In response to the Justice Interpretation No. 779, the Ministry of Finance has officially announced the draft amendment of the Land Tax Act, which shall assign the “non-urban land” as reserved land for public facilities. Transfer prior to expropriation can be compared with the exemption of the urban land value increment tax. It is expected to be sent to the Legislative Yuan for review in the first half of next year.
However, before the amendment of the law to be passed, the relevant cases are still subject to pay the land value increment tax first and then be managed by the local tax bureau, the tax refund could be made only after the third read of the future bill.
Officials reminded that non-urban landowners with similar situations should apply for re-examination to the land tax authority within 30 days, which is from the day after the expiration of the land value increment tax payment period. Therefore, they can get a tax refund after the future law is passed.
According to the Ministry of Finance, as of June 30, a total of 761 cases have been filed for review and placed under regulation throughout Taiwan, in which Tainan City ranks the top with 245 cases, Taoyuan City ranks second with 130 cases, and Yunlin County ranks third with 105 cases. Taipei City and Chiayi City are all urban land and are originally exempted from the land value increment tax. Hence, there is no case listed for control.
The Justice has made the interpretation No. 779 in July last year, which originated from a Tainan farmer surnamed Su, whose land was located in a non-urban planning area. Part of the land was designated by the government as road land, and sold the land before the expropriation which was then charged more than $200,000 of the land value increment tax by the taxation authority. The farmers surnamed Su was dissatisfied in the first place due to the loss of the lawsuit. At the end, the constitutional interpretation was successfully applied and the Ministry of Finance must review the amendment within two years.
The Ministry of Finance took the first step to amend the law by repealing the relevant interpretation order last year, and started to hold seminars. Later this year in September, the Ministry of Finance announced the draft amendment to allow non-urban land designated for public facilities to be transferred before being expropriated and compared to the exemption of the land value increment tax as urban land. The notice period expires on November 9 and will be sent to the Legislative Yuan for review in the first half of next year.
In addition to the constitutional amendment, the Ministry of Finance also reviewed some of the discretionary amendments at the same time. For example, in the current Land Tax Act, if the public wishes to apply for the special tax rate for self-use residential property, they must apply 40 days before levy of the land tax. In the amendment, it shall directly set the date to be filed before September 22. This shall assist saving taxpayers from calculating the date themselves.
News Source：【Economic Daily News 2020/09/16】
