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New Project of Action Plan for Housing Justice 2.4, Advocacy of Differential Tax Rate for Other Houses Used for Residential Purposes

To promote the real estate tax reform and implement the housing justice, the Department of Finance (DoF), Taipei City Government (TCG), accompanied by the Department of Land, the Department of Urban Development and the Taipei City Revenue Service, held the “Housing Justice 2.0 Serial Forum IV - Promoting the Real Estate Tax Reform and Implementing Housing Justice" in 2021. To understand the public opinion on the current taxation, an online questionnaire survey was conducted at the same time. A total of 1,078 questionnaires were effectively received. The results indicated that 80% of the participants support the tax benefit for single owner-occupied housing and public welfare rental housing. They also expect the central authorities to increase the legal tax rate of housing after the implementation of the House and Land Transactions Income Tax 2.0. In the long run, the policy of combined taxes on land and house based on actual selling price can be promoted.

DoF appreciates that the valuable opinions from people who are concerned about this issue were collected. The comments and suggestions have been incorporated into the Action Plan for Housing Justice 2.4. TCG will continue to strive to make the taxation fairer and more reasonable. The examination on the use of self-occupied houses with the help of water and electricity consumption will continue to be conducted as well to release vacant houses and increase the supply of housing. TCG urges the central government to moderately increase the cost of holding multiple houses to protect the citizens’ basic rights to housing,and  fulfill the concept of housing justice.

DoF further states that in order to encourage landlords to release their vacant houses into the rental housing market, the tax benefit for public welfare rental housing and social housing has been provided. The tax rate is equivalent to single owner-occupied housing. In addition, individual owners of residential units who commission their residential units to the RHMB(Rental housing management business) or lease their housing to the RHSB(Rental housing subleasing business) for subleasing, where the contract covenants residential uses for more than one year, may receive a 40% discount on the land value tax and housing tax (each up to $10,000) per unit since November 2021. It is expected to advance a sound rental housing market and protect the rights of leasing parties through appropriate tax incentives.