Gift Your Children 8.88 Million Within a Year — Pay Zero Gift Tax! National Taxation Bureau Reveals the One Legal Method

Many parents, when their children get married, often provide funds for home purchases or generous red envelopes as wedding gifts, yet worry about accidentally crossing tax thresholds and incurring gift tax. The Ministry of Finance's National Taxation Bureau emphasizes that by properly utilizing the current 'wedding gift' provision under the Inheritance and Gift Tax Act, parents can enjoy an additional tax-free allowance of NT$1 million per child on top of the annual NT$2.44 million gift tax exemption per person—without the two allowances affecting each other. When used strategically, two parents can legally gift up to NT$8.88 million to two marrying children within a single year, completely exempt from gift tax.

How can parents save on gift tax when giving wedding cash? By leveraging the 'wedding gift' tax benefit, parents can gift up to NT$8.88 million tax-free in a single year.

According to legal provisions, gifts of up to NT$1 million made by each parent to a child around the time of their marriage are excluded from the annual gift total and thus tax-exempt.

For example, if Mr. Lin's daughter plans to register her marriage in October this year, Mr. Lin can gift her NT$1 million in September as a wedding gift, then another NT$2.44 million in November to help with home purchase. The first amount qualifies as a 'wedding gift,' while the second uses the 'annual general tax exemption.' As a result, the total NT$3.44 million Mr. Lin gives his daughter is entirely exempt from gift tax. If his spouse does the same, the couple can collectively provide up to NT$6.88 million in tax-free gifts to this one child in that year.

Can this benefit be used if two children marry in the same year? Maximum tax-free amount for parents reaches NT$8.88 million

What if, in a fortunate scenario, two children get married in the same year? Can this tax benefit be applied repeatedly? The National Taxation Bureau clearly states that the 'wedding gift' exemption is calculated based on the number of marrying children, with each child's marriage qualifying for a separate NT$1 million tax-free allowance.

- At the beginning of the year, parents each gift their son and daughter NT$2.44 million (using up their annual NT$2.44 million general exemption).

- Later that year, both children complete marriage registration, and the parents then each give an additional NT$1 million wedding fund to both the son and daughter (each parent making NT$2 million in wedding gifts).

- Total: The combined amount gifted by both parents to two children in that year reaches NT$8.88 million 【(NT$2.44 million (exemption) + NT$1 million (son's wedding gift) + NT$1 million (daughter's wedding gift)) × 2】, with all amounts legally exempt from gift tax.

Master the golden filing window! Must occur within 6 months before or after registration; failure to submit proof may result in back taxes

Although the wedding gift tax benefit is highly effective, the National Taxation Bureau stresses strict 'time' and 'documentation' requirements:

Timing criteria: In practice, tax authorities recognize gifts made within six months before or after the child's marriage registration as eligible for the wedding gift exemption—not any gift given at any time.

Required filing documents: When filing, parents must proactively submit official documents such as a household registration transcript to prove the child's marriage registration. If such documentation cannot be provided, the amount will be included in the annual general gift total. If this exceeds the NT$2.44 million tax-free threshold, the excess will be subject to gift tax starting at 10%.

2026 Gift Tax Rates and Calculation Guide

If the total gift amount exceeds the tax-free range, the 'net gift amount' (after deducting exemptions) will be taxed according to the following three-tier progressive rates:

Net Gift Amount Tax Rate

NT$28.11 million (inclusive) or less: 10%

Over NT$28.11 million to NT$56.21 million: 15%

Over NT$56.21 million: 20%

Finally, the National Taxation Bureau reminds that gift tax is calculated per 'donor' (the person giving the money), and the annual tax-free allowance runs from January 1 to December 31 each year. Parents planning to transfer assets when their children marry should clarify the timing early and prepare marriage certificates to wisely save on taxes while celebrating their children's happiness.