News / Taiwan / cnyes
Taiwan Passes Major Inheritance and Gift Tax Reform to Enhance Tax Fairness
Commercial Services · Financial Publishing/Services · cnyes · 2026-08-22
Taiwan's legislature has approved significant amendments to the Inheritance and Gift Tax Act, eliminating installment thresholds and reforming tax liability for deemed estates.
What Happened
Key Legislative Changes: The Legislative Yuan has passed amendments to the Inheritance and Gift Tax Act to align with Constitutional Court rulings and address tax inequities. The reform ensures that tax liabilities for deemed estates are proportional to the assets received, preventing heirs from being unfairly burdened by taxes on gifts made to others.
Spousal Tax Benefits: The amendments optimize the calculation of the spousal residual property distribution claim by including assets gifted within two years of death in the calculation of existing property. This adjustment significantly increases available deductions, effectively reducing the overall tax burden for surviving spouses.
Administrative Simplification: The reform introduces several taxpayer-friendly measures, including the removal of the NT$300,000 threshold for installment payments and allowing heirs to use estate deposits for tax payments via majority consent. It also streamlines procedures for property transfers and aligns late payment penalties with the Tax Collection Act.
Implementation Roadmap: The Ministry of Finance is currently drafting subsidiary regulations and updating digital filing systems to support the new framework. Once promulgated by the President, these changes will provide greater legal certainty and reduce tax-related disputes for both taxpayers and the government.