Taiwan eases tax rules for trust properties used as primary residences

Taiwan's Ministry of Finance has announced a relaxation of the rules governing preferential housing tax rates for properties held in trust. The move aims to provide relief to beneficiaries who genuinely occupy these properties.

Under the new interpretation, properties placed in a trust can now qualify for self-occupied tax rates. This applies if the settlor, their spouse, or their lineal descendants are actually residing in the property and have completed household registration there. This condition ensures that the preferential treatment is given to genuine residential use.

Previously, the criteria for applying self-occupied tax rates to trust properties were more stringent. The revised regulations mean that such properties will be subject to the lower land value tax rate of 2 per mille, along with the standard residential rate for house tax. This adjustment is expected to benefit many trust beneficiaries who use their trust-held properties as their primary residence.