As the cumulative increase in CPI reaches the adjustment threshold, the inheritance tax exemption is expected to be increased next year

[Reporter Zheng Qifang/Taipei Report] Since the cumulative increase in prices has reached the adjustment threshold, the inheritance tax and gift tax exemptions are expected to be increased again next year! The current inheritance tax exemption is 13.33 million yuan and the gift tax is 2.44 million yuan. As of May this year, the CPI has increased cumulatively by 11.15% from the last adjustment. Based on this calculation, next year the inheritance tax exemption will be increased to at least 14.82 million yuan and the gift tax exemption will be increased to 2.71 million yuan. It is expected that the actual adjustment amount will be higher, and it will be applicable to inheritance and gift cases next year.

According to Article 12-1 of the "Inheritance and Gift Tax Law", the inheritance tax exemption amount, tax bracket and deduction amount, etc., whenever the CPI (Consumer Price Index) increases by more than 10% cumulatively compared with the last adjustment index, will be adjusted according to the degree of increase starting from the following year. The inheritance tax and gift tax exemptions were last adjusted in 2022. As of May this year, the cumulative increase in the applicable index has reached 11.15%. Therefore, the inheritance tax and gift tax exemptions will be increased next year.

Please read on... Based on the current cumulative increase of 11.15%, the gift tax exemption amount will be increased by 270,000 yuan to 2.71 million yuan next year; the inheritance tax exemption amount will be increased by 1.49 million yuan to 14.82 million yuan. However, the cumulative increase in CPI is calculated until October, and it is expected that the actual adjustment amount of inheritance tax and gift tax exemption will be higher. The Ministry of Finance stated that the inheritance tax exemption amount, tax brackets and deductions will be announced at the end of the year and will be applicable to inheritance and gift cases next year.

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