MOF Scales Down Incentives for Urban Renewal Projects

Taipei, March 1, 2011 (CENS)--Only original owners and developers can enjoy free deed tax and 40% tax reduction for realty rights in new buildings under urban renewal projects, while buyers will be only entitled to the tax reduction, decided the Ministry of Finance (MOF).

The change is included in the regulation made by the MOF on Feb. 21, which is a revision of the regulation instituted in Feb. 2007. As a result, owners of realty rights in the new buildings will have to pay 60% deed tax. The new regulation will not be retroactive, however. They will be able to continue enjoying 40% reduction on housing tax, deed tax, land price tax, land value increment tax, and gift tax.

The revision has been made, despite the government's vigorous promotion of urban renewal projects in recent years, a policy designed to give streets, city landscape, and aged buildings brand new appearances. It is also an inevitable road for boosting a city's competitiveness. In addition, it can improve urban environment, enhance residential quality, boost employment opportunities, and expand public space in a city.