On 11 September 2026, the President promulgated partial amendments to the Estate and Gift Tax Act, marking the first significant revision since 2017. The amendments adjust the tax-exempt thresholds for both estate and gift taxes, revise property valuation methodologies for non-publicly traded shares, and introduce anti-avoidance provisions targeting cross-border asset transfers. The changes aim to improve vertical equity, close loopholes exploited by high-net-worth individuals, and align Taiwan’s regime with international standards under the OECD BEPS framework. The Ministry of Finance will issue detailed enforcement rules within 60 days.
Key Takeaways
- Revised Exemption Thresholds: The lifetime unified credit for estate and gift taxes has been increased from NT$13.2 million to NT$15 million, benefiting smaller estates while maintaining progressivity for larger transfers.
- Valuation Reform: New rules mandate independent appraisal for closely held business shares transferred via gift or inheritance, replacing the previous net asset value safe harbor that often underestimated market value.
- Anti-Avoidance Measures: The amendments introduce a 3-year lookback period for gifts made prior to death and expand reporting obligations for offshore trust structures used by Taiwan tax residents.
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