Taiwan’s Taipei National Taxation Bureau had clarified that gifted shares were exempt from Securities Transaction Tax because the transfer was not treated as a sale or purchase. However, donors were still required to file a gift tax declaration and obtain the relevant certification before the transfer could be registered.
Taiwan’s Taipei National Taxation Bureau, Ministry of Finance, had stated that individuals who gifted shares to another person were not required to pay Securities Transaction Tax, as the transfer was not considered a sale or purchase of securities.
Under Article 1 of the Securities Transaction Tax Act, Securities Transaction Tax was imposed on the sale or purchase of securities, except for bonds issued by governments at all levels. Ordinary share transactions between private individuals were therefore subject to the tax.
A gift transfer, however, was not regarded as a sale or purchase transaction and was consequently exempt from Securities Transaction Tax.
The Bureau noted that Articles 3, 24 and 42 of the Estate and Gift Tax Act still required donors to file a gift tax declaration with the tax collection authority. Before the shares could be transferred and registered in the recipient’s name, the donor had to obtain a Certificate of Payment of Gift Tax, Certificate of Tax Exemption, or Certificate of Exclusion from the Total Amount of Gifts.
The Bureau had reminded individuals that the exemption from Securities Transaction Tax did not allow shares to be transferred directly without completing the required gift tax procedures. Individuals seeking guidance on filing procedures could contact their nearest national tax bureau.
This announcement was made on 18 September 2026.
