【2023-03-06】
National Taxation Bureau of Taipei, Ministry of Finance expressed that, although property gifted by the decedent to his/her spouse two years before his/her death is exempted from gift tax, the said property should be regarded as estate of the decedent, which should be included in the gross estate and subject to estate tax as prescribed in Article 15 of the Estate and Gift Tax Act.
The Bureau explained that property gifted from one spouse to another is excluded from total amount of gifts as prescribed in Subparagraph 6 of Paragraph 1 of Article 20 of the Estate and Gift Tax Act and is therefore excluded from the gift tax. Nevertheless, if the donor passes away within two years after the transfer of the said property, the property shall still be determined as the decedent’s estate, and be included in the gross estate and subject to estate tax based on its price at the time of the decedent’s death.
The Bureau would like to remind taxpayers that, when declaring estate tax, taxpayers should pay attention to the transfer of decedent’s property within two years before his/her death in order to make a correct declaration and protect their rights and interests.
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