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Q:
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What are the cost and expenses items that can be deducted from property transaction income for selling property of individual in Taiwan, which lay outside the scope of house and land transaction tax?
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A:
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The cost and expenses items that can be counted for selling property of individual are as follows:
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In terms of costs, including:
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Obtain the value price of the property. If the property sold was acquired through succession, according to Income Tax Act Article 14 Paragraph 1 Category 7 Subparagraph 2, amount of the income shall be the transaction price after deduction of value prevailing at time of succession, and should be based on the standard price assessed on the basis of gift tax at the time of succession.
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Necessary fees paid before the purchased house reaches the ready-for-use status (such as deed tax, stamp tax, book-representation fees, regulatory fees, supervision or notarization fees, agency fees, etc.).
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Loan interest of bank before the property was registered under the individual’s name.
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The payment during the period of use which increased the value or efficiency of the property after acquiring the ownership of the property, and is not a new installation, improvement or renovation cost that would use up with 2 years.
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2.
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In terms of expenses transferal:
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Necessary expenses paid for selling of the property, such as agency fees, advertising fees, cleaning fees, removal fees, etc. The housing tax, management and cleaning fee, financial institution lean interest paid before selling of the property, after acquiring the ownership of the property, are considered as relevant cost during period of usage and shall not be listed as cost or expense deduction.
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Q:
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What are the regulations for calculation of the 2019 transaction income from individual property selling?
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A:
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According to Income Tax Act Article 14 Paragraph 1 Category 7 and the Enforcement Rules of the Income Tax Act Article 17-2 ( Property sold that lay within the scope of house and land transaction tax stated in Income Tax Act Article 4-4 Paragraph 1, is not applicable):
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The calculation of property transaction income for individual property selling should verify according to the provisions of Income Tax Act Article 14 Paragraph 1 Category 7 for those who provide or tax collection organization has confirmed the actual transaction price and cost of acquiring.
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For those who did not file the property transaction income according to the provision mentioned above, nor provide or the tax collection organization fails to confirm the actual transaction price and cost of acquiring, the tax collection organization shell calculate the income by standard.
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Q:
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How to file integrated income tax for transferring additional paid-in capital to capital increase stock in Taiwan?
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A:
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Individual who obtains stock issued by company for transferring additional paid-in capital, is not required to include it in the yearly integrated income tax. However, if the shareholder transfers this kind of stock afterwards, he should count the total transferred amount as annual property transaction income.
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Q:
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Is it necessary for an individual to file integrated tax for stock selling, shares transferal and transaction income of equity in Taiwan?
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The transferal of capital contribution of a limited company shareholder, or the shareholder of a company limited which does not issue stock transfers his share or equity, or the shareholder transfers his stock of a company limited which is not issued according to the provision of Company Act Article 162, would all be counted as transaction income instead of gains derived from the securities transactions. The transaction income, referring to the transferal amount that exceeds the capital contribution, should be filed for annual total integrated income tax.
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Q:
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What does income form contests and games and from prizes and awards won by chance refer to in Taiwan?
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A:
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It refers to all the bonuses and prizes obtained or won by participating in various competitions or lottery activities, i.e. prizes or awards given in tournaments, competitions and by drawing lots, after deducting necessary expenses and cost. For example, contests or prize-winning puzzles conducted by TV or radio, writing competition or quiz published on newspaper or magazines by various organizations, sports, skills or IQ contests held by sports associations or society, and prizes from Taiwan receipt lottery would all be counted as well.
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FAQ
