National Taxation Bureau of Taipei, Ministry of Finance (Taiwan) expresses that, according to Article 14, Paragraph 1, Category 5, Subparagraph 4 of the Income Tax Act, "Income tax on revenue from lease calculated in accordance with the local prevailing rental standard shall be paid for properties lent to others for use, unless it can be verified that no payment is made and the properties involved are not being used for business or for carrying out professional services".

Lending house to others for business or for carrying out professional services, although no payment is made, it is still required to file income tax on revenue from lease calculated in accordance with the local prevailing rental standard. The so-called "others", refer to individuals or legal persons other than the lender, spouses and immediate family members.

A contract for lending without payment entered into by the two concerned parties must be provided for lending house to other individuals without payment, neither for business nor for carrying out professional services, but for home use. This contract must be witnessed by two individuals other than the two concerned parties as truly for lending without payment. It also must be notarized according to the provisions of the Public Notarization Law. Otherwise, individual income tax on revenue from lease calculated in accordance with the local prevailing rental standard should be filed.

We urge taxpayers to file for individual income tax according to regulations when lending house to others, so that you will not be sought after for paying overdue tax and your rights will not be affected.