The National Taxation Bureau of the Southern Area, Ministry of Finance (NTBSA), states that if the decedent leaves properties, the taxpayer shall file an estate tax return with the competent tax authority within six months from the date of death. If the taxpayer cannot file an estate tax return on time, he/she shall apply for an extension prior to the time limit by submitting a written application. However, the aforesaid extension is limited to three months.
The NTBSA illustrates the above rule using Mr. Wang as an example. Mr. Wang, whose grandfather deceased on February 27th, 2019 and who is entitled to succeed the inheritance due to his father's waiving his right to the inheritance on June 5th, 2019, still has to file an estate tax return before August 27th, 2019. However, in this case, Mr. Wang didn't file the estate tax return by the deadline. On September 5th, 2019, the NTBSA issued a notice requiring him to provide the relevant documents of proof, which involve deduction and exclusion from the gross estate, leading him to file his late tax return on September 7th, 2019. Consequently, the NTBSA imposed a fine that amounts to up to two times of the estate tax due on Mr. Wang for his failing to file the estate tax return on time.
The NTBSA reminds the public that if the taxpayer cannot file an estate tax return within the deadline, he/she shall apply for an extension to the competent tax authority before the time limit in order to avoid the penalty for failing to file the estate tax return on time.
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