicable to the cases not currently being assessed or pending final decision.

Land value increment tax of reconsolidated land shall be reduced by 40% in its first transfer after the reconsolidation.
Transfer of land requisitioned under zone or section expropriation where the landowner receives cash for compensation is exempted from land value increment tax according to the forepart of Paragraph 1 of the foregoing article. If the landowner receives cash compensation pursuant to Paragraph 3, Article 54 of the Equalization of Land Right Act on grounds that the area of land in lieu of compensation claimed by the landowner is smaller than the minimum building unit, the transfer is also exempted from land value increment tax.
Transfer of land requisitioned under zone or section expropriation where the landowner receives land in lieu of compensation as compensation pursuant to Paragraphs 1 and 2, Article 54 of the Equalization of Land Right Act is exempted from land value increment tax. But for the first-time transfer of land in lieu of compensation after the claim, total incremental value used to assess the land value increment tax payable for the transfer shall be based on the value of land in lieu of compensation actually claimed by the original landowner, and provisions of Paragraph 1 apply.

Transfer of agricultural land used for agricultural purpose to an individual may apply for non-taxable status of land value increment tax.
If the transferee of the aforesaid land during his ownership failed to use the land for agricultural purpose as found by the competent authority and failed to resume farming before the deadline set by the competent authority or had complied with the order of the competent authority but subsequently failed again, land value increment tax shall be imposed at the time of subsequent transfer.
For tax purpose, the situation of the land transferee failing to use the land for agricultural purpose as described in the preceding paragraph and the situation where land is bestowed to a spouse shall be taken into consideration in the assessment of land value increment tax at the same time.
When the first-time transfer of agricultural land for agricultural purpose after this Act is amended on January 6, 2000 or subsequent transfer of land not subject to land value increment tax pursuant to the first paragraph hereof should be levied land value increment tax according to law, the total incremental value used to assess the tax shall be based on the assessed present value of land on January 6, 2000.
Subsequent to the promulgation of the amended Act on January 6, 2000, when agricultural land that has been levied land value increment tax is transferred again and becomes subject to land value increment tax, the total incremental value used to assess the tax shall be based on the latest transfer value of the land approved for assessment of land value increment tax, and the provisions of the preceding paragraph do not apply.

For a landowner who applies for non-taxable status of land value increment tax pursuant to Paragraph 1 of the foregoing article, both the right holder and the obligor shall indicate the wording of “agricultural land” in the application for declaration of land transfer value; if the applicant fails to indicate such information in the application, he may apply to make up the information with the local tax authority before the deadline for paying the land value increment tax; no such application will be accepted beyond the payment deadline. But if law provides that the right holder may declare transfer value independently, said right holder may do so accordingly.
If declaration of land transfer value is not required for the transfer of agricultural land, the tax authority should take the initiative to notify the right holder and obligator; if the right holder declares land transfer value independently, the tax authority should notify the obligor. If the land in question meets the criteria for exemption of land value increment tax, the right holder or obligor shall make application in thirty days starting from the day following the receipt of such notice, and application made past the thirty-day deadline will not be accepted.