The scope of the land value tax is land in the territory of Taiwan. In other words, land outside the territory of Taiwan is not under the scope of the land value tax. The land value tax shall be levied based on the total value of all parcels of land owned by a title owner in the same municipality or county(city).
Taxpayers of the land value tax are:
The tax authorities may designate land users to be responsible for paying the land value tax in the following situations:
The taxpayer must declare the value of his/her land with reference to the land value announced publicly by the Land Value Evaluation Committee. The declared land value should be within a range of from 80% to 120% of the announced land value. If the taxpayer does not declare as aforesaid within an announced period, 80% of the announced land value would be deemed the declared value.
The land value tax rates include the basic rate, a progressive rate scale, and special rates. One percent of the basic rate applies to land for public use, industrial use, mining, private parks, zoos, stadiums and sports fields, gas stations, and parking lots as well as ordinary land with value not exceeding the starting cumulative value. Ordinary land with value exceeding the starting cumulative value is taxed according to the following progressive scale:
The starting cumulative value shall be determined by the average land value of seven acres in the respective municipality or county(city), excluding land used for factories, mining, agriculture, and land exempted from tax.
| Type of Land | Tax Rate | |
|---|---|---|
| Tax Rate for Ordinary Land | Ordinary land with value exceeding the "starting cumulative value": | |
| The excess is less than 5 times the starting cumulative value: The excess is taxed at | 1.5% | |
| The excess is 5-10 times the starting cumulative value: The excess is taxed at | 2.5% | |
| The excess is 10-15 times the starting cumulative value: The excess is taxed at | 3.5% | |
| The excess is 15-20 times the starting cumulative value: The excess is taxed at | 4.5% | |
| The excess is more than 20 times the starting cumulative value: The excess is taxed at | 5.5% | |
Special rates apply to land used for the following purposes:
| Purpose | Special Rate | Remarks |
|---|---|---|
| Land for self-use residence | 0.2% | Applies only to the portion of urban land no more than 300 square meters or non-urban land no more than 700 square meters. |
| Land for labor dorm or public housing | 0.2% | |
| Land reserved for public facilities | 0.6% | The tax rate is 0.2% for land qualified for the criteria of self-use residence. The tax is exempt for unused land segregated from that under use. |
An exemption or reduction in the land value tax is regulated by the "Land Tax Act" or "Land Tax Reduction and Exemption Regulations". Examples are provided as follows:
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