Gift tax refers to a tax borne by a person who received tangible or intangible property as a gift to another person free of charge or for a remarkably low price.
Interest in gift tax is growing with the news that it is being abused as a means of expedient gift evading gift tax, such as not properly paying interest or principal repayment after buying a house with a chance for a mother or a chance for an acquaintance.
Then let’s learn how to calculate how much gift tax you actually have to pay, the exemption limit, the exemption target, and the reporting period. 증여세 면제 대상
First of all, the tax rate of gift tax is set differently depending on the size of the gifted property. 좋은뉴스
<Gift tax rate>
tax base tax rate progressive tax
10% below KRW 100 million –
More than 100 million won ~ less than 500 million won 20% 10 million won
More than 500 million won ~ less than 1 billion won 30% 60 million won
More than 1 billion ~ less than 3 billion 40% 160 million won
Over 3 billion won 50% 460 million won
Gift tax = (Tax base X tax amount) – Progressive deduction amount
• If you receive 300 million won as a gift, the gift tax is ( 300 million won X 0.2 ) -10 million won = 50 million won.
However, the actual amount charged may not be 50 million won. This is because some tax is deducted depending on who received it.
Relations with the donor Amount of gifted property deduction
(Amount that can be deducted after adding up for 10 years)
Spouse 600 million won
Lineal ascendants (including stepfather and stepmother) KRW 500 million
(20 million won if a minor is gifted as a direct ascendant)
50 million won for direct descendants
other kin
(Relatives within 6 degrees and relatives within 4 degrees) 10 million won
Others 0 won
As calculated earlier, if you receive a gift of 300 million won, the original gift tax is 50 million won, but the gift tax will be further reduced depending on who the gift was received from and the details of the gift property deduction.
• What if 300 million won was gifted to your spouse?
Gift tax is exempted for up to 600 million won for 10 years, so the recipient does not have to pay gift tax.
• What if you received 300 million won from your spouse six years ago and received an additional 100 million won this year?
Gift tax is exempted up to 300 million won, and gift tax is imposed only on the remaining 100 million won.
• What if you received 300 million won as a gift from your mother?
For 10 years, up to 50 million won in total is exempted, so you only have to pay gift tax on the remaining 250 million won.
(250 million won X 0.2 ) -10 million won = 40 million won, so the gift tax is 40 million won.
• What if 200 million won was given to your father and 100 million won to your grandmother?
Both father and grandmother are direct descendents. Whether you receive 300 million won from one direct descendent or a total of 300 million won from several direct descendents, the gift tax is the same. Therefore, the gift tax is 40 million won, just like the case of a gift of 300 million won from the mother.
Gift tax filing deadline
The report must be filed within 3 months from the end of the month in which the date of gifting falls. If the date 3 months from the end of the month to which the date of donation falls falls on a public holiday, Saturday, or Labor Day, the report must be filed by the immediately following day of the holiday. · You just need to pay.
If gift tax is not reported or under-reported, a surcharge of 20-40% is imposed on the calculated tax amount, so you must report it within the reporting period.
So far, we have learned about how to calculate gift tax and the deadline for reporting through several cases. For gift tax, please use the 10-year combined deduction limit carefully so that you do not lose money with a lot of tax.
Did you read the news that BTS member Jungkook donated an apartment to his older brother? How much was the gift tax paid? Please check it out through the post below.