Deed Tax in Taiwan

2021-11-01

The Taiwan tax laws require a deed tax filing and payment when obtaining the house ownership through a sale, lien, exchange, gift, division, or possession.

The types of deeds, tax rates and tax payers are as follows:

TypeTax RateTax Payer/Reporter
Sale6%Buyer
Lien4%Lienholder
Exchange2%Exchanger
Gift6%Gift Receiver
Division2%Divider
Possession6%Possessor

Computation formula for deed taxes:
Deed tax = (Deed price as approved) x (Tax rate)

The deed price is fixed based on the standard prices determined by the local real estate appraisal committee (which also determines the standard prices for a house’s current value based on which the house tax is fixed); provided in the case where the transfer price is lower than the standard price determined by the local real estate appraisal committee, the lower price shall apply in the case of a public real estate obtained through public auction held by the court or through public bidding offered by the government according to the laws.

Persons to submit tax filings and filing deadlines are as below:
The deed tax must be filed within the filing period by the taxpayer as the owner who obtains the house, unless such house has no title registration (due to failure to complete its first title registration) and in such a case, the deed tax filing must be done jointly by both parties resulting from a sale, exchange, gift, or division.

Also, the deed tax filing must be done within 30 days after the contract for the sale, lien exchange, gift, or division is made, or after ownership registration application is filed in the case of taking possession, with all the application forms, standardized contract, and all other documents required to be submitted, with, however, four exceptions as follows:

  1. The starting tax filing date shall be the date on which the court declares its judgment if a dispute about the transfer should arise.

  2. The starting tax filing date shall be the date on which the government authority issues the ownership transfer certificate in the case of obtaining a public real estate through public bidding held by the government.

  3. The starting tax filing date shall be the date on which the court issues the ownership transfer certificate in the case of obtaining a public real estate through public auction held by court.

  4. The starting tax filing date shall be 30 days after the date on which the government authority issues the use permit for a house still in construction due to a sale, exchange or gift that has resulted in the designation of the receiver of the house as the original constructor in the construction permit or due to a change in the constructor leading to the use permit being granted.


As a reminder, a tax payer delaying tax filing shall be subject to a 1% delay penalty for each three-day period’s delay until the total taxable amount due is depleted, subject, however, to a maximum NT$15,000 ceiling; provided that if a delay is caused by a uncontrollable event, a declaration for such purpose can be filed with the tax authority within 10 days after the uncontrollable event ceases, for which the delay penalty can be waived if found to be true.

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