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Department of Finance


Taipei City Government Will Discuss How to Refine the House Tax System and Welcome Suggestions in the Living Justice Forum VII on March 16th

Department of Finance (DoF) of Taipei City Government (TCG) expressed that after reviewed the standard prices of house and the increasing location rate of luxury residences, DoF continues to refine the house tax system. In the living justice forum VII, the issue “Refining the Housing Tax System” will be discussed in the afternoon of March 16th, including the evaluation of the location rate of house taxable base, the inspection of vacant houses and the definition of citizens who only have one self-use residential house.

According to the provisions of article 11 of the House Tax Regulations, the location rate is based on the conditions of commercial traffic and the supply and demand of houses on the street where the house is located, and comparing the market price minus the price of the land between different areas to set the standards. At present, TCG has set up 1,245 location rates, but there are some occasional controversies. In order to make the assessment of the location rates more objective, reasonable and institutionalized, the establishment of quantitative indicators will be discussed and combined with Geographic Information System (GIS). The idling of vacant houses is not only a waste of resources, but will also reduce the supply of the rental market. DoF said that the inspection of vacant houses is also included in the scope of this discussion and will explore how to use information related to daily life. For example, the consumption of water and electricity as the basis to identify vacant houses, and then change the house tax rate to non-residential house tax rate (according to the current 1.2% of residential house tax rate will be changed to 2.4% or 3.6% of the non-residential house tax rate), and it is expected that citizens who have vacant houses will pay more taxes.

DoF further explained that self-use residences are essential for the people’s basic life. In terms of taxation, the government has granted many tax concessions to self- use compared to other uses in order to protect people’s right of residence. The existing provisions for self-use houses within 3 houses apply the same tax concessions. TCG considered that citizens who have only one house should pay less on their house tax. Therefore, TCG decided to implement a policy that citizens who only have one house which is for self-use in ROC can receive a 16% of taxable base deduction on their house tax. However, citizens who only have one house which is for self-use in ROC or citizens who only have one self-use house(but may have other houses) should be given tax concessions. The forum will provide a platform for public discussion of policies to gather consensus to make planning more fair and reasonable house tax system.