• info@kaizencpa.com
  • Our Office: USA - Hong Kong - Shenzhen - Shanghai - Beijing - Taiwan - Singapore - Japan - UK

+852 2341 1444(Hong Kong)
+86 755 8268 4483(Shenzhen)
+65 6438 0116(Singapore)

Search for anything.

Knowledge

  • Home
  • Knowledge
  • Guide to Taiwan Individual Estate and Gift Tax

Guide to Taiwan Individual Estate and Gift Tax

2023-07-06
Estate and gift taxes are levied on the worldwide assets of Taiwan-domiciled individuals. If a Taiwanese national does not have a Taiwan domicile, but has a residence in Taiwan, his/her worldwide assets are subject to the Taiwan estate and gift tax if the individual’s total stay in Taiwan exceeds 365 days in the two years before the date of decease or gift transfer.

  1. Estate Tax

    Taxpayers of the estate tax are in order of priority: the executor, heir(s), legatee, or inheritance managers. The taxable amount is the fair market value of assets on the date of death. The law allows an exemption of NTD 12 million for each taxpayer. If the taxpayer is a long-term resident of Taiwan, other related deductions are available in determining the taxable estate. In addition, if an inheritor investing in Taiwan qualifies under the Statute for Investment by Overseas Chinese, the audited part of the investment can be valued based on the Estate and Gift Tax Law, in which case, only 50% of the investment value is taxed.

    The estate tax is imposed on the taxable estate at a rate of 10%, 15% and 20%. The term “taxable estate” means the value of the gross estate computed according to the law, less deductions and exemption. The formula for calculating the estate tax is:

    Estate Tax Payable = (Taxable Amount - Exemption NTD 12 million - Deductions) x Tax Rate %

    The inheritance date (death day) is from January 23 2009 to May 11 2017(inclusive) applied to the single tax rate of 10%; The inheritance date (death day) is after May 12 2017 applies to the following tax rate:

    Net Estate Amount (NTD)

    Tax Rate(%)

    Progressive Difference (NTD)

    50,000,000 or less

    10

    0

    50,000,001-100,000,000

    15

    2,500,000

    100,000,001 and more

    20

    7,50,0000


  2. Gift Tax

    The donor is generally the payer of the gift tax. The fair market value of the assets on the date of transfer is the taxable amount for gift tax purposes. The law allows an exemption of NTD2,200,000 per taxpayer. Gifts such as donations to the government, public schools, non-profit organizations, government-owned shares from public enterprises, religious groups, and charitable organizations are exempt from the gift tax.

    Gift tax is imposed on taxable gifts at a rate of 10%, 15% and 20%. The term “taxable gifts” means the total amount of gifts made during the calendar year by the donor, less deductions and exemption.

    The formula for calculating the gift tax is:
    Gift Tax Payable = (Taxable Amount - Exemption NTD2,200,000 - Deductions) x Tax Rate %

    The gift date is after May 12 2017 applies to the following calculation:

    Net Gift Amount (NTD)

    Tax Rate(%)

    Progressive Difference (NTD)

    25,000,000 or less

    10

    0

    25,000,001-50,000,000

    15

    1,250,000

    50,000,001a and more

    20

    3,750,0000

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

WhatsApp/Line/Wechat: +852 5616 4140

Related Posts

Company Registration Data Inquiry Service in Taiwan

The basic particulars of general companies (non-publicly listed companies) in Taiwan can be found on the Taiwan Business Registration Office website. These basic particulars include basic information such as company name, company address, names of directors, capital amount, and business items. However, detailed shareholder information cannot be accessed through this search.

Taiwan Exit & Entry Permit Application Procedures for applicants from Mainland China

Mainland Chinese who need to attend and visit exhibitions in Taiwan, and who meet the following qualifications may be considered by the Taiwan immigration for an Exit & Entry Permit:Applicants who serve as a person in charge or manager of a multinational enterprise, or to engage in specialized or technical service.

Foreigners Work in Taiwan

For foreigners who obtain the approval of employment from Taiwan Ministry of Labor, they have to visit the Taiwan official entity situated at their local countries to apply for the visa before entering the territory of Taiwan. The holder shall exchange the visa into ARC (Alien Resident Certificate) to start working in 5 days from the date of entry.

Foreign Artists to Apply for Work Permit in Taiwan

Considering the working circumstance for artists to undertake cases by themselves, instead of being employed by a certain employer is prevalent. To optimize the working environment for arts and cultures in Taiwan, the article 10th is stated “A foreign professional who works as an artist may, without applying through an employer, apply direct to the Ministry of Labor for a permit to engage in artistic work in the State.