Inheritance Tax

What should be used when there are many sales case values for calculating inheritance and gift taxes?

• If there are many transaction case prices, the price corresponding to the date closest to the valuation standard date must be used.
• If there are two or more prices corresponding to the closest date, the average of those prices should be used to determine the transaction case price.

What should be noted when inheriting a spouse's exemption?

• 1. It only applies to actual inherited property, so the inherited property must actually belong to the spouse.
• 2. You can only benefit from it if you file within the inheritance tax filing deadline (within 6 months from the end of the month in which the inheritance begins).
• 3. The inheritance tax filing deadline applies if the inherited property is divided (limited to cases where registration, documentation, or transfer of title is necessary) by the date that is 9 months from the end of the month in which the inheritance begins.
• 4. Double deductions are possible for financial property inheritance deductions, etc.
• 5. It applies only to legal spouses.

What is the deadline for inheritance tax reporting and payment if the heir has an address abroad?

• 1. If all decedents or heirs have addresses abroad, the date of inheritance shall be from the end of the month of the commencement of inheritance for up to 9 months.

Is value-added tax imposed when paying inheritance tax in kind?

• 1. Even if the asset is subject to value-added tax, assets provided in kind are not considered a supply of goods.
• 2. When paying inheritance tax in kind, value-added tax is not imposed, but capital gains tax may be incurred.

If the heir is not confirmed, is it possible to extend the inheritance tax filing deadline?

• 1. The inheritance tax declaration deadline is within 6 months from the end of the month in which the inheritance begins.
• 2. The date of inheritance refers to the date of the deceased's death, and there are no exceptions to this rule.
• 3. Even if the heir is not determined, a tax base must be reported within the deadline, and a record of the inheritance relationship must be submitted to the relevant tax office within 30 days from the date the heir is confirmed.

Do I have to file an inheritance tax return unconditionally?

• If the net assets are judged to be less than 500 million, it is not mandatory.
• However, the judgment is not only based on the assets at the time of the inheritance start date; if recent assets have been disposed of or if there have been many pre-gifts, it may be subject to reporting.

What is the Safe Inheritance One-Stop Service?

• A service that allows heirs to view a comprehensive list of the deceased's assets, including financial transaction history, land, vehicles, taxes, etc.
• Online application or visit to the community center is possible.
• 1. Eligibility: First priority heirs, Second priority heirs
• 2. Application deadline: Within one year from the end of the month in which the date of death falls.

Inheritance VS Gift: When Is It Advantageous?

• When a gift is advantageous
• 1. When the house price is likely to increase in the future
• 2. When the deduction limit can be utilized
• 3. When children will need to use loans or income in the future
• When inheritance is advantageous
• 1. When the house price is falling or stable
• 2. Generally, the inheritance exemption amount is larger
• 3. The burden rests on the subject