Newsletter
Three-tier Progressive Tax Structure is Introduced to Replace the Fixed Estate and Gift Tax Rate
Amendments to the "Estate and Gift Tax Act" were passed by the Legislative Yuan on 25 April 2017 and promulgated by the President on May 10 of the same year. A three-tier progressive tax structure has been adopted to replace the original 10% flat rate (i.e. judging by the net value of the estate/gift and the applicable tax bracket, a 10%, 15% or 20% tax rate will apply). Article 58-2 of the "Estate and Gift Tax Act" further provides that as the tax revenues from these amendments will be appropriated into the special fund set up under the "Long-term Care Services Act" to cover long-term care expenditures, the "Act Governing the Allocation of Governing Revenues and Expenditures" does not apply to such revenues.
Please find the amended tax brackets and rates in the table summarized below:
1. Estate Tax Brackets and Rates
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Net value of the Estate (Total value of the Estate less deductibles and exemptions)
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Applicable Rate
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Bracket I
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Under NT$50 million
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10%
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Bracket II
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Over NT$50 million and under NT$100 million
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NT$5 million, plus 15% for the part of the estate over NT$50 million
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Bracket III
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Over NT$100 million
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NT$12.5 million, plus 20% for the part of the estate over NT$100 million
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2. Gift Tax Brackets and Rates
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Net value of the Gift (Total value of the Gift less deductibles and exemptions of the year)
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Applicable Rate
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Bracket I
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Under NT$25 million
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10%
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Bracket II
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Over NT$25 million and under NT$50 million
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NT$2.5 million, plus 15% for the part of the gift over NT$25 million
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Bracket III
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Over NT$50 million
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NT$6.25 million, plus 15% for the part of the gift over NT$50 million
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