Deductions from the gross estate include the following:
(1)A deduction of $4,000,000 for surviving spouse;
(2)A deduction of $400,000 for each lineal descendent and an additional deduction of $400,000 for each year starting from the current age of each lineal descendent up to the age of twenty; in case descendent(s) of higher degree of kinship waives the inheritance which is succeeded by descendent(s) of lower degree of kinship, the deductions shall be limited to the original deductions allowed for descendent(s) who waived the inheritance;
(3)A deduction of $1,000,000 for each parent;
(4)A deduction of $5,000,000 per person additionally if the person specified in subparagraphs (1) to (3) hereof is a handicapped provided in Article 3 of The Handicapped Protection Act or a mental patient provided in Paragraph 2, Article 5 of the Mental Health Act;
(5)A deduction of $400,000 for each of the dependent brothers, sisters and grandparents of the decedent and an additional deduction of $400,000 for each dependent brother and sister for each year starting from the current age of each such brother and sister up to the age of twenty;
(6)Total value of crops and farmland inherited by the heir(s) or legatee(s) for agricultural purpose. If the heir(s) or legatee(s) fail to use the farmland thus inherited for agricultural purpose continuously for five years from the date of inheritance and fail to resume farming before the deadline set by the competent authority, or have resumed the use of farmland for agricultural purpose before the aforesaid deadline but subsequently fail to farm again, tax shall be made due retroactively, unless the disuse of farmland for agricultural purpose is due to the fact that the heir(s) has died, or that the land is requisitioned by the government, or has changed zoning to non-farming purpose pursuant to laws;
(7)80%, 60%, 40% or 20% of the value of property inherited by the decedent depending on whether said property was inherited 6, 7, 8 or 9 years prior to his/her death respectively and provided estate tax on such property has been paid previously;
(8)The taxes, penalties and fines incurred before the death and owed by the decedent;
(9)Debts owed by the decedent and the existence of which can be evidenced by solid proof;
(10)A standard deduction for funeral expenses in the amount of $1,000,000; and
(11)Any direct and necessary expenses incurred by the executor and administrator.
Subparagraphs (1) to (7) of paragraph 1 shall not be applicable in the case where the decedent, being a ROC citizen, did not reside in the ROC continuously, or he/she was not an ROC citizen. The deductions specified in Subparagraphs (8) to (11) of paragraph 1 are available only to the extent that they are incurred within the territory of the ROC. Subparagraphs (1) to (5) of paragraph 1 do not apply to heirs(s) who waive(s) the right of inheritance.