Many are mistaken! Bequest is not inheritance; missing 'this step' in land transfer could prevent title transfer

Taiwan's tax authorities are reminding the public about a crucial distinction between inheritance and bequest when transferring land, emphasizing that failing to follow the correct procedures can prevent property transfer. The Tainan Municipal Government's Bureau of Finance highlighted that many people confuse these two terms, leading to potential tax and registration issues.

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Many people are mistaken! Bequest is not inheritance. If you miss 'this step' in land transfer, you may not be able to transfer the title.

While land transferred through inheritance is exempt from the land value increment tax, land received as a bequest via a will is not. The Bureau of Finance explained that a bequest is a specific arrangement made by the testator during their lifetime to grant land to a designated beneficiary after their death. Legally, this is not considered inheritance, and therefore, the recipient must still declare and pay the land value increment tax when transferring ownership.

The process for handling bequeathed land requires specific steps. The executor of the will or the heirs, along with the beneficiary, must first declare the land value increment tax to the local tax bureau. After the tax bureau reviews the case and issues a tax exemption certificate, and local tax clearance procedures are completed, the parties can proceed to the land administration agency.

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Bequest land must still be declared for land value increment tax according to law.

At the land administration agency, a simultaneous application for both inheritance registration and bequest registration must be filed. The Bureau of Finance urges individuals involved in property transfers to clearly understand the tax differences between inheritance and bequest and to adhere strictly to the prescribed procedures to ensure their property rights and a smooth transfer process.

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Land acquired through bequest is not automatically owned upon the commencement of inheritance; inheritance registration must first be completed, and then the heir transfers it to the beneficiary.