Q：
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When a couple divorces, if one party gives property to the other party, should gift tax be levied?
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A：
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When a couple divorces, according to the divorce agreement, one party should pay the property to the other party, which is not a gift and is exempt from gift tax. If the divorce payment has been stated in the divorce agreement, if the payment other than the written record is claimed to be the payment agreed in the divorce, the burden of proof shall be borne by him. If it cannot be proved that it is the payment agreed at the time of the divorce and it is a gratuitous transfer, is subject to gift tax.
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Q：
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How to calculate the gift value of the gift of subscription rights for new shares of cash capital increase of unlisted over-the-counter companies to children?
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A：
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After the taxpayer donates the subscription rights of new shares for capital increase of an unlisted (over the counter) company to a child, the gifted child pays for the capital increase with his/her own funds. If the subscription price for each new share is lower than the net asset value per share after the capital increase, when the net value of the company’s equity acquired by the donee is greater than the subscription amount paid by the donee, the difference should be used as the gift amount to levy gift tax. The calculation formula is as follows: gift amount = [(company’s net asset value at the time of gift + this capital increase Number of shares × subscription price per share) ÷ (number of shares issued by the company at the time of gift + number of shares for this capital increase) - subscription price per share] × number of subscription shares donated.
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Q：
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After an individual knows that the invested company will distribute the surplus or has control over the surplus distribution of the invested company and signs a stock trust that will yield other benefits, the surplus is donated in the form of trust. How should the gift value be calculated?
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A：
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After the settlor knows that the investee company will distribute the surplus, or the settlor has control over the investee company’s surplus distribution, it signs a trust contract for other benefits. The income belonging to the settlor shall be levied the settlor's comprehensive income tax according to law in the year in which the income occurs; when the trustee delivers the fruits to the beneficiary, the settlor's gift tax shall be levied according to law and shall be levied according to Article 10 of the Inheritance and Gift Tax Law. Article stipulates the valuation.
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Q：
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How much is the tax-free amount that can be deducted when calculating the gift tax?
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A：
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From January 1, 2011, the tax-free amount of the gift tax of the donor is TWD 2,440,000 per year, but from January 23, 1998, to December 31, 2011, the tax-free amount of the gift tax of the donor is TWD 2,200,000 per year.
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Q：
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Under what circumstances can the gift tax be deducted?
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A：
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The gift tax paid by the same donor for previous gifts in the same year can be deducted when calculating the tax payable for the next gift.
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When Chinese nationals who often live in my country donate property abroad, the gift tax paid in accordance with the laws of the country where the donated property is located can be attached to the tax payment certificate issued by the tax authority of the country that has been visaed by the Chinese embassy or consulate. It can be deducted from the domestic gift tax payable, but the deductible amount cannot exceed the increased tax payable calculated according to the domestic applicable tax rate due to the addition of foreign gifts. If there is no Chinese embassy or consulate in the local area, the visa procedures mentioned above can be issued by a local public accountant or notary.
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