Taiwan MOF Clarifies Capital Gains Tax on Real Estate Transfers by Specific Profit-Seeking Enterprises

The Taiwanese Ministry of Finance Dec. 11 clarified the capital gains tax on income from real property transfers, for profit-seeking enterprises transferring Taiwanese houses or land through trading the shares or capital contributions in domestic or foreign companies they control. The clarification includes that: 1) the tax applies if the enterprise trades the shares or capital contributions of unlisted, over-the-counter (OTC), or emerging companies, and if the shares or contributions are comprised of more than 50 percent Taiwanese houses or land, effective July 1, 2021; 2) such transactions are regarded as real estate transactions and the exemption for capital gains ...