When individuals sell properties acquired before December 31, 2015 （old system properties）, according to Category 7, Paragraph 1, Article 14 of the Income Tax Act, they must accurately calculate property transaction income by deducting the original acquisition cost and all necessary expenses paid for acquisition, improvement, and transfer of the property from the actual transaction price, and include this in their annual individual income tax return.

The National Taxation Bureau of Kaohsiung, Ministry of Finance states that individuals selling old system properties should calculate property transaction income accurately as a principle. Only when taxpayers cannot provide original acquisition costs and tax authorities cannot verify such costs may the property transaction income be calculated based on the standards set by the Ministry of Finance. For example, in fiscal year 2024, the Ministry of Finance’s standards are as follows:
（1） For cases meeting any of the following criteria, calculate property-attributable income using the actual total property transaction amount multiplied by the ratio of the property’s assessed present value to the total of announced present land value and property assessed present value at the time of sale, then calculate property transaction income at 20% of such income:
1.Taipei City: Total property transaction amount （including parking spaces） of NT$60 million or above, or per-ping unit price （total transaction amount excluding parking spaces divided by total registered ping area excluding parking spaces） of NT$1.2 million or above.
2. New Taipei City: Total property transaction amount （including parking spaces） of NT$40 million or above, or per-ping unit price of NT$750,000 or above.
3. Taoyuan City, Hsinchu County, Hsinchu City, Taichung City, Tainan City, and Kaohsiung City: Total property transaction amount（including parking spaces） of NT$30 million or above, or per-ping unit price of NT$500,000 or above.
4. Other areas: Total property transaction amount （including parking spaces） of NT$22 million or above, or per-ping unit price of NT$350,000 or above.
（2） For cases not meeting the above criteria, calculate property transaction income using a specified percentage of the property’s assessed present value.

The Bureau provides the following example: Mr. A purchased a townhouse in Sanmin District, Kaohsiung City for NT$24 million in 2013, spending NT$1.2 million on renovation and related expenses. In 2024, he sold the property for NT$35 million, paying NT$1.8 million in land value increment tax, brokerage fees, and related expenses. The property’s assessed present value at sale was NT$2 million, and the announced land value was NT$3 million. When filing his 2025 individual income tax return, Mr. A should attach relevant documents and accurately calculate the property transaction income as NT$3.2 million {＝（NT$35M - NT$24M - NT$1.2M - NT$1.8M) × [（NT$2M ÷ （NT$2M + NT$3M））]}. If Mr. A cannot provide and tax authorities cannot verify the original acquisition cost, then according to the Ministry of Finance standard for Kaohsiung City properties with total transaction amounts of NT$30 million or above, the property transaction income would be calculated as NT$2.8 million {＝NT$35M × [（NT$2M ÷ （NT$2M + NT$3M））] × 20%}, and would not apply the specified percentage calculation based on assessed present value（37% for Sanmin District, Kaohsiung City）.

The Bureau would like to remind taxpayers especially that cases where accurate calculation of property transaction income is possible but reported using Ministry of Finance standards will be prioritized for audit. The public is urged to accurately calculate property transaction income when selling old system properties and report honestly. Since the 2024 individual income tax filing deadline has passed, those with under-reported or omitted income should promptly file supplementary（corrected） returns and pay additional taxes to their local tax bureau. Completing supplementary filing and tax payment with interest before being reported or investigated by designated tax authority investigators qualifies for penalty exemption under Article 48-1 of the Tax Collection Act. For filing questions, please call our toll-free service hotline 0800-000-321 or visit the Bureau’s website （https://www.ntbk.gov.tw） to make inquiries online using the National Tax Smart Assistant “National Tax Helper.”

Provided by: First Individual Income Tax Section
Contact person: Section Chief, Ms. Lin. Phone number: （07）7256600 ext. 7270
Contributor: Ms. Lee.                              Phone number:（07）7256600 ext. 7222