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Taxation Administration,Ministry of Finance,R.O.C.Law Source Retrieving System of Taxation Laws and Regulations

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Tax Related Laws & Regulations

Estate and Gift Tax Act
1.Full text promulgated on 6 February, 1973 by Presidential Decree.
2.Amendment to Article 57 promulgated on 5 September, 1973 by Presidential Decree. 
3.Amendments to Articles 12, 13, 16 to 20, 22,30, 44 to 46, 51 to 53, and 56, and deletion of Article 27, 31, 32, 34 to 36, 38, 49, 54 and 57, as well as the heading of Section 2, Chapter IV promulgated on 19 June, 1981 by Presidential Decree.
4.Deletion of Article 53 promulgated on 30 July, 1993 by Presidential Decree.
5.Addition of Article 3-1, 12-1, and 41-1, amendments to Article 4, Article 5, Article 10, Article 11, Article 13, Articles 16-20, Article 22, Article 30, Article 41 and Article 51 promulgated on 13 January, 1995 by Presidential Decree.
6.Amendments to Article 11 and 20 promulgated on 24 June, 1998 by Presidential Decree.
7.Amendment to Article 15 promulgated on 15 July, 1999 by Presidential Decree No.8800162090.
8.Amendments to Article 4, 17, and 20 promulgated on 26 January, 2000 by Presidential Decree.
9.Addition of Article 3-2, 5-1, 5-2, 10-1, 10-2.16-1, 20-1, and 24-1, and amendment to Article 59 promulgated on 13 June, 2001 by Presidential Decree and promulgated on 1 July, 2001 with the approval of Executive Yuan.
10.Amendment to Article 28 promulgated on 2 June, 2004 by Presidential Decree No.09300104241.
11.Addition of Article 17-1, 58-1, and amendments to Article 7, 10 , 13 ,18 , 19, 22, 30, 44, and 45 promulgated on 21 January, 2009 by Presidential Decree No.09800015721.
12.Amendments to Article 30 promulgated on 1 July, 2015 by Presidential Decree No.10400075361.
13.Addition of Article 58-2, and amendments to Article 12-1, 13, and 19 promulgated on 10 May, 2017 by Presidential Decree No. 10600056411.
14.Amendments to Article 51 promulgated on 14 June, 2017 by Presidential Decree No.10600073271.
Chapter 1 General
  • Article 1
  • All property of a decedent who was an ROC citizen and resided in the ROC continuously shall be subject to estate tax under this Act, irrespective of whether the estate is located within or outside the ROC.
    Property left by a decedent who was an ROC citizen but resided outside the ROC continuously or who was a non-ROC citizen shall be subject to estate tax only to the extent that such estate is located within the ROC.
  • Article 2
  • Estate not claimed by anybody for inheritance shall go to the national treasury; estate tax payable thereof will be allocated by the national treasury in accordance with the Act Governing the Allocation of Government Revenues and Expenditures.
  • Article 3
  • Property given away by a donor who is an ROC citizen and resides in the ROC continuously shall be subject to gift tax under this Act, irrespective of whether the property is located within or outside the ROC.
    Property given away by a donor who is an ROC citizen but resides outside the ROC continuously or who is a non-ROC citizen shall be subject to gift tax only to the extent that the property is located within the ROC.
  • Article 3-1
  • If the decedent or donor voluntarily relinquished his/her ROC citizenship within two years prior to the event of death or making of gift, the property of the decedent or gift made by the donor shall be subject to estate tax or gift tax according to the regulations for an ROC citizen provided herein.
  • Article 3-2
  • Property in a testamentary trust shall be subject to estate tax under this Act upon the death of the testator.
    If the beneficiary of a trust dies during the life of the trust, his/her interest in the trust that is not yet received shall be subject to estate tax under this Act.
  • Article 4
  • The term “estate” or “property” depicted herein shall mean movables, real property and other rights and interests having value.
    The term “gift” depicted herein shall mean an act where the donor offers to transfer his/her property gratuitously to the donee who in turn accepts the transfer.
    “Continuous residence within the ROC” depicted herein shall mean the decedent or donor had any of the following situations:
    (1)Maintaining a domicile in the ROC within two years prior to the event of death or making of gift.
    (2)Residing inside the ROC without maintaining a domicile, but having stayed in the ROC more than 365 days within two years immediately prior to the event of death or making of gift, except for a foreigner who was employed by the ROC government to render a service and had only stayed in the ROC for a specific period of time. 
    “Continuous residence outside the ROC” depicted herein shall mean residence condition not meeting the requirements set forth in the preceding paragraph.
    The term “farmland” depicted herein shall mean land to which the Statute Governing Agricultural Development applies.
  • Article 5
  • Transfer of property in any of the conditions below shall be regarded as gift and subject to gift tax under this Act:
    (1)To forgive or assume debts without receipt of any consideration or compensation while the right of claim is still valid; the debts forgiven or assumed are subject to gift tax.
    (2)To transfer property, forgive or assume debts for substantially less than an adequate and full consideration; the difference between the market value of property or debts forgiven or assumed and the value of consideration received is subject to gift tax.
    (3)To purchase property in favor of others with own funds without receipt of any consideration; the funds paid for the purchase of property or the real estate so purchased are subject to gift tax.
    (4)To purchase property in favor of others with own funds and receiving substantially less than an adequate and full consideration from the beneficiary nominee; the difference between the purchase price and the value of consideration received is subject to gift tax.
    (5)Property purchased in the name of a person having no or restricted legal capacity shall be deemed as a gift from the statutory agent or guardian, unless evidence clearly indicates that the purchase payment came from the funds of the beneficiary/nominee.
    (6)Sales of property between relatives within second degree of kinship, unless evidence clearly indicates a bona fide sale for an adequate and full consideration in money or money''s worth and the money thus paid did not come from a loan from the seller or a loan which the seller furnished guarantee. 
  • Article 5-1
  • In the case of a trust where a person other than the settlor is entitled to the entire trust interests or part of beneficiaries is other than the settlor, it shall be regarded as a transfer of entire trust interest by the settlor to the beneficiary and constituted a gift, which is subject to gift tax. 
    If in a trust where the settlor is entitled to the entire trust interest or part of beneficiaries was the settlor and subsequently changed to another person other than the settlor, it will be subject to gift tax according to the preceding paragraph at the time the change of beneficiary is effected.
    If the settlor adds property to the trust during the life of the trust, thereby resulting in an increase in trust interest to beneficiaries other than the settlor, the increased value of such trust interest will be subject to gift tax according to the first paragraph hereof.
  • Article 5-2
  • Transfer or other disposition of trust property between the following parties in a trust is not subject to gift tax:
    (1)Between the settlor and the trustee at the time the trust is created.
    (2)Between the original trustee and the newly appointed trustee when there is change to the trustee during the life of the trust.
    (3)Between the trustee and the beneficiary when the trustee distributes the trust property according to the trust deed during the life of the trust.
    (4)Between the settlor and the trustee or between the trustee and the beneficiary when the trust ceases to exist.
    (5)Between the settlor and the trustee when the trust is invalidated, voided, terminated or cancelled.
  • Article 6
  • The taxpayers of the estate tax shall be:
    (1)Executor of the will;
    (2)Heir(s) or legatee(s), in case no executor is appointed; or
    (3)The administrator appointed according to the law, in case there is no executor or heir(s).
    In the case where an administrator should be appointed, but not selected for whatever reason within six months following the death of decedent, the tax authority may submit a petition to the court for appointment of an administrator pursuant to the provisions of the Non-litigation Act.
  • Article 7
  • The taxpayer of gift tax shall be the donor of gift. However, the donee shall be liable for payment under any of the following circumstances:
    (1)The donor’s whereabouts is unknown; 
    (2)The donor fails to pay gift tax within the time limit prescribed herein and does not have any property in the ROC for enforcement ; or
    (3) The gift tax has not been assessed by the time of death of the donor.
    If there are more than one donee in the case described in the foregoing paragraph, the donees shall be liable for payment of gift tax computed according to this Act in proportion to the value of the property received by each donee.
  • Article 8
  • Estate of the decedent may not be split, delivered to legatee(s), or undergo recordation of title transfer before estate tax due is paid off. Property given away as gift may not undergo recordation of title transfer before gift tax due is paid off. The preceding provisions do not apply to cases where the taxpayer has obtained in advance a consent to transfer certificate, tax exemption certificate, exclusion from gross estate certificate, or exclusion from total amount of gifts certificate issued by the competent tax authority pursuant to Article 41 herein.
    When real property in the estate of the decedent becomes the target of compulsory execution requested by the creditor(s), the court should notify the competent tax authority to assess the estate tax payable by the established procedure swiftly and forward the case to the court for compulsory execution. 
  • Article 9
  • The property within or outside the ROC as stipulated in Articles 1 and 3 herein shall be determined by its location at the time of death of decedent or making of gift by the donor:
    (1)For movables, real property and attachments, the physical location will govern. However, for ships, automobiles and aircraft, the location of the registration agency for the ship, automobile or aircraft will govern;
    (2)For mining rights, the physical location of the mines or mining area will govern;
    (3)For fishing rights, the location of its administrative jurisdiction will govern;
    (4)For patents, trademarks, copyrights and publishing rights, the location of relevant registration agency will govern;
    (5)For other business rights, the place of business will govern;
    (6)For deposits received by financial institutions, the office or business place of the financial institution will govern;
    (7)For rights of claim, the continuous residence or the office or business place of the debtor will govern;
    (8)For treasury bonds, corporate bonds, stocks or equity investments, the principal business place of the issuer or invested enterprise will govern; and
    (9)For trust interests, the office or business place of the trust enterprise will govern. 
    For other property where its location is difficult to determine, the decision of the Ministry of Finance will govern.
  • Article 10
  • For tax purposes, the estate of the decedent shall be valued according to the prevailing value at the time of death or prevailing value on the date of death as indicated in the adjudication of the court; the property transferred by gift shall be valued according to its prevailing value on the date of gift.
    For cases where the event of death or gift occurred prior to the amendment of this Article on 15 January, 1995, the amended provisions in paragraph 1 shall apply to the valuation of the estate or gift which is not yet taxed or where taxation is not yet determined.
    The “prevailing value” depicted in paragraph 1 hereof shall mean the government assessed value as published from time to time or the assessed standard price in the case of land, or the assessed standard price in the case of houses; the rules to determine the prevailing value of other objects not specified in this Act shall be prescribed by the Ministry of Finance.
  • Article 10-1
  • Interest in a trust subject to gift tax pursuant to paragraph 2 of Article 3-2 herein shall be valued by the following rules:
    (1)If the beneficiary is entitled to the entire trust interest which consists of money, the trust amount will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of beneficiary’s death will govern.
    (2)If the trust interest consists of money other than accrued interest, the present value of the trust amount discounted from the time of beneficiary’s death to the expiration of beneficial period at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death will govern; if the trust interest consists of property other than money, the prevailing value of the trust property at the time of beneficiary’s death, discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death will govern.
    (3)If the trust interest consists of accrued interest, the trust amount or the prevailing value of the trust property at the time of beneficiary’s death less the value computed according to subparagraph 2 will govern. Notwithstanding the foregoing, if the accrued interest is fixed interest paid on treasury bonds, corporate bonds, bank debentures or other contractually agreed interest payment, its value shall be computed by the total annual interest accrued discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death.
    (4)If the trust interest consists of the right to receive fixed amount payable periodically, its value shall be computed by the sum of interest receivable each year discounted to present value at the fixed interest rate for one-year term deposit compound annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death. If the trust interest consists of the right to entire trust interests less the fixed amount payable periodically, its value shall be computed by the prevailing value of the trust property at the time of beneficiary’s death less the value computed according to the subparagraph 3.
    (5)Partial interest in any of the trust interest as stipulated in subparagraphs 1, 2, 3, and 4 shall be valued by the proportion of the benefit receivable. 
  • Article 10-2
  • Interest in a trust subject to gift tax pursuant to Article 5-1 herein shall be valued by the following rules:
    (1)If the beneficiary is entitled to the entire trust interest which consists of money, the trust amount will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of gift will govern.
    (2)If the trust interest consists of money other than accrued interest, the present value of the trust amount discounted from the time of gift to the expiration of beneficial period at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of gift will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of gift which is discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of gift will govern.
    (3)If the trust interest consists of accrued interest, the trust amount or the prevailing value of the trust property at the time of gift less the value computed according to subparagraph 2 will govern. Notwithstanding the foregoing, if the accrued interest is fixed interest paid on treasury bonds, corporate bonds, bank debentures or other contractually agreed interest payment, its value shall be computed by the total annual interest accrued discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of gift.
    (4)If the trust interest consists of the right to receive fixed amount payable periodically, its value shall be computed by the sum of interest receivable each year discounted to present value at the fixed interest rate for one-year term deposit compound annually as quoted by the Postal Remittance & Savings Bank at the time of gift. If the trust interest consists of the right to entire trust interests less fixed amount payable periodically, its value shall be computed by the prevailing value of the trust property at the time of gift less the value computed according to subparagraph 3.
    (5)Partial interest in any of the trust interest as stipulated in subparagraphs 1, 2, 3, and 4 shall be valued by the proportion of the benefit receivable. 
  • Article 11
  • Foreign estate tax or gift tax paid in respect of any property situated within such foreign country may be deducted from the estate tax or gift tax payable, provided the taxpayer presents proof of tax payment issued by the local tax authority accompanied by a certificate issued by an ROC embassy or consulate at where the tax is paid, or a certificate issued by a local certified public accountant or local notary public. Notwithstanding the foregoing, the deduction claimed thereof shall not exceed the increase in tax computed by the applicable tax rate in the ROC due to the inclusion of such estate or property in the gross estate or gift.
    When gift made by the decedent within two years prior to his/her death is included in gross estate and subject to estate tax pursuant to Article 15 herein, the gift tax and land value increment tax already paid on the gift plus interest accrued at fixed rate for one-year term deposit as quoted by the Postal Remittance & Savings Bank will be deducted from the estate tax payable. Notwithstanding the foregoing, the deduction may not exceed the increase in tax due to the inclusion of such property in the gross estate.
  • Article 12
  • All amounts prescribed in this Act shall be denominated in New Taiwan Dollar (NTD).
  • Article 12-1
  • The amounts provided below will be adjusted starting from the following year each time the consumer price index (CPI) has risen more than ten percent (10%) cumulatively since the previous adjustment. The magnitude of adjustment shall be the actual rise in CPI, and the amount adjusted shall be in the unit of $10,000. Amount less than $10,000 shall be calculated in thousands and then rounded off to the nearest ten thousand:
    (1)Exemptions;
    (2)Amounts in each tax bracket;
    (3)Daily necessities of the decedent and apparatus for professional use by the decedent that are excluded from gross estate; and
    (4)Deductions for surviving spouse, lineal descendants, parents, siblings and grandparents of the decedent, standard deduction for funeral expenses, and special deduction for the disabled or handicapped heirs.
    The Ministry of Finance should determine the amounts applicable to estate or gift cases in the next year by the provisions of the preceding paragraph and announce the same before the end of December each year. The term “consumer price index” shall mean the 12-month average consumer price index from November in the previous year to the end of October of the then current year published by the Directorate -General of Budget, Accounting and Statistics of the Executive Yuan.
Chapter 2 Computation of Estate Tax
  • Article 13
  • Taxable estate means the value of gross estate computed according to the provisions herein, less deductions provided in Article 17 and 17-1 herein and exemptions provided in Article 18 herein. The tax brackets and rates of consolidated estate tax are as follows:
    (1)If the taxable estate is less than or equal to NT$50,000,000, the tax rate shall be 10%.
    (2)If the taxable estate is above NT$50,000,000 to NT$100,000,000, the estate tax payable shall be NT$5,000,000 plus 15% for the portion of estate more than NT$50,000,000.
    (3)If the taxable estate is above NT$100,000,000, the estate tax payable shall be NT$12,500,000 plus 20% for the portion of estate more than NT$100,000,000.
  • Article 14
  • Gross estate shall include all property of the decedent as stipulated in Article 1 herein at the time of death calculated according to the value stipulated in Article 10 herein, but exclude property provided in Article 16 herein.
  • Article 15
  • Property transferred by gift to the following individuals by the decedent two years before his/her death is regarded as estate of the decedent, which shall be included in the gross estate and subject to estate tax under this Act:
    (1)the surviving spouse of the decedent;
    (2)the heirs of the decedent prescribed under Section 1138 and 1140 of the Civil Code; and
    (3)the spouses of the heirs named in the preceding subparagraph.
    Inheritance cases occurred after 26 June, 1998 to the time the amended provisions in paragraph 1 is promulgated and takes effect shall be subject to the provisions under that paragraph.
  • Article 16
  • Exclusions from the gross estate include the following:
    (1)Property donated by legator, legatee(s), or heir(s) to government agencies at various levels or public educational, cultural, public welfare and charitable organizations;
    (2)Property donated by legator, legatee(s), or heir(s) to public organizations or businesses fully owned by the government;
    (3)Property donated by legator, legatee(s), or heir(s) to private incorporated educational, cultural, public welfare, charitable or religious organizations, or ancestor worshipping entities that meet the criteria prescribed by the Executive Yuan;
    (4)Cultural, historical or art books and articles duly registered with the competent tax authority, provided, however, that the estate tax on such books or articles shall be recaptured in the event of transfer of the same;
    (5)Copyright, patented invention and work of act created by the decedent;
    (6)Necessities of the decedent for daily life with gross value under $720,000;
    (7)Apparatus for professional use by the decedent with gross value under $400,000;
    (8)Forests banned or restricted from logging by law, provided, however, that the lift of the ban or restriction will subject the same to the recapture of estate tax thereon;
    (9)Proceeds paid to the designated beneficiary at the time of death of the insured under life insurance, or insurance covering soldiers, civil servants, or teachers, or labor insurance, or farmer insurance;
    (10)Property inherited by the decedent within five years prior to his/her death, provided that estate tax on the inherited property has been paid;
    (11)Property originally or specifically owned by the spouse or children of the decedent, and the ownership of which can be proved with registration or other support document;
    (12)Land used by government for public passage or other land used for public passage free of charge, which is certified by the competent authority, with the exception to empty lot reserved for housing construction as required by law; and
    (13)Unrecoverable or unexercisable claims inherited, provided there are relevant support documents.
  • Article 16-1
  • Property of legator, legatee(s), or heir(s) that is donated or added to charitable trusts already established at the time of death of the decedent and meet the following requirements is excluded from the gross estate: 
    (1)The trustee is a trust enterprise provided in the Trust Enterprise Act;
    (2)Except for necessary expenses incurred from operating the business for which the trust is established, the charitable trust does not accord any special benefit to specific party or others by any means; and
    (3)The trust deed stipulates that upon the cancellation, termination or extinction of the trust, the trust property will be transferred to government of various levels and/or public interest group or charitable trust with similar objectives.
  • Article 17
  • 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 majority; 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 person with severe disabilities as provided in the People with Disabilities Rights Protection Act or a severe patient as provided in 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 majority;
    (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.
  • Article 17-1
  • While the spouse of the decedent declares the right to claim for the distribution of the remainder of the property as prescribed under Section 1030-1 of the Civil Code, the taxpayer shall file an estate tax return with the competent tax authority to deduct such property from the total amount of the estate.
    If the taxpayer fails to pay the amount of the claim to the spouse of the decedent within one year from the date the competent tax authority issues the estate tax payment certificate or tax exemption certificate, the competent authority shall tax the amount of the unpaid portion within five years from the next day when the aforesaid period is expired.
  • Article 18
  • An exemption of $12,000,000 may be deducted from the gross estate, provided the decedent is an ROC citizen who resided continuously in the ROC; the aforesaid exemption shall be doubled if the decedent was a soldier, policeman, civil servant or teacher who died in the performance of duty.
    The deduction of exemption provided in paragraph 1 shall be applicable in the case where the decedent was an ROC citizen who resided continuously outside the ROC or where the decedent was a non-ROC citizen.
Chapter 3 Computation of Gift Tax
  • Article 19
  • Taxable gifts means the total amount of gifts made during the calendar year by the donor, less deductions provided in Article 21 herein and the exemption provided in Article 22 herein. The tax brackets and rates of consolidated gift tax are as follows:
    (1)If the taxable gifts is less than or equal to NT$25,000,000, the tax rate shall be 10%.
    (2)If the taxable gifts is above NT$25,000,000 to NT$50,000,000, the gift tax payable shall be NT$2,500,000 plus 15% for the portion of gifts more than NT$25,000,000.
    (3)If the taxable gifts is above NT$50,000,000, the gift tax payable shall be NT$6,250,000 plus 20% for the portion of gifts more than NT$50,000,000.
    For tax purpose, if the same donor makes gift twice or more in the same calendar year, all gifts made up to the time the latest transfer by gift occurs shall be included in computing the value of gifts, based on which gift tax is computed according to paragraph 1, and tax due for the latest transfer shall be the aforesaid tax amount less gift tax already paid.
  • Article 20
  • Exclusions from total amount of gifts include the following:
    (1)Property donated to government agencies at various levels or public educational, cultural, public welfare, charitable or religious organizations;
    (2)Property donated to public organizations or businesses fully owned by the government;
    (3)Property donated to private incorporated educational, cultural, public welfare, charitable or religious organizations, or ancestor worshipping entities that meet the criteria prescribed by the Executive Yuan;
    (4)Living, educational and medical expenses defrayed in favor of the dependents of the donor; 
    (5)Total value of crops and farmland given to the heir(s) provided under Section 1138 of the Civil Code. If the donee fails to use the farmland for agricultural purpose continuously for five years from the date of gift and fails 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 donee has died, or that the land is requisitioned by the government, or has changed zoning to non-farming purpose pursuant to law;
    (6)Gifts made between spouses; and
    (7)Wedding gifts given by parents to the extent of $1,000,000.
    Gifts made between spouses and wedding gifts given by parents under $1,000,000 which occurred before 14 January, 1995, but the tax on which has not been levied or determined by the time the amended provisions in paragraph 1 was promulgated and came into force, will be subject to the provisions under subparagraphs (6) and (7) hereof.
  • Article 20-1
  • In case where a settlor furnished property for the creation of a charitable trust, or donated or added to charitable trusts that meet the requirements specified in Article 16-1 herein, and where the beneficiaries are entitled to the trust interest, the right to claim such trust interest may be excluded from total amount of gifts.
  • Article 21
  • Liability transferred together with the gift may be deducted from total amount of gift.
  • Article 22
  • An annual exemption of $2,200,000 may be deducted from total amount of gift for each donor.
Chapter 4 Tax Collection Procedure
Section 1 Tax Return and Payment
  • Article 23
  • An estate tax return reporting the property left by the decedent shall be filed by the taxpayer with the competent tax authority at where the decedent had his/her household registration record within six (6) months from the date of death. In the case where the tax authority requests the court to appoint an estate administrator pursuant to Paragraph 2 of Article 6 herein, the six-month period shall begin from the date the court appoints an administrator.
    An estate return reporting the property left by the decedent inside the ROC who was an ROC citizen but resided continuously outside the ROC or a non-ROC citizen shall be filed with the competent tax authority at where the ROC Central Government is located.
  • Article 24
  • Except for gifts made as prescribed in Article 20 herein, a donor shall file a gift tax return with the competent tax authority within thirty (30) days from the date of a gratuitous transfer for gifts made during the calendar year in excess of the annual exemption.
    A donor who is an ROC citizen and resides in the ROC continuously shall file the gift tax return with the competent tax authority at where the donor has his/her household registration record; a donor who is an ROC citizen but resides outside the ROC continuously or who is a non-ROC citizen shall file the gift tax return with the competent tax authority at where the ROC Central Government is located.
  • Article 24-1
  • Except for charitable trusts prescribed in Article 20 herein, if the settlor has transferred property to the trust that is subject to gift tax as stipulated in Article 5-1 herein, the date of gift event shall be the date the trust deed is established or changed, and a gift tax return shall be filed in accordance with Paragraph 1 of Article 24.
  • Article 25
  • Where the same donor makes two or more gifts in the same calendar year that are subject to filing gift tax return, all gifts made in the same calendar and tax paid shall be reported in the latest gift tax return.
  • Article 26
  • Taxpayer of estate tax or gift tax may apply for an extension for filing tax return by submitting a written application supported with due causes prior to the lapse of the time limit prescribed in Articles 24, 24-1, and 25.
    The aforesaid extension is limited to three months, or a period of time as approved by the tax authority in view of the actual situation in case of force majeure or other special circumstances.
  • Article 28
  • Upon learning the fact of death or receiving the death report on a person, the tax authority should issue a notice to file return enclosed with an Estate Tax Filing Form to taxpayer within one month, asking the taxpayer to file the return before a certain date, and send the taxpayer a reminder notice in ten days before the prescribed deadline, reminding the taxpayer of the consequence of filing the return late.
    Taxpayer is not relieved of his/her filing obligation as provided herein even if he/she has not received the aforesaid notice from the tax authority.
  • Article 29
  • The tax authority should, within two months from the date of receiving an estate or gift tax return, carry out investigation and valuation to determine tax due and issue a tax notice to the taxpayer, or request its superior agency for an extension before the aforesaid deadline if it is unable to complete the assessment in two months due to special circumstances.
  • Article 30
  • The taxpayer of estate tax or gift tax shall, within two months from the date of receiving the tax notice, pay the tax due, and if necessary, may apply to the competent tax authority for an extension of two months before the prescribed deadline.
    In cases where the estate tax or gift tax payable amounts to $300,000 or more, and the taxpayer has difficulty paying the full amount in cash, the taxpayer may apply to the competent tax authority before the prescribed payment deadline for payment by eighteen (18) installments with an interval of no more than two months between each installment.
    In cases where payment by installments has been approved by the tax authority, interest on the balance due calculated at the fixed interest rate for the one-year term postal savings deposit shall accrue from the next day of the prescribed payment deadline to the date of each payment.When there is change in interest rate, the new interest rate shall apply.
    In cases where the estate tax or gift tax payable amounts to $300,000 or more, and the taxpayer has difficulty paying the full amount in cash, he or she may apply for permission to pay the deficient part of the tax in full by surrendering the taxed property which is located in the ROC or other easily cashable or storable property which is owned by the taxpayer. In case the tax property is not easily cashable or storable in the ROC, or the prevailing value on the date of application is lower than that on the date of death or the date of gift, the amount of tax which may be offset by such property shall be limited to the ratio of its value to the value of the total assessed property.
    The amended provisions as detailed in paragraphs 2, 3, and 4 shall apply to unsettled cases which occurred prior to the amendment of this Act on 12th January, 2009; provided, however, that if the provisions prior to the amendment are more favorable to the taxpayer(s), such provisions prior to the amendment shall apply.
    The valuation of the surrendered property according to Paragraph 4 of this Article shall be prescribed by the Ministry of Finance.
    Where the property for paying estate tax in kind is jointly owned in common by the heirs under the Paragraph 4, and that property is solely owned by the decedent or with others in co-ownership, the application for estate tax payment may be submitted by the consent of half of the heirs whose holding of entitled portion is more than half of the total, or when over two-thirds of the entitled portion of the heirs declare their consent in writing.It shall not apply to the Paragraph 3 of Article 828 of the Civil Code.
  • Article 33
  • Taxpayer of estate tax or gift tax who, in violation of Article 23 or 24 herein, fails to file the tax return as required before the prescribed deadline, or in violation of Article 26 herein, fails to apply for extension to file return, the competent tax authority should initiate investigation immediately, complete the investigation and determination of tax due within the time limit stipulated in Article 29 herein, and notify the taxpayer to pay tax pursuant to Article 30 herein.
Section 2
Section 3 Investigation and Reporting
  • Article 37
  • Subsequent to accepting the application for registration of death, the household registration office should immediately send a copy of the death registration certificate to the tax authority.
  • Article 39
  • If the tax authority discovers during investigation that the taxpayer evades estate or gift tax intentionally by fraudulent or other illicit means, it may ask the local judicial office with the description of course of event to conduct search, seizure or take other compulsory actions.
  • Article 40
  • If the decedent had a safe box or deposits with a financial or trust institution before death, and the heir or interested party may, following the established legal procedure, open the safe box or withdraw the deposits after the death of the decedent, they shall notify in advance to meet with the tax authority for the opening or withdrawal so that the tax authority may take count and register the content of the safe box or the amount of deposits.
  • Article 41
  • The competent tax authority should issue a tax payment certificate to the taxpayer of estate or gift tax after he/she has paid off the tax due as well as fines, delay penalty and interest, if any, or issue a tax exemption certificate if no tax is due. If, due to special reason, the taxpayer must transfer the title of a property before paying off the tax, he/she may apply to the tax authority for issuing a consent to transfer certificate with the provision of definitive guarantee for payment. 
    The tax authority should, if so requested by the taxpayer, issue an exclusion certificate for property excluded from gross estate pursuant to Article 16 herein or from total amount of gifts pursuant to Article 20 herein.
  • Article 41-1
  • In cases where there are two or more heirs to an estate and some heirs have paid their share of estate tax as well as fine, delay penalty and interest, if any, such heirs may apply to the tax authority for issuing a consent to transfer certificate for the purpose of registering co-ownership by inheritance for a real property. Said real property registered as co-ownership may not be split, disposed, hypothecated or have rights transferred before all tax payable on the property is paid off.
  • Article 42
  • When land administration, other government agency, or public or private enterprise records transfer of title of property due to inheritance or gift, it shall ask the applicant to present a photocopy of tax payment certificate, or tax exemption certificate, or exclusion from gross estate certificate, or exclusion from total amount of gifts issued by the competent tax authority, and turns down the request for recordation of title transfer if no such document is provided.
Chapter 5 Penalty
  • Article 43
  • The competent tax authority should reward the person a certain percentage of the fine who reports or informs against a taxpayer of estate or gift tax and other related parties for tax evasion or helping others evade tax by under-reporting, non-reporting, concealing information, or using fraudulent or other illicit means, and keep the identity of such person confidential.
  • Article 44
  • A fine that amounts to up to two times of the estate or gift tax due will be imposed on taxpayers who violate Article 23 or 24 herein for failing to file estate or gift tax return on time.
  • Article 45
  • A fine that amounts to up to two times of the estate or gift tax unreported or under-reported shall be imposed on taxpayers who have filed the estate or gift tax return on time.
  • Article 46
  • A fine that amounts to one to three times of the estate or gift tax calculated at the rate prevailing in the year of inheritance or at the time of gratuitous transfer shall be imposed on taxpayers who evade estate or gift tax intentionally by fraudulent or other illicit means, in addition to the estate or gift tax due.
  • Article 47
  • The fine stipulated in paragraphs 44, 45, and 46 together with tax due shall not exceed the value of gross estate or total amount of gifts.
  • Article 48
  • The competent authority should take rigorous disciplinary action against tax officers who violate the provisions of Article 29 herein and household registration officers who violate the provisions of Article 37 herein and order them to take remedial action swiftly; if the officer’s behavior involves criminal intent, the competent authority should take action in compliance with the Criminal Code and relevant laws.
  • Article 50
  • Taxpayer who violates Article 8 herein for splitting, delivering to legatee(s), or carrying out recordation of title transfer before estate tax due is paid off, or carrying out recordation of title transfer before gift tax due is paid off shall be subject to a prison term of no more than one year.
  • Article 51
  • A delinquency charge penalty that amounts to one percent (1%) of estate or gift tax due for every two days of delay shall be imposed on taxpayers who fail to pay the estate tax or gift tax as determined by the tax authority in a timely manner pursuant to Article 30 herein; the tax authority should immediately forward the case to the court for compulsory execution, provided the tax owed is more than thirty (30) days past due. However, a taxpayer who is unable to pay off the tax within the statutory period due to events that are force majeure or causes not attributable to the taxpayer, and has applied for the deferral of the tax payment or for payment by installments within ten days after the cause of the a foresaid events along with concrete evidence and has been approved by the collection authorities, shall be exempted from the surcharge for delinquent payment.
    Interest on the aforesaid tax due calculated at the interest rate for one-year term deposit quoted by the Postal savings fund shall accrue daily from the next day following the prescribed payment deadline to the date of full payment by the taxpayer.
  • Article 52
  • A private enterprise that, in violation of provisions of Article 42, fails to ask the applicant to provide a photocopy of estate or gift tax payment certificate, or tax exemption certificate, or exclusion from gross estate certificate, or exclusion from total amount of gifts certificate issued by the competent tax authority and proceeds to carry out recordation of title transfer due to inheritance or gift shall be subject to a fine of no more than $15,000; if the registration agency is a government agency or public enterprise, the competent authority shall take rigorous disciplinary action against the officer-in-charge and his/her immediate superior.
Chapter 6 Supplemental Provisions
  • Article 55
  • The enforcement rules of this Act shall be prescribed by the Ministry of Finance.
  • Article 56
  • The format of forms specified in this Act shall be determined by the Ministry of Finance.
  • Article 58
  • Matters with respect to the imposition of estate tax and gift tax not specified herein shall be governed by other acts.
  • Article 58-1
  • After the articles amended on 12th January, 2009 came into force, substantial losses so incurred in the annual tax revenue to be allocated to the local government in accordance with the Act Governing the Allocation of Government Revenues and Expenditures shall be made up by the central government before the Act Governing the Allocation of Government Revenues and Expenditures is modified to increase the scale of the central distribution fund, notwithstanding the provisions of Article 23 of the Budget Act regarding the restriction on debt financing used for ordinary expenditure.
    The substantial tax loss as stipulated in paragraph 1 shall be the difference calculated by subtracting tax revenue collected by the local government in the current year when the amendment came into fore or in each coming year from the average of estate and gift tax collected by the local government for the last three years before the amendment of this Act on 12th January, 2009, and rounding off to the nearest $ 10,000. 
  • Article 58-2
  • After the Articles amended on 25 April 2017 came into force, the tax revenues from raising the estate and gift tax rates from 10% to 20% referred to in Article 13 and Paragraph 1, Article 19 of this Act, shall be funded for the long-term care service development fund established in accordance with the Long-Term Care Services Act, and used for long-term care services, notwithstanding the provisions of the Act Governing the Allocation of Government Revenues and Expenditures.
  • Article 59
  • This Act shall come into force from the date of promulgation.
    The effective date of articles of this Act amended on 29 May, 2001 shall be determined by the Executive Yuan.
1.Full text promulgated on 5 September, 1973 by the Ministry of Finance under Decree No.36758.
2.Addition of Articles 10-1, 10-2, and 52-1, amendments to Articles 7, 8, 11, 31, 46, 48, and 49, and deletion of Articles 10, 12, 14, and 52, were promulgated on 20 November, 1981 by the Ministry of Finance under Decree No.39764.
3.Addition of Articles 9-1, 10-3, and 43-1, amendments to Articles 7, 10-1, 10-2, 11, 13, 26-29, 44-46, 49, 51, and 52-1, and deletion of Articles 8, 16, 43, and 55, promulgated on 17 April, 1996 by the Ministry of Finance under Decree No.850194361.
4.Amendments to Articles 6, 10-2, 10-3, 17, 31, 34, 38, and 51, were promulgated on 10 February, 2000 by the Ministry of Finance under Decree No.0890003949.
5. Addition of Articles 11-1, and 40-1, amendments to Articles 2, 7, 9-1, 10-2, 17, 22, 28, 29, 41, 43-1, 45, 46, 48, 49, 51, and 57, and deletion of Article 11, promulgated on 17 September, 2009 by the Ministry of Finance under Decree No.09800467950; in addition, Article 22 was promulgated on 23 November, 2009, and took effect as of the date of promulgation.
6.Article 44 amended and promulgated per the Order of Tai-Tsai-Shuei-Tze No. 09904502460 issued by the Ministry of Finance on January 13, 2010.
7.Amendments to Articles 4, 17, 49, and 51, were promulgated on 25 November, 2013 by the Ministry of Finance under Decree No.10204683900.
8.Article 49 amended and promulgated per the Order of Tai-Tsai-Shuei-Tze No. 10404666470 issued by the Ministry of Finance on 4 November, 2015.
9.Article 51 amended and promulgated per the Order of Tai-Tsai-Shuei-Tze No. 10604591070 issued by the Ministry of Finance on 13 June, 2017.
Chapter 1 General Provisions
  • Article 1
  • These Rules are enacted pursuant to the provisions of Article 55 of the Estate and Gift Tax Act (hereinafter the Act).
  • Article 2
  • Where a debtor has been judged bankrupt or made a composition with his or her creditors according to the Bankruptcy Act or undergone rehabilitation and liquidation according to the Consumer Debt Clearance Act or has filed for reorganization according to the Company Act, thereby resulting in his failure to fully settle his or her obligations to creditors, the amount difference therefore exempted shall not constitute as a gift as referred to under Paragraph 1, Article 5 of the Act.
  • Article 3
  • The exemption without consideration from obligation of a guarantor paying debts on behalf of the principal debtor out of his liability as guarantor shall be deemed as a gift. However, if the principal debtor has declared bankruptcy, the guarantor’s assumption of debt shall not be considered a gift.
    For debtors undertaking joint and several obligations in debt for the purpose of debt guarantee, the provisions set forth under the preceding paragraph shall apply.
  • Article 4
  • The tax authority’s request for the court’s appointment of an administrator in accordance with Paragraph 2, Article 6 of the Act shall be filed within one (1) month of the due date of tax declaration and may along with it, request the court to issue a public summons in accordance with Article 1178 of the Civil Code. The appointed estate administrator shall then file the declaration pursuant to Subparagraph 3, Paragraph 1 of Article 1179 of the Civil Code with the court within one (1) month of his appointment.
    Under circumstances described in Article 1185 of the Civil Code, said estate administrator shall settle the debts, deliver the decedent’s estate, and submit the remaining properties along with all relevant account books, documents, and calculation records to the competent tax authority and the National Property Administration, Ministry of Finance within two (2) months of the due date of the time period specified in the public summons for further processing according to Article 51 of these Rules.
  • Article 5
  • According to Article 7, where the taxpayer is the donee, the tax payable shall be determined using the same rules as applied to the donor when he was a taxpayer.
  • Article 6
  • The properties given away by the decedent within two (2) years before his death as referred to under Paragraph 2, Article 11 of the Act shall include those tax-exempt properties described under Article 22 of the Act given away within said two (2) years.
Chapter 2 Estate and Gift Tax Calculation
  • Article 7
  • For the part of taxable estate or gift eligible for exclusion from tax base calculation according to Subparagraphs 1 to 3, Article 16 of the Act, the taxpayer shall, upon filing the estate tax declaration, submit a document of proof declaring the beneficiary’s consent to accept the estate or gift to the competent tax authority for issuance of an Estate Tax Exclusion Certificate.
    For such transfers by estate or gift, if the properties involved are immovables, the taxpayer’s failure to complete the property rights transfer registration within one (1) year of the date of issuance of the Estate Tax Exclusion Certificate; or if movables, the taxpayer’s failure to deliver to the beneficiary the estate or gift within three (3) months, unless under special circumstances where an extension request has been filed with the competent tax authority with an approval granted, the estate tax thereby accrued for the period of delay shall be paid by the taxpayer plus an interest payment at the fixed interest rate for one-year term postal savings deposit.
  • Article 9
  • For transfer of books or other publications already declared and registered under Subparagraph 4, Article 16 of the Act, the estate tax in arrears, if any, shall be paid in full to the competent taxation authority before such transfer can be made.
    For such registered books or other publications as set forth in the preceding paragraph, the competent taxation authority shall establish a register and may take photographs for recordation if necessary. 
  • Article 9-1
  • The failure to collect debt or exercise other rights of claim that has been verified by proof as referred to under Subparagraph 13, Article 16 of the Act shall refer to the following:
    1. Where a debtor has been judged bankrupt or made a composition according to the Bankruptcy Act or undergone rehabilitation and liquidation according to the Consumer Debt Clearance Act or has filed for reorganization according to the Company Act, thereby resulting in creditors’ failure to fully reclaim all or part of the debt, and where a composition agreement or a court ruling has been secured. 
    2. Where the decedent or the heir and the debtor have jointly reached a litigious settlement or conciliation in court, thereby resulting in creditor’s failure to fully reclaim all or part of the debt, and where the court depositions regarding said settlement or conciliation have been obtained with the absence of matters specified under Subparagraph 1, Article 5 of the Act confirmed true by the taxation authority.
    3. Where other reasons have caused failure to collect or exercise all or part of the debt or other rights of claim with relevant documents of proof submitted and confirmed true by the taxation authority.
  • Article 10-1
  • For the year gap to turning twenty (20) years of age as referred to under Subparagraph 2 and Subparagraph 5, Paragraph 1, Article 17 of the Act, a gap or a year difference less than one (1) year shall be calculated as one (1) year.
  • Article 10-2
  • For filing an application for the disabled and mentally retarded tax deduction pursuant to Subparagraph 4, Paragraph 1, Article 17 of the Act, a copy of the handbook for the severely disabled and mentally retarded specified or other such recognized proof issued by the relevant government organization, or a copy of a medical diagnosis issued by a specialist physician as required in Paragraph 1, Article 19 of the Mental Health Act shall be attached.
  • Article 10-3
  • Dependent siblings or grandparents as set forth under Subparagraph 5, Paragraph 1 of Article 17 of the Act shall refer to the following: 
    1. The decedent’s siblings under the age of twenty (20) or above twenty (20) years of age remaining dependent due to school attendance, mental or physical disability, or inability to make a living on their own.
    2. The decedent’s grandparents above the age of sixty (60) or under sixty (60) years of age yet dependent due to inability to make a living on their own.
  • Article 11-1
  • In case that the spouse of the decedent declares the right to claim for the distribution of the remaining property with the amount being approved as deduction from the gross amount of estate assets according to Paragraph 1 of Article 17-1 of the Act, and the taxpayer fails to pay the amount of the claim to the spouse of the decedent within the period provided by Paragraph 2, of the same Article, unless there is special reason approved by the tax authority to be postponed, the said taxpayer shall be levied estate tax according to the law, plus an interest payment at the fixed interest rate for one-year term postal savings deposit.
  • Article 13
  • In the event that the heir is unable to provide proof of the usage of any debt raised, property sold, or deposit withdrawn during the period when the decedent was unable to attend business or handle affairs on his own due to severe illness prior to his death, said borrowing, money received, or deposit shall be included in the calculation of the taxable estate.
  • Article 15
  • In the event that a military, police, or public service personnel died of duty related causes, his heir shall submit the Death on Duty Certificate issued by the institution where the decedent was employed to request for doubling tax exemption amount as specified in the second half of Paragraph 1, Article 18 of the Act.
  • Article 17
  • The dependents as set forth under Subparagraph 4, Paragraph 1 of Article 20 of the Act shall refer to any one of the following:
    1. Superior lineal relatives of the donor or the donor's spouse above the age of sixty (60) or under sixty (60) years of age yet unable to make a living and therefore dependent on the donor for livelihood support.
    2. Inferior lineal relatives of the donor under the age of twenty (20) or above twenty (20) years of age yet still attending school, or having a mental or physical disability, or unable to make a living and therefore dependent on the donor for livelihood support.
    3. Siblings of the donor under the age of twenty (20) or above twenty (20) years of age yet still attending school, or having a mental or physical disability, or unable to make a living on their own and therefore dependent on the donor for livelihood support.
    4. Other relatives or family members of the donor meeting the requirements set forth under Subparagraph 4 of Article 1114 and Paragraph 3 of Article 1123 of the Civil Act and are under the age of twenty (20) or above twenty (20) years of age yet still attending school, or having a mental or physical disability, or unable to make a living on their own and actually dependent on the donor for livelihood support.
  • Article 18
  • The liabilities transferred together with the gift and deducted as specified under Article 21 of the Act shall be limited to properties with a value and such liabilities has been executed or where such execution can be guaranteed. Where said tax burden involves payment to persons other than the decedent that can be deemed as an indirect gift, no tax deduction claim can be filed.
    The amount of tax deduction as set forth in the preceding paragraph shall not exceed the value of the share of taxable properties received.
  • Article 19
  • The deed tax and land value incremental tax paid from the transfer of immovable gifts may be deducted from the total taxable gifts.
Chapter 3 Declaration and Notification
  • Article 20
  • In the event that a decedent has left properties behind upon death, regardless of the taxable amount, the taxpayer shall fill out the estate tax declaration form and file the tax declaration with the competent taxation authority accordingly. Where the tax base calculation involves a deduction, exemption or exclusion, relevant documents of proof shall be attached.
    For the purpose of gift tax declaration, the taxpayer shall fill out the gift tax declaration form and submit along with it all relevant documents of proof.
  • Article 21
  • Where the decedent is declared dead by a court judgment, the period specified under Article 23 of the Act for estate tax declaration shall begin from the date such judgment is declared.
  • Article 22
  • Where the estate tax involves two (2) or more taxpayers, relevant tax declarations shall be filed jointly by all of the taxpayers or the legal representatives in the case of a minor or a person who has been placed under an interdiction with no capacity to make juridical acts. Tax declaration by one taxpayer on behalf of all taxpayers shall be deemed as a declaration by all. 
    The tax payment notice issued by the tax authority shall be delivered to the representative filing the tax declaration on behalf of all other taxpayers. Where the delivery cannot be made to said person, the notice can be delivered to other taxpayers instead. 
    The estate tax payable, late payment penalty, fines and the interest charges within the total taxable estate amount may still be executed upon the estate or the properties of the heirs confirmed by the delivery of the tax payment notice.
Chapter 4 Valuation
  • Article 23
  • For the decedent’s estate or gift in a foreign country subject to tax payment obligation pursuant to the provisions of Article 1 and Article 3 of the Act, the Ministry of Finance may entrust the ROC Embassy in the location where such estate is inherited or the gift is made for the valuation of said estate or gift; where in absence of an embassy, local public accounts or notaries may be engaged for property valuation.
  • Article 24
  • The value of timber shall be determined according to its type, quantity, and the current price of the woodland.
  • Article 25
  • For movables including jewelries, antiques, artworks, books, and other objects of which the market price cannot be easily determined, experts may be hired for valuation.
  • Article 26
  • For vehicles, vessels, and aircrafts, the value shall be determined by deducting a reasonable depreciation amount from the original cost. In the event of failure to present the proof of original cost or where apparent inconsistency exists between the proof of original cost presented and the facts, the value may be determined according to the year model and the actual usage of the item concerned.
  • Article 27
  • The value of a debt shall equal its amount. For debts bearing a pre-agreed interest rate, the amount of interest accrued for the period to the date of death of the decedent or the date on which the act of giving took place shall be added in determining the value of the debt.
  • Article 28
  • The valuation of marketable securities having already being traded on a stock exchange (hereinafter exchange listed) or over the counter of securities houses (hereinafter OTC listed, or emerging company) shall be based upon the closing price of the exchange listed securities or the OTC listed securities on the date of inheritance or gift, or the weighted average dealing price on the date the emerging company securities was traded. Where no dealing price of said securities was available on such date, the valuation of such securities shall be based upon the closing price of the exchange listed, OTC listed securities or the weighted average dealing price of emerging company securities traded on the last date immediately preceding the date of inheritance or gift. In the event of a sharp price fluctuation, the average of all the closing prices of the exchange listed or OTC listed securities, or the weighted average dealing price of emerging company securities, traded one month preceding the date of inheritance or gift shall be used in determination of the value. 
    For securities initially offered on the market, or over the counter, the valuation of such securities for the period from the date of approval as exchange listed and OTC listed securities by the competent security authority, or from the date of agreement as an emerging company securities by Gretai Securities Master, to the date of initial quoted trading, shall be based upon the underwriting price or the subscription price recommended by the authority-in-charge.
  • Article 29
  • Valuation of securities of companies limited by shares other than exchange listed, OTC listed, or emerging company, unless under circumstances as described in the second Paragraph of the preceding Article, shall be based upon the net worth of the company’s assets on the date of inheritance or gift subject to the following adjustments:
    1. If the assets of the company consist of land or house with its book value lower than the announced present value of the land or the standard price of the house, the announced present value of the land or standard price of the house shall be based for valuation.
    2. For the exchange listed, OTC listed securities, or emerging company securities, the value shall be estimated according to Article 28.
    In case that the company defined in the preceding paragraph has stopped operation by its own will, gone out of business, moved to another place without applying for new registration, or has other concrete proof that the value of its stock has been reduced or is valueless, such facts shall be verified. 
    For valuation of the capital invested in companies other than companies limited by shares, the provisions under the preceding two (2) paragraphs shall apply mutatis mutandis.
  • Article 30
  • For prepaid rentals, the leasehold value shall be the rental amount for the remaining lease period derived from proportionately assigning the pre-paid amount to the duration of the lease. Where a deposit was paid, the amount of the deposit shall be used for leasehold valuation.
  • Article 31
  • Where the creation of superficies rights contains a time limit and an annual rent, the value for the remaining period shall be determined as follows:
    1. For a remaining period of less than five (5) years, the value shall be the annual rent.
    2. For a remaining period of five (5) years up to ten (10) years, the value shall be double of the annual rent.
    3. For a remaining period of ten (10) years up to thirty (30) years, the value shall be three (3) times of the annual rent.
    4. For a remaining period of thirty (30) years up to fifty (50) years, the value shall be five (5) times of the annual rent.
    5. For a remaining period of fifty (50) years up to one hundred (100) years, the value shall seven (7) times of the annual rent.
    6. For a remaining period exceeding one hundred (100) years, the value shall be ten (10) times of the annual rent.
    Where the creation of superficies rights contains no time limit, the value shall be seven (7) times of the annual rent. Where local customs dictate otherwise, said customary rules for the determination of remaining period may be used.
    Where the creation of superficies rights contains no annual rent, the annual rent shall be four per cent (4%) the annual interest of the declared land value.
    Where the creation of superficies rights involves one-time rent payment, yearly incremental rent increase, or the use of certain benefit in lieu of rent due, the average annual rent shall be prescribed according to the term set in said superficies rights, and the value shall then be determined according to the provisions set forth under Paragraph 1 of this article.
  • Article 32
  • For emphyteusis (right of lease in perpetuity), the value shall be five (5) times of the annual land rent payable.
  • Article 33
  • For dien rights, the value shall be the price of the dien right established.
  • Article 34
  • The value of fishing rights and mining rights shall be determined according to the years remaining as follows:
    1.For a remaining period of less than one (1) year, the value shall be the amount of the additional benefit.
    2.For a remaining period of one (1) year up to three (3) years, the value shall be double the amount of the additional benefit.
    3.For a remaining period of three (3) years up to five (5) years, the value shall be three (3) times the amount of the additional benefit.
    4.For a remaining period of five (5) years up to seven (7) years, the value shall be four (4) times the amount of the additional benefit.
    5.For a remaining period of seven (7) years up to twelve (12) years, the value shall be six (6) times the amount of the additional benefit.
    6.For a remaining period of twelve (12) years up to sixteen (16) years, the value shall be seven (7) times the amount of the additional benefit.
    7.For a remaining period exceeding sixteen (16) years, the value shall be eight (8) times the amount of the additional benefit.
    The additional benefit amount as referred to in the preceding paragraph shall be determined by deducting the regular benefit amount, derived from the actual paid-in capital plus interest calculated at an annual interest rate of ten per cent (10%), from the average net income of such rights over the most recent three (3) years. For native mining pits without any right established thereuner or fisheries without having obtained the proper license that have no time limit and therefore cannot be seen as having a mining or fishing right, the value shall be the original price restored from dividing operating income by a five per cent (5%) weekly rate.
    For mining and fishing rights, the estate and gift tax shall be levied only in accordance with the provisions set forth under the two preceding paragraphs. The trade name carried on by the business established thereunder shall no longer be subject to estate or gift tax payment.
  • Article 35
  • Unless otherwise provided for under other relevant acts or regulations, for the valuation of intangible assets, the provisions under the preceding article shall apply mutatis mutandis.
  • Article 36
  • For finite annuities, the value shall be determined according to the remaining years of payment as follows:
    1.For a remaining payment period of less than one (1) year, the value shall be the annual annuity payment.
    2.For a remaining payment period of one (1) year up to three (3) years, the value shall be double the annual annuity payment.
    3.For a remaining payment period of three (3) years up to five (5) years, the value shall be three (3) times the annual annuity payment.
    4.For a remaining payment period of five (5) years up to seven (7) years, the value shall be four (4) times the annual annuity payment.
    5.For a remaining payment period of seven (7) years up to nine (9) years, the value shall be five (5) times the annual annuity payment.
    6.For a remaining payment period of nine (9) years up to twelve (12) years, the value shall be six (6) times the annual annuity payment.
    7.For a remaining payment period of twelve (12) years up to sixteen (16) years, the value shall be seven (7) times the annual annuity payment.
    8.For a remaining payment period of sixteen (16) years up to twenty-four (24) years, the value shall be eight (8) times the annual annuity payment.
    9.For a remaining payment period of twenty-four (24) years up to one hundred (100) years, the value shall be nine (9) times the annual annuity payment.
    10.For a remaining payment period exceeding one hundred (100) years, the value shall be ten (10) times the annual annuity payment.
  • Article 37
  • For infinite annuities or annuities thereto the preceding article cannot apply due to special circumstances, the actual situation may be taken into consideration while using the criteria provided in the preceding article for valuation.
  • Article 38
  • For annuities of which the payment is made throughout the life time of the payer, the beneficiary, or a third person, the value shall be determined as follows:
    1.With the person aged below ten (10) years, the value shall be nine (9) times the annual annuity payment.
    2.With the person aged of ten (10) years up to twenty (20) years, the value shall be eight (8) times the annual annuity payment.
    3.With the person aged of twenty (20) years up to thirty (30) years, the value shall be seven (7) times the annual annuity payment.
    4.With the person aged of thirty (30) years up to forty (40) years, the value shall be five (5) times the annual annuity payment.
    5.With the person aged of forty (40) years up to fifty (50) years, the value shall be three (3) times the annual annuity payment.
    6.With the person aged of fifty (50) years up to sixty (60) years, the value shall be two (2) times the annual annuity payment.
    7.With the person aged above sixty (60) years, the value shall be the annual annuity payment.
  • Article 39
  • For conditional rights and rights without a fixed term, the value shall be determined according to the nature of the right with the actual situation taken into consideration.
  • Article 40
  • For co-owned or co-managed properties, the total net value of the property shall be evaluated first before the value of the estate or gift made by the decedent can be determined.
  • Article 40-1
  • In case that the property given by the taxpayer to the spouse of the decedent during the one(1) year period provided for under Paragraph 2, Article 17-1 of the Act is the estate, the valuation shall be based on the value of the estate on which the tax is levied; in case that payment is made with properties other than estate, the valuation shall be based on the value of such properties on the payment day, the related provisions of the valuation of the estate shall apply mutatis mutandis.
  • Article 41
  • For matters relating to the valuation of an estate and a gift not specified under the Act and these Rules, such value is estimated by the market value.
Chapter 5 Payment
  • Article 42
  • In the event that the decedent has failed to file a declaration or has filed an incomplete declaration for the property requiring a declaration by the Act and where the decedent meets the situation described under Paragraph 1, Article 7 of the Act, the beneficiaries shall be held liable for said failure to file a declaration or for the shortage or omission in the declaration and shall be responsible for making the tax and interest payment in proportion to the property they have each received provided the payment is within the total taxable estate or gift amount .
  • Article 43-1
  • The taxed property located in the ROC as referred to in Paragraph 4, Article 30 of the Act shall mean the property included in the total taxable amount of the present estate or gift which is located in the ROC according to the Act and with an estate or gift tax already levied thereupon.
  • Article 44
  • The lands reserved for public facilities included in the estate of a decedent eligible for an estate tax exemption pursuant to Article 50-1 of the Urban Planning Act, the taxpayer may apply for paying estate tax in kind using the said property. 
    Where the beneficiary of a gift is also the taxpayer as described under Paragraph 1, Article 7 of the Act, the taxpayer may apply for paying gift tax in kind using the reserved lands for public facilities included in the property received that are eligible for a gift tax exemption pursuant to Article 50-1 of the Urban Planning Act.
    Except for the lands which were owned by the decedent or the donor before being designated to be reserved for public facilities, or the lands which were transferred to the decedent or the donor because of inheritance after being designated to be reserved for public facilities with no records of transfer of ownership other than by inheritance during the period from the date of designation and the date of transfer, the amount of estate tax and gift tax payable which may be offset by the lands reserved for public facilities as mentioned in the preceding paragraphs shall be subject to limitation calculated as follows: 
    The limitation of tax payable which can be offsetted by the lands reserved for public facilities = The estate tax or gift tax payable based on the Act × (the value of the public facilities reserved lands surrendered for tax payment ÷ the total amount of the estate or gift assets)
  • Article 45
  • In case that taxpayers apply for paying the estate and gift tax in kind according to the provisions under Paragraph 2, Article 30 of the Act, the taxpayer shall submit a list of all the surrendered properties within the specified time period for tax payment to the competent tax authority for approval. The competent tax authority shall conduct a survey and deliver its decision within thirty (30) days of the receipt of the application.
    If properties surrendered for payment in kind do not meet the conditions set out under the provisions in Paragraph 2, Article 30 of the Act, the competent tax authority shall immediately issue a notice to the taxpayer stating clearly the reasons for rejecting the application and requesting tax payment within the original time limit specified. In the event that the delivery of said rejection notice to the taxpayer has passed the original time limit specified or is less than ten (10) days to the due date of the original time limit, the competent tax authority shall allow a period of ten (10) days as of the date of notice delivery for the taxpayer to make the tax payment.
    In the event that part of the properties surrendered for payment in kind are in violation of the provisions of Paragraph 4 of Article 30, the competent tax authority shall notify the taxpayer to pay in cash for the part of noncompliance.
  • Article 46
  • The value of properties surrendered by taxpayers for estate and gift tax payment, being part of taxable estate or gift in the ROC, shall be determined according to the value of the estate or gift tax levied upon the property concerned.
    Where said surrendered property is a depreciative or depletive property, the depreciation or depletion amount accrued during the period between the date of inheritance or gift and the date of in-lieu tax payment application shall be deducted; where other rights have been established thereon, the value of said rights or the amount of debts guaranteed shall be deducted.
    Where such other right is a mortgage and the debtor has repaid the guaranteed debt after it had been used for tax payment, thereby resulting in a tax payment value in excess of the original tax amount, the provisions under Paragraph 1 of Article 48 shall apply mutatis mutandis. 
    The value of properties surrendered by taxpayers for estate and gift tax payment, being property other than taxable estate or gift, shall be based on the date of in-lieu tax payment application and relevant provisions concerning estate or gift valuation shall apply mutatis mutandis.
  • Article 47
  • If the properties surrendered for tax payment are lands or buildings, the competent tax authority shall identify all other payable but unpaid taxes attached thereto and require the payment of all such taxes concurrently.
  • Article 48
  • In the case of surrendering property for tax payment, if the value of said property is lower than the tax payable, the taxpayer shall pay the difference in cash upon filing the application for payment in kind; if the value exceeds the tax payable, after the surrendered property has been liquidated, the amount of refund shall be calculated based on the net receipt from the liquidation multiplied by the ratio of the part in excess of the tax amount to the total value of said property and the taxpayer shall be notified within one (1) month of the completion of said liquidation transaction for the collection of said refund. 
    The net receipt from the liquidation under the preceding paragraph means the balance of total receipts of disposal after deduction of all taxes, charges, management and disposal fees.
    For the part requiring cash payment according to the provisions under Paragraph 1 and under Paragraph 3 of Article 45, the taxpayer may apply for an installment payment according to Paragraph 2, Article 30 of the Act.
  • Article 49
  • Where the competent tax authority has approved the use of lands, buildings, or other objects for tax payment, the taxpayer shall submit relevant documents or properties to the competent tax authority within thirty (30) days of the receipt of the approval notice for processing of tax payment in kind.
    In case that the property for paying estate tax in kind is jointly owned by the heirs in common under the preceding paragraph, the following documents shall be presented:
    1.Inheritance registration and transfer registration application forms.
    2.A letter of consent to surrender the properties for estate tax payment signed by the heirs under the provisions of Paragraph 7, Article 30 of the Act; in the event of waiver of the right of inheritance, a certification from the court shall be attached for reference.
    3.The ownership certificate of the land or building, or the document of proof of other properties, or the property to be surrendered for tax payment.
    4.A letter of affidavit signed by the heirs under the provisions of Paragraph 7, Article 30 of the Act, stating that if the government should announce expropriation of the land surrendered for tax payment before the completion of the registration to transfer the land into national property, the compensation thus paid for the land price shall be collected by the National Property Administration, Ministry of Finance.
    5.Other required documents pursuant to relevant rules and regulations.
    In case that the property for payment in kind owned by the taxpayer is other than those assets listed under Paragraph 1, the following shall be submitted:
    1.The transfer registration application form.
    2.The ownership certificate of the land or building, or the document of proof of other properties, or the property to be surrendered for tax payment.
    3.Other required documents pursuant to relevant rules and regulations.
  • Article 50
  • In the event that the taxpayer has failed to deliver all the relevant documents required for property right transfer registration or the properties to be surrendered for tax payment to the competent tax authority within the time limit specified in the preceding article, the provisions under Article 51 of the Act shall govern. The same shall apply to cases where the difference between the in-lieu tax payment and the tax amount payable is required to be paid in cash.
  • Article 51
  • The properties approved by the competent tax authority for estate or gift tax payment and those with unpaid taxes attached thereto as set forth in Article 47 shall be transferred into national property under the management of the National Property Administration, Ministry of Finance with the ratios allocated to municipality, city,hsiang (township, city) and the long-term care service development fund established in accordance with the Long-Term Care Services Act according to the Act Governing the Allocation of Government Revenues and Expenditures and Article 58-2 of the Act clearly indicated. Where the payment in kind is land reserved for public facility, and the land is located within the municipal, city, or hsiang (township, city) to which allocation of the tax revenue is attributable, according to the ratios allocated, the land shall be transferred into national, municipal, city, and hsiang (township, city) properties, respectively.
    Objects used for tax payment shall be disposed of as early as possible. The receipts obtained during the period between acquisition and liquidation of such objects and the amount gained from the disposal shall be split between governments of different levels according to the statutory allocation ratios and the long-term care service development fund established in accordance with the Long-Term Care Services Act. The taxes and duties, charges and fees, management fees, and disposal fees thereto attached shall be paid by the management authority of the property using the income such property has produced or the amount gained from liquidating or selling said property to tenant farmers for payment.
  • Article 52-1
  • The tax payment guarantee as referred to under Paragraph 1, Article 41 of the Act shall mean the guarantee provided in accordance with the guarantee requirement specified under Article 11-1 of the Tax Collection Act.
  • Article 53
  • Where the estate or gift tax payment certificate has been issued by the taxation authority, any stakeholder may apply for the issuance of a copy of said certificate. The same shall apply to the re-issuance of estate or gift tax exemption certificate, transfer agreement certificate, estate tax exclusion certificate, and gift tax exclusion certificate.
Chapter 6 Penal and Supplementary Provisions
  • Article 54
  • For the person reporting or informing a violation of the Act or these Rules eligible for a reward as specified under Article 43 of the Act, the competent tax authority shall notify the person to collect the reward within ten (10) days of the payment of the fine.
  • Article 56
  • The format and content of the various forms and documents required by the Act and by these Rules shall be prescribed by the Ministry of Finance.
  • Article 57
  • These Rules shall take effect as of the date of promulgation. The amended provision of Paragraph 1, Article 22 of these Rules with the date of promulgation on 17th September, 2009 shall come into effect on 23rd November, 2009.
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