The house tax differential tax rate 2.0 plan will not increase the tax burden of house lessors

In order to encourage multi-family families to release their houses for rental use, the Ministry of Finance plans to implement the House Tax Differential Tax Rate 2.0 Plan (hereinafter referred to as the 2.0 Plan) from July 1, 2013, especially for house owners to rent out their homes. Houses are eligible for a preferential tax rate of 1.5% to 2.4%, the tax burden will not increase but decrease, and the current preferential tax rate of 1.2% for social housing and public welfare lessors will be maintained.

The Ministry of Finance explained that in order to take care of the renters, the government can apply for rent subsidies for renters who meet certain conditions, and their landlords meet the conditions of public welfare lessors and can enjoy relevant tax incentives, such as: rental income per house per month NT$15,000 or less is exempt from income tax; the land for leased housing is subject to land value tax at the residential land tax rate (2‰) for self-use; the housing tax for leased housing is 1.2% for self-occupied use, and the landlord rents out The tax burden will not increase for tenants who receive rent subsidies. In addition, the 2.0 plan also provides a lower tax rate of 1.5% to 2.4% for the house owner to release the house to the rental market, compared with the general non-self-occupied house tax rate of 2.0% to 4.8%, and the current highest tax rate of 3.6% In comparison, the tax burden does not increase but decreases. If the multi-house family wants to reduce the housing tax burden, they can rent out the idle houses that should have been applied to 2% to 4.8% under the plan, so that renters can rent good houses, which is mutually beneficial.

The Ministry of Finance further explained that according to the statistics of the Ministry of the Interior, there were about 126,000 public welfare lessors in 2011. Taking the current value of 1 million yuan of rented houses by public welfare lessors and a monthly rental income of 15,000 yuan as an example, their annual rental income of 180,000 yuan is all duty free. As for the housing tax rate of 1.2%, the housing tax amount is 12,000 yuan. Under the 2.0 plan, the tax rate (negative) remains unchanged.

Press Release Contact: Yi Fen, Section Chief Lin

Contact number: 2322-8259