In Taiwan’s rental market, it’s common to hear landlords tell tenants: “Don’t claim rent on your taxes, otherwise I’ll get taxed more.” Some even write into the lease that tenants are not allowed to report rental expenses. But do tenants really have the right to claim rent? And can landlords legally forbid it? Let’s break it down using legal provisions and real-world cases.
What Does the Law Say?
Income Tax Act Article 2, Paragraph 1: Citizens’ Right and Duty to File Taxes
“Any individual with income sourced in the Republic of China shall be subject to income tax on such income in accordance with this Act.”
✨ Plain Explanation: Tenants who declare their rent when filing income tax are exercising a lawful right and fulfilling a civic duty. Reporting rent is not only legal but can also reduce tax burdens through deductions. In other words, filing rent is both a right and a benefit for responsible taxpayers.
⚖️ Legal Source: Income Tax Act Article 2 – Law.moj.gov.tw
Civil Code Article 427: Property-Related Taxes Shall Be Borne by the Landlord
“All taxes and duties relating to the leased property shall be borne by the lessor.”
✨ Plain Explanation: Property-related taxes — such as the house tax and land value tax — are the landlord’s responsibility, not the tenant’s. A landlord cannot shift these expenses to the tenant or penalize them for reporting rent to the tax authority. The tenant’s act of claiming rent and the landlord’s duty to pay property taxes are separate legal obligations.
⚖️ Legal Source: Civil Code Article 427 – Law.moj.gov.tw
Why Do Landlords Resist Tenants Reporting Rent?
Because when tenants claim rent, the landlord’s rental income becomes visible to the tax authority, which increases the landlord’s tax burden:
- House and Land Value Tax
If the landlord declares rental income, the property will no longer be eligible for the preferential self-use residential tax rate of 1.2%. The house tax will increase to 1.5%–3.6%, and the land value tax will rise from 0.2% to 1%.
- Comprehensive Income Tax
Rental income adds to the landlord’s annual total income, which may push them into a higher tax bracket and result in higher taxes.
That’s why many landlords discourage tenants from reporting rent, or even insert restrictive clauses into lease contracts.
Are Lease Clauses Forbidding Rent Reporting Valid?
The answer is no.
Even if the lease explicitly states “the tenant shall not report rent,” such a clause violates the law and is invalid.
Some landlords have tried another tactic: allowing tenants to claim rent but requiring tenants to cover the landlord’s additional taxes. This kind of tax shifting is also explicitly prohibited.
Since January 1, 2017, the Ministry of the Interior’s “Mandatory Prohibited Clauses in Residential Lease Agreements” clearly stipulates:
- Tenants cannot be prohibited from reporting rent expenses
- Landlords cannot require tenants to bear additional taxes due to rent reporting
In other words, whether directly forbidding or indirectly shifting taxes, both are illegal.
These rules apply not only to individual landlords, but also to residential sublease agreements by property management firms.
🧟 Related Read: What Are the Required and Prohibited Lease Terms in Taiwan?
☠️ Related Read: What Are Mandatory and Prohibited Clauses in Taiwan?
😱 Related Read: What Are the Types of Government-Issued Residential Lease Agreements in Taiwan?
How Can Tenants Legally Claim Rent?
Tenants are fully entitled to claim rent as an itemized deduction under comprehensive income tax, up to NT$120,000 per household per year.
Required documents:
- Lease agreement
- Proof of rent payment (receipts, ATM transfer slip, or bank transfer record)
- Proof of household registration at the rental address or a self-use declaration
With these documents, tenants can claim rent under “House Rent Expenses” when filing taxes.
Conclusion: Tax Filing Is a Tenant’s Right
- Landlords cannot forbid tenants from claiming rent
- Landlords cannot shift additional tax burdens to tenants
- Tenants may deduct up to NT$120,000 per household annually
In short, tenant tax reporting is a legal right protected by law. Any restriction in a lease is invalid and illegal.
Note: Only rentals used as personal residence are eligible. Properties rented for business or office use do not qualify for this deduction.
