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FLAT TAX RATE OF 10% ON ESTATE AND GIFT


Dennis Yu/Josephine Peng

The newly amended Estate and Gift Tax Act took effective on 23 January 2009, and the highlights of this amendment include (i) the increase of the tax-exempt amount to NT$12 million and NT$2.2 million for estate and gift tax respectively, (ii) the reduction of the tax rates to a flat rate of 10% for both estate and gift tax, and (iii) change the amount of fine from previous one to two times the underpaid estate or gift tax payable to two times or less the underpaid estate or gift tax payable.

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