Finance Ministry Plans Crackdown on Rental Tax Evasion

The government is seeking to get tougher on the many landlords in Taiwan who do not declare their rental properties to avoid paying tax.

Transcript

00:00 There are an estimated 1 million rental properties in Taiwan, but few people are able to afford

00:05 them.

00:06 Part of this is due to how many landlords lease their properties without registering

00:10 them as rentals, avoiding taxes and government regulations on rent.

00:15 Aside from overcharging on the properties, a report from the Finance Ministry estimates

00:19 that landlords have evaded taxes totaling nearly 9 million US dollars.

00:24 Now, the Tax Bureau says it will conduct inspections on suspected rentals in popular

00:36 areas near metro stations and schools to try to find that missing revenue.

00:41 Civil society organizations estimate that over 70 percent of landlords don't pay rental

00:46 tax, often telling renters that if they did, that would raise the price of their rent.

00:51 But renters say that landlords should take care of the tax costs themselves.

01:08 As long as landlords continue to rent their properties under the table, the lack of government

01:12 regulation will mean other problems will go unaddressed.

01:24 But for those navigating Taiwan's housing market, these pitfalls are to be expected.

01:29 And unless there are stricter checks on landlords, it will always be a struggle for renters to

01:34 find a place to call home.

01:37 Andy Hsu and Tiffany Wong for Taiwan Plus.

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