Registration Transfer of Inheritance Tax-Company Formation_Trademark Registration_Tax Service - Hong Kong CPA

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Taxation - Taiwan

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Registration Transfer of Inheritance Tax

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Q：

How should the heritage value of unlisted, unlisted and non-emerging company stocks, sole proprietorship and partnership firms be assessed?

A：

For unlisted, unlisted and non-emerging company stocks, the estate value is calculated based on the company's net asset value on the date of the decedent's death. Investments in sole proprietorships and partnership firms that have account records on weekdays and handle annual settlement declarations are also treated in the same way. If they are small-scale profit-seeking enterprises, they are estimated based on the amount of registered capital. When calculating the company's net asset value, the value of land and houses should be calculated according to the announced current value of the land and the standard price of the house on the date of death. The announced current value of the land or the standard price of the house on the current date is calculated, and the land value-added tax reserve is deducted. However, when the book value is higher than the announced present value, the book value shall prevail.

Q：

How should the value of privately placed securities be assessed?

A：

1.	For the securities privately placed by the company in accordance with the Securities and Exchange Act, if there are securities of the same type that are traded on the listing, OTC or emerging OTC on the date of succession, the value shall be assessed according to the following methods:
	（1）	The average price of the company's listed or OTC securities on the date of inheritance and the average price of the closing prices of each day within the month before the date shall be determined from the lowest value; if there is no buying and selling price on the day, the marketable securities on the last day before the date of inheritance shall be used. The closing price of the securities and the average price of the closing prices of each day within the previous month shall be estimated from the lower value.
	（2）	For the private placement stocks of an emerging company, the value of the company’s emerging stocks on the date of succession shall be estimated from a lower value based on the weighted average transaction price of the company’s emerging stocks on the day of succession and the weighted average transaction price of each day within the month preceding the day; there is no transaction price on the day Otherwise, the weighted average transaction price of the emerging stock on the last day before the inheritance start date and the average price of the weighted average transaction price of each day in the month before that date shall be estimated from the lowest
2.	Private placement common shares of unlisted, non-over-the-counter and non-over-the-counter joint stock companies shall be valued based on the net asset value of the company on the date of succession, and shall be valued in accordance with Article 29, Item 1 and Item 2, of the Inheritance and Gift Tax Law Enforcement Rules Adjust the estimate.

Q：

If the decedent purchases land and has not registered the transfer at the time of death, how should the value be assessed and taxed?

A：

Although the land purchased by the decedent during his lifetime has not been registered for ownership transfer at the time of his death, if it is found that the transaction is indeed done by the decedent and is not a false transaction, it is based on the existence of a sales relationship and he has requested registration This claim is a "right with property value" and should be incorporated into the total estate for taxation at the time of death, and its value can be valued according to the current value of the declared land that is the subject of the request at the time of death.
However, if the decedent purchased the reserved land of public facilities before his death, and the transfer registration has not been completed by the time of his death, the leftover “right to request transfer and registration of the reserved land for public facilities” has been checked and found that the actual transaction price is lower than the current value of the announced land If the actual transaction price is used to estimate the value of the creditor's rights, and if it is impossible to find out, the value of the creditor's rights shall be estimated based on the current value of the announced land, without the application of the provisions above.

Q：

How to calculate the inheritance value of surface right?

A：

If there is no time limit for the establishment of superficial rights, the inheritance value is calculated based on 7 times the annual ground rent. If there is a fixed time limit, the inheritance value shall be calculated in accordance with the provisions of Article 31 of the Implementation Rules of the Inheritance and Gift Tax Law. In addition, superficial rights If there is no fixed annual rent, then the land rent is based on 4% of the declared land price to calculate the heritage value.

Q：

If I sold the land during my lifetime and died before completing the ownership transfer registration, how should I declare the inheritance tax?

A：

If the decedent sold the land during his lifetime, and the ownership has not been registered to the other party at the time of death, then the land still belongs to the decedent’s inheritance and should be added to the total amount of the inheritance. As for the price obtained from the sale of the land, if it is at the time of death, The remaining part should also be included in the total inheritance tax. But relatively, there is also an unfinished transfer obligation to the land buyer, just like the unpaid debts of the decedent, so an equivalent amount of land value should be deducted from the total amount of inheritance. When declaring, please attach the supporting documents of the sale, such as the contract, payment certificate, etc.

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