The Equalization of Land Rights Act Article 36

The levy of land value increment tax shall be computed on the basis of the total amount of the increased value of land and shall accrue to the public at every transfer of land ownership or at creation of the right of dien except transfer through inheritance.From the total amount of the increased value of land as referred to in the preceding Paragraph there shall be subtracted the cost for land improvement which the landowner has incurred and any construction benefit charge he has already paid.In paying the land value increment tax at the time of the transfer of land ownership, the landowner shall, if his annual payment of the land value tax during the period of his ownership of the land has been increased owing to the reassessment of his land value, be permitted to credit such increased payment against the land value increment tax payable by him for the portion of his land which is transferred. But the amount to be credited against the land value increment tax shall not exceed 5 per cent of the total land value increment tax payable at the transfer of land ownership.Rules governing the increased payment of land value tax to be credited against the land value increment tax, as referred to in the preceding Paragraph, shall be made by the Executive Yuan.