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Taiwan Inheritance and Gift Tax Guide

Taiwan imposes inheritance tax (遺產稅) and gift tax (贈與稅) at progressive rates of 10%, 15%, and 20%. The inheritance tax exemption for close family is TWD 13.33 million, and the annual gift tax exemption is TWD 2.44 million per donor. Both taxes are administered by the Ministry of Finance and are self-assessed. All amounts in TWD.

Taiwan's 遺產稅及贈與稅法 (Estate and Gift Tax Act) governs the taxation of transfers at death and during life. The system uses a unified rate schedule with three brackets. For related guidance, see our Personal Tax Guide →, Property Tax Guide →, and Wealth Tax Guide →.

Inheritance Tax (遺產稅)

  • Rates: Progressive three-bracket system on the net estate (gross estate minus deductions and allowances):
    • 10% — on net estate up to TWD 55.73 million
    • 15% — on net estate from TWD 55.73 million to TWD 111.46 million
    • 20% — on net estate exceeding TWD 111.46 million
  • Exemption for close family: A TWD 13.33 million exemption (免稅額) applies to the estate of each deceased person. This is available regardless of the heir's relationship, but close family members (spouse, children, parents) also qualify for additional deductions.
  • Spouse deduction: An additional TWD 5 million deduction for the surviving spouse (配偶扣除額).
  • Other deductions: Children (TWD 500,000 each), dependent parents (TWD 1.23 million each), funeral expenses (TWD 1.23 million lump-sum), and debts/mortgages of the deceased.

Gift Tax (贈與稅)

  • Annual exemption: The first TWD 2.44 million of gifts per donor per year is exempt from gift tax. This applies to the total of all gifts made during the calendar year. Gifts below this threshold do not need to be reported.
  • Rates (on cumulative gifts exceeding the annual exemption):
    • 10% — on cumulative gifts up to TWD 27.87 million (after annual exemption)
    • 15% — on cumulative gifts from TWD 27.87 million to TWD 55.73 million
    • 20% — on cumulative gifts exceeding TWD 55.73 million
  • Gifts between spouses: Gifts between husband and wife are exempt from gift tax. Gifts from parents to children are subject to the standard rules (but the annual exemption typically covers most ordinary gifts).
  • Filing: Gift tax returns must be filed within 30 days of the gift if the total exceeds the annual exemption. The donor is primarily liable; the donee is secondarily liable.

Key Differences and Planning

  • Inheritance vs. gift tax rates — the rate schedules are identical (10/15/20%), but the exemption amounts differ significantly (TWD 13.33M for inheritance vs. TWD 2.44M annual for gifts).
  • Property transfers: When real estate is inherited or gifted, land value increment tax (土地增值稅) may also be triggered, though inheritance of land may qualify for deferral of this tax. Gifted property triggers both gift tax and land value increment tax.
  • Life insurance: Proceeds from life insurance policies where the beneficiary is designated are generally excluded from the estate for inheritance tax purposes, making life insurance a common estate planning tool.

Filing and Payment

  • Inheritance tax filing: Within 6 months of the date of death. Extensions of up to 3 months may be granted.
  • Payment: Tax is payable within 2 months of filing. Payment by instalments (up to 18 months, with interest) is available for large estates where the tax exceeds TWD 300,000.
  • Penalties: Late filing — 2x the tax due if more than 2 months late. Late payment accrues interest at approximately 1% per month.