Buyer researches the property rights and encumbrances registered against the property at the registry of titles
Agency: Land Registry
The buyer obtains copies of the land and building’s registration from the electronic registration database. Each page costs TWD 20.
Time and cost: Less than 1 day (online), TWD 50 (TWD 10 for the search and TWD 20 per sheet of e-transcript)
Buyer pays the Deed tax at the Municipality
Agency: Municipality
The Deed tax is 6% of the standard property value, and buyer pays it at the Municipality. Seller pays the Land value increase tax.
As a result, Taiwan government (Real-estate Valuation Committee) issues so-called “standard” valuation information of property every year for tax authorities’ and tax payers’ reference. After years, such government announcement of valuation becomes the reported tax base by taxpayers and acceptable by tax authorities. The real “contract price” might be ignored when filing deed tax in practice now. The standard value is always lower than market price.
As of January 30 2005, the Land value increase tax (capital gains tax) is levied according to the following rates:
- Where the net increase of the value of any land is no more than 100 percent of the original value of such land, the rate shall be 20 percent of the net increase.
- Where the net increase of the value of any land is no more than 200 percent of the original value of such land, the rate shall be 30 percent of that part of the net increase which exceeds the original value by more than 100 percent in addition to the rate prescribed in the preceding section.
- Where the net increase of the value of any land is no more than 300 percent of the original value of such land, the rate shall be 40 perсent of that part of the net increase which exceeds the original value by more than 200 percent in addition to the rates prescribed in the preceding section.
As of October 2009, the Ministry of Finance completed the development of the Local Tax Online Filing Portal, provided for use by the public nationwide.
Taiwan government spent two years planning this system, which enables the public to carry out the filing for these local taxes online at home, and speeds up the procedure for property registration. (The Local Tax Online Filing Portal website can be visited at: https://net.tax.nat.gov.tw)
Time and cost: Less than 1 day (online), TWD 2,415,008.45 (6% of standard property value (Deed Tax) + 0.1% Stamp Duty)
Registration of transfer of title at the Land Registry
Agency: Land Registry
The transfer of title is registered at the Land Registry. The original ownership certificate must be returned and a new one is issued.
Time and cost: 3 days, TWD 39,670.3 (0.1% of property value (registration fee) + TWD 80 for new ownership certificate)
