The Unexpected Tax Bill
A client reached out to our assistance with a tax issue stemming from a real estate sale that occurred years ago. Due to mishandling by his previous agent, the client was facing a significant unexpected sales tax bill. Despite being an APRC holder, which would have entitled them to a lower tax rate, this crucial detail was overlooked. They missed the factor that this client should register the household registration before selling the house to enjoy the advantage of a 10% tax rate and exemption on transaction revenue.
Income tax law 14-4:
Permits APRC holders to use a 20% tax rate on real estate transactions held for longer than 6 years. To be eligible for a 10% tax rate plus NTD 4,000,000 exemption on transaction revenue, the taxpayer needs to be registered at the household bureau with either himself/herself or a lawful spouse, or lawful children.
For more details on the Income Tax Act, please refer to the source from Taxation Administration, Ministry of Finance, R.O.C.
Negotiation & Client Advocacy
At times, the responsibilities of accountants and lawyers overlap. As accountants, we can act as representatives for our clients when dealing with taxation authorities. Leveraging our bilingual capabilities and extensive network, we ensure effective representation. Understanding the importance of human connection, we recognize that while rules are rigid, people are not. Hence, we strive to find a balance through respectful negotiation with tax authorities.
Finding the Way to Achieve Settlement
Despite the limited chance of success with an appeal, we explored all available options. By listing legitimate deductions, such as renovation costs, we proposed a strategy to reduce the client's tax burden. This showcases the value of our expertise in navigating complex tax situations.
Through dedication and negotiation with the tax agency, ensuring they fully understood the client's background, we achieved a fair and reasonable tax settlement.
LET US HELP YOU
In navigating tax matters, attention to detail and expertise are important. Whether you're a property owner or involved in real estate transactions, understanding the tax implications is crucial, not even for the foreigners in Taiwan.
Consider seeking professional assistance to ensure you're optimizing your tax benefits and avoiding unexpected liabilities. At Del Sol CPA Services, we are committed to advocating for our clients and navigating complex tax situations. Reach out to us for personalized assistance tailored to your specific needs.
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