“Which box does rental income go in, and which code do I choose?” is the question that trips up the most landlords every filing season. Our answer: an ordinary letting needs no special code and is declared directly as rental income; a property under a government-contracted management operator uses 74S, under a government-contracted sublet operator 51R; and a public-interest landlord (公益出租人), recognised after the tenant’s rent subsidy is approved, uses 74G.
This guide sets out the filing codes, what the National Taxation Bureau cross-checks, the house tax and land value tax deadlines, and the three most common mistakes. For choosing between the statuses, see three ways to let and the landlord tax comparison.
Which filing code to use
| Status | Filing code | Conditions |
|---|---|---|
| Ordinary letting | No code | Declare directly in the rental income field; choose the 43% standard deduction or itemise actual expenses |
| Sublet (social housing sublet-and-manage) | 51R | A 3-year sublet contract with a government-contracted sublet operator, which re-lets the property as an intermediate landlord |
| Managed (social housing sublet-and-manage) | 74S | A government-contracted management operator manages the property; the landlord signs a 1-year (renewable) lease directly with the tenant |
| Public-interest landlord | 74G | Recognised directly by the competent authority once the tenant’s rent subsidy application is approved; no separate application needed |
Codes follow the National Land Management Agency’s filing-season announcements.
Our view: If you are not sure whether you have already been recognised as a public-interest landlord, check the Ministry of the Interior’s public-interest landlord lookup site before filing, then use the matching code so you do not overpay.
For foreign nationals: Codes 51R, 74S and 74G all depend on government schemes, and 74G in particular follows from a tenant’s rent subsidy approval. A foreign owner will most often file as an ordinary letting with no code. If you think one of the schemes applies to your property, ask us through our contact page before filing.
What the tax office cross-checks
In recent years the Ministry of Finance has used automated data matching across several sources to identify landlords who have not declared rental income. Common sources include:
- Rent subsidy applications by tenants, and rental deductions declared by tenants on their own returns.
- Abnormal water and electricity use, for example a supposedly empty property with clearly measurable consumption.
- Lease notarisation records and notarisation fee filings.
- Property transfers, such as sales and inheritances, at which point the authority checks whether the property was previously let without being declared.
Our view: If undeclared rent is found, the landlord faces back tax with interest, a penalty of 1 to 3 times the tax, and in serious cases criminal liability. Rather than hope for the best, use the chance to become a public-interest landlord or join a sublet-and-manage scheme and bring the income into the open. Under the rules, data from those schemes is not used to pursue past undeclared income.
Our guide to tax audits on landlords describes the audit programme and penalties in more detail.
House tax, land value tax and income tax deadlines
| Tax | Billing month | Deadline for reduction or change of use |
|---|---|---|
| House tax (房屋稅) | Billed every May | Apply for a change of use or a reduction within 30 days before the house tax billing date; miss it and the change applies from the next period |
| Land value tax (地價稅) | Billed every November | Apply for a reduction at least 40 days before the land value tax billing date (about 22 September); miss it and the reduction applies from the next year |
| Comprehensive income tax (綜合所得稅) | Filed 1 May to 30 June each year | Rental income is included in the year’s return; late filing carries surcharges and interest |
These follow the House Tax Act (房屋稅條例) and the Land Tax Act provisions on land value tax.
Our view: The most common loss from missing a deadline is qualifying for relief but getting it one period late. File the change of use for the property as soon as it is let so the correct rate applies from the start.
Three common mistakes
| Mistake | Consequence | Correct approach |
|---|---|---|
| Not declaring rental income | Back tax plus a penalty of 1 to 3 times; serious cases may involve criminal liability | Declare honestly; use the 43% standard deduction or become a public-interest landlord with the NT$15,000 monthly allowance |
| Still declaring the owner-occupier rate after letting | House tax and land value tax shortfall is charged back | File the change of use promptly after letting, and apply for any reduction you qualify for within the deadline |
| Treating a private management operator as the social housing scheme | Wrong allowance or wrong code, leading to an incorrect return | Confirm the operator is a government-contracted social housing sublet-and-manage operator before using the matching code |
Our view: Before filing season, list every property you let and its status (ordinary, public-interest, or sublet-and-manage), then tick each one off against the code table above. It is the method least likely to go wrong.
If the tenant is a company
Where the tenant is a company, the company withholds tax on the rent it pays and issues a withholding statement; the landlord then reconciles it on the annual return. That arrangement, together with the 3% commercial house tax rate, is covered in renting to a company.
FAQ
What happens if I file under the wrong code, 51R, 74S or 74G?
The allowance or expense rate may be calculated wrongly, so you overpay or underpay. Confirm your actual letting status first, then follow the table; if in doubt, ask the National Taxation Bureau or an accountant.
How does the tax office know I let a property without declaring it?
The Ministry of Finance matches several data sources, including rent subsidy applications, abnormal utility use and notarisation records, to identify landlords who have not declared.
How soon after letting should I file the change of use?
As soon as possible after letting, and apply for any reduced rate within 30 days before the house tax billing date. After that, the new rate applies only from the next period.
How heavy is the penalty for undeclared rental income?
Besides back tax and interest, a penalty of 1 to 3 times the tax may apply, and serious cases may involve criminal liability. It is not worth the gamble.
I missed the 22 September land value tax deadline. What now?
A late application takes effect from the following year; the current year is charged at the original rate. Plan the application earlier next time.
Conclusion
Declaring rental income is simpler than it looks: confirm your status code, then work through the deadlines one by one, and you avoid both overpaying and being pursued for arrears. Tell us about your letting through our contact page and we can confirm which code applies. The interactive landlord tax calculator is on our Chinese page (https://www.fshouse.com.tw/page/about/index.aspx?kind=452).