(Taoyuan News) Mr. Lee, as a foreigner, called the Administration and stated that his father was a citizen of Taiwan of Republic of China, who left his properties after death. He further asked if there is an uneven distribution of the estate among the inheritors, whether or not the problems of gift tax will arise.

The National Tax Administration of Northern Taiwan Province of Ministry of Finance explained that the gift tax will not be levied upon the successors, whom have by any means partitioned the estate once they have obtained the Certificate of Estate Tax Payment. As to the entitled portion stipulated in the Civil Code, such provisions intend to ensure the right of entitled portion of each inheritor when disputes arise; whilst no restrictions are imposed in the Civil Code concerning the agreed partition, where the inheritors may obtain the estates more than his/ her entitled portion. For this reason, no comparison shall be made between the amount of the estates the inheritors received and such inheritor’s entitled portion. The issue of gift among the successors therefore does not exist.

The Administration reminded that the system of Estate Tax adopted in Taiwan is Gross Estate Property, which levied upon all the ancestor’s properties left after death. The successors shall divide the net estate after delivering the tax in full, and no further duties will be imposed when partitioning the estates among the inheritors. If an inheritor (a) paid the estate tax by his/ her own properties; (b) the estate he/ she received is less than the amount been paid; and (c) such inheritor did not make any claims of compensation against the others, the obligation of delivering estate tax of the other inheritors has been obviously exempted. The gift tax shall therefore be levied in accordance with Section 1 of Article 5 of Estate and Gift Tax Act, which counted by the estate tax been paid less the estate inherited after partitioned.