Gift Tax charged for Foreigner-gifted Properties within the Territory of the Republic of China

A citizen, Ms. Lin, asked that she was a foreigner with resident certificate and owned properties with a total value of NT$60,000,000 in Taiwan, if she gifted the properties to her children, would she need to pay for gift tax and how much the gift tax rate would be?

National Taxation Bureau of Kaohsiung, Ministry of Finance explains: Nationals of the Republic of China who regularly live in territories outside the Republic of China shall pay for gift tax in accordance with Estate and Gift Tax Act when they give domestic properties. Since May 12 of 2017, the gift tax rate has adjusted from one single tax rate to three-level cumulative tax rate.

If the total of taxable gifts is less than NT$25,000,000, the tax rate shall be 10%; if it’s range from NT$25,000,000 to NT$50,000,000, the gift tax payable shall be NT$2,500,000 plus 15% for the portion of gifts that is more than NT$25,000,000. As for the taxable gifts that is over NT$50,000,000, the gifts tax payable shall be NT$6,250,000 plus 20% for the portion of gifts that is more than NT$50,000,000.

As Ms. Lin is a non-national of the Republic of China, she must, within 30 days after gifting properties within the territories of the Republic of China to her children , file the gift tax return at National Taxation Bureau of Taipei. The amount of gifted properties will be firstly calculated according to the assessed present value of land and current value of the house, and then NT$2,200,000 will be deducted from it as exemption for tax. Finally, the remaining amount will be used to calculate the gift tax accordingly.

Contact: Ms.JIAN, Revenue officer

TEL: (07)725 6600, ext.6435

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