Taxable estate means the value of gross estate computed according to the provisions herein, less deductions provided in Article 17 and 17-1 herein and exemptions provided in Article 18 herein. The tax brackets and rates of consolidated estate tax are as follows:
(1)If the taxable estate is less than or equal to NT$50,000,000, the tax rate shall be 10%.
(2)If the taxable estate is above NT$50,000,000 to NT$100,000,000, the estate tax payable shall be NT$5,000,000 plus 15% for the portion of estate more than NT$50,000,000.
(3)If the taxable estate is above NT$100,000,000, the estate tax payable shall be NT$12,500,000 plus 20% for the portion of estate more than NT$100,000,000.

Gross estate shall include all property of the decedent as stipulated in Article 1 herein at the time of death calculated according to the value stipulated in Article 10 herein, but exclude property provided in Article 16 herein.

Property transferred by gift to the following individuals by the decedent two years before his/her death is regarded as estate of the decedent, which shall be included in the gross estate and subject to estate tax under this Act:
(1)the surviving spouse of the decedent;
(2)the heirs of the decedent prescribed under Section 1138 and 1140 of the Civil Code; and
(3)the spouses of the heirs named in the preceding subparagraph.
Inheritance cases occurred after 26 June, 1998 to the time the amended provisions in paragraph 1 is promulgated and takes effect shall be subject to the provisions under that paragraph.

Exclusions from the gross estate include the following:
(1)Property donated by legator, legatee(s), or heir(s) to government agencies at various levels or public educational, cultural, public welfare and charitable organizations;
(2)Property donated by legator, legatee(s), or heir(s) to public organizations or businesses fully owned by the government;
(3)Property donated by legator, legatee(s), or heir(s) to private incorporated educational, cultural, public welfare, charitable or religious organizations, or ancestor worshipping entities that meet the criteria prescribed by the Executive Yuan;
(4)Cultural, historical or art books and articles duly registered with the competent tax authority, provided, however, that the estate tax on such books or articles shall be recaptured in the event of transfer of the same;
(5)Copyright, patented invention and work of act created by the decedent;
(6)Necessities of the decedent for daily life with gross value under $720,000;
(7)Apparatus for professional use by the decedent with gross value under $400,000;
(8)Forests banned or restricted from logging by law, provided, however, that the lift of the ban or restriction will subject the same to the recapture of estate tax thereon;
(9)Proceeds paid to the designated beneficiary at the time of death of the insured under life insurance, or insurance covering soldiers, civil servants, or teachers, or labor insurance, or farmer insurance;
(10)Property inherited by the decedent within five years prior to his/her death, provided that estate tax on the inherited property has been paid;
(11)Property originally or specifically owned by the spouse or children of the decedent, and the ownership of which can be proved with registration or other support document;
(12)Land used by government for public passage or other land used for public passage free of charge, which is certified by the competent authority, with the exception to empty lot reserved for housing construction as required by law; and
(13)Unrecoverable or unexercisable claims inherited, provided there are relevant support documents.

Property of legator, legatee(s), or heir(s) that is donated or added to charitable trusts already established at the time of death of the decedent and meet the following requirements is excluded from the gross estate:
(1)The trustee is a trust enterprise provided in the Trust Enterprise Act;
(2)Except for necessary expenses incurred from operating the business for which the trust is established, the charitable trust does not accord any special benefit to specific party or others by any means; and
(3)The trust deed stipulates that upon the cancellation, termination or extinction of the trust, the trust property will be transferred to government of various levels and/or public interest group or charitable trust with similar objectives.

Deductions from the gross estate include the following:
(1)A deduction of $4,000,000 for surviving spouse;
(2)A deduction of $400,000 for each lineal descendent and an additional deduction of $400,000 for each year starting from the current age of each lineal descendent up to the age of majority; in case descendent(s) of higher degree of kinship waives the inheritance which is succeeded by descendent(s) of lower degree of kinship, the deductions shall be limited to the original deductions allowed for descendent(s) who waived the inheritance;
(3)A deduction of $1,000,000 for each parent;
(4)A deduction of $5,000,000 per person additionally if the person specified in subparagraphs (1) to (3) hereof is a person with severe disabilities as provided in the People with Disabilities Rights Protection Act or a severe patient as provided in the Mental Health Act;
(5)A deduction of $400,000 for each of the dependent brothers, sisters and grandparents of the decedent and an additional deduction of $400,000 for each dependent brother and sister for each year starting from the current age of each such brother and sister up to the age of majority;
(6)Total value of crops and farmland inherited by the heir(s) or legatee(s) for agricultural purpose. If the heir(s) or legatee(s) fail to use the farmland thus inherited for agricultural purpose continuously for five years from the date of inheritance and fail to resume farming before the deadline set by the competent authority, or have resumed the use of farmland for agricultural purpose before the aforesaid deadline but subsequently fail to farm again, tax shall be made due retroactively, unless the disuse of farmland for agricultural purpose is due to the fact that the heir(s) has died, or that the land is requisitioned by the government, or has changed zoning to non-farming purpose pursuant to laws;
(7)80%, 60%, 40% or 20% of the value of property inherited by the decedent depending on whether said property was inherited 6, 7, 8 or 9 years prior to his/her death respectively and provided estate tax on such property has been paid previously;
(8)The taxes, penalties and fines incurred before the death and owed by the decedent;
(9)Debts owed by the decedent and the existence of which can be evidenced by solid proof;
(10)A standard deduction for funeral expenses in the amount of $1,000,000; and
(11)Any direct and necessary expenses incurred by the executor and administrator.
Subparagraphs (1) to (7) of paragraph 1 shall not be applicable in the case where the decedent, being a ROC citizen, did not reside in the ROC continuously, or he/she was not an ROC citizen. The deductions specified in Subparagraphs (8) to (11) of paragraph 1 are available only to the extent that they are incurred within the territory of the ROC. Subparagraphs (1) to (5) of paragraph 1 do not apply to heirs(s) who waive(s) the right of inheritance.

While the spouse of the decedent declares the right to claim for the distribution of the remainder of the property as prescribed under Section 1030-1 of the Civil Code, the taxpayer shall file an estate tax return with the competent tax authority to deduct such property from the total amount of the estate.
If the taxpayer fails to pay the amount of the claim to the spouse of the decedent within one year from the date the competent tax authority issues the estate tax payment certificate or tax exemption certificate, the competent authority shall tax the amount of the unpaid portion within five years from the next day when the aforesaid period is expired.

An exemption of $12,000,000 may be deducted from the gross estate, provided the decedent is an ROC citizen who resided continuously in the ROC; the aforesaid exemption shall be doubled if the decedent was a soldier, policeman, civil servant or teacher who died in the performance of duty.
The deduction of exemption provided in paragraph 1 shall be applicable in the case where the decedent was an ROC citizen who resided continuously outside the ROC or where the decedent was a non-ROC citizen.