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Department of Finance

Regulations

TCG Municipal Guideline for Encouraging Civil Participation in Public Infrastructure Projects through Land Value Tax, Building Tax and Deed Tax Abatement

Title: TCG Municipal Guideline for Encouraging Civil Participation in Public Infrastructure Projects through Land Value Tax, Building Tax and Deed Tax Abatement
Date: ( 2004-11-15 Enacted )
Amendment: Formulated on November 15, 2004

 

Article 1
This Municipal Guideline is formulated in accordance with Article 39 Section 2 of Encouragement of Civil Participation in Public Infrastructure Projects Act (hereinafter referred to as the Act).

 

Article 2
Following promulgation of the Act, entitlement of private entities to land value tax, building tax and deed tax abatement for their participation in major public infrastructure projects of Taipei City Government (TCG) as defined by Article 3 Section 2 of the Act shall be governed by this Municipal Guideline. In the event where no provision is found in this Municipal Guideline, provisions of related rules and regulations shall apply. However, in the event where provisions of other applicable rules and regulations are more advantageous to concerned private entities than what is provided in this Municipal Guideline, the most advantageous provision shall prevail.

 

Article 3
In the event where in accordance with the use only part of the land lot or building lot is in compliance with provisions of this Municipal Guideline, abatement of land value tax, building tax and deed tax may be computed in accordance with the proportion of the area that is in compliance with provisions of this Municipal Guideline.

 

Article 4
During the time private-entity-participated major TCG public infrastructure projects as defined by Article 3 of the Act are under construction or in operation, the land tax of the land lot approved by the governing agency for direct use may be exempted for five years counting from the date the exemption is approved by the taxation agency.
In the event where the land lot approved for land tax exemption is transferred to a third party for continuation of the construction or operation before the five years of exemption expires, the exemption may continue until the five years of exemption expires.

 

Article 5
During the time private-entity-participated major TCG public infrastructure projects as defined by Article 3 of the Act are in operation, the building tax of the newly constructed private-owned building approved by the governing agency for direct use may be abated by 50% for five years counting from the date the exemption is approved by the taxation agency.
In the event where the building approved for building tax abatement is transferred to a third party for continuation of the operation before the five years of abatement expires, the abatement may continue until the five years of abatement expires.

 

Article 6
Private entities participating in major TCG public infrastructure projects as defined by Article 3 of the Act obtaining ownership of the real estate property for the owner's direct use through purchasing, collateralized loan, exchange, bestowal, severance or occupation during the time the private-entity-participated major TCG public infrastructure project is under construction or in operation may be entitled to 30% abatement of the deed tax.
In the event where the real estate property mentioned above is transferred or converted for other purposes within five years after the deed tax declaration for the real estate property is filed, the abated deed tax shall become payable.
Private entities obtaining operational assets or constructed projects as a result of taking over the construction or operation of private-entity-participated major TCG public infrastructure projects pursuant to approval of the governing agency in accordance with the provisions set forth in Article 52 Section 3 of the Act may be exempted from concerned deed tax.

 

Article 7
Taxpayers qualified for exemption/abatement provisions of Article 4 through the previous article shall fill out the tax exemption/abatement application form and ubmit it along with proofs to the governing taxation agency in accordance with the following requirements:
1 Application for land tax exemption in accordance with provisions of Article 4 shall be submitted within forty days before collection of the land tax begins each year (period). Entitlement of those who submit the application after the deadline to land tax exemption shall begin the following year.
2 Application for building tax abatement in accordance with provisions of Article 5 shall be submitted within thirty days the cause of abatement takes place. Entitlement of those who submit the application after the deadline to building tax abatement shall begin the same month the application is filed.
3 Application for deed tax abatement in accordance with provisions of Article 6 Section 1 shall be submitted at the time the deed tax declaration is filed.

 

Article 8
In the event where the cause of exemption disappears, land owners exempted from land tax in accordance with provisions of Article 4 shall file the declaration with the governing taxation agency, and the regular taxation shall resume the following year (period).
In the event where the cause of abatement disappears, building owners entitled to building tax abatement in accordance with provisions of Article 5 shall immediately file the declaration with the governing taxation agency, and the regular taxation shall resume the following month.

 

Article 9
This Municipal Guideline shall be in effect on the date it is promulgated.