Fengyuan Branch, National Taxation Bureau of the Central Area, Ministry of Finance, stated that agricultural land gifted for farming purposes may qualify for a gift tax exemption when transferred between close family members, including parents, children, siblings, and grandparents. However, the donee must continue to use the land for agricultural purposes for five years from the date of the gift. The agricultural land must not be transferred or converted to non-agricultural use during this period. Otherwise, the National Taxation Bureau will collect the previously exempted gift tax in accordance with the law.
The Branch cites an example: In 2023, Mr. A gifted a piece of agricultural land used for farming to his daughter, Ms. B. The officially announced current land value was NT$12.44 million, and the gift was approved for tax exemption. However, in 2025, Ms. B paved over the agricultural land with cement and converted it into a commercial parking lot, while placing racks and advertising boards unrelated to agriculture on the site. Despite being notified to correct the violation and restore the land to agricultural use, she failed to do so within the given deadline. As a result, the National Taxation Bureau imposed a gift tax of NT$1 million on Mr. A.[Calculation: (Total Gift Amount 12.44 million - Exemption Amount 2.44 million) x Tax Rate 10% - Progressive Difference 0].
The Branch reminds the public that authorities regularly inspect the use and transfer of regulated agricultural land. If the land is not continuously used for agricultural purposes during the five-year control period—except in cases such as the death of the donee, government expropriation, or lawful rezoning to non-agricultural land—the previously exempted taxes will be collected in accordance with the law. If the public has any further questions, they can call our toll-free service number 0800-000321 during office hours, and the Branch will be pleased to serve you.
Contact person: Profit-seeking Enterprise Income Tax, Estate and Gift Tax Section, Fengyuan Branch, National Taxation Bureau, Ms. Chien-Tzu Yu
T: (04)25291040 ext. 126.