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Housing Tax 2.0 Launch Encountered Issues! 50,000 Tax Statements in Taipei Misclassified as 'Non-Owner Occupied'

Housing Tax 2.0 Launch Encountered Issues! 50,000 Tax Statements in Taipei Misclassified as 'Non-Owner Occupied'

The housing tax and comprehensive income tax commenced today (1st) simultaneously. However, the Taipei National Tax Bureau issued a press release indicating that due to the impact of the first-year system transition of the new Housing Tax 2.0, around 50,000 tax statements showed two different tax rates for the same property as both 'owner-occupied' and 'non-owner occupied'.

The relevant issues have been swiftly addressed, and new tax statements are expected to be sent to taxpayers in late May. Recently, residents in both Taipei and New Taipei City discovered that their properties had been inaccurately listed as 'non-owner occupied', resulting in a sudden increase in tax amounts. Deputy Finance Minister Lee Ching-Hua stated today during an Executive Yuan meeting that the differential tax rate on housing tax was enforced from May 1 to May 31 of this year, but some issues arose during its implementation.

In Taipei City, discrepancies appeared in the data transfer process regarding owner-occupied and non-owner occupied properties, and the city government has recognized the issue, estimating about 50,000 cases that will be reprinted by the Taipei Taxation Office. Lee urged all taxpayers to refrain from making payments temporarily, assuring that any taxes already paid will be refunded and grace periods will be granted. Furthermore, Lee indicated that New Taipei City has raised a concern regarding some properties purchased after July 1, 2024, which may have established tax registrations but have not reported to the tax authority that they meet the owner-occupied criteria. He noted that this issue was discovered in the early stages of the tax collection and that the Ministry of Finance has reached a consensus with local governments to extend the original reporting deadline from March 24 to June 2, allowing the public more time for corrections.