Property gifted by the decedent to his/her spouse within two years before his/her death shall be included in the gross estate and subject to estate tax as prescribed by law
National Taxation Bureau of Taipei, Ministry of Finance expressed that, although property gifted by the decedent to his/her spouse two years before his/her death is exempted from gift tax, the said property should be regarded as estate of the decedent, which should be included in the gross estate and subject to estate tax as prescribed in Article 15 of the Estate and Gift Tax Act.
The Bureau explained that property gifted from one spouse to another is excluded from total amount of gifts as prescribed in Subparagraph 6 of Paragraph 1 of Article 20 of the Estate and Gift Tax Act and is therefore excluded from the gift tax. Nevertheless, if the donor passes away within two years after the transfer of the said property, the property shall still be determined as the decedent’s estate, and be included in the gross estate and subject to estate tax based on its price at the time of the decedent’s death.
The Bureau illustrates the law through the following example: Party A gifted one land located in Songshan District of Taipei City to Party A’s spouse in July 2020. The assessed present value of the land at the time was NT$12,000,000; and, after obtaining the “exclusion from total amount of gifts certificate”, the land was transferred to and registered under the name of Party A’s spouse, Party B. When Party A passed away in May 2021, the land gifted to Party B already had its value increased and the assessed present value of the land was NT$13,500,000 in 2021. Although the land was not registered under the name of the decedent, it was included in decedent’s gross estate at its assessed present value of 2021, which was NT$13,500,000, and subject to estate tax.
The Bureau would like to remind taxpayers that, when declaring estate tax, taxpayers should pay attention to the transfer of decedent’s property within two years before his/her death in order to make a correct declaration and protect their rights and interests.
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(Contact window: Examiner Lin of the Second Examination Division; telephone: 2311-3711 Ext. 1597)
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=125f2114fd5f4a7387b2886467809603