How the taxpayer can offset the inheritance tax with the inherited shares of listed and OTC companies

The Taipei National Taxation Bureau of the Ministry of Finance stated that if the taxable amount of inheritance tax is more than NT$300,000 and it is really difficult to pay in cash, the taxpayer can apply for Use the stocks of listed or OTC companies in the inheritance to offset the inheritance tax.
The Bureau stated that if the taxpayer applies for inheritance tax with the stock of a listed or OTC company left by the decedent, the value of each share is calculated for the number of shares that can be used to offset the tax. If it is higher, the number of shares to be credited is calculated based on the approved inheritance value per share of the stock. If the closing price of the stock on the date of application for credit is lower than that on the day of death, the tax amount that can be credited is based on the file The taxable amount calculated based on the ratio of the approved value of the stock to the total value of the levied object is limited; the unit price of the stock to be offset is calculated based on the value of the estate tax (that is, the closing price on the day of death).
The bureau gave an example. The value of the estate tax of Mr. A, the decedent, was assessed to be 80 million yuan, and the tax payable was 5 million yuan. Because Mr. A did not leave any cash or deposits, nor did he give any gifts to his heirs within 2 years before his death. In the case of cash or deposits, etc., the taxpayer applies for tax payment with 40,000 shares of listed company A left by Mr. A [approved inheritance value of 4 million yuan (40,000 shares × closing price of 100 yuan per share on the day of death)] to offset the tax payment, and the taxpayer can get The limit for deduction of inheritance tax will depend on the closing price of listed company A's stock on the date of application for deduction and the closing price on the date of death:
1. If the closing price on the application date is 120 yuan per share (higher than the closing price of 100 yuan on the date of Mr. A’s death), you can apply to offset the inheritance tax of 4 million yuan with the approved inheritance value of 40,000 shares in the estate.
2. If the closing price on the date of application for offsetting is 90 yuan per share (lower than the closing price of 100 yuan on the date of Mr. A’s death), the limit for the inheritance tax of the stock is 250,000 yuan [the tax is 5 million yuan × (A The approved inheritance value of the company's stock is 4 million yuan / the value of the subject matter subject to the estate levy is 80 million yuan)], and converted from the closing price on the day of death, the number of shares that can be applied for credit is 2,500 shares (tax credit 250,000 yuan / day of death The unit price per share is 100 yuan).
The bureau called on the taxpayer to apply for in-kind credit, if the consent of all heirs cannot be obtained, in accordance with Article 30, Item 7 of the Inheritance and Gift Tax Act, the consent of more than half of the heirs and the total of the inheritors’ share, or The heir shall submit an application within the tax deadline with the consent of more than two-thirds of the succession points, so as to avoid overdue payment of late payment fees and late payment interest, which will affect their own rights and interests.
(Contact person: Chief Levy Kelin; Tel. 2311-3711 ext. 2006)

Issued by: Taipei National Taxation Bureau, Ministry of Finance Release date: 2022-04-15 Update date: 2022-04-12