Taiwan’s Kaohsiung National Taxation Bureau has reminded businesses that gifted equity in unlisted companies requires a tax authority certificate before ownership transfer registration can be completed, with non-compliant private enterprises facing fines of up to NTD 15,000.
The Kaohsiung National Taxation Bureau, Ministry of Finance, has reminded businesses handling gifted equity in unlisted companies that a certificate issued by the tax collection authority must be obtained before the ownership transfer registration can be completed.
The bureau said many small and medium-sized family businesses transfer equity to the next generation without consideration to facilitate intergenerational asset transfers. Such transfers constitute gifts under the Estate and Gift Tax Act and must be reported for gift tax purposes. The business may proceed with the transfer registration after obtaining a certificate of tax payment or tax exemption issued by the tax collection authority.
Documents required for transfer registration
Under Article 42 of the Estate and Gift Tax Act, when land administration authorities and other government agencies, or public or private enterprises, process the registration of ownership transfers involving inherited or gifted property, they must notify the parties concerned to provide a copy of one of the following documents issued by the tax collection authority:
- a tax payment certificate;
- an approved tax exemption certificate;
- a certificate confirming that the property is excluded from the total estate;
- a certificate confirming that the property is excluded from the total gifts; or
- a certificate consenting to the transfer.
If the required document cannot be provided, the ownership transfer registration may not be carried out directly.
Fine for non-compliance
The bureau said a private enterprise that violates this requirement may face a fine of up to NTD 15,000 under Article 52 of the same Act.
Accordingly, before registering the transfer of equity gifted by a shareholder, the business should first notify the shareholder to submit the relevant certificate issued by the National Taxation Bureau following the filing of the gift tax return.
Reminder on equity transfers
The bureau reminded parties handling transfers of company equity or shares that the receiving authority or private enterprise must notify the parties concerned to provide the certificate issued by the tax collection authority before completing the ownership transfer.
This announcement was made on 18 August 2026.
