Land Rights﹝50-63﹞
Criteria for Compensating Loss of Business Due to Land or Land Improvement ExpropriationCH
Criteria for Compensating Loss of Business Due to Land or Land Improvement ExpropriationCH
Promulgated Date2000/12/30
Amended Date2012/01/11
Law ContentPromulgated per letter of Ministry of the Interior No. Tai (89) Nei-Di-Zi-8971251 dated December 30, 2000
Amended per letter of Ministry of the Interior No. Tai-Nei-Di-Zi-1000256890 dated January 11, 2012
1. These Criteria are set forth in accordance with Paragraph 2, Article 33 of the Land Expropriation Act.
2. The terms used in these Criteria are defined as follows:
(1) “Legal business operation” means a business that has obtained all required licenses and permits according to law and operates formally.
(2) “Cessation of business” means a business stops operation as a result of the land or land improvement used for business operation being wholly expropriated.
(3) “Shrinkage of business scale” means a business operation is contracted as a result of the land or land improvement used for business operation being partially expropriated.
(4) “Land or land improvement used for business operation” means land or land improvement provided for business use, excluding land or land improvement not provided for business use, such as rest area, cafeteria, and dormitory for employees, etc.
A business that operates formally without a business license according to law and complies with land use control should be compensated, provided the business is legal and the business must stop operation or shrink its scale due to expropriation by government for establishing a public enterprise according to law and sustains loss thereof. Whether the business is legal will be reviewed and decided by the municipal or county (city) competent authority together with other relevant agencies in accordance with applicable laws and regulations.
3. When a land or land improvement provided for legal business operations is wholly expropriated that results in the cessation of business, the compensation for loss of business will be calculated by the average of net operating income plus interest income less interest expense as stated on the business income tax returns filed by the business with the tax authority in the past three years.
In calculating compensation for loss of business, the net operating income, interest income and interest loss shall be determined by the amount stated on the business income tax return, and no compensation will be paid if the result of net operating income plus interest income less interest expense is negative.
4. When a land or land improvement provided for legal business operations is partially expropriated that results in shrinkage of business scale, the compensation for loss of business will be calculated by the ratio of actual expropriated business area to total business area multiplied by the average of net operating income plus interest income less interest expense as stated on the business income tax returns filed by the business with the tax authority in the past three years.
The business area referred to in the preceding paragraph shall be limited to the area of land or land improvement that has been registered or filed for business, excluding the portion not used for business.
Where the expropriated land or land improvement comprises the principal part or major facilities for business operation and the remaining land or land improvement is inadequate for the business operation to continue, compensation will be calculated in accordance with Point 3 herein.
5. When a land or land improvement provided for legal business operations has more than one business thereon, loss of business for each business will be calculated by the ratio of its expropriated business area to total business area and in accordance with Point 3 and Point 4 herein.
6. If loss of business in connection with land or land improvement provided for legal business operations cannot be determined in accordance with Points 3-5 herein, loss of business will then be compensated based on the actually expropriated business area in accordance with the following provisions:
(1) If the expropriated business area is under 15m2, compensation of NT$66,000 will be dispensed.
(2) If the expropriated business area is more than 15m2 but less than 150m2, compensation of NT$1,100 per square meter will be dispensed for the portion in excess of the preceding subparagraph. Less than 1 square meter is counted as one square meter.
(3) If the expropriated business area is more than 150m2, compensation of NT$660 per square meter will be dispensed for the portion in excess of the preceding two subparagraphs. Less than 1 square meter is counted as one square meter.
The business area referred to in the preceding paragraph shall be limited to the area of land or land improvement that has been registered or filed for business, excluding the portion not used for business.
7. If a business is situated on a land or land improvement not provided for legal business operations, no compensation will be dispensed for loss of business.
8. For businesses of special nature, the municipal or county (city) government may look into the actual local condition for the assessment of compensation. If there is difficulty in making an assessment or dispute arises in connection with the assessment of compensation, the municipal or county (city) government may engage a reputable professional institution to conduct assessment and take the result thereof into consideration when making a decision on the amount of compensation. The professional service fee thereof shall be borne by the land use applicant.
Amended per letter of Ministry of the Interior No. Tai-Nei-Di-Zi-1000256890 dated January 11, 2012
1. These Criteria are set forth in accordance with Paragraph 2, Article 33 of the Land Expropriation Act.
2. The terms used in these Criteria are defined as follows:
(1) “Legal business operation” means a business that has obtained all required licenses and permits according to law and operates formally.
(2) “Cessation of business” means a business stops operation as a result of the land or land improvement used for business operation being wholly expropriated.
(3) “Shrinkage of business scale” means a business operation is contracted as a result of the land or land improvement used for business operation being partially expropriated.
(4) “Land or land improvement used for business operation” means land or land improvement provided for business use, excluding land or land improvement not provided for business use, such as rest area, cafeteria, and dormitory for employees, etc.
A business that operates formally without a business license according to law and complies with land use control should be compensated, provided the business is legal and the business must stop operation or shrink its scale due to expropriation by government for establishing a public enterprise according to law and sustains loss thereof. Whether the business is legal will be reviewed and decided by the municipal or county (city) competent authority together with other relevant agencies in accordance with applicable laws and regulations.
3. When a land or land improvement provided for legal business operations is wholly expropriated that results in the cessation of business, the compensation for loss of business will be calculated by the average of net operating income plus interest income less interest expense as stated on the business income tax returns filed by the business with the tax authority in the past three years.
In calculating compensation for loss of business, the net operating income, interest income and interest loss shall be determined by the amount stated on the business income tax return, and no compensation will be paid if the result of net operating income plus interest income less interest expense is negative.
4. When a land or land improvement provided for legal business operations is partially expropriated that results in shrinkage of business scale, the compensation for loss of business will be calculated by the ratio of actual expropriated business area to total business area multiplied by the average of net operating income plus interest income less interest expense as stated on the business income tax returns filed by the business with the tax authority in the past three years.
The business area referred to in the preceding paragraph shall be limited to the area of land or land improvement that has been registered or filed for business, excluding the portion not used for business.
Where the expropriated land or land improvement comprises the principal part or major facilities for business operation and the remaining land or land improvement is inadequate for the business operation to continue, compensation will be calculated in accordance with Point 3 herein.
5. When a land or land improvement provided for legal business operations has more than one business thereon, loss of business for each business will be calculated by the ratio of its expropriated business area to total business area and in accordance with Point 3 and Point 4 herein.
6. If loss of business in connection with land or land improvement provided for legal business operations cannot be determined in accordance with Points 3-5 herein, loss of business will then be compensated based on the actually expropriated business area in accordance with the following provisions:
(1) If the expropriated business area is under 15m2, compensation of NT$66,000 will be dispensed.
(2) If the expropriated business area is more than 15m2 but less than 150m2, compensation of NT$1,100 per square meter will be dispensed for the portion in excess of the preceding subparagraph. Less than 1 square meter is counted as one square meter.
(3) If the expropriated business area is more than 150m2, compensation of NT$660 per square meter will be dispensed for the portion in excess of the preceding two subparagraphs. Less than 1 square meter is counted as one square meter.
The business area referred to in the preceding paragraph shall be limited to the area of land or land improvement that has been registered or filed for business, excluding the portion not used for business.
7. If a business is situated on a land or land improvement not provided for legal business operations, no compensation will be dispensed for loss of business.
8. For businesses of special nature, the municipal or county (city) government may look into the actual local condition for the assessment of compensation. If there is difficulty in making an assessment or dispute arises in connection with the assessment of compensation, the municipal or county (city) government may engage a reputable professional institution to conduct assessment and take the result thereof into consideration when making a decision on the amount of compensation. The professional service fee thereof shall be borne by the land use applicant.
