On 30 October 2026, the Taiwan Ministry of Finance (MOF) issued a clarifying announcement regarding the application of the annual gift tax exemption under Article 17 of the Gift Tax Act. The guidance addresses widespread confusion among taxpayers about the “per year” calculation period for the NT$2.44 million annual exemption (2026 amount). The MOF confirms that the exemption is calculated on a calendar-year basis (January 1 to December 31) and applies separately to each donor-donee relationship. This means a donor can give up to the exemption amount to each donee each calendar year without triggering gift tax liability. The announcement also reminds taxpayers that gifts exceeding the exemption must be reported by the end of February of the following year, and that the exemption cannot be carried forward or backward across tax years.
Key Takeaways
- Calendar-Year Calculation: The NT$2.44 million annual exemption (2026) is strictly applied on a calendar-year basis. Taxpayers must aggregate all gifts from the same donor to the same donee within a single calendar year to determine taxability.
- Separate Donor-Donee Application: The exemption applies per donor-donee pair. A donor may utilize the full exemption amount for multiple donees in the same year, and a donee may receive up to the exemption amount from multiple donors.
- Filing Deadline and Penalties: Gifts exceeding the annual exemption must be declared by 28 February 2027 for 2026 gifts. Late filing incurs penalties of up to 10% of the tax due, with a minimum of NT$1,500, plus interest on unpaid tax.
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