Land Tax Act Article 31

The calculation of the total amount of land value increment shall be the difference between the declared transfer value, approved at the time of land ownership transfer or the establishment of Dien rights, and the following deductions:1. For land that has not been transferred after the land value was first assigned, the original assigned land value; for land that has been transferred after the assignment of land value, the previous transfer value.2. All expenses paid by the landowner for land improvements, including paid construction benefit charge, land rezoning fee, and if the land owner donates a certain proportion of the land for free as public facility land due to changes in land use, the assessed present value of the proportion at the time of donationThe term "original assigned land value" in Subparagraph 1 of the preceding paragraph refers to the value assigned under the Equalization of Land Rights Act; the term "previous transfer value" used for the calculation of land value increment tax, refers to the assessed present value at the time of inheritance for land acquired by inheritance. However, if the land was received as the land in lieu of compensation under Subparagraph 3, Article 30-1, and its value at the time of zone expropriation was higher than the assessed present value at the time of inheritance, the higher value shall be used.When the landowner processes the land transfer and pays the land value increment tax, the supplemental land value tax paid due to the reassessment of land value during the period of land ownership can be offset against the land value increment tax payable on the transferred land. However, the total amount allowed for offsetting shall not exceed five percent of the total land value increment tax payable.The method for offsetting the supplemental land value tax shall be prescribed by the Executive Yuan.