Family (Individual) Estate Tax Advisory Services

There have been frequent changes in Taiwan tax laws in the recent years. In particular, when individuals selling shares of TWSE or TPEx unlisted companies, or shares of unregistered emerging-stock companies, the gains should be subject to the Alternative Minimum Tax (AMT). Furthermore, the amendments to certain provisions of the House and Land Transactions Income Tax 2.0 have come into effect on July 1, 2021. These new revisions directly or indirectly affect many high-income earners the most.

Meanwhile, Taiwan’s anti-tax avoidance awareness through controlled foreign company (CFC) rules may significantly increase the tax burden and the risk of exposure for high net worth individuals and high-income earners. Taiwan’s industrial structure is dominated by family SMEs, in the process of corporate growth and transformation, the businesses usually encounter problems regarding business sustainability and transfer of family wealth. The key to a sustainable business involves how to pass down a family business to the successor while incurring reasonable tax burden to the businesses and individuals who are involved.

KPMG has knowledgeable and experienced tax specialists who are capable of conducting comprehensive strategic assessments for family businesses and helping them to develop wealth transfer solutions while balancing between tax burden and risk control. It is our goal and mission to help family businesses achieve “tax burden minimization, profit maximization, and legacy sustainability.”