Carrying Out a Will in Taiwan: Estate Tax, Inheritance Registration and Bequests (Part 2)

Key Takeaways

• — The estate tax return is due within six months, counted from the day after the death. It is filed with the National Taxation Bureau for the place of the deceased's household registration. An extension of up to three months may be requested before the deadline for good reason.
• — The taxpayers are the heirs and the legatees. Where there is an executor, the executor may file and pay on their behalf (Article 6 of the Estate and Gift Tax Act, as amended in September 2026).
• — The 2026 exemption is NT$13.33 million. The rates are 10%, 15% and 20%, with brackets at NT$56.21 million and NT$112.42 million.
• — Inherited real estate is exempt from land value increment tax and is outside the deed tax. If the property is registered under an estate partition agreement, however, stamp tax of 0.1% is payable on the real-estate portion.
• — An heir can in principle register real estate on the basis of the will. A legatee cannot apply alone and must apply jointly with the heirs or the executor (Article 123 of the Regulations of the Land Registration).
• — Inheritance registration should be applied for within six months of the opening of the succession. Late applications may be fined one times the registration fee for each month of delay, up to twenty times (Article 73 of the Land Act).
• — Plan the execution when you make the will: who files the estate tax return, who deals with the banks and the land office, and who carries on if an heir refuses to cooperate.

This is Part 2 of our series on wills. Part 1, Making a Will in Taiwan: The Five Valid Forms, Witness Rules and the Compulsory Share (Part 1), covers the requirements for a valid will and the types of will. Part 2 covers how a will is carried out and the related legal and tax issues.

The will is made. What happens after death?

Making the will is only the first step. The problems usually arise after the testator has died:

• — "Where do I go once I have the will?"
• — "Can I just take the will to the land office and have the house transferred?"
• — "Do I have to pay tax first?"
• — "What if the house was left to someone who is not an heir at all?"

This is the stage of carrying out the will.

1. What taxes may arise after a death?

The main one is estate tax. It is covered in three parts below, followed by the other taxes that can arise when real estate is transferred.

Estate tax: the deadline and who files

After a death, the taxpayer must file an estate tax return within six months, counted from the day after the death, with the National Taxation Bureau for the place of the deceased's household registration (Estate and Gift Tax Act, Article 23). A taxpayer who cannot file in time for good reason may apply in writing, before the deadline, for an extension of up to three months (Article 26).

As to who files, Article 6 of the Estate and Gift Tax Act, as amended in September 2026, provides:

• — The taxpayers are the heirs and the legatees
• — If there is no heir, the taxpayer is the administrator of the estate
• — Where there is an executor, the executor may file the return and pay the estate tax on behalf of the taxpayers

Estate tax: how the estate is valued

The estate is in principle valued at its current value at the time of death (Article 10). An estate can broadly be divided into real estate and movable property. Real estate is land and buildings. Movable property includes cash, deposits, shares, claims, gold, antiques and vehicles — in essence everything that is not real estate. The usual valuation methods are as follows:

Estate tax: how it is calculated

In simplified terms: gross estate − exemption − deductions = net taxable estate, and progressive rates are then applied to the net taxable estate. For 2026:

These amounts are adjusted in line with the consumer price index. The figures that apply are those announced by the Ministry of Finance for the year of death.

Two points to note:

• — Safe deposit boxes: if the deceased rented a safe deposit box at a financial institution, the heirs should not open it themselves. They must first notify the National Taxation Bureau so that it can attend, inspect and record the contents (Article 40). This avoids later disputes.
• — Before partition, the estate is owned jointly by all the heirs: an individual heir should not dispose of or use it without authority — for example by withdrawing deposits with the deceased's bank card or seal, or dealing with the deceased's car. Apart from civil liability, this may also be a criminal offence.

Inherited land and buildings: no land value increment tax or deed tax, but stamp tax may apply

This is the question people ask most often. Where real estate passes by inheritance:

• — Land: land transferred by inheritance is exempt from land value increment tax
• — Buildings: inheritance is outside the scope of the deed tax

In other words, a straightforward inheritance does not give rise to land value increment tax or deed tax in the way that an ordinary sale or gift does.

If, however, house tax or land value tax is outstanding on the deceased's property, the arrears usually have to be checked and paid before the registration can proceed.

Stamp tax depends on how the registration is carried out:

2. Can you take the will straight to the land office to register the inheritance?

Two terms need explaining first:

Back to the question: can an heir or a legatee take the will straight to the land office and register? The answer is: not always. There are broadly two situations.

Situation 1: the real estate is allocated to someone who is already a statutory heir

Here the will specifies how the estate is divided among the statutory heirs. In land registration practice, once the estate tax has been filed and paid (and a tax clearance or exemption certificate obtained) and the related procedures completed, the heir may in principle apply to the land office for "inheritance registration under a will" in accordance with the will. Where an executor has been appointed and other heirs do not cooperate, the executor may apply on the heirs' behalf in accordance with the will, without the other heirs' consent.

A note on recent case law: a recent Supreme Court judgment takes a different view. It holds that even a statutory heir cannot register alone on the basis of the will and, like a legatee, must ask the other heirs to cooperate (Supreme Court Civil Judgment 114 Tai-Shang No. 1798). This turns on whether a "designated method of partition" has effect in rem, a complex question this article does not pursue.

Situation 2: the will leaves the property to a legatee

Article 123, paragraph 1 of the Regulations of the Land Registration is explicit. In translation: where a legatee applies for registration of the transfer of ownership of bequeathed land, the heirs must first complete the inheritance registration, and the heirs then apply jointly with the legatee; where the will appoints an executor, the application is made jointly by the executor and the legatee after the registration of the executor and the inheritance registration have been completed.

Put simply, the legatee must ask the heirs or the executor to apply jointly for the transfer of ownership. A legatee cannot go to the land office alone with the will and register.

3. How does execution actually proceed when there is a will?

An ordinary case can be understood through the following sequence:

1. The deceased dies.
2. Establish whether there is a will and whether it is valid.
3. Establish whether an executor has been appointed.
4. Identify all the heirs and legatees.
5. Ascertain the assets and debts: buildings, land, deposits, shares, insurance policies, equity interests, claims, loans and so on.
6. File the estate tax return: in principle within six months counted from the day after the death (an extension of three months may be requested).
7. Pay the estate tax, or obtain the exemption or other certificate.
8. Check for arrears of local taxes: for example house tax and land value tax.
9. Deal with each asset as the will provides: real estate at the land office; deposits at the financial institution; shares through the securities firm and central depository procedures; company equity through the company and the competent authority.
10. For a bequest to a non-heir, complete the delivery or transfer of the bequeathed property.
11. Execution of the will is complete.

Registration deadline: inheritance registration of real estate also has a time limit. Under Article 73, paragraph 2 of the Land Act, inheritance registration may be applied for within six months from the opening of the succession. A late application may be fined one times the registration fee for each month of delay, up to a maximum of twenty times.

4. Why plan the making and the execution of a will together?

The real problem with many wills is not that the testator failed to write down what he or she wanted. It is that the testator thought only about "who gets my property", and not about the following:

• — Is it an inheritance or a bequest?
• — Does it infringe anyone's compulsory share?
• — Are the land and buildings described clearly enough?
• — How will shares and company equity be transferred?
• — Are there loans or other debts?
• — Who files the estate tax return?
• — Who deals with the banks, the National Taxation Bureau and the land office?
• — If an heir refuses to cooperate, who carries on?

A will that is actually useful should therefore deal not only with "who finally gets the property" but also with how it will be carried out.

For a family with simple assets and simple relationships among the heirs, handling it yourself is certainly possible. But where there are several properties, company equity, bequests to non-heirs, a second marriage, heirs living in different countries, or existing conflict in the family, it is best to have a lawyer confirm the content of the will, the succession relationships and the compulsory share at the drafting stage, and then have a notary complete the notarisation. When real estate registration is involved later, a land registration agent can assist.

The purpose of a will has never been just to leave a piece of paper.

A complete estate plan is one where your wishes are made clear while you are alive, and someone is able to carry them through after your death.

The law in this article is stated as at 1 October 2026. It concerns estates governed by the law of Taiwan (Republic of China).

Co-author: Ta-Chung Hu, Attorney-at-Law | Louis & Charles Attorneys at Law

Related reading

• — Making a Will in Taiwan: The Five Valid Forms, Witness Rules and the Compulsory Share (Part 1)

Frequently Asked Questions (FAQ)

When must the estate tax return be filed, and by whom?

Within six months, counted from the day after the death, with the National Taxation Bureau for the place of the deceased's household registration. A taxpayer who cannot file in time for good reason may apply in writing before the deadline for an extension of up to three months. The taxpayers are the heirs and the legatees, or the administrator of the estate if there is no heir. Where there is an executor, the executor may file and pay on their behalf (Estate and Gift Tax Act, Articles 6, 23 and 26, as amended in September 2026).

What are the estate tax exemption and rates for 2026?

The exemption is NT$13.33 million. The main deductions are NT$5.53 million for a spouse, NT$560,000 for each lineal descendant, NT$1.38 million for each parent and NT$1.38 million for funeral expenses. The gross estate less the exemption and deductions is the net taxable estate, taxed at 10% up to NT$56.21 million, 15% over NT$56.21 million up to NT$112.42 million, and 20% above NT$112.42 million. These amounts are indexed to prices; the figures announced by the Ministry of Finance for the year of death apply.

Is land value increment tax or deed tax payable on inherited land and buildings?

No. Land transferred by inheritance is exempt from land value increment tax, and inheritance is outside the scope of the deed tax. But if house tax or land value tax is outstanding on the property, the arrears must be checked and paid before registration. Stamp tax depends on the method: none is payable for inheritance registration by statutory shares or on the basis of the will; where an estate partition agreement is used, 0.1% of the value of the real estate divided under the agreement is payable.

Can an heir take the will straight to the land office to transfer the property?

Where the will allocates real estate to a statutory heir, land registration practice allows the heir, once the estate tax has been filed and paid and a clearance or exemption certificate obtained, to apply in principle for inheritance registration under the will. If an executor has been appointed, the executor may apply on the heirs' behalf. A recent Supreme Court judgment takes a different view, however, holding that the heir must also ask the other heirs to cooperate. The current approach of the land office and the courts should be confirmed in each case.

The will leaves the house to someone who is not an heir. How is it transferred?

The legatee cannot register alone on the basis of the will. Under Article 123, paragraph 1 of the Regulations of the Land Registration, the heirs first complete the inheritance registration and then apply jointly with the legatee for registration of the transfer of ownership. If the will appoints an executor, the executor and the legatee apply jointly after the registration of the executor and the inheritance registration are complete. Appointing an executor in the will therefore avoids the problem of heirs who later refuse to cooperate.

Is there a deadline for inheritance registration, and what happens if it is missed?

Yes. Under Article 73, paragraph 2 of the Land Act, inheritance registration may be applied for within six months from the opening of the succession. A late application may be fined one times the registration fee for each month of delay, up to twenty times. Because the estate tax return must be filed and a clearance or exemption certificate obtained before registration, preparation should start early.

Can an heir withdraw the deceased's deposits or open the safe deposit box first?

It is not advisable. Before partition the estate is owned jointly by all the heirs. An heir who withdraws deposits using the deceased's bank card or seal without authority may face criminal as well as civil liability. A safe deposit box should be opened only after the National Taxation Bureau has been notified and has attended to inspect and record the contents (Estate and Gift Tax Act, Article 40), to avoid later disputes about what it contained.