From 2007, any case regarding to the transaction of housing lands can be allocated as expenses of operation in accordance with the item 1 of article 2 in "Regulations Governing Allocation for the Costs, Expenses or Losses Regarding the Exempt Income of Profit-seeking Enterprise" in the declaration of profit-seeking income tax respectively. For those which cannot be categorized as expenses of operation specifically, such expenses shall be computed and allocated into tax-exempt income on average. In the condition that profit-seeking enterprises fails to settle down the purchase of house, the enterprise shall allocate this expense into delayed expense to declare and list each tax-exempt income into expense of that year of sale. In addition, for those which are sold in parts, such transaction shall be computed by the rate of before-and after selling expenses and converted into the current expenses and delayed expense at that year of sale.
In the condition of the tax payable income and tax-exempt income or more than 2 types of tax-exempt income incurred from the selling of land, such income shall be shared by the rate of income (Integrated securities houses is excluded.). Besides, in the condition of land before selling incurred any expenses in operation, the expense can be allocated as each category clearly and listed as the current income in the coverage of tax payables to deduct the income at that fiscal year.
For profit-seeking enterprises which main running business is not real estates related, the expenses shall be deducted from the tax-exempt income, apart from the expenses which shall be allocated in justification, and free from sharing the expenses of operation without justification.