| I. Introduction Land value tax is levied on land; the nature of this tax is property tax. However, not all lands are subject to land value tax. Exactly how are the taxpayers of land value tax? What day is the benchmark day for land value tax? What about its levy day and tax rate? The following contents will touch on these topics that most people are interested in. II. Levy of Land Value Tax 1. Land owners are liable for land value tax Land value tax: for land with an assigned land value, land value tax shall be levied aside from land tax. Land owner Land tax: for land located in unassigned land value region, or land with an assigned land value meeting criteria set forth in Article 22 of Land Tax Act for agricultural use shall be levied of a land tax. 2. Taxpayers of land value tax
Obligator |
Remarks |
Land title owner |
|
Administration in charge |
For publicly owned land |
Administer |
For co-owned land |
Dien Right holder |
For land with an established Dien Right |
Bestowee |
For bestowed land |
Farmer |
For land assigned for farming |
Trustee |
For trust land | Notes: For jointly owned land, the joint owners shall be liable for their respective parts. 3. Benchmark day In accordance with Tax Act, the benchmark day for land value tax is August 31. Therefore, the land title owner or Dien Right Holder on the land registration certificate on the benchmark day will be the tax obligator. Note: The land title owner on the land registration certificate on August 31, no matter how long the ownership is, will be the tax obligator of the year. As a result, it is worthwhile marking down the holding duration ratio of the selling and buying parties in the land trading contract, and have the obligator of the year pre-collect the prorated land value tax from the other party. 4. Levy period
Levy period |
Ownership duration |
Remarks |
November 1 to November 30 |
January 1 to December 31 |
The tax is levied once every year. The levy duration starts on November 1 for Taipei City, Kaohsiung City, Kinmen County, Lienchiang County, and all counties and cities of Taiwan Province. | 5. Starting cumulative value (SCV) The baseline is the average land value of 7 are (700 square meters) of the municipality of county (city). It does not include industrial land, mining land, agricultural land, or non-taxable land (The starting cumulative value of each county/city is different; the actual value shall be confirmed with the taxation authorities of each county/city). 6. Land value tax rate and calculation formula (1) Tax rate for regular land
Class |
Formula |
Class 1 |
Tax Payable=Taxable Land Value (Not exceeding SCV)X Rate( 10/1000 ) |
Class 2 |
Tax Payable=Taxable Land Value (Portion exceeding SCV is less than 500% of SCV ) X Rate (15/1000)－Cumulative Difference (SCV X 0.005) |
Class 3 |
Tax Payable=Taxable Land Value (Portion exceeding SCV is less than 1000% of SCV) X Rate(25/1000)－Cumulative Difference (SCV X 0.065) |
Class 4 |
Tax Payable=Taxable Land Value (Portion exceeding SCV is more than 1500% of SCV) X Rate(35/1000)－Cumulative Difference (SCV X 0.175) |
Class 5 |
Tax Payable=Taxable Land Value (Portion exceeding SCV is more than 2000% of SCV) X Rate(45/1000)－Cumulative Difference (SCV X 0.335) |
Class 6 |
Tax Payable=Taxable Land Value (Portion exceeding SCV is more than 2000% of SCV) X Rate(55/1000)－Cumulative Difference (SCV X 0.545) | (2) Privileged rate
Land applicable |
Tax rate |
(1) Self-use residential land, labor dormitory land, public housing land |
2/1000 |
(2) Land reserved for public facilities |
6/1000 |
(3) Publicly owned land, land used directly for business operation such as industrial land |
10/1000 | |