If the agricultural land that applies for exemption from inheritance tax or gift tax is not used for agriculture during the management period, the tax payable will be recovered

Mr. Gao called to ask, why did my father receive a letter from the National Taxation Bureau a few days ago to ask for a supplementary gift tax for the farmland donated to me in 107?

The Kaohsiung National Taxation Bureau of the Ministry of Finance stated that in accordance with the provisions of Article 17, Item 1, Subparagraph 6 and Article 20, Item 1, Subparagraph 5 of the Inheritance and Gift Tax Law, the heirs or recipients of agricultural land that are exempt from inheritance tax or gift tax according to law Within 5 years from the date of accepting or receiving the gift, the land has not continued to be used for agriculture and has not been restored to agricultural use within the time limit ordered by the relevant authority, or although the land has been restored to agricultural use within the time limit ordered by the relevant authority, thereafter Those who have not used it for agriculture shall pay the tax payable. However, this does not apply when the recipient or recipient of the land dies, or the land is expropriated or changed to non-agricultural land according to law.

Taking this case as an example, the bureau explained that on June 25, 2017, Mr. Gao’s father donated all the farmland located in Alian District, Kaohsiung City to Mr. Gao, and completed the gift tax declaration within the prescribed time limit, reporting that the donated land was used for agriculture. It is not included in the total amount of gifts, and it meets the requirements after being audited, and a certificate of gift tax is not included in the total amount of gifts is issued, and it will be listed for 5 years from the date Mr. Gao received the gift. During the management period, the competent agricultural authority notified that the farmland was not used for agriculture in October 2011. After the National Taxation Bureau issued a letter to restore the original state within a time limit and presented the certificate of agricultural use, it still failed to complete the process according to the limit, and the gift tax was recovered in accordance with the regulations. . The bureau reminded that estate tax or gift tax payers should pay attention to the previous disclosure regulations in order to protect their rights and interests.

Provider: Okayama Inspection Office Contact Person: Director Zhou Bizhu Contact Number: (07) 6260123 Ext. 5300
Contributor: Lin Wenjun Tel: (07)6260123 extension 5426