Fengyuan Branch, National Taxation Bureau of the Central Area, Ministry of Finance, has recently received many inquiries from the public to support children in buying property and thereby reducing gift tax obligations. The Bureau clarified that taxpayers can take advantage of an annual tax-free gift amount of NT$2.44 million per person. This exemption allows each parent to gift this amount to their children, which helps reduce the financial burden for the children while complying with tax regulations.
The Bureau explained that, according to Article 22 of the Estate and Gift Tax Act, taxpayers are entitled to an annual exemption limit on gift giving. Currently, the gift tax exemption is set at NT$2.44 million per person, per year. This means that if the total amount gifted within a year does not exceed NT$2.44 million, it will be exempt from gift tax.
The Bureau further elaborated that the exemption is calculated based on the calendar year, from January 1 to December 31. This year (Year 113) is approaching its end, and next year (Year 114) will reset the exemption limit. Thus, parents can use the NT$2.44 million exemption annually. For example, if parents wish to support their childen in purchasing a NT$10 million property, they can each gift NT$2.44 million by the end of December. This totals NT$4.88 million. In January of the following year, they can gift another NT$2.44 million each, accumulating a total of NT$9.76 million within a few months. This arrangement not only avoids gift tax but also allows their children to benefit from financial assistance, easing their burden of buying a home.

The Bureau also reminded taxpayers that if the total value of gifts exceeds the tax-free threshold within one year, they must file a gift tax declaration with the tax office within 30 days to avoid penalties.

If the public has any further questions, they can call the toll-free service number 0800-000-321 during office hours, and the Bureau will be pleased to serve you.

Contact person: Profit-seeking Enterprice Income Tax, Estate and Gift Tax Section, Fengyuan Branch, National Taxation Bureau, Ms. Chiung-Mei Tsai 
Tel: (04)25291040 ext. 128.