Cathay United Bank 2025 Important Tax Guide

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Cathay United Bank

Cathay United Bank "Important Tax Guide" Wealth management and taxation: preserving wealth and passing it on to the family.

ESSENTIAL

2025 TAX GUIDE 2025 Important Tax Guide To help clients understand recent tax trends, Cathay United Bank specially appointed PwC Taiwan's Family and Business Sustainability Office to assist in preparing this tax handbook. It summarizes key reminders on financial investment products, U.S. financial investment products, overseas income, real estate taxation, comprehensive income tax filing, and estate and gift taxes related to asset succession. The goal is to provide practical tax information so clients can prepare for asset allocation and adjustment, preserve wealth, and pass assets on to the family.

Taxation rules for financial investment products 02. Taxation rules for investing in U.S. financial products 14.

1. Fund 03 1. Determination of U.S. tax resident status 15

2. ETF 05 2. Tax liability by identity 16 3 Overseas Bonds 07 3 List of tax burdens determined based on US financial products 17

3. Structured products 07 4. How Taiwanese individuals invest in U.S. financial investment products 18 5 Protection Insurance 08 5 Introduction to U.S. Estate and Gift Tax in 2025 19

4. Investment insurance 10 (applicable to non-U.S. tax residents)

5. Savings insurance 11 6. 2025 U.S. estate and gift tax brackets 20

6. Annuity insurance 11 7. Comparison of overseas estate inheritance tax order 21

7. Substantial tax risks of life insurance 12 C. D. Overseas income tax levy regulations 22 Real estate tax levy regulations 32

8. How to calculate the personal minimum tax system 23 1. Pay attention to the combined real estate and land tax when buying and selling real estate 33 2] Determination of Taiwan tax resident status 24 2 How to calculate income tax on the sale of real estate 35 Three Personal CFC Practical Analysis 25 Three When selling old houses, you must pay attention to the standards for luxury homes 36

9. Judgment on taxation of overseas funds returned to Taiwan 27 4. How to file tax returns for selling pre-sale houses 38

10. Individuals selling overseas real estate 30 5. Beware of real estate and land tax in special equity transactions 39 6] Summary of preferential tax rates for self-occupied real estate 40

11. House Hoarding Tax 2.0 42 What Multi-House Owners Need to Know E. F. Comprehensive tax declaration practice 43 Taxation related to asset inheritance 50

12. Key introductions and reminders on comprehensive income tax declaration 44 1. Determination of tax residency for Taiwan’s inheritance tax 51

13. Income tax exemptions and deductions 48 2. Inheritance tax 52 (Applicable to tax returns in 2025 and May 2026) 3 Gift tax 53

14. Comparison of the advantages and disadvantages of tax burden when transferring assets 55

15. Comparison of tax burden on inherited real estate 56

Financial Investment Products

Taxation rules funds ETF overseas bonds structured products protection insurance savings insurance annuity insurance substantive taxation risks of life insurance Eyebrow lift I 1 xx hire Kindness to this

@ Fund trading depends on the place of registration, and dividend distribution depends on the source of income.

1|Fund @ If the fund is registered in Taiwan, it is a domestic fund, otherwise it is an overseas fund. @ Investors can make good use of the tax exemption amount of the minimum tax system for asset allocation Minimum tax system Tax rate Exemption amount Imitation. am people > 2096 times 750a The Lord and Youye have a friendship. 129-Treat 60a Overview of tax burden on funds held by individuals Fund registration place | Investment target "| Interest | Capital gains , Consolidated comprehensive income tax: 596~4096 Dividend income | (Stock Fund) | Or separate taxation: 2896 Domestic market Interest income is the same as Domestic (bond fund) tax rate: 109%6 minimum tax system Overseas mains electricity tax rate: 2096 Tax exemption: 7.5 million . Overseas Overseas mains electricity tax rate: 2096 Cathay United Bank 03

Overview of tax burdens on funds held by domestic companies

Domestic Business Unit (DBU) Fund registration place | Investment target "| | Capital gains Dividend income (Stock Fund) Tax-free Domestic market second place Interest income is repaid time-to-time Minimum tax system Domestic (bond fund) tax rate 209 Tax rate: 12%6 Tax exemption: 600,000 Overseas municipal electricity business tax 2096 Overseas Overseas Electricity Business Tax 2096 A lesson on the tax burden on funds held by overseas companies Overseas Business Unit (OBU)# Fund registration place | Investment target "| Interest | Capital gains Withholding at source 2196 Domestic market next interest income, Domestic (bond funds) 15% withheld at source, tax suspended Overseas markets are not within the scope of taxation in China Overseas Overseas market Not within the scope of taxation in China Note: If an overseas company meets the definition of CFC and the taxation regulations for individual shareholders, please refer to P.25 for details. 04 Cathay United Bank

The taxation method for ETFs is similar to that of funds. According to the domestic and foreign investment targets, ETF trading depends on the place of registration, and the dividend distribution depends on the place of registration. Source of income Overview of tax burden on individuals holding ETFs (equity funds) domestic market Interest Income | Domestic (two bond funds), separate taxation: 1096 Same Minimum tax burden system Overseas mains electricity tax rate: 2096 Minimum tax burden system Overseas Overseas mains electricity tax rate: 209%6 Duty-free amount: 750 miles Overview of tax burdens on ETFs held by domestic companies ETF registration place | Investment target "| | Capital gains (Stock chestnut funds) Tax-free 1 Minimum tax burden increased Interest income 0 most Domestic (Bond Fund) | Tax rate 209 Tax rate: 129 Overseas market business tax 2096 . Overseas Overseas market business tax 209%6 Cathay United Bank 05

A lesson on the tax burden of ETFs held by overseas companies

Overseas business unit (OBU) Fund registration place | Investment target | | Capital gains (Want to make peace at the wrong time) | Just Source Knock Pong 2196 In the domestic market, there is a six-room repayment plan, a full interest rate, and a cancer plan. ] interest income repay Domestic (bond funds) 15% withheld at source, tax suspended Overseas markets are not within the scope of taxation in China o Overseas Overseas market Not within the scope of taxation in China 06 ] Cathay United Bank

3|Overseas Bonds

Income Category | Financial Product Type | | Overseas Business Unit (OBU) Gan Overseas bond tax rate: 209% Business tax: 20% Not within the scope of China’s taxation dividend 109% tax is withheld first. , Domestic bonds Separate taxation: 10% 209% will be paid subsequently, 15% will be withheld at source The tax can be deducted when the tax is paid 9 people Overseas bond tax rate: 209% Business tax: 20% Not within the scope of China’s taxation capital gains Domestic bonds tax suspended Tax rate: 129% tax suspended |Structured goods The taxation methods for investment structured products are different between "domestic" and "overseas" Types of financial products | Types of income | | Overseas companies (OBU) also Issuance by overseas institutions Overseas income tax rate: 209% Business tax: 20% Not within the scope of China’s taxation Get what you get first when it's over Issuance by domestic institutions | Other income Luhe When continuing to pay 2096 business tax, Tuyu withholding rules Can be offset Note:

1. If an overseas company meets the definition of CFC and the taxation regulations for individual shareholders, please refer to P.25 for details.
2. A place where the International Financial Business Branch pays interest to financial institutions, individuals, legal persons or government agencies outside the Republic of China and trades structured commodities. If applicable, income tax withholding will be exempted. Those who are not the above-mentioned persons will be subject to 15% business tax. Cathay United Bank 07

Five | Protection insurance

@General whole life insurance or term life insurance, accident insurance, and medical insurance are all broad protection insurances @ If the death benefit of a life insurance policy is paid to the designated beneficiary, the amount shall not be the inheritance of the insured, but The total annual income of each reporting household exceeding RMB 37.4 million must be included in the calculation of the minimum tax system. Before planning a policy, Insurance status Identification principle The applicant and the insured are not the same person Non-self-use life insurance policy 5 There is room for property transfer to be taxed Change of sponsor two years before death inheritance tax 1090-20% Including insurance for senior citizens, large amounts of insurance, confidential Collective insurance, short-term insurance, critical illness insurance The principle of anti-substantive taxation in stores: Insure, pay no money to insure, borrow money to insure, insure There are eight forms of Fei Luo Gao, with deliberate hidden rainbows. Doubts should be treated as valuable property Change of policyholder The policy is the property of the policyholder, assuming the parent Gift tax If the mother changes the sponsor to be a child, it is regarded as a gift 1096~2096 The total annual tax rate for each reporting household exceeds the tax exemption rate: 2096 The excess of the insurance death benefit over the tax-free amount must be included in the minimum tax liability. Tax-free amount: 750 Death benefit exemption: 37.4 million 08 Cathay United Bank

Common protection insurance contract termination and claims tax regulations are as follows:

The guarantor = the beneficiary. The guarantor is the beneficiary. Same as when termination fee > premium paid When the policy is terminated, the balance shall be other income and shall be included in the comprehensive income tax of the policy holder. Life insurance tax rate: 20% Annuity insurance tax exemption: 7.5 million Death benefit exemption: 37.4 million Claims are not taxable Have health insurance Not applicable Injury insurance Note:

1. If deductions have been made from this premium, the reduced income tax shall be recovered
2. According to the press release issued by the Ministry of Finance in February 2019, health insurance, such as medical insurance, cancer insurance, etc., because the insurance benefits are paid to The insured person himself, so if the insured person dies when the insurance company pays the insurance benefit, and the heirs receive the insurance benefit, As the insured's estate, the heirs shall be included in the inheritance tax in accordance with regulations.
3. If the insurance amount of the accident insurance is agreed to be paid to the beneficiary designated by the insured upon his or her death, it will not be included in the estate. Cathay United Bank 09

6 | Investment Insurance

@ Investment insurance has both the functions of "investment income" and "life insurance protection" @ In practice. , the investment targets of investment insurance are mostly "overseas", and experts plan to allocate assets regularly. There is a mechanism for repatriation, but “repatriation of assets” is not equivalent to the policyholder’s overseas income for the current year. @ Investment policies are usually divided into two accounts. Taxation depends on the type of investment income:

1. Investment insurance policy Same as insurance benefits one by one Life insurance protection will be subject to the minimum tax system after 2006 Click Overseas Investment Target Map | Income from overseas All over. Included in the calculation of the minimum tax system for the current year Tax rate: 20% Gold tax exemption: 7.5 million turn investment account Certificate Domestic investment target
2. Interest income: Including comprehensive income tax 5%~40%
3. Capital gains: tax suspended
4. Dividend income: Including comprehensive income tax 5%~40% Or tax separately at 28%
5. Separate taxation: 10%
6. If there is no actual tax risk for life insurance protection, the insurance money will not be included in the total estate.
7. There is a risk of inheritance tax being levied on investment accounts in practice 10 Cathay United Bank

7 | Savings Insurance

@ Savings insurance covers two major aspects: "savings" and "life insurance" @ When planning, please pay attention to the fact that the Internal Revenue Service determines the nature of "non-life insurance" and levies inheritance tax @ When the applicant is the same as the insured, but different from the beneficiary: death benefit The policyholder pays the insurance premium, which is equivalent to placing the money with the insurance company. After the expiration of the term, the policyholder will pay the principal with interest. Deposits and Interest Withdraw Funds. Because it is essentially different from life insurance and is more similar to the concepts of deposits and interest, Therefore, it needs to be included in the total estate of the proposer (decedent). The death benefit of life insurance is a fixed amount, which is in line with the basic principles of life insurance. If there is no substantial tax risk, it will not be included in the total estate tax. Note: The purpose of the Administrative Judgment No. 227 of the Supreme Administrative Court in 2013 refers to 8 | Annuity insurance When the annuity proposer and the insured are the same person: 1 Immediate annuity This Hui Annuity (the premium will be paid directly into the benefit period) An annuity accumulates its annuity benefits and its During the life of the insured; [No taxation, tax exemption and 5 ; <2> The annuity benefits received by the applicant are tax-free For the estate of the proposer | > The portion that the beneficiary can recover from the insurance contract will not be included in the estate Austrian middle income tax will be levied if the beneficiary receives a death benefit exceeding NT$37.4 million. Should be included in the personal minimum tax system Death of the insured Cathay United Bank 11

9 | Substantial Tax Risks of Life Insurance

Will insurance benefits be included in inheritance tax? @ When the inheritance tax declaration is approved, the payment items will be classified according to the insurance claim details, for example: Whether to be included in the heritage Insurance benefits upon death death benefit Guaranteed minimum death benefit Funeral expenses insurance Return policy value policy dividends Value-added feedback sharing funds interest

Comparison of inheritance-tax risk when the policyholder and insured are the same person. Comparison of substantial taxation risk during the premium payment period. Cathay United Bank 13

OCR

If you use a qualified intermediary (Qualified Intermediary (Ql)) from the U.S. Internal Revenue Service

Domestic securities firms (for example: Cathay Securities) engage in transactions in U.S. stocks, U.S. bonds, U.S. funds or U.S. ETFs: Interest: When a customer obtains interest distribution approved by the IRS, in principle, no deduction is required. Pay 30% tax Dividend: In principle, 30% tax will be withheld in advance The following explains the tax burden imposed on Taiwanese individuals investing in U.S. financial products at the U.S. federal level. No state or other local taxes involved: 1 | Determination of U.S. tax resident status U.S. Citizen U.S. Tax Resident Green card holder U.S. tax resident Income person one Number of days in the United States during the year 31 days or more in the United States 1/3 of the days spent in the United States last year 1/6 of the number of days spent in the United States in the previous year U.S. tax resident Note: Please refer to P.24 for details on the taxation regulations for Taiwan tax residents and overseas income.

2 | List of tax burdens determined individually

vote capital country Dividend income | Interest income gold melt Business Products Non-U.S. tax residents 30% In principle In principle Belonging to (for example: Taiwanese individual #1) Withholding tax No need to withhold i53 No need to withhold just regulations determined U.S. tax residents and U.S. personal income tax (For example: U.S. citizens, green card holders) Federal tax rate: 10~37% .Capital gains and dividends earned by Taiwanese individuals from investing in and trading U.S. financial products are overseas income, and they are required to declare a minimum tax burden. 2. This withholding tax rate applies to "portfolio interest" of Taiwanese individuals or companies, and to U.S. business banks. Interest income related to investment or other non-investment activities is not applicable 3. Investors must hold less than 10% of the interest source company’s equity and have submitted a valid “W-8” series of forms to be eligible. Investment interest is tax-free. In principle, 30% of ETF interest will be withheld first. , and then Cathay United Bank will apply for tax refund on its behalf. Other types of interest can be deducted directly 4. If the target is the stock of a real estate holding company, the withholding rate of profits and losses from disposal is 15%, and the income must be reported proactively. Real estate holdings A company refers to a U.S. company in which more than 50% of its market value is composed of U.S. real estate, which is a U.S. real estate holding company (U.S. Real Property Holding Corporation , USRPHC) Discuss your Majesty 16” Cathay United Bank

Open 3096 3096

Dividend income 0 Not applicable Not applicable In principle 30% In principle Interest income Not applicable No need to withhold tax | Tax withholding | No need to withhold tax Capital gains are not subject to withholding in principle

1. This withholding tax rate applies to "portfolio interest" of Taiwanese individuals or companies, which is related to U.S. business operations. Interest income related to investments or other non-investment activities is not applicable. The investor’s equity holding in the interest company must be less than 10%, and Only if you have submitted the W-8 series form within the validity period, the investment interest can be exempted from withholding; if you have not submitted it or you hold shares directly or indirectly The rights exceed 109%. , still subject to withholding at 30% . ‧If the interest distribution is in the nature of debt interest, in principle, 309% will be withheld first, and then Cathay Shihua Commercial Bank will apply for tax refund on its behalf. If not If the nature of debt interest is, tax refund is not possible . ‧If the target is the stock of a real estate holding company, the withholding rate of profits and losses from disposal is 15%. , and should proactively declare their income. Real estate control A stock company refers to a U.S. company where more than 50% of its market value is composed of U.S. real estate, which is a U.S. real estate holding company. (U.S Real Property Holding Corporation ,USRPHC) ‧The funds discussed here refer to U.S. funds that invest in U.S. targets. If the fund invests in overseas companies, it must be determined on a case-by-case basis. status discussion Cathay United Bank 17

| How Taiwanese individuals invest in U.S. financial investment products

Domestic re-entrustment Qualified Ql institution. | Non-qualified Ql institutions Convenience of opening an account. You can open an account at the counter or online. You can only open an account online. Usually higher Usually lower Transaction fees (there are handling fees for buying and selling) (There are handling fees for wire transfers) Yes Yes Not within the jurisdiction of the Financial Supervisory Commission Information managed by the Financial Supervisory Commission | Investors are more protected | Investors are less protected Investors are not protected beauty country gold Acid Regular Quota Yes Yes No Business in add Off Easier More complex Add inheritance procedures (Domestic financial institutions can directly assist customers to handle it (must handle it by themselves in the United States) Transfer procedures - inheritance/donation) Court certification procedures) brew 18 Cathay United Bank :Please refer to P21 for the inheritance procedure.

5 | Introduction to U.S. Estate and Gift Tax in 2025

(Applicable to non-U.S. tax residents) inheritance tax gift tax em Tax exemption UsD 60,000 UsD 19,000 em

1. US stocks, US bonds, Intangible assets Cash in bank account Asset type Real estate, US stocks, US bonds, real estate, Tangible assets US ETFs, US funds Cash in bank account If a "non-US citizen" exceeds the tax exemption amount: Declaration items Must declare: U.S. "tangible assets" 0No need to declare: "intangible assets" or "foreign assets" Tax payment time: Within 9 months after the date of death of the deceased: April 15, 2026 Within 9 months after the death of the deceased Reporting time: Report and pay secondary school fees to the IRS Property tax, you must apply for an extension of 6 months and The total amount of the heart’s inheritance is lower than the U.S. regulations tax exemption. No need to express gratitude. Donations are calculated based on the "recipient" The United States does not have civil law regulations like Taiwan | After all, the donor can give to countless The inheritance qualifications and order of declaration reminder are subject to Do states have relevant regulations? to and whether the client had established a will during his or her lifetime. trust person, individual recipients have received less than No declaration is required if the amount exceeds the tax exemption amount Then the American recipient needs to declare the donation to the United States
2. In the case of gifting foreign assets, although the donor does not need to declare US gift tax, if the market value of the gift exceeds a certain value, Taxation Bureau (the reporting threshold will vary depending on the donation method), in view of the investor’s I am relatively unfamiliar with U.S. tax laws and reporting matters vary from person to person. If you have actual needs, you should consult relevant professionals to avoid Penalty for reporting errors or omissions Cathay United Bank 19

6 | U.S. estate and gift tax brackets in 2025

Total Estate or Gift Band (USD) Tax Rate Total Estate or Gift Band (USD) Tax Rate 0-10,000 189% 100,001- 150,000 30% 10,001 - 20,000 209% 150,001 - 250,000 329% 20,001 - 40,000 229% 250,001 - 500,000 34% 40,001 - 60,000 24% 500,001- 750,000 37% 60,001 - 80,000 26% 750,001 - 1,000,000 39% 80,001- 100,000 28% 1,000,001 and above 409

7 | Comparison of overseas inheritance procedures (overseas securities firms vs. re-entrustment)

Overseas securities firms Domestic financial institutions/re-entrustment"

• + [1 You must sort out the details of overseas inheritance by yourself. Click on the picture. Financial institutions provide details of overseas inheritance - Pao

1. Probate process (Probate) - 1. Assist heirs to handle the transfer process 1. Person> Must hire a local lawyer in the United States

Box Foreign Income Tax

Tuition regulations How to calculate the personal minimum tax system Determination of Taiwan tax resident status Personal CFC practical analysis Judgment on taxation of overseas funds returned to Taiwan Individual sale of overseas real estate Special Mountain 11 | out 22. Cathay United Bank

1 | How to calculate the personal minimum tax system

Basic tax = (@+e@ - 7.5 million deduction) xX 209% tax rate @ person@ Lan Dong's hard amount is ten points + Luo Wai's income > 100 people enter "One 7.5 million | X 200% Select everyone + specific insurance benefits +Income from unlisted OTC stock trading +Benefit certificates of private securities investment trust funds +Non-cash donation deduction Reminder on items that should be added up @ Overseas income: Including income from Hong Kong, Macao and other countries, if the total annual total of the reporting household reaches 1 million yuan at the end of the year, it is exempted Included; If the amount exceeds 1 million yuan, the entire amount shall be included. @ Specific insurance benefits: life insurance and annuity insurance where the beneficiary and the applicant are not the same person, insurance received by the beneficiary Pay. However, the portion of death benefit below 37.4 million yuan will not be included in the calculation. General income tax amount vs basic tax amount Choose the higher payment General income tax amount Basic tax amount Oneself gives birth to two, Rui gives birth to two to 2 8 bow General income tax amount Basic tax amount General income tax amount Basic tax amount Cathay United Bank 23

2 | Determination of Taiwan tax resident status

Engraved Bin Ji Rotation Tu 1 ryr | Non-tax resident The year in which the income occurs, one day of residence, tax resident/ Number of days of residence Figure Less than 31 days# Figure Non-tax resident Only 31 days old down ee li Income person Production Qi Ji, Yi: Light Spot Yiyiping | Non-tax residents Chen Dui The year of occurrence 1 Return after 183 days Note: The Ministry of Finance issued Taiwan Finance and Taxation Order No. 10104610410 on September 27, 2012 "Principles for Recognition of Individuals Residing in the Republic of China", in accordance with The four principles are used to comprehensively judge the focus of life and economy. If any of the following is met, the person is deemed to be a Taiwan tax resident:

1. Enjoy social benefits such as health insurance, labor insurance, and national pension
2. Spouse or minor children living in the country
3. Domestic business operations, business execution, property management, employment or serving as directors, supervisors or managers
4. Other living conditions and economic interests are sufficient to determine that the center of gravity of life and economy is within the country. 24” Cathay United Bank

3 | Personal CFC practical analysis

CFC (Controlled Foreign Corporation) will come into effect on New Year’s Day 2023. Individuals holding overseas funds through overseas companies will be exempted from 2024. Applications will start in May. Here is a brief explanation of the key provisions, how to judge and the impact on individuals. Personal CFC Self-Checklist AS You are a tax resident of Taiwan Comprehensive Tax Agency , you, your spouse, relatives within the second degree and other related persons are under control (including direct or indirect control "more than 50%) of a certain overseas company ,Select| You, your spouse and relatives within the second degree directly hold more than 10% of the above-mentioned overseas companies in total. ,/ The above-mentioned overseas companies are established in countries or regions with low tax burdens. '7) The above-mentioned overseas company's profit for the year exceeded NT$7 million, so the above The above-mentioned overseas companies have no substantial operations in their "place of establishment", or have substantial operations but Passive income (such as dividends, rent, interest, etc.) exceeds 10% of total income

1. The definition is complicated, please refer to the "Applicable Measures for Personal Accounting of Controlled Foreign Enterprise Income"
2. For example: Hong Kong, Singapore, Cayman Islands, British Virgin Islands, Samoa, etc., please refer to the so-called low tax under the controlled foreign enterprise system Reference list of negative countries or regions》
3. Exemption is available if the current year’s surplus is less than RMB 7 million. However, in order to prevent individuals from dispersing CFC surpluses for the purpose of exempting themselves from reporting, the standards should be the same. The current year’s surplus or loss of CFCs directly held by individuals, spouses and dependent relatives in the comprehensive income tax filing account and without substantial operating activities If the total is a positive number and exceeds 7 million yuan, CFCs with positive profits for the corresponding year are still not exempt from reporting.
4. If a CFC has substantial operating activities in the country or region where it is located, it means that it must meet two conditions at the same time. First: there is a fixed place of establishment and registration. A business office employs employees and actually operates business locally. ,Second: The proportion of passive income to total income is less than 10%, passive income includes Investment income, dividends, interest, royalties, rent, gains from sale of assets, etc. Cathay United Bank 25

CFC financial investments can choose to be taxed on realized gains and losses after sale

1. For individuals to invest in financial products through CFC, the financial assets on the CFC account must in principle be measured by "profit and loss based on public value". Financial Instruments (FVPL)" to calculate the current year's profit and loss. The Ministry of Finance will add provisions at the end of 2023: evaluation losses through FVPL If the profit or loss is realized, you may choose to defer the calculation of the profit or loss until the sale profit or loss is realized.
2. It is important to note that this clause is only applicable to FVPL held by first-tier CFCs and must choose the same calculation method, and Prepare an audit report by an accountant on CFC’s holding, measurement and disposal of FVPL (this report is different from that of CFC’s individual financial ), and once selected cannot be changed.
3. It is recommended to first conduct a trial calculation of the impact of financial investment on CFC's current year's earnings. as a reference. What information should be prepared when declaring personal CFC? [Accountant Visa CFC Financial Report !Knife shareholding structure chart (1 CFC loss deduction table for the first 10 years LZJ CFC profit income calculation form !ZJ CFC transfer shareholder meeting minutes !Knife| Foreign tax deduction certificate !/J Documents proving capital reduction, merger, bankruptcy or liquidation of CFC’s reinvested enterprises Prepare the following documents and attach them if you face an inspection by the IRS: [Details of shareholding changes] !Financial statements for non-low tax zones ! Accountant’s audit report on CFC’s holding, measurement and disposal of FVPL [Applicable to the election to first exclude financial instruments at fair value (FVPL). Unrealized valuation gains and losses are included in CFC surplus] ! Knife | Relevant supporting documents that meet the first exemption for substantial operations If you want to evaluate the applicable status and respond to CFC declaration, it is recommended to seek further evaluation from a professional agency to avoid tax evasion due to miscalculation. 26” Cathay United Bank

| Judgment on taxation of overseas funds returned to Taiwan

Return to overseas income Overseas income taxation judgment process 0 (The nature of the funds must be confirmed Income from non-overseas sources Add investment principal/refund capital reduction Bar Loans/debt repayments Add names, add names, add games, add games reward Funds not derived from overseas It’s funds that are foreign income but have been taxed Overseas income that has exceeded the verification period (5 years/7 years) home @ [Differentiated tax year . The assessment period has passed ) overseas income Profit income Income from execution of business salary income interest income Proceeds from property transactions rental income Royalty income Income from overseas farming, fishing, animal husbandry, forestry and mining Overseas competition prize money Income from retirement Other income Overdue course period : Determination of Taiwan tax resident status according to P.24 The principal deposit of a financial institution. 〔Other funds not obtained from overseas Select property transaction principal Horse Mainland income (included in comprehensive income tax) No tax collection income Basic tax amount [Tax resident status non tax horse "This is the same 〔Trial calculation of tax burden Basic tax amount< Core 3, | Taxation Tonger Basic tax amount Click along one Overseas income exceeds 1 million Basic income >7.5 million Cathay United Bank 27

How to determine the cost of overseas income

Note Verify income after deducting costs and expenses Recognized income Transaction price x 129 Recognized income Original Acquisition Cost" 20% recognized income Verification and deduction Transaction price x 209 Recognized income Dividends for the current year are recognized in full Verify cost deductions 209% recognize Recognized income Transaction price x 209 Recognized income @ If it is a securities or overseas fund benefit certificate obtained before December 31, 2009, its original acquisition cost is lower than that in 2009 For the closing price or net value on December 31, 2009, the closing price or net value on December 31, 2009 shall be the acquisition cost. @ Dividends from overseas financial products are overseas dividend income or interest income, while gains from disposals are "income from overseas property transactions" @ Overseas property transactions shall be based on the transaction price at the time of the transaction less the original acquisition cost and the costs incurred due to the acquisition, improvement and transfer of the asset. The "remainder" after paying all fees is the income. If there is a loss, it will be obtained from the "overseas property exchange in the same year" "Can be deducted", the amount of deduction shall not exceed the income from the property transaction, "overseas interest income" and "overseas property transaction losses" There is no mutual benefit and loss between the two. 28 Cathay United Bank

How to determine the cost of overseas securities transferred by other financial institutions or deposited by oneself

Acquisition date Acquisition date , cannot be obtained by proof Day and cost hours..., Obtain cost recognition method same as Based on the closing price on 2009/12/31 Based on the closing price on the date of acquisition 29 Based on the net value on 2009/12/31. |To obtain the net value of the day Note: When the cost cannot be obtained due to employee subscription, bonus plan or merger of securities firms, income will be recognized at the transaction price x 209% Cathay United Bank 29

5 | Individual sales of overseas real estate

Frequently Asked Questions and Answers

1. Are the profits from the sale of overseas real estate all overseas income? Mainland China (excluding Hong Kong and Macau) must declare "comprehensive income tax" Other countries or regions (including Hong Kong and Macau) are required to declare the "minimum tax system"
2. I have already paid tax in the local country, do I still need to declare it in Taiwan? All income must be reported. Foreign income from the sale of real estate must be reported in the year of sale, not the year when the funds are repatriated. The course verification period is 7 years, and if there is an application, it is 5 years. If it is within the period, it must be re-applied.
3. I have already declared and paid taxes overseas, and then filed a tax return in Taiwan. Wouldn’t this be double taxation? If income tax has been paid overseas, the basic tax amount in Taiwan can be deducted if the cost can be proved (verification and confirmation).
4. If I forget the cost of overseas real estate, how should I file my tax return? Verification and recognition: income three sales price-cost-necessary expenses Presumed taxation: If the cost cannot be proved, the income will be estimated based on 12% of the selling price. Tax Calculation Method 1 (1) Amount of tax that can be entrusted If you have paid income tax overseas, you can still pay income tax within the limit when you return to Taiwan. yy Eyelash subscriber! Basic tax will be deducted c Verify that taxation is included in the minimum tax burden system c Unable to prove the income estimated based on the selling price of 129 Qiu Prepare supporting documents Medium (Place) Compensation Sale Case Heart Buying and Selling Hexiang Crossover > Transfer Certificate c. Loss for the current year can only be offset against the income for the current year. Remittance receipt or bank statement Losses of the same type can only be deducted from income of the same type | Original tax bill and other documents If the cost cannot be proved, the income is estimated based on the selling price of 1296 | 2 Land registration list or documents in the country/region where the real estate is located 30” Cathay United Bank

Personal Sale of Mainland Real Estate VS. Comparison of overseas real estate tax burdens

Assuming that the real estate is sold for 50 million, the cost cannot be proved and there is no domestic income, the trial calculation is as follows: Yi Jieji Mainland China Other Overseas Regions Where Comprehensive Income Tax Minimum Tax System Income from Mainland China | Income from overseas transaction property It can be proved that the cost = selling price 1 cost 1 necessary expenses | 2 selling price 1 cost 1 necessary expenses Only after verification and recognition (? can be offset according to the year to which the disposal date belongs). According to the year to which the disposal date belongs Formula Incorporated into personal comprehensive income tax (596~-4096)" Incorporated into personal minimum tax system (2096) defend The income of the family planning letter is estimated based on the selling price of 1296. Estimated income based on selling price 129 50 millionX129% 36 million Trial calculation of tax burden: Applicable income tax rate of 409% 50 million X 120% 36 million Progressive balance of RMB 911,700: does not exceed the tax exemption amount of RMB 7.5 million Taxable customers 1.4883 million (tax-free "Heart can prove the cost (verification and recognition), | can prove the cost (verification and recognition), The amount of tax paid in mainland China is acceptable | The amount of tax paid in overseas regions is eligible Deduct Taiwan comprehensive income tax. Deduction of Taiwan basic tax Already paid tax credit# | . "But if you can't prove the cost (Estimation Section)." But if you can't prove the cost (Estimation Section) tax), in principle, it cannot be deducted against Taiwan. ", tax), in principle, it cannot be deducted against Taiwan. Bay comprehensive income tax. Basic tax amount Note, @ The so-called tax certification documents should include, in addition to the content, the taxpayer’s name, address, year, income category, complete In addition to the annual income, tax payable, tax payment date and other items, they must be notarized by a notary office in mainland China, as well as China's Only after verification by the Straits Exchange Foundation, will it be accepted by the tax collection authority. @ For overseas tax deduction, you should submit a tax payment certificate for the same year issued by the tax authority of the place where the income comes from, and obtain a local Chinese citizen Visa issued by the embassy or consulate of the country or other institutions recognized by the government of the Republic of China Cathay United Bank 31

OCR

1 | Pay attention to the combined real estate and land tax when buying and selling real estate

Simple Judgment of New and Old System of Real Estate 2016/1/1 Old System Yinggong Integration of House and Land 2.0 4 Obtained before 2015/12/31 Obtained after 2016/1/1 Shidi: Transaction income is tax-free House: Property transaction income tax is levied at 59%-409 (Short-term definition: within 5 years) Taxation on income from land, houses, pre-sale houses and certain equity transactions When inheriting real estate, should the old system or the new system be used? Film Letter EEULCETG AN Point Muscle Talent People fm say there are f) Painting and Girl ‧ Picture Algae Cicada Acquisition date Trading date 11 2015/2 2025/1 people people Inherited person 1 Wang old system Obtained in 2015 "The date of acquisition by the decedent. The date of death of the decedent. The date of inheritance. The date of transaction." 2015/2 2017/10 2017/11 2024/11 Inherited also 2 net 2017 Obtained - Got Date of acquisition by the decedent_ Date of death of the decedent Inheritance date Acquisition date 2017/2 2017/10 2017/11 2024/11 Holding period Continuous inheritance 1] 6 2 people Acquisition date of the first generation The death of the second generation The death of the third generation Sale 1 2013/1 Second generation succession day Third generation succession day 2024/11 2022/1 2024/1 Note: Income from old property transactions should be incorporated into the total comprehensive income of the current year, and income tax returns should be filed in May of the following year. The new unified income tax on real estate and land should be completed after Within 30 days after the transfer of ownership is registered, report to the IRS at the place of residence, and attach a copy of the deed and relevant information Cathay United Bank 33

Personal applicable tax rate

Applicable tax rate Individuals residing within the territory of the country Holding time 1 Individuals not residing within the territory of the country More than 2 years at the end 45% More than 2 years at the end 45% More than 2 years, less than 5 years 35% More than 5 years, and finally more than 10 years 20% More than 2 years 359% More than 10 years 15% Declaration method: Declaration within 30 days from the next day Declaration method: Declaration within 30 days from the next day

1. Situations where the 20% tax rate remains applicable: @ Transfer, involuntary resignation or other involuntary factors, transaction of real estate held within 5 years @ Those who jointly build a house with self-owned land and a profit-making enterprise, and complete and sell the house within 5 years from the date of occupation of the land @ Individuals who provide land, legal buildings, other rights or funds to participate in urban renewal and reconstruction of dilapidated elderly people will be the first to Transactions that are transferred and held within 5 years
2. Those who qualify for the preferential treatment of home residence as stipulated in Article 4-5, Paragraph 1, Paragraph 1 of the Income Tax Act are exempt from taxation if their taxable income is less than 4 million yuan. Tax; 109% tax rate applies to portions exceeding 4 million yuan Applicable tax rate for profit-making enterprises Applicable tax rate Note 1 Applicable tax rate Add Holding time | Domestic company Holding time Owner More than 2 years at the end 450% More than 2 years at the end 450% More than 2 years, less than 5 years 359% @ More than 2 years 350% More than 5 years 209% Calculate tax separately Calculate tax separately Declaration method: Combined declaration and payment Declaration method: Combined declaration and payment Note: A profit-making enterprise trades the first transferred house and its location after the construction of the house is completed. , Real Estate Transaction Section calculated in accordance with regulations Tax income is still included in the profit-making enterprise income tax, and the tax rate is 209% (the declaration method maintains the consolidated tax calculation and payment) 34” Cathay United Bank

2 | How to calculate income tax on the sale of real estate

Also remember (Forgive) say 2016/1/1 and new people house, land, premises tax. ; House, the right to use the house with the right to land Scope (Income from property transactions) Pre-sale house and its location Shares or capital contributions that meet certain conditions (not applicable to personal basic income) Implementation | Person Verification and Identification: House and Land Integrated (House and Land) Points: Real estate selling price-cost-transfer fee-total land price increase calculated in accordance with the local tax law ” A transfer fee tax base If the prompt cannot be made, the fee will be determined based on the transaction price and expense ratio. : Expenses related to house and land sale : Prompt to cancel certification documents Estimated expense ratio 3%0 (upper limit: NT$300,000) Cathay United Bank 35

3 | When selling old houses, should we pay attention to the certification standards of luxury homes?

In February 2025, the Ministry of Finance announced the calculation regulations for property transaction income from the sale of individual houses. The standards for identifying luxury homes are as follows: The latest threshold for luxury homes For sale in 2023 For sale in 2024 (Applicable to tax returns in May 2024) (Applicable to tax returns in May 2025) Total transaction amount Unit price per ping Total transaction amount Unit price per ping (Including parking space) (Excluding parking space) (Including parking space) (Excluding parking space) Taipei 60 million 60 million 1.2 million New Taipei 40 million 40 million 750,000 Taoyuan, Hsinchu County and City, Taichung, Tainan, Kaohsiung 30 million 30 million 500,000 ee Other counties and cities 20 million 22 million people If the original cost of a luxury home cannot be proven, the estimated tax rate will be increased from 17% to 20%. If the amount of the individual house sold reaches the above-mentioned luxury house threshold, if the original acquisition cost cannot be proved, the actual total transaction amount of the real estate will be used. The basis is to calculate the income attributable to the house based on the proportion of the current value of the house and land at the time of sale, and then calculate the sale of the house based on 20% of the income. House income (tax-free from sale of old land). 36” Cathay United Bank

Non-luxury houses-increased income calculation standards

Except for high-priced houses, generally old houses are calculated based on the "housing assessed present value" multiplied by a certain ratio. The calculated ratio depends on the location. The district status is increased by 1~5%, and the administrative districts with the highest increase in housing income estimates are as follows: Administrative District 2023 2024 4 Zhongshan District, Songshan District, Zhongzheng District, 48% Da'an District and Xinyi District, Taipei City Family Planning Neijianhuan, Datong and 4596 469% Shangbeitou District, Wanhua District and Wenshan District 459% New Taipei City Wugu District, Sanxia District 29% 3496 Picture Taoyuan District, Zhongli District, Guishan District, Taoyuan City Luzhu District, Bade District 27-289% 32-339% o Hsinchu City Three districts of the city 32% 37% Hsinchu County Zhubei District 32% 37% Xitun District and Nantun District 33% 359% Taichung City Beitun District, West District 299%, 289% 329% 4 Eastern District 26% 309% Tainan City Shangbei District, Anping District and Central and Western Districts 26-279% 28% Anding District, Xinying District 179, 15% 2296, 209% 4 Gushan District, Sanmin District and Zuoying District 33-35% 37% kaohsiung city Qiaotou District, Ziguan District 21%, 159% 269%, 209% Note: The calculation percentages for other administrative regions are calculated according to the standards announced by the Ministry of Finance Cathay United Bank 37

| How to file taxes when selling a pre-sale house

"Convert pre-sale houses to houses for sale, Diandian 2017/7/1 2021/3 2025/1 Chang company Pre-sale period Film company House completion period Film company everyone Holding for 4 years and 2 months Holding for 3 years and 10 months House purchase, house delivery, sale The pre-sale holding period shall not be calculated

1. Starting from the date of registration of real estate ownership, a combined real estate and land tax of 35% will be levied. 22 Calculation of taxable income and related regulations 12 Taxable income: three real estate transaction prices - acquisition costs - related expenses Taxable amount, taxable income, tax rate xX applicable If the relevant voucher cannot be presented, the fee can be estimated based on 3% of the transaction price (the upper limit is 300,000 yuan) Taxation method | Declaration and payment within 30 days from the day after the transaction date More than 2 years old 459% e More than 2 years, less than 5 years 35% Same as o More than 5 years, less than 10 years 20% s Over 10 years 15% 38 ] Cathay United Bank

Cathay United Bank 39

6 | Summary of preferential tax rates for self-occupied real estate

Repurchase tax refund (real estate and land combined tax, income tax) New System (Integrated Property and Land Tax) The real estate acquired after the sale on January 1, 2016, Self-used and not rented or used for business one year before sale Old system (comprehensive income tax) Sale of real estate acquired before 2015/12/31, Self-used and not rented or used for business one year before sale The amount of the new house and land price < the amount of the old house and land. If you add it, you can see the total price of the new house. Jiaowu individual amount The provision of tax exemption of RMB 4 million for self-occupancy for 6 years Newly made Jing SOLD Assuming a 6-year holding period, | Chang Gong earns 5 million from selling Obtain 4 million duty-free customers after 2016/1/1 and Those who fully meet the requirements ; Enjoy 4 million tax exemption The excess amount is subject to income tax at the lowest tax rate of 1096 ; You can also use the repurchase tax refund discount Three essential requirements for a place of residence for rent: The person, spouse, and underage children have household registration and have actually and continuously lived in the country for more than 6 years Bedrooms cannot be rented out or used for business or business purposes within 6 years. Bedroom: I, my spouse, and my minor children have not applied for the owner-occupancy discount. 40” Cathay United Bank

Repurchase tax refund (land value-added tax)

10% preferential tax rate 109% yy 1 time, no limit to the number of applications One plan Land owner, spouse or immediate family member Household registration Land owner, spouse or minor children One count o 1 year Land holding/registration period 6 years rm: urban land area urban land area Not exceeding 3 acres (approximately 90.75 pings) Not exceeding 1.5 acres (approximately 45.37 pings) Non-Urban Land Area Non-Urban Land Area Not exceeding 7 acres (approximately 211.75 pings) Not exceeding 3.5 acres (approximately 105.87 pings) 1 year before signing 0 and layer (when the second store is sold, the land owner and his spouse and minors Children, no house other than the self-occupied residence 1 year before signing @ The once-in-a-lifetime land value-added tax discount is limited to "one time per person". If the property is registered in the name of your spouse and you have already used the discount, you may consider taking advantage of the allocation. According to the provisions of land value-added tax exemption and gift tax exemption for even donated land, the land should first be donated to the spouse who has not used the preferential treatment, and then the spouse will sign a contract to sell it. For real estate, you can apply for a once-in-a-lifetime preferential tax rate in the name of your spouse! @ The repurchase tax rebate of land value-added tax must be applied for within 10 years. It must meet the conditions of self-occupied residence and have the fact of self-occupation. If the household registration moves out, it may be pursued. It is recommended that before moving out of the household registration, the household registration of the spouse or minor children should be moved in to meet the requirements for self-use. say Cathay United Bank 41

7 | House Hoarding Tax 2.0 What Multi-Housing Households Need to Know

The housing hoarding tax will be implemented on July 1, 2024, and will be changed from the previous "each county and city to households separately" to "national household tax", and will be implemented in 2025. The recruitment officially started in May of this year. , there may be an increased tax burden on those who hold non-self-occupied houses. The tax rate is explained as follows: Tax rate 1.2% Ma is in the shape of Z1,. Holds 2 or 3 households and 2 ssl.29 Death No. 2 No rental for business use Self-occupied house: actual residence of the person, spouse or immediate family members I, my spouse and minor children own a total of 2 or 3 households nationwide (the 4th household and onwards are non-owner-occupied) If you, your spouse or immediate family members are real, you must apply for household registration. Trustee 1 world, interpret send in w M Tax rate 1.5%~3.600, same as 20-4.8% (yy) Each local government has set different tax rates* and adopts "fully progressive" levy Tax rate 1.59%3.6% BE 2963.6% within two years Return to the team 1.59%2.4% Return to the map More than ten years 29%6-4.896 The tax rate for houses participating in social housing is maintained at 1.2% Public lessor social housing (including leasing and hosting) Rent the house to a house that meets the rental subsidy application documents. The government leases private houses. sublet to social housing Guest, and the owner of the house recognized by the competent authority. Those who are qualified to apply for a house. 42 Cathay United Bank

1. Key introduction and reminders on comprehensive income tax declaration

2. Income tax exemptions and deductions (Applicable to tax returns in 2025 and May 2026) people Talk about jade 1 Cathay United Bank 43

Key introductions and reminders for first-line tax declaration

Every tax filing season, how to make good use of deductions, overseas income or asset allocation to manage your own finances smartly, here is a summary Here are some tax-related reminders for high net worth individuals: 01. Dividend income taxation, choose one wisely Consolidated tax calculation Separate tax calculation stand Dividend income is subject to comprehensive income tax The amount of tax deductible is three dividends x 8.5% The upper limit for each reporting household is RMB 80,000 Dividend income is subject to 28% Calculate tax payable separately Other gains Dividend income Other Various types of income = when Various types of income Suitable for income tax brackets Suitable for income tax brackets Those below 20% Those above 30% 02. The excess interest income exceeding RMB 270,000 is reinvested in overseas financial products. <And his Savings Investment Special Deduction Customer Each reporting account has 270,000 yuan. If the interest of a high-net-worth individual exceeds 270,000 yuan, You can also diversify your funds into overseas financial products. Declaring overseas in accordance with regulations 270,000 income (minimum tax burden system), each reporting household has a tax exemption of 7.5 million. tax rate 2096, create tax-saving space for yourself. Special deduction for comprehensive income tax 44 Cathay United Bank

03. How to claim tax deduction for donation? To whom should I donate?

In addition to showing love, personal donations can also be used as income tax deductions. The tax deduction ceiling is as follows: Donor ID Add

For business owners and major shareholders with high dividend income, the dividend income tax burden will be reduced when the dividend income is taxed separately.

However, the upper limit of listed donation deductions will be significantly reduced. For example, high-net-worth individuals who make regular donations to fixed foundation legal persons must Pay special attention to the example of donating 6 million to the foundation: kVv, those with higher domestic income will benefit from donation Long imitation picture Total Comprehensive Income Donation Fund Limits Tax Savings Benefits 30 million 6 million Donation 6 million 2.4 million (6 million X409) Tax saving effect Line: The tax-saving effect of donations for high dividend income earners has shrunk significantly. place Yes and 6 W 2 Aa splash ml c9. three Total comprehensive income and dividends are subject to 289% of the endowment foundation limit, tax saving benefits 30 million, separate tax calculation, 400,000, donation of 6 million, only 48,000 (Including dividend income 28 million) Total comprehensive income 2 million (400,000X1296) Tax saving effect (8) let For those with high overseas income, there is no tax saving benefit from donations. Say As S plus Total comprehensive income Overseas income Donation foundation limit Tax saving benefits 00,000 30 million 00,000 Donation 6 million No tax savings 46” Cathay United Bank

4. Increased tax exemption amount and insurance death benefit under the personal minimum tax system

2024 | 2025 Tax items (Applicable to tax returns in May 2025) | (Applicable to tax returns in May 2026) Personal basic income tax exemption amount 7.5 million Insurance death benefit tax exemption amount 37.4 million 05. The Civil Code lowers the age of majority to 18 years old Since 2023, the legal age of majority has been revised down from 20 to 18. Special attention should be paid to comprehensive income tax this year. If If the children are over 18 years old and have income, they must be careful not to report dependent relatives. Unless certain conditions are met, in principle Declarations should be made separately. Cathay United Bank 47

2 | Income tax exemptions and deductions

(Applicable to tax returns in 2025 and May 2026) List of income tax exemptions and deductions Normal 97,000 Tax exemption for those aged 70 and above 145,500 basic Add Single 131,000 Standard deduction with spouse 262,000 Special deductions from salary income 218,000 Special deduction for people with disabilities. 218,000 . 150,000 per person for first child Special deduction for pre-school children i 225,000 per person starting from the second child (Applicable to children under 6 years old, no exclusion clause) Special deduction Special deduction for education tuition fees 25,000 Chu Xiao Investment Special Deduction Customer 270,000 Other basic living expenses 210,000 48” Cathay United Bank

Tax rates, tax brackets, progressive differences

59%6 0590,000 0 12% 590,0011,330,000 41,300 209% 1,330,0012,660,000 147,700 309% 2,660,0014,980,000 413,700 4096 4,980,001 and above 911,700 Cathay United Bank 49

50_ Cathay United Bank

from Determination of tax residence for Taiwan’s inheritance tax inheritance tax gift tax Comparison of the advantages and disadvantages of tax burden when transferring assets Comparison of inheritance tax burden on real estate

1 | Determination of tax residency for Taiwan’s inheritance tax

shop Also tax resident full Observe ten thoughts, draw conclusions, tax residents Then,) the fact of death or donation, slander Li Less than 2 years before the occurrence Days within 2 years before occurrence Non-nationals | Non-residents for tax purposes Citizenship: If the decedent/donor voluntarily loses the nationality of the Republic of China within 2 years before the death/donation occurs, it will still be regarded as the nationality of the Republic of China. Private inheritance tax/gift tax 2. Habitual residence in the territory: Within 2 years before the death/donation occurred, he had a residence (with household registration) in the Republic of China; he had no residence (with household registration) in the Republic of China. And have a residence, and within 2 years before death, the duration of residence in the country >> 365 days Inheritance and gift tax law, property location and value determination Category Regional Judgment Criteria Price and Credit Determination Cash and deposits, location, foreign currency shall be converted into Taiwan dollars at the Bank of Taiwan's foreign exchange rate of the day. Listing counter: closing price Equity and Corporate Debt. ; The location of the issuing authority. Xingkui: Weighted average value of the day Unlisted OTC: Net Value Fund | Location of the issuing authority. net worth real estate. The location of the registration authority. | What is the status of the land announcement and the status of the housing assessment? Need to make adjustments to the company's off-the-book accounts @ If the amount of real estate on the books is less than the announced present value, it should be adjusted to the announced present value @ If the listed OTC investment amount on the account is less than the closing price of the day, it should be adjusted to the closing price of the day Cathay United Bank 51

The estate tax tax brackets will be adjusted starting from 2025, as shown in the following table:

2|Legacy tax Net estate amount Before tax bracket adjustment, starting from 2025 Progressive Difference | Progressive Difference 1096 Below 50 million 0 Below 56.21 million 0 150% 50 million100 million 2.5 million 56.21 million112.42 million 2.8105 million 200% More than 100 million 7.5 million More than 112.42 million 8.4315 million Date of inheritance Listen to (Day of Death) on January 1, 2024 or later pass inherit Photo: duty-free customers 13,330 close Article Military, police, public education and education died in the line of duty 26.66 million Not included in the equipment and utensils necessary for the deceased’s daily life 1 million Heritage Chief Guest Put 1 career tools of the deceased 560,000 Spouse deduction: 553 miles The deduction for direct descendants is 560,000 Parents’ deduction of 1.38 million Deduction amount: Special deduction for customers with severe physical and mental disabilities 6.93 million Brothers and sisters who are supported by the deceased, 56 steps over grandparent deduction Funeral expenses deducted 1.38 million Note,

1. Total estate: When the decedent dies, the entire estate plus gifts to the spouse within 2 years before death, in accordance with Articles 1138 and 1140 of the Civil Code The property of the designated heirs in each order and the spouses of the heirs in each order above is the amount after deducting the property that is not included in the total amount of the estate.
2. When reporting the death of military, police, or public education personnel while performing their duties, a death certificate issued by the service agency at the time of death must be attached.
3. An additional deduction of RMB 560,000 per year may be made based on the number of years between the age and the age of 18. 52” Cathay United Bank

The tax brackets for gifts will be adjusted starting from 2025, as shown in the following table:

Total amount of gifts for the year - tax exemption amount - deduction amount = net amount of gifts Net gift amount Before tax bracket adjustment, starting from 2025 Net gift amount . | Progressive Difference 109% Below 25 million 0 Below 28.11 million 0 159 | 25 million ~ 50 million 1.25 million 28.11 million ~ 56.21 million 1.4055 million 2096 More than 50 million yuan 3.75 million More than 56.21 million yuan 4.216 million Note: When their children get married (within 6 months before and after the marriage registration), each parent is entitled to a tax-free limit of 1 million yuan for gifting to their children. Cathay United Bank 53

@ Judgment of the tax scope of donated domestic and overseas property

on Tax Residency Gift Tax Tax rate: 10~-20% Tax exemption: 2.44 million Shop [Donate property within the territory 11111 Among the donors Capital recipient Product Large tax resident t Minimum tax system Inheritance tax rate: 20% Phase tax exemption: 7.5 million Gift of overseas property ] service Non-tax, non-Taiwan gift tax and Resident income tax scope

1. Gift tax is paid by the “donor”. As long as you are a Taiwan tax resident, you must report the gift regardless of whether you donate domestic property or overseas property. Tax; if a non-tax resident. , then it does not fall within the scope of gift tax and should be included in the recipient’s personal basic income to calculate the basic tax amount (the minimum low tax system)
2. To determine whether the recipient is an income tax resident, please refer to P.24 54 Cathay United Bank

|Comparison of advantages and disadvantages of tax burden at the time of asset transfer

Should assets be passed on as gifts during lifetime? Or should they be inherited in the future? Each has its own advantages and disadvantages as follows: Long<@>letter Gift vs. Inheritance Comparison Yearly gifts future inheritance 2 Starting from 2025, the gift value will be more than 30.55 million Below (including tax exemption amount of 2.44 million), 10% is applicable Advantages: Gift tax rate, if the couple jointly donates a total of more than 61.1 million yuan Below, the 109 tax rate still applies. The second generation has financial resources There is no need to consider the special points left under the Civil Code Disadvantages | Heart: Once a gift is given, it cannot be taken back with regret. 32 The second generation of people can be disposed of at will @ Asset dispersion

5 | Comparison of tax burden on inherited real estate

Tax items, sales, gifts, inheritance 2096409% 209%64009% go Value-added tax] (The once-in-a-lifetime preferential tax rate of 1096 is applicable) (The once-in-a-lifetime preferential tax rate is not applicable) Exemption Deed tax | 696011 696 records exempted Stamp duty 0.1% 0.1% 0.196 total 3 Old system: 59409% Spicy (old system land tax exemption) extra time New income tax system: 459%, 3596, yes None 209, 159% listen 1.5962.40% ; 004.890 004.890 Convenience Hoarding tax 20%~4.8% 20%~4.8% (shared house acquired through inheritance) phase close Gift tax on goods None 109%209% None Inheritance tax None None 109020% Then give the next Announcement Pig # Next Announcement Pig The total price of the husband's settlement is the price at the time of purchase, the announced present value at the time of gift, and the announced present value at the time of inheritance. and housing standard assessment prices and housing standard assessment prices Point 3 And, add the deed tax amount to the total gift amount 2. If the land value-added tax and deed tax paid at the time of donation are paid by the recipient, they can be deducted from the total amount of the gift. 3. If the decedent’s property is divided equally among the heirs, no stamp duty is required; if the agreement is that a specific heir will inherit a specific real estate, and the estate is divided. Separation agreement is subject to stamp duty ‧If the real estate is transferred to the children by sale, the deed tax must be borne by the children. If the parents pay the deed tax, the IRS may deem it a gift. 4. When an individual inherits real estate, the real estate itself still has an outstanding loan. If the heir is unable to repay and sells it, the balance of the loan will exceed the housing assessment at the time of inheritance. The current value and the current value of the announced land are additional burdens for inheriting the real estate. When the real estate is subsequently sold, the difference can be deducted from the transaction proceeds. 56 Cathay United Bank

Essential

2025