Taiwan's New Housing Tax: Relief for Homeowners Facing Hefty Bills

Government Extends Deadline to Help Homeowners Avoid Overpaying on New Property Tax

The "Housing Tax 2.0" in Taiwan, implemented in May this year, introduced new tax regulations. A key requirement for homeowners to qualify for the lower, self-use tax rate was to register their property with a residence by the end of March. However, many homeowners failed to meet this deadline, and consequently, faced significantly higher tax bills, sparking public concern.

Local tax authorities in Taichung City, for instance, reported that numerous homeowners found themselves paying considerably more taxes than anticipated. The Taichung City Taxation Bureau, recognizing the issue, proposed extending the deadline for homeowners to register their primary residence. This proposal received support from various cities and counties across Taiwan.

Following the advocacy from local authorities, the Ministry of Finance announced an extension to June 2nd. This offers a crucial window of opportunity for homeowners to register their residences and secure the lower tax rate.

The Taichung City Taxation Bureau provides an example: For a 50-ping apartment in a 16-year-old building in Nantun District, the annual tax could amount to NT$16,000 if not registered as a primary residence. However, by registering the residence within the extended deadline, the tax is reduced to NT$5,000, resulting in a savings of NT$11,000.