The Equalization of Land Rights Act Article 40

The land value increment tax shall be levied at the following rates:1.If the total amount of the increased value of land exceeds the original assessed value or the current transaction land value declared at the time of its last transfer by less than 100 percent, the rate of 20 percent shall be applied to the land value increment.2.If the total amount of the increased value of land exceeds the original assessed value or the current transaction land value declared at the time of its last transfer by more than 100 percent but less than 200 per cent, besides application of the provisions of the preceding Subparagraph, the rate of 30 percent shall be applied to that portion in excess of 100 percent.3.If the total amount of the increased value of land exceeds the original assessed value or the current transaction land value declared at the time of its last transfer by more than 200 percent, besides application of the provisions of the preceding two Subparagraphs, the rate of 40 percent shall be applied to that portion in excess of 200 percent.Before the execution of revising Act Governing the Allocation of Government Revenues and Expenditures to enlarge the scale of the general allocation of tax by the Central Government, the physical loss of tax revenue for the Special Municipal Government or the County / City Government due to amending tax rate in the preceding Paragraph shall be made up by the Central Government. The amount for making up is not limited by the provisions of Article 23 of the Budget Act which prescribes that the proceeds from the issue of public debts shall not be used for ordinary expenditures.Ministry of Finance will consult the Special Municipal Government or the County / City Government and calculate the physical loss in the preceding Paragraph.The announced current land value shall not be lower than market value at a certain proportion.The certain proportion in the preceding paragraph is decided after central competent authorities consult Ministry of Finance and the Special Municipal Government or the County / City Government. But the announced current land value should approach to the market value year by year.When the land has been possessed over twenty years, the land value increment tax exceeding the portion of the lowest tax rate in the first paragraph is twenty percent tax-deductible.When the land has been possessed over thirty years, the land value increment tax exceeding the portion of the lowest tax rate in the first paragraph is thirty percent tax-deductible.When the land has been possessed over forty years, the land value increment tax exceeding the portion of the lowest tax rate in the first paragraph is forty percent tax-deductible.