Question 1

What documents are needed to issue a transfer confirmation certificate?

Accepted Answer

Under current gift tax law, there is no such deduction as 'housing-fund gift deduction'.

Actual deduction ceilings under current gift tax law
*General gift-property deduction
1) Adult child: KRW 50 million (per 10 years)
2) Minor child: KRW 20 million (per 10 years)
*Additional deduction
For marriage or childbirth: additional KRW 100 million deduction (lifetime cumulative, once)

Question 2

For 2025, above what amount must family bank transfers be reported to the NTS?

Accepted Answer

Under current gift tax law, the 10-year aggregate gift-property deduction is as follows:

*By donee
Spouse: KRW 600 million
Lineal ascendant (parent): KRW 50 million
Lineal descendant (adult child): KRW 50 million
Lineal descendant (minor child): KRW 20 million
Other relatives: KRW 10 million

If cumulative transfers within the last 10 years exceed the gift deduction limit, they are subject to gift tax

Question 3

What are the requirements and amounts of the marriage/childbirth gift-property deduction?

Accepted Answer

1. Separate from the existing lineal-ascendant gift deduction
2. A resident receives a gift from a lineal ascendant within 2 years before or after the marriage date, and the gift date is on or after January 1, 2024
3. A resident receives a gift from a lineal ascendant within 2 years of childbirth or adoption, and the gift date is on or after January 1, 2024
4. Combined with amounts from lineal ascendants, lifetime cap of KRW 100 million regardless of first or second marriage

Question 4

Is a family bank transfer a gift?

Accepted Answer

1. Where there is a duty to support, considering the donee's economic means, amounts used for living costs, education, or congratulatory/condolence gifts are treated as non-taxable
2. Asset support beyond economic assistance (e.g., home-purchase funds, business funds) is treated as a gift
3. Transparency and documentation are key

Question 5

What are the consequences of not reporting a family gift?

Accepted Answer

Leaving such transactions unreported can result in the following:

1. Non-filing penalty (up to 40%)
2. Delay interest
3. Administrative fines for non-filing
4. Tax investigation (in cases of willful evasion)

Frequently Asked Questions (FAQ)

Frequently Asked Questions