Public land purchase restrictions against inheritance tax will.
[Economic Daily reporter Chen Meizhen ╱ / Taipei]
Attempts to prevent high-income earners to use public facilities as a reserve to offset inheritance tax avoidance tool, the Ministry of Finance has to amend the law in the future who acquired the Public Procurement buy land, they will be unable to fully tax deductible according to the present value of the Public Notice; if made after the draw to postulate, the tax credit is still unrestricted.
Ministry of Finance has reintroduced "Estate and Gift Tax Enforcement Rules" provisions of the draft amendment to the Non-Public land purchase made by excluding the proportion deductible limits; but to buy land acquired postulate who apply to offset future inheritance tax , its deductible limit shall be "postulate to notice the total present value of the ratio of the estate." prevail.
For example, if they buy the successor during his lifetime to the present value of the Public announcement of $ 10 million, 100 million yuan of the total estate, inheritance tax 8,000,000 yuan, when the original heirs to pay inheritance tax, land value can postulate ($ 10 million) in full 8 million yuan to offset inheritance tax; but the future also postulate to $ 10 million, only $ 800,000 to offset inheritance tax (ie, {$ 10 million ÷ $1 hundred million } × 800 million = $ 800,000 yuan).
Ministry of Finance pointed out that, in view of the current market price to postulate only about two percent of the present value of announcement, but it is worth inheritance tax deductible to the announcement by the higher present value calculation, the formation of a large number of low-cost printing part of the rich to buy postulate after re-use of public Notice to the present value of high-deductible, resulting in a huge loss of tax revenue each year treasury not only, but also hold a full hand deductible postulate land.
Go with the bequest tax rate (98) after years of January 23, the highest since the 50% tax rate has been reduced to 10 percent, the Ministry of Finance decided to limit the amount of reduction postulate to offset the estate tax, in addition to certain conditions explicitly postulate extraterrestrial, General Public the tax credit should be based on "public Notice to the ratio of the present value of the total estate" as to offset the ceiling.
