If your house is foreclosed, you can still apply for a preferential tax rate for self-occupied residential land to save land tax.

If your house is foreclosed, you still have the opportunity to apply for a preferential tax rate for self-occupied residential land and save land tax. (File photo)

After the land is auctioned by the court, can the original land owner still apply for the self-use residential land tax rate? The tax bureau stated that although the land owner does not need to declare land value-added tax on the land auctioned by the court, those who meet the conditions for self-use residential land can still apply for a 10% tax rate. However, after receiving the notification from the tax authorities, the application must be submitted within the time limit. If it is exceeded, it will not be applicable.

The Hsinchu County Government Taxation Bureau stated that in cases where land is auctioned by the court, after the taxation authority receives the notice from the court, it will first calculate the land value-added tax based on the general land tax rate. In order to protect the rights and interests of land owners, the tax authorities will send notification and guidance letters by double registration to remind the public that if the auctioned land meets the relevant conditions for self-use residential land, they can apply to be charged a 10% self-use residential land tax rate.

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As for what situations can apply? The tax bureau stated that if the buildings on the auctioned land are not rented out or used for business, and the land owner, spouse or immediate family member has established a household registration, and meets the requirements for self-use residential land, he or she can apply. However, there is a clear deadline for the application. After the land owner receives the guidance letter from the tax authority, he must submit it within 30 days from the next day. If the application is made after the deadline, the self-occupied residential land tax rate will not be applicable.

In addition, there is another important time point in court auction cases, which is the "auction date". The tax bureau reminds that whether the registration requirements are met is based on whether the household registration has been completed in the place on the day of the auction. It does not depend on when the land owner receives the notice from the tax authorities, nor does it mean that the household registration will be completed later. Therefore, if the household registration has not been completed on the auction date, even if you receive a notification or apply for a new household registration later, you still cannot claim to meet the registration conditions.

If, after review, it is approved that the property be levied according to the self-occupied residential land tax rate, resulting in land value-added tax that should be refunded, the tax bureau stated that the relevant funds will be handed over to the enforcement court for redistribution in the order of claims. After the distribution is completed, if there is any remaining money, it will be returned to the original land owner.