As of 2026/08/04, the Taiwan Tax Bureau clarified that personal donations of property to foundations or trusts administered by close relatives who hold positions as directors or supervisors are exempt from inclusion in the overall gift total calculation. This exemption applies only when the related party’s involvement is formally recorded and the donation complies with all reporting requirements. The bureau emphasized that taxpayers must retain documentation proving the familial relationship and the administrative role, and must file the appropriate declaration within 30 days of the transaction. Failure to disclose such donations may result in reassessment and additional taxes, including interest. The clarification is intended to prevent tax avoidance through indirect transfers and to ensure transparency in gift tax assessments. Taxpayers are encouraged to consult tax advisors to verify eligibility and to properly document the donation for audit readiness. The Bureau also issued a sample notice template to assist taxpayers in preparing the required declaration, and reminded that late submissions will incur a daily penalty of NT$1,000.
Key Takeaways
- Exemption Condition: Donations to entities led by close relatives are excluded from gift total limits.
- Documentation Required: Must retain proof of relationship and administrative role.
- Reporting Deadline: Declaration must be submitted within 30 days of the donation.
- Penalty for Late filing: Daily fine of NT$1,000 applies.
Source: Read Original Announcement