Generously Donated Land Worth 5 Million Yuan for Charity, Only to Be Taxed 256,000 Yuan in Gift Tax by the National Tax Service!

Many people assume that gift tax only needs to be considered when parents give money to their children or when properties are transferred between relatives and friends. They believe that donating property to charitable organizations should be tax-exempt. However, donations for public welfare can also be subject to gift tax! The Taipei National Tax Administration once released a real case where a taxpayer donated land with a public assessed value of 5 million yuan to an association and claimed it should not be included in the total gift amount during the tax declaration. Ultimately, the National Tax Service determined that 256,000 yuan in gift tax was payable. The key issue was that the association receiving the donation did not meet the legal qualifications for exclusion from the total gift amount, causing the land intended for public welfare to be included in the taxable gift total. Donated Land Worth 5 Million Yuan to an Association, Yet the National Tax Service Assessed 256,000 Yuan in Gift Tax According to a press release updated on November 5, 2025, on the official website of the Ministry of Finance's Taipei National Tax Administration, a taxpayer donated land with a public assessed value of 5 million yuan to an association in 2024 (Republic of China year 113) and filed a gift tax return, claiming the land qualified for exclusion from the total gift amount. However, after review, the National Tax Service found that the association receiving the land donation was not a legally registered foundation, thus not complying with Article 20, Paragraph 1, Item 3 of the "Estate and Gift Tax Act." Consequently, the land was included in the total gift amount for that year, leading to a final assessment of 256,000 yuan in gift tax. Many taxpayers believe gift tax primarily involves monetary and property transfers between relatives, but in reality, even gratuitously donating land to public welfare groups can involve gift tax. Whether it is tax-exempt depends on the qualifications of the recipient organization and relevant legal conditions.