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TPP proposes bill to raise taxes on vacant property
The Taiwan People’s Party (TPP) is proposing a special tax bill to promote residential property utilization with the aim of realizing housing justice.
TPP lawmaker Huang Shan-shan says the draft bill will encourage the rental of vacant properties through tax rate adjustments, and to allocate funds for the construction of public housing. According to Huang, the vacancy rate in Taiwan is around 13%, equivalent to one out of eight residential properties being vacant.
The draft bill defines the taxable objects as non-self-occupied residential properties with 3 rooms or more, and the base tax rate is set at 25%, with an annual cumulative increase of 5%, capped at a maximum of 50%. Exemptions are provided for rental properties, labour dormitories, student dormitories, urban renewal projects, and buildings for the elderly.
Huang says the number of empty houses is bound to grow. The Ministry of Finance's data shows some 545,000 Taiwanese people owned non-self-occupied residential properties last year, an increase of 200,000 people compared with eight years ago.
