On 18 September 2026, the Taipei National Tax Bureau clarified the distinct tax treatments applicable to the gifting of publicly traded shares in Taiwan. Under the Securities Transaction Tax Act, the transfer of shares by way of gift is explicitly exempt from the 0.3% securities transaction tax that normally applies to on-exchange sales. However, the Bureau emphasized that this exemption does not extend to the Estate and Gift Tax Act. The recipient of the shares must still report the gift and pay gift tax on the fair market value of the shares at the time of transfer, subject to the annual exemption threshold (NT$2.44 million for 2026) and progressive tax rates of 10% to 20%. The donor is responsible for filing the gift tax return by the end of May of the following year. The Bureau also noted that the cost basis of the shares carries over to the donee for future capital gains calculation purposes. This dual-tax reminder is crucial for high-net-worth individuals and family offices planning intergenerational wealth transfers using equity assets.
Key Takeaways
- Securities Tax Exempt: Gifted shares are not subject to the 0.3% securities transaction tax.
- Gift Tax Applies: The fair market value at transfer date is subject to gift tax with annual exemption and progressive rates.
- Cost Basis Carryover: The donee inherits the donor’s original cost basis for future capital gains tax purposes.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement