Draft bill aims to curb real estate speculation
Courtesy of ICRT
The Cabinet has approved a draft amendment to the Income Tax Act aimed at curbing short-term real estate speculation.
The amendment involves adjusting the "integrated house and land sales tax" so real estate sellers will face heavier taxes if they sell property within a fixed period of time.
Under the bill, private individuals and institutions face a 45% tax on property transaction gains on homes or land sold within two years of purchase - which is an extension from the current one year.
Both foreign-based individuals and business entities will face a 45% tax should they sell real estate within two years of purchase, and thereafter a 35% tax on transactions done for over two years of purchase.
While a 35% tax will be imposed on those who sell their homes or land within two to five years of purchase.
Premier Su Tseng-chang says the revised rules are aimed at cracking down on housing speculation rather than bringing down housing prices.
The bill will now be submitted to the Legislative Yuan for review.