I. About the House Tax

The house tax shall be collected from the house owners as a kind of asset tax. Besides the normal configured housing structures, all other types of specially configured buildings intended for residential, business and working use, such as loft buildings, other odd-shaped warehouses, or gas stations are also subject to house tax.

II. Tax Scope

The house tax shall be levied on all houses attached to land and on such other buildings, which enhance the utility value of these houses.

III. Taxpayers

• The house tax shall be collected from the house owner.
• For a right-of-use house with superficies registered on the land thereof, the house tax shall be collected from the holder of such right-of-use.
• Where a right of Dien exists, the house tax shall be collected from the Dien holder.
• Where a house is jointly owned by more than one person, the house tax shall be collected from the joint owners who shall designate one of themselves to pay the tax on their behalf. In case no one is designated to pay the tax, the present occupant or user shall pay on behalf of the joint owners. A person who pays the house tax on behalf of the joint owners shall have the right to claim compensation from the other joint owners for the amount of tax in excess of his share of the tax.
• In a case where the whereabouts of the house owner or Dien holder referred to above is unknown, or if he is not domiciled in the locality where the house is situated, the house tax shall be paid by the manager or present occupant of the house. In a case where the house is rented, the house tax shall be paid by the tenant and deducted from the rent payable to the owner.
• Houses owned by trustee, the houses are still under trusteeship, and the house taxpayer is the house trustee.

IV. Tax Rates

A. Calculation of Housing Tax

The house tax is not levied based on the building cost or market value, but is based on the current value of standard price and applicable tax rate. The payable house tax is calculated by the formula below: the standard value of house per square meter × size (square meter) × (1 - an applicable depreciation rate × the years of depreciation) × an adjustment rate based on the level/class of street or road × an applicable tax rate.

B. Table for Hsinchu City House Tax Rate (effective on July 1,2024)

• A house that serves as residential and non-residential purposes at the same time, shall have the actual tax levy calculated based on the actual size (square meter) used as residential and non-residential purposes. But for non-residential purpose, tax shall be levied at no less than one-sixth of the total house area.
• There are twelve types of residential purposes houses which are not based on the total number of taxable houses held in the whole country by the taxpayers to set differential tax rates, examples include a public-owned house for residential purposes, rental housing that complies with Article 17, Paragraph 1 of the Rental Housing Market Development, parking spaces provides exclusively for parking vehicles, an owned-in-common house, etc. If these houses fall under the category of declared rental income reaching the local prevailing rental standard specified in Category 5 under Paragraph 1, Article 14 of the Income Tax Act, or are jointly-owned houses acquired through inheritance, the tax rate is 1.5%. If these houses fall under the category of residential properties for sale as indicated in the Usage License held by the builder, or fall under other residential purposes, the tax rate is 2%.
• In the event of a change to the use of a house, the taxpayer shall report the change to the local competent tax authority at least forty days in advance of the commencement of the collection period for each taxable year.
• If the taxpayer fails to report the change in time, the new tax rate will become applicable from the next taxable year after the taxpayer's report.

V. Exemptions and Reductions

• Tax Exemptions for Public Buildings
  House tax is exempted for public buildings used as:
  • Office buildings of government agencies at each level of government or local autonomous agencies, including employee dormitories.
  • Office buildings of military institutes and units, including dormitories provided to their officers and men.
  • Jails, detention houses, and office buildings of a prison as well as employee dormitories.
  • School buildings, hospital buildings, and office buildings of a public school or public hospital; public social, educational, or academic research institute; or public relief organization as well as dormitories provided to their employees.
  • Research or laboratory buildings of industrial, mining, agricultural, forestry, water conservancy, fishery, or stock farming enterprises or institutes.
  • Warehouses of food administrations and salt administrations, as well as plant buildings and office buildings of state-owned monopolies and government-run waterworks.
  • Buildings used by postal services, telecommunication services, railroad services, highway services, aviation services, meteorological services, or harbor services for their own business as well as dormitories provided to their employees.
  • Buildings at places preserved as scenic spots as well as for housing of ancient relics, and shrines dedicated to sages and martyrs.
  • Buildings assigned by the government for housing the poor.
  • Buildings used by government-operated enterprises to train retired servicemen for employment.
• Tax Exemptions for Private Buildings
  House tax is exempted for private buildings in any of the following situations:
  • School buildings and office buildings owned by a private school or an academic research institute on record with the competent authority and duly registered as a non-profit organization.
  • Houses owned and directly used for its activities by a private charitable institution on record with the competent authority and duly registered as a non-profit organization.
  • Shrines owned by clansmen organization and used exclusively for ancestral worship, or churches and temples owned and used by religious groups for religious service, provided such organization or group has been duly registered as a non-profit organization or temple.
  • Houses offered free of charge to government organizations for public or military use.
  • Offices owned and directly used by a non-profit organization whose establishment has been duly approved by the government. However, the above situation does not include any organization that limits its services to the people of same trade, the same locality, schoolmates, or clansmen, unless it is a labor union registered in accordance with the Labor Union Act and has been approved for exemption by local tax authority submitted to the municipality, county, or city government for approval.
  • Buildings for stock farming, greenhouses for cultivating agricultural products, operation buildings for growing rice seedlings, places of artificial reproduction, water pumps, kilns for smoking tobacco, dry machines for rice and tea leaves, warehouse for storing farming machines and compost.
  • Houses of which 50% or more of the floor area has been destroyed in a major disaster and which must be repaired before they become usable.
  • Houses owned by a judicial protection institution.
  • Up to three houses for residential purposes each with a current value of NT$100,000 or less owned by a natural person in the whole country. The amount will be adjusted when the standard value of house is reassessed and adjusted. It will be adjusted by the unit of NT$1,000, the value adjustment of less than one unit will be treated as one unit.
  • Warehouses owned by farmers' associations used exclusively for storage of public grains by the food administrations as attested by the competent authorities.
  • Houses acquired by a trustor based on a charitable trust and used for non-profit business, provided the establishment of such trust has been approved by the competent authorities in charge of the relevant industries.
• Tax Reductions
  House tax is reduced by half for private houses in any of the following situations:
  • Houses sold by the government to people at reduced prices.
  • Buildings owned by a duly-registered factory and used directly for production.
  • Warehouses and houses used for testing purposes which are owned and used by a farmers' association as attested by the competent authorities.
  • Houses of which 30% or more but less than 50% of the floor area has been destroyed in a major disaster.
• Application Deadline
  • For houses that are entitled to house tax exemption or reduction pursuant to Item 1 to 8, 10, 11 of B and Item 1 to 4 of C, the taxpayer shall file the exemption/reduction application with the local competent tax authority at least forty days in advance of the commencement of the collection period for the taxable year; where the taxpayer fails to file the application in time, the exemption/reduction will become applicable from the next taxable year after the taxpayer's application. Where the exemption/reduction application has been approved, unless the reason for the exemption/reduction has changed, no further such application is required.
  • Where a natural person owns more than three houses for residential purposes each with a current value of NT$100,000 or less in the whole country, he shall, at least forty days in advance of the commencement of the collection period for each taxable year, file an application with the local competent tax authority to designate the houses which are the exemption pursuant to Item 9 of B applies; where the taxpayer fails to file the application in time, the exemption will become applicable from the next taxable year after the taxpayer's application. Where the exemption application has been approved, unless the number of houses held by the taxpayer has changed, no further such application is required.

VI. Others ＆ Penalty Provisions

• The last day of February of each year shall be the base date which decides who should be the taxpayer. The tax shall be assessed by the local competent tax authority based on the house tax registration data and is collected from May 1 to May 31 of each year, and the taxable cycle is from July 1 of the previous year to June 30 of the current year.
• For a newly constructed, expanded, or reconstructed house, if the construction is completed in the current taxable year, the house tax payable shall be prorated on a monthly basis and no tax shall be levied in the month in which the house is completed less than one month; the same applies where a house is demolished in the current taxable year.
• For a newly constructed, expanded, or reconstructed house completed between March 1 and June 30 of each year, the house tax for the completed period shall be levied in the next taxable year; for a house demolished between July 1 of the previous year and the last day of February of the current taxable year, the house tax for the period during which the house has not yet been demolished shall still be levied in the current taxable year.
• when a taxpayer disagrees with the amount of tax payable by decision made in a tax assessment notice or Tax Payment Slip, he could file an application to stating therein the reasons for disagreement along with evidentiary documents and apply to recheck within thirty days from the date following the expiration date of the period for tax payment. If he disagrees with the decision on the recheck application rendered by the tax authorities, he could file an administrative appeal and initiate an administrative litigation.
• A taxpayer who fails to declare the current value of his house in accordance with the provision set forth in Article 7 of the House Tax Act that results in tax evasion shall be subject to a fine that is no more than double the amount of tax payable in addition to being liable to pay the tax owed.
• If a taxpayer fails to pay the tax due before the deadline, he is subject to a surcharge for belated payment at 1% of his house tax payable for every 3 days in arrears, for up to 10 %. Where no payment of the tax is made after the 30-day period, the case shall be referred to the Administrative Enforcement Agency, Ministry of Justice for forcible enforcement.