National Taxation Bureau of Kaohsiung, Ministry of Finance expressed that, according to Article 14-8 of Income Tax Act, individuals who sell the self-use house and land within the imposition of land transactions income tax and comply with the following three conditions shall be considered as “selling before buying (a property)” and may, within five years from the date on which the self-use house and land are repurchased, apply for repurchase tax refund. For those who “buy before sell (a property)”, they may apply for imputation tax credit when selling self-use house and land:

1. The individual, his (her) spouse, or their minor children have lived in, maintained their household registration at the sold and purchased self-use house.
2. The house and land have never been used for lease, business operation, or professional practice one year before its sale.
3. The period between the sale of the old house and land, and the repurchase of the new house and land shall be within 2 years (shall refer to the title transfer registration date).

The Bureau explained that, to avoid speculation and to implement the legislative purposes of protecting citizens’ self-use rights and interests, if the new house and land to which the repurchase tax refund is applicable have been transferred to another party or used for other purposes (ex., without household registration or being used as a self-use residence; or be used for lease, business operation or professional practice) within five years, the amount of deducted or refunded tax shall be paid back. Nevertheless, if the household has been moved out from the repurchased house without being moving back due to any of the following reasons, and if the repurchased house has been used as a self-use residence without being used for lease, business operation or professional practice, the repurchased house may be recognized as not being used for other purposes and there is no need to pay back the tax amount:

1. The school in which the individual’s minor children are studying or intend to study has set the admission requirements of having their household registered in the school district.
2. The individual or his (her) spouse has been dispatched to work in overseas.
3. The original owner died.

The Bureau reminded that this preferential mechanism offered to the repurchase of self-use house and land aims to encourage self-use residence. Taxpayers who comply with the aforesaid conditions shall submit documents for the approval of the tax collection authority. Individuals who have any questions in regard to preferential tax for repurchased self-use residence may dial the free hotline 0800-000-321 for detailed information.

Contact: Ms. Lee, Revenue officer of the Second Examination Division

TEL: 07-7256600 ext.7257