Let’s take a look at the 2019 gift tax rate and payment deadline, gift tax exemption targets, and who should pay the gift tax.
hello. There are many tax resistances in Korea because tax justice has not yet been established in many areas. Of course, the era of common sense democracy is not that long because it has gone through a long period of military regimes since Syngman Rhee in the past…
For this reason, there are several laws that need to be enacted. The same goes for taxes. Taxes must be collected equitably, so there is also a gift tax.
▶ What is gift tax? What is it, and who pays the gift tax?
Gift tax must be reported and paid by a person who receives property from another person free of charge, that is, a recipient (recipient). 증여세 면제 대상
※ However, in certain cases, the donor is also liable for joint and several payments of gift tax to be paid by the recipient. 좋은뉴스
▶ Gift tax return due date
2019 gift tax rate and payment deadline, subject to gift tax exemption
The deadline for payment of gift tax is three months from the end of the month in which the date the property was gifted belongs.
There are 4 documents to be submitted along with gift tax payment.
1. Gift tax tax base return and voluntary payment invoice
2. Donated property and its evaluation statement
3. Other supporting documents such as debt
4. A certificate of family relationship showing the relationship between the recipient and the donor
Please submit the above documents as well!
▶ Progressive deduction amount according to gift tax rate and gift tax tax base
The gift tax rate is 10% for less than 100 million won. 20% for less than 500 million won, 10 million won for progressive deduction, 30% for less than 1 billion won, 60 million won for progressive deduction, 40% for less than 3 billion won, and 160 million won for progressive deduction.
After that, it gradually increases and becomes a 50% tax rate for gift tax exceeding 3 billion won.
Gift tax calculation has a complicated calculation procedure for each amount. Intermediate property valuation fees are sometimes treated as expenses. In addition, gift tax has special cases such as family business succession. Please check it out and save money.
▶ Cases where gift tax is not levied (tax exemption)
Gift tax is calculated differently depending on when the gifted property is returned to the donor.
Return within the reporting deadline (3 months): Both the original gift amount and the refund amount are exempt from taxation.
Return within 3 months after the deadline for reporting (3 months): Tax is imposed on the original gift and non-taxation on the return
After the reporting deadline (3 months) Return after 3 months: Both the original gift property and the returned property are subject to gift tax payment.
*However, in the case of money, gift tax is levied on all gifts and returns regardless of the timing.
※ Examples of non-taxable gifted property
Value of property donated by the state or local government
The value of property donated by a political party under the provisions of the Political Parties Act;
Disaster relief money and goods, treatment expenses, living expenses of dependents, education expenses, and other similar items recognized under social norms, which fall under any of the following values
– Student loans or scholarships and other similar money
– Souvenirs, celebration money, bonus money, and other similar money and goods that are generally recognized as necessary
– Money and other valuables that are generally recognized as necessary as wedding supplies
– Insurance premiums of less than KRW 40 million per year as beneficiaries of disabled persons registered under the Welfare of Persons with Disabilities Act and disabled persons registered under the Act on Honoring and Supporting Men of National Merit, etc.
So far, we have briefly learned about gift tax rates and payment deadlines.
If you fulfill your duty to pay taxes, which is one of the four major duties of the people, I think you will be the best citizen~
Please pay your taxes honestly