ENAmendments to the Directions Governing the Filing of Income Tax on Integrated House and Land Transactions
27 Jul 2026
Rhe Ministry of Finance announced amendments to the Directions Governing the Filing of Income Tax on Integrated House and Land Transactions. We summarize below:
(1) The amendment relaxes the rules to exclude from the scope of the house and land integrated tax the portion of gains derived from a shareholder’s transfer of equity in an invested enterprise acquired before June 30, 2021, corresponding to the proportion of the value of real property held by such enterprise that was acquired before December 31, 2015 relative to its total domestic real property value.
(2) In determining whether 50% or more of the value of equity in an invested enterprise is composed of domestic real property, with reference to international practices, provides that to ensure a more reasonable calculation, where the total asset value of the enterprise can be reasonably and objectively measured (e.g., based on CPA-audited valuation reports), the denominator may be calculated based on the total fair market value of all assets.
(3) The amendment clarified how to determine the acquisition date and holding period for real property acquired through spousal gifts, successive inheritance, and similar arrangements.
(4) Where a sole proprietor or a partner in a partnership jointly develops and acquires real property with a landowner and disposes of such property within five years, a 20% income tax rate may be applied.
(5) Where a profit-seeking enterprise actually engages in construction but is unable to act as the project developer for objective reasons, it may apply consolidated taxation upon submission of supporting documents and verification by the tax authority.
(6) Where arrangements are made to avoid or reduce tax liability through segmented transactions of buildings, partial ownership of land, or agreed-upon portions of building usage rights, a tax shall be imposed with a base amount of NT$ 300,000, apportioned according to the relevant ownership share or agreed scope.
(1) The amendment relaxes the rules to exclude from the scope of the house and land integrated tax the portion of gains derived from a shareholder’s transfer of equity in an invested enterprise acquired before June 30, 2021, corresponding to the proportion of the value of real property held by such enterprise that was acquired before December 31, 2015 relative to its total domestic real property value.
(2) In determining whether 50% or more of the value of equity in an invested enterprise is composed of domestic real property, with reference to international practices, provides that to ensure a more reasonable calculation, where the total asset value of the enterprise can be reasonably and objectively measured (e.g., based on CPA-audited valuation reports), the denominator may be calculated based on the total fair market value of all assets.
(3) The amendment clarified how to determine the acquisition date and holding period for real property acquired through spousal gifts, successive inheritance, and similar arrangements.
(4) Where a sole proprietor or a partner in a partnership jointly develops and acquires real property with a landowner and disposes of such property within five years, a 20% income tax rate may be applied.
(5) Where a profit-seeking enterprise actually engages in construction but is unable to act as the project developer for objective reasons, it may apply consolidated taxation upon submission of supporting documents and verification by the tax authority.
(6) Where arrangements are made to avoid or reduce tax liability through segmented transactions of buildings, partial ownership of land, or agreed-upon portions of building usage rights, a tax shall be imposed with a base amount of NT$ 300,000, apportioned according to the relevant ownership share or agreed scope.