Taiwan Gift Tax Rate when giving shares or asset of a company

1. What is the gift tax rate for shares or asset of a company?

Gratuitous transfer shares or conveyance of investment of capital by way of gift, the donor is generally liable for gift tax return and payment.

categoryTotal amount of taxable gifts during periodTax RateProgressive Difference
Gift TaxNTD 25M or below10%0
Over NTD 25M ~ 50M below15%NTD 1.25M
Over NTD 50M20%NTD 3.75M

2. What about the exemption for the gift?

The annual gift exclusion is NTD 2.2 million, the maximum threshold a taxpayer can give up to during the calendar year without needing to pay gift tax.

3. How to calculate gift tax?

= (Taxable gift – annual exemption of NTD 2.2M) * Progressive Tax rates[10%~20%] – Progressive difference

4. How to calculate the gift amount for the equity capital of a limited company?

Since a limited company does not hold any shares, the net asset value of the latest financial statements at the time of transfer is proportionally assessed based on the amount initially invested when the company was financed.

5. Do we file gift tax return even when the tax payable is zero?

Even if the gift tax is nil, taxpayer shall prepare the relevant documents, file the tax return to National Taxation bureau and retain records accordingly.

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