Taiwan Inheritance Tax, Estate & Gift Tax, Passed Away, Tax Guide for Expats

In this section, we will cover the essentials of the Taiwan Estate and Gift Tax: general principles, who pays, how much is owed, and what exemptions are available.

We will not cover trusts in depth in this article, due to their high degree of complexity. We may cover trusts in a future part of this series.

General Principles of Taiwan’s Estate and Gift Tax

Please note that this is NOT an exhaustive list of the rules, but an overview of key principles. For the exact specifications of the Estate and Gift Tax Act, refer to the full text of the law, or consult a licensed tax professional for advice.

MOJ References (full text of the act):

Taiwan (ROC) citizens vs. non-ROC citizens

All worldwide property and gifts given by ROC citizens are subject to estate and gift taxes.
Foreign estate and gift taxes paid on overseas properties can be deducted from estate and gift tax owed in Taiwan (with some restrictions).
Property of and gifts from non-ROC citizens are only subject to estate and gift taxes if the property is located in Taiwan.

What is taxed?

Estate taxes:
Financial assets, real property, any rights and interests with monetary value, and trusts.
Gifts:
Any property transferred from a donor to a donee who accepts the offer; forgiveness or assumption of debt on another’s behalf; purchases made on behalf of others (without repayment); sales of property between relatives.

Note: while trusts are subject to estate tax, in general, they are not subject to gift tax (depending on whether the property is transferred to the beneficiary).

Who pays the tax?

Estate tax (in order of precedence):
The executor of the will.
Heirs.
An administrator appointed by legal authority.
Gift tax: the giver of the gift is liable to pay taxes. In the case, that the giver (donor) cannot or does not pay the gift tax, the recipient (donee) is then liable.

When is the tax paid?

Estate tax:
Taxes must be paid before the estate is divided, or any of the property in the state is transferred.
Gift tax:
Taxes must be paid before the transfer of title occurs.

How is the value of the estate or gift determined?

Estate:
The estate is valued at the time and date of death of the decedent.
Gift
The gift is valued at the prevailing value of the goods on the date of the gift.

Note: determining the exact value of estates and some gifts (especially trusts) requires some expertise and can involve lengthy procedures. We recommend consulting and seeking professional guidance to ensure you receive fair, accurate, and favorable valuations.

Calculating Estate Taxes in Taiwan

Taiwan uses a progressive taxation system for estate taxes, as seen below:

Estate Tax

Value of Taxable Estate	Tax Rate
Under NTD 50 million	10%
NTD 50 million to NTD 100 million	15%
Value over NTD 100 million	20%

Estate Tax Exemptions

Taxable estates are entitled to an NTD 13.33 million exemption, deducted from the gross value of the estate. The exemption is doubled to NTD 26.66 million if the decedent was a Taiwanese soldier, policeman, civil servant, or teacher who died in the performance of their duty.

Estate Tax Exclusions

The following items can be excluded from the valuation of the gross estate:

Property donated by the heirs to Taiwan government agencies, charitable institutions, government-owned entities, educational, cultural, or religious institutions
Art, books, or articles of cultural or historical significance (must be registered with the tax authority)
Copyrights, patented inventions, or works of art created by the decedent
Items necessary for the “Daily Life” of the decedent (up to NTD 1 million)
Items for “Professional Use” by the decedent (up to NTD 560,000)
Proceeds paid by life insurance
Property inherited by the decedent within the last 5 years (as long as the appropriate estate tax has already been paid on those items)
The property originally owned by the spouse or children of the decedent (ownership must be documented)
Unrecoverable or un-exercisable claims (supporting documentation required)

Estate Tax Deductions

Please note that these deductions apply only if:

The decedent was an ROC citizen and continuously residing in Taiwan
In the case of expense deductions, the expenses were incurred in Taiwan
Heirs did not waive their right of inheritance

Deduction Description	Amount
Surviving spouse of decedent	NTD 5.53 million
Each lineal descendant of the decedent	NTD 560,000 Additional NTD 560,000 for each year until the age of majority for descendants under the age of majority.
Each parent of the decedent	NTD 1.38 million
Spouse, descendant, or parent of the decedent with severe disability	NTD 6.93 million in addition to deductions listed above
Each sibling and grandparent of the decedent	NTD 560,000 Additional NTD 560,000 for each year until the age of majority for siblings under the age of majority.
Inherited crops and farmland	The entire value, as long as the land continues to be used for agricultural purposes.
Real estate property inherited by the decedent	Varies based on how long ago the property was inherited: Under 6 years - no deduction 6 years - 80% of property value 7 years - 60% of property value 8 years - 40% of property value 9 years and up - 20% of property value Relevant property taxes must have already been paid.
Debts, Taxes, penalties, and fines owed by the decedent before death	Based on the supportive documentation provided, the Tax Office will evaluate the amount.
Funeral expenses	NTD 1.38 million