The Ministry of Finance issued a reminder on August 27, 2026, to individual taxpayers who have received approval for the self-use residential repurchase preference under the Land Value Increment Tax (LVIT) Act. The preference allows deferral of LVIT when a taxpayer sells a self-used residence and purchases a new one within a specified period. However, the MOF stressed that the replacement property is subject to a five-year “monitoring period” during which any change of use (e.g., rental, resale, or non-occupancy) triggers immediate recapture of the deferred tax plus interest.
Key Takeaways
- Strict Occupancy Requirement: The taxpayer must continuously occupy the replacement property as their primary residence for five full years; temporary absences exceeding six months may jeopardize the preference.
- Automatic Recapture Triggers: Transfer of ownership, change to rental use, or failure to maintain household registration at the address automatically triggers tax reassessment.
- Documentation Retention: Taxpayers must retain utility bills, household registration records, and property insurance policies for the entire five-year period as evidence for potential audits.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement