Taiwan Trust Firms Urge Clarity on 100-Year Trust Tax Rules

Taiwan’s Executive Yuan and Financial Supervisory Commission are promoting “successive beneficiary trusts” lasting as long as 100 years as part of a plan to develop the island into an Asian asset-management hub. The structure would allow settlors to arrange benefits across several generations, while proposed tax treatment would prevent estate and gift taxes from being repeatedly imposed whenever beneficiaries change. The initiative has also raised concerns that wealthy families could use the trusts to avoid taxes and undermine fiscal fairness.

About three months after the policy was announced, the Ministry of Finance has yet to issue the tax interpretation needed to define eligibility, liabilities and implementation details. Trust companies say the uncertainty prevents them from structuring products or giving clients reliable tax guidance. The industry is urging officials to publish the rules promptly, including safeguards against tax avoidance, so financial institutions can proceed with product planning while regulators balance long-term wealth succession with equitable taxation.