All property of a decedent who was an ROC citizen and resided in the ROC continuously shall be subject to estate tax under this Act, irrespective of whether the estate is located within or outside the ROC.
Property left by a decedent who was an ROC citizen but resided outside the ROC continuously or who was a non-ROC citizen shall be subject to estate tax only to the extent that such estate is located within the ROC.

Estate not claimed by anybody for inheritance shall go to the national treasury; estate tax payable thereof will be allocated by the national treasury in accordance with the Act Governing the Allocation of Government Revenues and Expenditures.

Property given away by a donor who is an ROC citizen and resides in the ROC continuously shall be subject to gift tax under this Act, irrespective of whether the property is located within or outside the ROC.
Property given away by a donor who is an ROC citizen but resides outside the ROC continuously or who is a non-ROC citizen shall be subject to gift tax only to the extent that the property is located within the ROC.

If the decedent or donor voluntarily relinquished his/her ROC citizenship within two years prior to the event of death or making of gift, the property of the decedent or gift made by the donor shall be subject to estate tax or gift tax according to the regulations for an ROC citizen provided herein.

Property in a testamentary trust shall be subject to estate tax under this Act upon the death of the testator.
If the beneficiary of a trust dies during the life of the trust, his/her interest in the trust that is not yet received shall be subject to estate tax under this Act.

The term “estate” or “property” depicted herein shall mean movables, real property and other rights and interests having value.
The term “gift” depicted herein shall mean an act where the donor offers to transfer his/her property gratuitously to the donee who in turn accepts the transfer.
“Continuous residence within the ROC” depicted herein shall mean the decedent or donor had any of the following situations:
(1)Maintaining a domicile in the ROC within two years prior to the event of death or making of gift.
(2)Residing inside the ROC without maintaining a domicile, but having stayed in the ROC more than 365 days within two years immediately prior to the event of death or making of gift, except for a foreigner who was employed by the ROC government to render a service and had only stayed in the ROC for a specific period of time.
“Continuous residence outside the ROC” depicted herein shall mean residence condition not meeting the requirements set forth in the preceding paragraph.
The term “farmland” depicted herein shall mean land to which the Statute Governing Agricultural Development applies.

Transfer of property in any of the conditions below shall be regarded as gift and subject to gift tax under this Act:
(1)To forgive or assume debts without receipt of any consideration or compensation while the right of claim is still valid; the debts forgiven or assumed are subject to gift tax.
(2)To transfer property, forgive or assume debts for substantially less than an adequate and full consideration; the difference between the market value of property or debts forgiven or assumed and the value of consideration received is subject to gift tax.
(3)To purchase property in favor of others with own funds without receipt of any consideration; the funds paid for the purchase of property or the real estate so purchased are subject to gift tax.
(4)To purchase property in favor of others with own funds and receiving substantially less than an adequate and full consideration from the beneficiary nominee; the difference between the purchase price and the value of consideration received is subject to gift tax.
(5)Property purchased in the name of a person having no or restricted legal capacity shall be deemed as a gift from the statutory agent or guardian, unless evidence clearly indicates that the purchase payment came from the funds of the beneficiary/nominee.
(6)Sales of property between relatives within second degree of kinship, unless evidence clearly indicates a bona fide sale for an adequate and full consideration in money or money''s worth and the money thus paid did not come from a loan from the seller or a loan which the seller furnished guarantee.

In the case of a trust where a person other than the settlor is entitled to the entire trust interests or part of beneficiaries is other than the settlor, it shall be regarded as a transfer of entire trust interest by the settlor to the beneficiary and constituted a gift, which is subject to gift tax.
If in a trust where the settlor is entitled to the entire trust interest or part of beneficiaries was the settlor and subsequently changed to another person other than the settlor, it will be subject to gift tax according to the preceding paragraph at the time the change of beneficiary is effected.
If the settlor adds property to the trust during the life of the trust, thereby resulting in an increase in trust interest to beneficiaries other than the settlor, the increased value of such trust interest will be subject to gift tax according to the first paragraph hereof.

Transfer or other disposition of trust property between the following parties in a trust is not subject to gift tax:
(1)Between the settlor and the trustee at the time the trust is created.
(2)Between the original trustee and the newly appointed trustee when there is change to the trustee during the life of the trust.
(3)Between the trustee and the beneficiary when the trustee distributes the trust property according to the trust deed during the life of the trust.
(4)Between the settlor and the trustee or between the trustee and the beneficiary when the trust ceases to exist.
(5)Between the settlor and the trustee when the trust is invalidated, voided, terminated or cancelled.

The taxpayers of the estate tax shall be:
(1)Executor of the will;
(2)Heir(s) or legatee(s), in case no executor is appointed; or
(3)The administrator appointed according to the law, in case there is no executor or heir(s).
In the case where an administrator should be appointed, but not selected for whatever reason within six months following the death of decedent, the tax authority may submit a petition to the court for appointment of an administrator pursuant to the provisions of the Non-litigation Act.

The taxpayer of gift tax shall be the donor of gift. However, the donee shall be liable for payment under any of the following circumstances:
(1)The donor’s whereabouts is unknown;
(2)The donor fails to pay gift tax within the time limit prescribed herein and does not have any property in the ROC for enforcement ; or
(3) The gift tax has not been assessed by the time of death of the donor.
If there are more than one donee in the case described in the foregoing paragraph, the donees shall be liable for payment of gift tax computed according to this Act in proportion to the value of the property received by each donee.

Estate of the decedent may not be split, delivered to legatee(s), or undergo recordation of title transfer before estate tax due is paid off. Property given away as gift may not undergo recordation of title transfer before gift tax due is paid off. The preceding provisions do not apply to cases where the taxpayer has obtained in advance a consent to transfer certificate, tax exemption certificate, exclusion from gross estate certificate, or exclusion from total amount of gifts certificate issued by the competent tax authority pursuant to Article 41 herein.
When real property in the estate of the decedent becomes the target of compulsory execution requested by the creditor(s), the court should notify the competent tax authority to assess the estate tax payable by the established procedure swiftly and forward the case to the court for compulsory execution.

The property within or outside the ROC as stipulated in Articles 1 and 3 herein shall be determined by its location at the time of death of decedent or making of gift by the donor:
(1)For movables, real property and attachments, the physical location will govern. However, for ships, automobiles and aircraft, the location of the registration agency for the ship, automobile or aircraft will govern;
(2)For mining rights, the physical location of the mines or mining area will govern;
(3)For fishing rights, the location of its administrative jurisdiction will govern;
(4)For patents, trademarks, copyrights and publishing rights, the location of relevant registration agency will govern;
(5)For other business rights, the place of business will govern;
(6)For deposits received by financial institutions, the office or business place of the financial institution will govern;
(7)For rights of claim, the continuous residence or the office or business place of the debtor will govern;
(8)For treasury bonds, corporate bonds, stocks or equity investments, the principal business place of the issuer or invested enterprise will govern; and
(9)For trust interests, the office or business place of the trust enterprise will govern.
For other property where its location is difficult to determine, the decision of the Ministry of Finance will govern.

For tax purposes, the estate of the decedent shall be valued according to the prevailing value at the time of death or prevailing value on the date of death as indicated in the adjudication of the court; the property transferred by gift shall be valued according to its prevailing value on the date of gift.
For cases where the event of death or gift occurred prior to the amendment of this Article on 15 January, 1995, the amended provisions in paragraph 1 shall apply to the valuation of the estate or gift which is not yet taxed or where taxation is not yet determined.
The “prevailing value” depicted in paragraph 1 hereof shall mean the government assessed value as published from time to time or the assessed standard price in the case of land, or the assessed standard price in the case of houses; the rules to determine the prevailing value of other objects not specified in this Act shall be prescribed by the Ministry of Finance.

Interest in a trust subject to gift tax pursuant to paragraph 2 of Article 3-2 herein shall be valued by the following rules:
(1)If the beneficiary is entitled to the entire trust interest which consists of money, the trust amount will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of beneficiary’s death will govern.
(2)If the trust interest consists of money other than accrued interest, the present value of the trust amount discounted from the time of beneficiary’s death to the expiration of beneficial period at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death will govern; if the trust interest consists of property other than money, the prevailing value of the trust property at the time of beneficiary’s death, discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death will govern.
(3)If the trust interest consists of accrued interest, the trust amount or the prevailing value of the trust property at the time of beneficiary’s death less the value computed according to subparagraph 2 will govern. Notwithstanding the foregoing, if the accrued interest is fixed interest paid on treasury bonds, corporate bonds, bank debentures or other contractually agreed interest payment, its value shall be computed by the total annual interest accrued discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death.
(4)If the trust interest consists of the right to receive fixed amount payable periodically, its value shall be computed by the sum of interest receivable each year discounted to present value at the fixed interest rate for one-year term deposit compound annually as quoted by the Postal Remittance & Savings Bank at the time of beneficiary’s death. If the trust interest consists of the right to entire trust interests less the fixed amount payable periodically, its value shall be computed by the prevailing value of the trust property at the time of beneficiary’s death less the value computed according to the subparagraph 3.
(5)Partial interest in any of the trust interest as stipulated in subparagraphs 1, 2, 3, and 4 shall be valued by the proportion of the benefit receivable.

Interest in a trust subject to gift tax pursuant to Article 5-1 herein shall be valued by the following rules:
(1)If the beneficiary is entitled to the entire trust interest which consists of money, the trust amount will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of gift will govern.
(2)If the trust interest consists of money other than accrued interest, the present value of the trust amount discounted from the time of gift to the expiration of beneficial period at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of gift will govern; if the trust interest is property other than money, the prevailing value of the trust property at the time of gift which is discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of gift will govern.
(3)If the trust interest consists of accrued interest, the trust amount or the prevailing value of the trust property at the time of gift less the value computed according to subparagraph 2 will govern. Notwithstanding the foregoing, if the accrued interest is fixed interest paid on treasury bonds, corporate bonds, bank debentures or other contractually agreed interest payment, its value shall be computed by the total annual interest accrued discounted to present value at the fixed interest rate for one-year term deposit compounded annually as quoted by the Postal Remittance & Savings Bank at the time of gift.
(4)If the trust interest consists of the right to receive fixed amount payable periodically, its value shall be computed by the sum of interest receivable each year discounted to present value at the fixed interest rate for one-year term deposit compound annually as quoted by the Postal Remittance & Savings Bank at the time of gift. If the trust interest consists of the right to entire trust interests less fixed amount payable periodically, its value shall be computed by the prevailing value of the trust property at the time of gift less the value computed according to subparagraph 3.
(5)Partial interest in any of the trust interest as stipulated in subparagraphs 1, 2, 3, and 4 shall be valued by the proportion of the benefit receivable.

Foreign estate tax or gift tax paid in respect of any property situated within such foreign country may be deducted from the estate tax or gift tax payable, provided the taxpayer presents proof of tax payment issued by the local tax authority accompanied by a certificate issued by an ROC embassy or consulate at where the tax is paid, or a certificate issued by a local certified public accountant or local notary public. Notwithstanding the foregoing, the deduction claimed thereof shall not exceed the increase in tax computed by the applicable tax rate in the ROC due to the inclusion of such estate or property in the gross estate or gift.
When gift made by the decedent within two years prior to his/her death is included in gross estate and subject to estate tax pursuant to Article 15 herein, the gift tax and land value increment tax already paid on the gift plus interest accrued at fixed rate for one-year term deposit as quoted by the Postal Remittance & Savings Bank will be deducted from the estate tax payable. Notwithstanding the foregoing, the deduction may not exceed the increase in tax due to the inclusion of such property in the gross estate.

All amounts prescribed in this Act shall be denominated in New Taiwan Dollar (NTD).

The amounts provided below will be adjusted starting from the following year each time the consumer price index (CPI) has risen more than ten percent (10%) cumulatively since the previous adjustment. The magnitude of adjustment shall be the actual rise in CPI, and the amount adjusted shall be in the unit of $10,000. Amount less than $10,000 shall be calculated in thousands and then rounded off to the nearest ten thousand:
(1)Exemptions;
(2)Amounts in each tax bracket;
(3)Daily necessities of the decedent and apparatus for professional use by the decedent that are excluded from gross estate; and
(4)Deductions for surviving spouse, lineal descendants, parents, siblings and grandparents of the decedent, standard deduction for funeral expenses, and special deduction for the disabled or handicapped heirs.
The Ministry of Finance should determine the amounts applicable to estate or gift cases in the next year by the provisions of the preceding paragraph and announce the same before the end of December each year. The term “consumer price index” shall mean the 12-month average consumer price index from November in the previous year to the end of October of the then current year published by the Directorate -General of Budget, Accounting and Statistics of the Executive Yuan.