Taiwan taxes the estate, not the heir. Heirs must file a Taiwan estate tax return within six months of the death; one extension of up to three months is available. For deaths in 2026 the exemption is NT$13.33 million and the rates are 10, 15 and 20 percent. Heirs in the U.S. can file through an authenticated power of attorney.

How much Taiwan estate tax will overseas heirs pay in 2026?

Taiwan estate tax is charged on the net taxable estate: the gross estate at death, less the Article 17 deductions and the Article 18 exemption of the Estate and Gift Tax Act. The Ministry of Finance announced on November 27, 2025 that the 2026 amounts stay at 2025 levels, because cumulative inflation had not reached the 10 percent adjustment trigger.

Net taxable estate (2026)RateTax
Up to NT$56,210,00010%10% of the net estate
NT$56,210,001 to NT$112,420,00015%NT$5,621,000 plus 15% of the amount over NT$56,210,000
Over NT$112,420,00020%NT$14,052,500 plus 20% of the amount over NT$112,420,000

The 2026 exemption is NT$13,330,000. Many family estates owe nothing after the exemption and deductions, but the return must still be filed: banks and the land office release nothing without the clearance or exemption certificate.

What deductions apply, and do they still apply if the deceased lived abroad?

For a deceased who was a Taiwan national habitually residing in Taiwan, the 2026 deductions include NT$5,530,000 for a surviving spouse, NT$560,000 per lineal descendant, NT$1,380,000 per surviving parent, NT$6,930,000 per heir with a severe disability, and NT$1,380,000 for funeral expenses. Documented debts and unpaid taxes of the deceased are also deductible.

The rules change when the deceased lived abroad. Under Article 1, a national habitually residing in Taiwan is taxed on worldwide assets; a national habitually residing abroad, or a non-national, is taxed only on assets in Taiwan. Under Article 17, paragraph 2, the family, disability, farmland and prior-inheritance deductions do not apply to that second group, and funeral, debt and tax deductions count only for amounts incurred in Taiwan. The exemption still applies. Whether a parent who moved to the U.S. years ago counts as habitually residing abroad drives the whole calculation, so settle it first.

When is the Taiwan estate tax return due, and can heirs abroad get more time?

The return is due within six months from the day after death, at the National Taxation Bureau for the deceased's household registration (Article 23). With a justifiable reason, heirs may apply in writing before the deadline for an extension, generally limited to three months (Article 26). Needing time to authenticate documents abroad is a common reason, but the request must go in before the six months run out.

After the assessment notice, the tax is payable within two months; heirs who cannot pay in cash may apply for up to 18 installments (Article 30).

What happens if you miss the deadline?

  • Filing late: a fine of up to two times the assessed tax (Article 44).
  • Filing on time but leaving out assets: a fine of up to two times the tax on the omitted assets (Article 45).
  • The fines plus the tax cannot exceed the gross estate (Article 47).
  • Until the tax is paid, no heir may divide the estate, deliver a bequest or register a transfer (Article 8), so the Taiwan property stays frozen.

What documents do heirs in the U.S. need?

The Ministry of Finance's eTax portal adds two rules for overseas heirs: documents issued abroad must be authenticated by the Taiwan overseas mission in that country and come with a Chinese translation, and an heir without Taiwan household registration who appoints someone in Taiwan to file must attach a power of attorney authenticated by that mission. In the U.S. that mission is the Taipei Economic and Cultural Office (TECO) for your state.

  • Death certificate (if issued in the U.S., TECO-authenticated with a Chinese translation).
  • The deceased's household registration transcript showing the death, or authenticated identity documents if there was no Taiwan registration.
  • Proof of kinship for each heir: household transcripts where they exist, otherwise TECO-authenticated birth or marriage certificates with translations.
  • Passport copies of each heir abroad.
  • Power of attorney for the tax return and the inheritance registration, signed before a TECO officer or before a U.S. notary and then authenticated by TECO.
  • Asset records: ownership certificates, bank balances at the date of death, share records, and debts.

Taiwan is not a party to the Hague Apostille Convention, so an apostille alone does not replace TECO authentication.

How does filing from the U.S. work, step by step?

  1. Confirm the heirs and the deceased's residence status (first 2 to 4 weeks). This decides the taxable scope and the deductions.
  2. Sign and authenticate the power of attorney at TECO: in person before a consular officer, or before a U.S. notary and then by mail to TECO. Allow for mailing time.
  3. Collect asset records in Taiwan. Under the power of attorney your attorney can request the deceased's property and income records from the tax bureau.
  4. File within 6 months of death, or file the written extension request before the deadline (up to 3 more months).
  5. Pay within 2 months of the assessment notice, or apply for up to 18 installments, then obtain the clearance certificate.
  6. Use the certificate to register the real estate and close the bank accounts. The land office registration has its own six-month deadline under the Land Act; see inheriting Taiwan property from the U.S..

What do U.S. heirs report to the IRS?

An inheritance is not U.S. income, but it can trigger information reporting. A U.S. citizen or resident who receives more than US$100,000 in a tax year from a nonresident alien or foreign estate reports it on Form 3520, listing each amount above US$5,000 separately; amounts from related foreign persons are aggregated. Form 3520 is due with the income tax return, and the penalty for not filing is 5 percent of the amount per month, up to 25 percent, absent reasonable cause.

If inherited money sits in a Taiwan bank account and your foreign accounts together exceeded US$10,000 at any time in the year, you file FinCEN Form 114 (FBAR) electronically by April 15, with an automatic extension to October 15. Real estate is not reported on the FBAR, but rental income from it is taxable in the U.S. These rules apply only to U.S. persons; confirm your status with your U.S. accountant.

Frequently asked questions

Does the heir pay Taiwan estate tax, or the estate?

The estate does. Taiwan taxes the net estate of the deceased once, and the heirs are jointly responsible for filing and paying. There is no separate inheritance tax on each heir.

Can I file the Taiwan estate tax return without going to Taiwan?

Yes. An heir living abroad can appoint a representative in Taiwan with a power of attorney authenticated by the Taiwan overseas mission in your country, which in the U.S. is TECO. The representative files the return and handles the inheritance registration.

What if the deceased was a U.S. citizen who had lived in the U.S. for decades?

Taiwan still taxes the assets located in Taiwan. A non-national, or a Taiwan national habitually residing abroad, is taxed only on Taiwan assets, and most of the family deductions do not apply, although the exemption does.

Do I owe U.S. tax on money inherited from Taiwan?

Generally no U.S. income tax is due on the inheritance itself, but a U.S. person who receives more than US$100,000 from a foreign estate in a year must report it on Form 3520, and foreign accounts over US$10,000 in aggregate must be reported on an FBAR. Confirm your situation with a U.S. tax adviser.

Next step

WU LAW INTL PLLC files Taiwan estate tax returns for heirs in the United States, prepares the TECO power of attorney package, and coordinates Form 3520 and FBAR timing with your U.S. accountant. If a relative has died with assets in Taiwan, the six-month clock is already running; contact us and we will map the first two weeks.

Sources

Further reading: Taiwan inheritance guide for foreigners | How U.S.-based heirs inherit property in Taiwan | Cross-border inheritance services | Cross-border inheritance FAQ

Talk to the attorney who wrote this guide.

Queenie Wu has 20 years of cross-border practice between Taiwan and the US. Free 20-minute video consultation, in English or Chinese.

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