On 30 October 2026, the National Taxation Bureau of Taipei (NTBT) issued a press release clarifying the proper application of the annual gift tax exemption under Article 17 of the Gift Tax Act. The guidance addresses common misconceptions regarding the “per year” calculation period, emphasizing that the exemption resets each calendar year (January 1 to December 31) and cannot be carried forward or aggregated across years. The Bureau reminds donors that any gift exceeding the annual exemption threshold of NT$2.44 million (2026 amount) must be reported and taxed accordingly, with penalties for underreporting.
Key Takeaways
- Calendar Year Basis: The NT$2.44 million exemption applies per donor per calendar year, not per recipient or rolling 12-month period.
- No Carryforward Allowed: Unused exemption amounts cannot be carried forward to subsequent years or combined with future exemptions.
- Reporting Obligation: Donors must file gift tax returns within 30 days of the gift date if the value exceeds the annual exemption, with late filing subject to penalties up to 30% of tax due.
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