Taiwan’s amended Estate and Gift Tax Act allows eligible taxpayers to spread payment over up to 18 instalments, but missed payments can trigger a demand for the full balance and compulsory enforcement.
Taiwan has removed the minimum tax amount required to apply for payment by instalments under its Estate and Gift Tax Act, the Southern Area National Taxation Bureau of the Ministry of Finance said.
The amendment to Article 30, Paragraph 2 of the Act was promulgated on 11 September 2026. Under the amended provision, taxpayers who genuinely face financial difficulties and cannot pay their tax liabilities in cash in a single payment may apply to the National Taxation Bureau to pay in up to 18 instalments, plus interest, within the tax payment deadline.
How the change works
The bureau gave an example to explain the effect of the amendment. Mr A was liable to pay TWD 270,000 in estate tax but could not settle the full amount in one payment because of financial difficulties. As the amended law sets no minimum tax amount for instalment applications, he could apply to the National Taxation Bureau for permission to pay in instalments.
If the bureau approved his application for 18 instalments, Mr A would pay TWD 15,000 per instalment. Interest would be calculated from the day after the original tax payment deadline until the date of payment. It would be based on the fixed interest rate for one-year time deposits at postal savings institutions applicable on 1 January of each year.
Enforcement for missed payments
The bureau reminded taxpayers that failure to pay any instalment by its due date could result in enforcement action. If a taxpayer failed to pay an approved instalment on time, the tax collection authority would issue a payment notice within three days after the instalment payment period expired. The notice would require the taxpayer to pay the entire outstanding tax balance in a single payment within 10 days.
If the taxpayer still failed to pay within the specified period, the outstanding amount would be referred for compulsory enforcement.
Application deadline
The bureau further reminded taxpayers that applications for payment by instalments must be submitted to the National Taxation Bureau before the tax payment deadline. It urged taxpayers to pay particular attention to the application deadline and to ensure that each instalment is paid on time, to avoid affecting their rights and interests.
This announcement was made on 19 October 2026.
