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Inheritance and Gift Tax Reporting Guide for Parents' Assets

  • Written Language: Korean
  • Country: All Countriescountry-flag
  • Economy

Created: 2024-11-16

Created: 2024-11-16 01:24

Worried about gift tax reporting on the valuable assets you received from your parents? Hesitant due to the complicated gift tax reporting process? Don't worry! This article provides a detailed explanation of how to self-report using Hometax (homestax) for those who are new to gift tax reporting.

Why should I file a gift tax return?

  • Legal Procedure: Filing a gift tax return is a legal procedure, and failure to do so may result in penalties and other disadvantages.
  • Preparation for the Future: You can effectively utilize the gift tax exemption limit to manage your assets for the future.
  • Transparent Asset Management: Gift tax reporting allows for transparent asset management and can enhance trust among family members.

Important Information about Gift Tax Reporting

  • Reporting Subject: The recipient of the gift (donee) is the reporting subject.
  • Reporting Deadline: Within 3 months from the last day of the month in which the gift was received.
  • Reporting Method: You can easily report online through Hometax (homestax).
  • Tax Rate: A progressive tax rate of 10% to 50% is applied depending on the taxable base.
  • Exemption Limit: A certain amount can be exempted between family members.

How to Self-Report Using Hometax (homestax)!

How to Self-Report Gift Tax Using Hometax

How to Self-Report Gift Tax Using Hometax

1. Access the National Tax Service Hometax (homestax): Access the website, register, and log in.
2. Select the Tax Reporting Menu: Select "Gift Tax" from the "Tax Reporting" menu.
3. Select the Reporting Type: Select the appropriate type, such as "Simplified Cash Gift Reporting".
4. Enter Information: Accurately enter the required information, including the giver's information, recipient's information, and the amount of the gift.
5. Submit Supporting Documents: Submit supporting documents such as bank transfer confirmations and family relationship certificates.
6. Complete Reporting: Verify the entered information and click the "Submit" button.

Gift Tax Payment Methods

  • Lump-sum Payment: This method involves paying the entire tax amount at once.
  • Installment Payment: If the tax amount exceeds 10 million won, it can be paid in installments within 2 months.
  • Deferred Payment: If the tax amount is large, it can be paid over 5 years.

Frequently Asked Questions (FAQ)

  • What happens if I don't file a gift tax return? Additional taxes may be imposed.
  • What is the gift tax exemption limit? It varies depending on the family relationship and can be checked on Hometax (homestax).
  • What supporting documents should I prepare? Bank transfer confirmations and family relationship certificates are required.
  • What should I do if I find it difficult to report by myself? It is advisable to consult a tax accountant.

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