According to the National Taxation Bureau of the Southern Area, Ministry of Finance, as long as the house is for self-use and fulfills the application period requirement, the general public may claim House and Land Transactions Income Tax deduction regardless of selling first or purchasing first. If it is an exchange of a small house for a larger house, they may even claim a full tax refund.

There are 326,000 properties sold and transferred in 2020 nationwide, the highest in the recent 7 years. A number of 175,000 properties sold and transferred in the first half of 2021 is also the highest compared to the same period in recent 8 years. This is mainly due to the housing market flourishing; many people begin to exchange for new houses in the wake of the rise in the number of new constructions within the country.

An official said that individuals can enjoy a tax refund as long as three requirements are fulfilled, i.e. the new house is bought for self-use; the sales and purchase is made within 2 years; and an application is submitted. A small house (lower cost) exchanging for a larger house (higher cost) may claim full tax refund; whereas a large house (higher cost) exchanging for a smaller house (lower cost) may enjoy tax deduction per ratio.

Firstly, the old and new house and land must be for self-use only, e.g. the individual, spouse and minor children have lived in and maintained their household registration at the said residence, and such house and land have not been used for any lease, business operation or professional practice. In the event of change of purpose of new house to lease, business operation or professional practice in the next five years, the tax refund shall be paid back.

The transaction interval between the sales and purchase of house and land must be within two years, whichever comes first, the ownership transfer registration dates must also be within two years.

In addition, an official pointed out, for repurchasing house, that there are two refund periods available, including pay first and get refund later, and consolidated deduction. If sale was made first, pay tax first and refund afterwards shall apply; House and Land Transactions Income Tax will need to be filed within a month after the sale. After completing the transfer registration of the new house, individuals shall apply for a tax refund from the National Taxation Bureau within five years...