2018.6.21
Tiffany Hsiao
The Ministry of Finance issued the Tai-Cai-Shui-10700554630 Circular of June 21, 2018 (hereinafter, the “Circular”) to point out that if an enclosed building which is newly constructed pursuant to applicable requirements is regarded as an air pollution control facility that collects or suppresses the emission of particulate matter pollutants and as part of conveyor equipment as determined by the tax agency in conjunction with the competent authority, such building is not subject to housing taxes.
To accommodate the efforts of the Executive Yuan to resolve the air pollution issue in Taiwan, the Air Pollution Prevention Action Plan submitted by the Environmental Protection Administration was adopted last year to prioritize air pollution reduction by large enterprises. According to this Circular, when an enterprise achieves the air pollution target in accommodation of the Air Pollution Prevention Action Plan approved by the Executive Yuan, if the fugitive particulate matter pollutants previously deposited outdoors are transported to a job site through conveyor equipment, if a compliant facility is subsequently set up or adopted to suppress the emission of particulate matter pollutants in accordance with Article 23 of the Air Pollution Control Act and the Management Regulations for Facilities to Control Fugitive Dust Air Pollution from Stationary Pollution Sources and complies with air pollutant emission requirements, and if a new enclosed building should be constructed in compliance with requirements of environmental protection authorities in municipalities under the direct jurisdiction of the Executive Yuan or in counties (cities) or with relevant autonomous regulations and is determined to be an air pollution control facility that collects or suppresses the emission of particulate matter pollutants as part of conveyor equipment by a tax agency in conjunction with the competent authority, the building is not subject to taxation under Articles 2 and 3 of the Housing Tax Statute.
However, this Circular also points out that if such building is found to be used for storing raw materials or finished goods and is a bulk warehouse in nature, it shall be subject to housing taxes.