2014-08-15 14:34:45

According to Item 9, Article 16 of the Estate and Gift Tax Act, the proceeds paid to the designated beneficiary at the time of death of the insured under life insurance are excluded from the Gross Estate. Item 9, Article 16 of the Estate and Gift Tax Act came into being because of Article 112 of the Insurance Act, so it is only applicable to life insurance contracts to which Article 112 of the Insurance Act is applicable. Article 112 of the Insurance Act is not applicable to life insurance contracts issued by a foreign insurance company that has not been approved by the Financial Supervisory Commission. Therefore, Item 9, Article 16 of the Estate and Gift Tax Act is not applicable as well. As the result, the proceeds paid to the beneficiary should be included in the Gross Estate and taxed. ROC Insurance Act: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0390002 ROC Estate and Gift Tax Act: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0340072