For tax purpose, the total amount of land value increment shall be the balance of approved declared transfer value at the time of transfer or creation of Dien less the following deductions:
1. If the land has never been transferred after assignment of value, the original decreed value; otherwise the previous transfer value.
2. All expenses paid by the land title owner for improvement of land, including construction benefit charge, fees paid for land consolidation, and assessed present value of a certain portion of land donated for public facilities without compensation due to rezoning of land.
The “original decreed land value” referred to in Subparagraph 1 of the preceding paragraph shall accord to the provisions of the Equalization of Land Right Act; the “previous transfer value” shall mean the assessed present value of land at the time of succession if the land is transferred again after acquisition through succession.However,if the land transferred by succession is the land in lieu of compensation claimed under zone or section expropriation pursuant to subparagraph 3 of Article 30-1 herein before, and the value of the land in lieu of compensation actually claimed is higher than the assessed present value of the land at the time of succession, the original decreed land value shall be the higher one in the case that the land is transferred again after acquisition through succession.
For the purpose of tax payment at the time of land title transfer, if any supplemental payment of land value tax was paid consequential to the reassessment of land value during the ownership of land, tax thus paid prorated to the part of land being transferred may be deducted from the land value increment tax, but the total deduction thereof shall be limited to 5% of the land value increment tax payable.
The measure for deduction of supplemental land value tax paid as described in the preceding paragraph shall be prescribed by the Executive Yuan.