Agricultural land violation records are calculated together with donations. The tax bureau reminds you not to take chances.

People who obtain agricultural land through sale or donation, and apply for and receive "no land value-added tax" from the tax authorities do not mean that they can change the land use at will in the future. The Penghu County Government Taxation Bureau also reminds that agricultural land must continue to be used for agriculture during the period of holding. If it has been found in violation and has not been improved within a time limit, or if it has been "violated again" after improvement, when the land is transferred again in the future, it may not be able to continue to enjoy the exemption of land value-added tax.

Many landowners often have the misconception that by donating farmland to their spouse, past violation records will be reset to zero. In this regard, the tax bureau clarified that according to the provisions of the "Land Tax Law", when spouses donate agricultural land to each other, the violation record of the land recipient must be "aggregated" with the previous owner. In other words, transferring the ownership to the spouse will not clear the violation record.

The tax bureau gave an example. A piece of farmland under Mr. Chen's name was once seized and not used for agriculture. Although improvements were completed within the time limit, he later donated the farmland to his wife. However, while his wife was holding it, it was found to be in violation again. Even if the wife completed the improvements within the same deadline this time, Mr. Chen's past violation records were combined and calculated, which constituted "re-violation after improvement." If the farmland is transferred again in the future, the exemption from land value-added tax will not be applicable.

The tax bureau called on the original intention of exempting agricultural land from land collection and increasing taxes to encourage sustainable agricultural operations. Before transferring agricultural land or making a gift between spouses, people must first confirm the actual use status and past records of the land. Do not face huge tax burdens when transferring in the future due to temporary negligence or misunderstanding of the regulations.