Estate Dispute Accidentally Exposes Overseas Deposits; Supplementary Declaration Within Filing Period Can Avoid Penalties
With the internationalization of asset allocation planning, Taiwanese nationals often accumulate wealth rapidly through overseas investments. When inheritance occurs, overseas assets should be included in the total estate value for declaration purposes.
The National Taxation Bureau of Kaohsiung, Ministry of Finance explains that according to Article 1, Paragraph 1 of the Estate and Gift Tax Act, when a Republic of China national who habitually resides within the territory of the Republic of China dies leaving property, estate tax shall be levied on all property, both within and outside the territory of the R.O.C. From the above provision, it is clear that if the deceased was a Republic of China national who transferred funds to overseas bank accounts during his or her lifetime, when inheritance occurs, such overseas deposits still constitute part of the deceased's estate and should be included in the estate tax declaration.
The Bureau provided an example: Mr. A died on December 20, 2024. Heir B completed the estate tax declaration on March 14, 2025, declaring a total estate value of NT$18 million, which included only domestic real estate, deposits, and stocks. Subsequently, disputes arose among heirs regarding property distribution, and Heir C voluntarily provided information about Mr. A's Hong Kong bank account deposits equivalent to approximately NT$8 million. After verification by the Bureau, and since the filing deadline had not yet expired, guidance was provided to complete the supplementary declaration.
The Bureau reminds taxpayers that estate tax declarations must be filed within 6 months from the date of the deceased's death, or an extension of 3 months may be requested before the deadline expires for justified reasons. After heirs file their declarations, if any omissions are discovered, supplementary declarations should be made within the statutory period. Failure to do so beyond the filing deadline, if reported or discovered by tax authorities, will result in penalties according to law. For further inquiries, please call our toll-free service hotline 0800-000-321 or visit the Bureau's website （(https://www.ntbk.gov.tw） to make inquiries online using the National Tax Smart Assistant “National Tax Helper.”
Provided by: First Individual Income Tax Section
Contact person: Section Chief, Ms. Lin. Phone number: （07）7256600 ext. 7270
Contributor: Ms. Lee. Phone number:（07）7256600 ext. 7222
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=fe34a580f14c49eab9a2d9cff2fd1dfd