News / Taiwan / cnyes
Tax Trap: Taiwan Tax Authority Claws Back Millions in Housing Tax Refunds Over 5-Year Rule
Finance · Real Estate Development · cnyes · 2026-09-06
Taiwan's tax authorities are reclaiming housing tax refunds if properties are sold or repurposed within a mandatory five-year occupancy period, regardless of the reason for sale.
What Happened
Tax Refund Regulations: Under Taiwan's Income Tax Act, taxpayers can claim tax credits or refunds for repurchasing a primary residence within two years, provided they meet strict residency and non-commercial use requirements.
Five-Year Monitoring Period: To curb real estate speculation, the government enforces a five-year monitoring period during which any transfer, change in residency, or conversion to commercial use triggers a mandatory clawback of the tax refund.
Involuntary Sale Rejection: The National Taxation Bureau clarified that even involuntary sales, such as those caused by job transfers, do not exempt taxpayers from repayment if the property is no longer used as a primary residence.
Compliance Advice: Tax officials urge homeowners to carefully consider the five-year restriction before applying for tax benefits, advising them to consult with the tax bureau to avoid unexpected financial liabilities.