Compliance
Taiwan - Alien Tax Refunds, Inheritance Tax & Installment Rights: Compliance Guide
Recent Taiwanese tax updates affect foreign individuals, estate planning and taxpayers seeking installment relief. Here’s how to stay compliant and protect your rights.
By NomadicTax Research Team • 5-8 min read • August 28, 2026
## Key Updates from Taiwan in August 2026
- **Alien individual income tax refunds**: The first batch for 2025 will be deposited into designated accounts on August 3, 2026. A second batch is scheduled for September 11. Taxpayers should choose direct deposits during filing, or obtain checks if not. ([mof.gov.tw](https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=58e47035617b4c208af8fad52de58f47&utm_source=openai))
- **Estate & Gift Tax amendments**: Amendment bill passed in Taiwan to adjust calculation of estate tax for gifts by certain relatives (spouse, inheritors), and spousal residual property claim. Also, the preferential tax on bonds / passive bond ETFs extended, active bond ETFs included. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=3a10a68d1d1043aaacdf9712098b0135&utm_source=openai))
- **Installment / deferred payment rights**: Under revised regulations, if a taxpayer applying for installment of tax fails one installment but pays within 30 days (plus the late charge), they may retain the right to continue installments rather than having full balance demanded. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=3a10a68d1d1043aaacdf9712098b0135&utm_source=openai))
## Compliance Checklist for Affected Taxpayers
- **Foreign residents (aliens)**: When filing 2025 income tax, ensure bank or post-office account details are accurate for direct deposit. Monitor bank/PO accounts on or around August 3 and September 11. If account fails, know to expect a check and how to collect. ([mof.gov.tw](https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=58e47035617b4c208af8fad52de58f47&utm_source=openai))
- **Estate planners / inheritors**: For planning gifts or inheritances, review how estate tax will be calculated under new rules—especially for spouse and immediate heirs. Update wills or gifting strategies accordingly. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=3a10a68d1d1043aaacdf9712098b0135&utm_source=openai))
- **Tax deferral / installments**: If you have a plan to pay tax in installments, keep all payments timely. If one is missed, act fast—payment within 30 days may preserve your installment schedule. Understand the penalties for late and how “late charge” works. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=3a10a68d1d1043aaacdf9712098b0135&utm_source=openai))
## Actionable Insights & Examples
- *Example (Alien Refund)*: Maria, a foreign national living in Taiwan, files her 2025 income tax in May and selects direct deposit. On August 3, she checks her bank account; if she doesn’t receive the refund, she should wait until September 11; if still unsuccessful, she contacts the bureau with jurisdiction over her ARC address. ([mof.gov.tw](https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=58e47035617b4c208af8fad52de58f47&utm_source=openai))
- *Example (Estate Tax)*: Breaking down residual property claims with spouse can reduce taxable estate. Under new amendments, for spouses receiving gifted property, calculations of “residual property difference allocation claims” may reduce estate tax liability. Seek legal advice before structuring such transfers. ([mof.gov.tw](https://www.mof.gov.tw/singlehtml/384fb3077bb349ea973e7fc6f13b6974?cntId=3a10a68d1d1043aaacdf9712098b0135&utm_source=openai))
## Practical Tips to Avoid Common Pitfalls
- File income tax returns early to ensure refund eligibility and correct direct deposit details.
- Retain accurate records (birth certificates, ARC, ownership/will documents, bank account info) especially in relation to inheritance or gift tax dealings.
- If using installment payments, set up reminders to avoid missing deadline. If miss one, act immediately (within 30 days) to pay and preserve rights.
- Consult a tax professional when planning estate or cross-border income, especially under changing rules.
**Summary:** Taiwan’s recent policy changes place emphasis on enhancing taxpayer convenience (especially for aliens), fairness in estate and gift tax calculation, and protecting installment payment rights—making proactive record-keeping and timely actions essential for compliance.