Chapter Five Taxes and Relevant Matters
The retrieve made by the Trustee in accordance with the trust contract or sales of Beneficial Securities issued or delivered pursuant to this Act shall be exempted from the securities transaction tax.
The trust interest of Beneficial Securities publicly offered or privately placed pursuant to this Act shall be distributed annually.
The distributed trust interest as prescribed in the preceding paragraph shall be the beneficiaries’ income and subject to the income tax on interest, and shall not be counted into corporate income of the Trustee.
When distributing the interest as referred to in Paragraph 1 hereof, the Trustee shall withhold the income tax in accordance with the applicable withholding rate, and such interest shall be separately taxed and will not be consolidated into the gross personal income or gross corporate income of the beneficiaries.
When a REIT or REAT employs land as the trust property and the underlying asset to publicly offer or privately place Beneficial Securities, the Trustee shall be the taxpayer for land value tax of such land during the existence of the trust relationship. The calculation of the tax payable shall be based on all trust land of such trust plan within the same municipality or county (city) to jointly calculate the total amount of land value and in accordance with the tax rate as prescribed under Aritlce 16 of the Land Tax Act to calculate land value tax payable.
In case that the trust land may not be returned to the trustor after the trust is terminated in accordance with the REAT contract, when transferring the rights of such land at the constitution of the trust act, the trustor shall be the taxpayer, subject to the land increment tax, inapplicable to Article 28-3 of the Land Tax Act.
The depreciation cost of constructions invested through the REIT plan or the REAT plan may be calculated with an extended period of one-half of the service life as described in the Table of Service Life of Fixed Assets.
However, the period of those to be set aside with a selected extended service life shall not be altered afterwards.