Kindly donated land worth 5 million NTD for public welfare, but was taxed 256,000 NTD by the National Taxation Bureau! -2

Why pay 256,000 NTD for land worth 5 million NTD? Another tax to watch out for when donating land. According to Article 10 of the "Estate and Gift Tax Act," the value of gifted land is calculated based on the announced land value or the assessed standard price at the time of gifting, not directly based on the market transaction price. Therefore, the 5 million NTD mentioned in this case refers to the announced land value, which may not necessarily equal the market price of the land. Since the land does not meet the criteria for not being included in the total gift amount, the National Taxation Bureau included the 5 million NTD in the total gift amount for the year. After deducting the tax-exempt amount of 2.44 million NTD applicable in 2024, a gift tax of 256,000 NTD was assessed at a tax rate of 10%. Calculation: (5,000,000 NTD - 2,440,000 NTD) × 10% = 256,000 NTD. This 256,000 NTD is the assessed tax payable by the National Taxation Bureau, not a penalty for violation. It is worth noting that 2.44 million NTD is the annual tax-exempt amount for each donor, not an amount that can be deducted each time property is donated. The Ministry of Finance announced that the annual gift tax exemption amount will remain 2.44 million NTD in 2026. The same donor, regardless of how many times or to how many people they gift in a year, will generally have their gifts aggregated for calculation. Additionally, donating land may also involve land value increment tax. Article 28-1 of the "Land Tax Act" stipulates that if private land donated for social welfare purposes or for private schools established according to law is to be exempted from land value increment tax, the recipient must be a foundation, the foundation's articles of incorporation must stipulate that any remaining assets upon dissolution shall be attributed to the local government, and the donor must not have obtained any benefit from the donated land in any way.