Taiwan Trust Firms Press for Clarity on 100-Year Tax Rules

Taiwan’s Executive Yuan and Financial Supervisory Commission are considering a framework for successive-beneficiary trusts lasting as long as 100 years, allowing assets to pass through multiple generations under instructions set by the original settlor. The proposal aims to prevent estate or gift taxes from being imposed repeatedly whenever beneficial interests shift, but it has also raised concerns that wealthy families could use the structure as a long-term tax-avoidance vehicle.

Detailed tax rules and official interpretations for the proposed trusts remain unpublished, with progress slowed by tax-avoidance concerns and personnel changes at relevant agencies. Trust companies say they are not demanding blanket exemptions, but want the Ministry of Finance to promptly define taxable events, calculation methods and eligibility conditions. The industry argues that regulatory certainty is essential before firms can design products, assess tax exposure and explain the structure accurately to clients.