Hsinchu County Taxation Bureau explains: The preferential tax rate for self-occupied residences of Heyi Trust is still applicable, and two key requirements must be met

The Hsinchu County Taxation Bureau pointed out that as long as the content of the trust deed and the actual living status meet the "two key requirements", the owner-occupied land with a trust for other interests can still enjoy the preferential owner-occupied tax rates of land value tax and housing tax. (Photo by reporter Liao Xueru)

[Reporter Liao Xueru/Report from Hsinchu] In order to protect the residential rights and interests of people's families, the Ministry of Finance has relaxed the restrictions on the preferential tax rate for self-occupied residences on "other benefit trust" properties in order to benefit from the rental tax. The Hsinchu County Taxation Bureau pointed out that as long as the content of the trust contract and the actual living status meet the "two key requirements", the self-occupied property with a separate benefit trust can still enjoy the preferential owner-occupied tax rates of land value tax and housing tax to avoid increasing the rent and tax burden.

The tax bureau explains that the so-called "other-benefit trust" refers to a trust structure in which the settlor and the beneficiary are not the same person. In the past, this type of situation was often unable to apply the owner-occupied tax rate due to the nominal conversion of property rights. However, according to the latest regulations of the Ministry of Finance, the situation can be solved as long as the following two conditions are met:

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The first is "the contract specifications are in place." The trust deed must clearly stipulate that the beneficiary is the spouse or immediate family member of the trustor, and that the beneficiary shall enjoy all trust benefits; at the same time, the trustor shall not reserve the right to change the beneficiary, and shall stipulate that the property shall not be disposed of, sold, or transferred to a third party during the trust period.

The second is "Essentially self-occupied and not rented out." The trust property must be registered and actually lived in by the trustor himself, his spouse or immediate family members, and there must be no rental or business activity. In addition, the land price tax is still limited to 300 square meters of urban land, 700 square meters of non-urban land and one nationwide limit; the house tax must comply with the national self-occupancy regulations for the beneficiary, his spouse and minor children, who live in a total of no more than 3 households nationwide.

For example, if Mr. Zhang entrusts the land where he owns his home to his son, as long as the contract meets the above restrictions, and the son is indeed registered as a resident and has no rental business, he can successfully apply for the owner-occupied discount.

The tax bureau specifically reminds that this benefit must be applied for by the "trustee" and the trust deed and other supporting documents must be attached. Applicants must apply to the tax bureau 40 days before the start of the housing tax (before March 22) and land price tax (before September 22) or apply online through the Ministry of Finance’s tax portal; if submitted after the deadline, it will not be applicable until the following year. People should remember to grasp the time limit to protect their own rights and interests!