The National Taxation Bureau (NTB) reminded that, according to Paragraph 2 of Article 3 of the Estate and Gift Tax Act, property given away by a donor who is a Taiwan citizen but resides outside of Taiwan continuously or who is a non-Taiwan citizen shall be subject to Gift Tax only to the extent that the property is located within Taiwan.
To illustrate this rule, for example, Miss Wang, a foreigner with a resident certificate in Taiwan, owns land located in Tainan of Taiwan. She would like to gift her son the land, which the government assessed present value is NT$2.5 million. Miss Wang files the gift tax return to the tax authority and pays NT$30,000.
【(government assessed present value of NT$2.5 million – Annual Tax Exemption Amount per person of NT$2.2 million) * 10% Tax Rate 】
NTB would like to remind to file the gift tax return within 30 days from the date of the transfer for gifts.