Couples often choose to tie the knot at the end of the year as a symbol of good luck. Within six months from the date of registration of marriage, parents each may give an amount of NTD 1 million dowry to their child excluding the yearly NTD 2.2 million of tax-free gift tax allowed for each individual. In other words, parents each have a total of NT 3.20 million tax-free gift tax quota to give; in total, newly-weds may receive an amount of NTD 12.8 million tax-free gift tax.

Furthermore, in the situation where the gift tax may take place during split-year, both parties’ parents may each give another NTD 2.2 million, tax-free, to their child. Overall, couples may in total receive up to NTD 21.6 million of tax free gift from their parents.

According to Taiwan’s “Estate and Gift Tax Act”, the gift tax is for the purpose of taxation towards the giver. If the amount given to the receiver exceeds the tax-free limit, the giver will be taxed. For instance, if the amount parents give to their children exceeds the limit, the IRS will tax 10% to 20% from the parents.

According to the Act, each individual has an amount of NTD 2.2 million of tax free quota per year and each parent will be allowed to give an additional NTD 1 million within six months from the date of registration of marriage. That is, each parent will be allowed to give NTD 3.2 million to their decedents without incurring tax. In the situation where the first giving occurs at the end of the year and the second giving takes place in the following year, each parent will be allowed of a tax-free amount of NTD 5.4 million to give......

News Source：【工商時報 2020/10/31】