Pertaining to the record of estate tax
The successor or the bequest is obligated to pay inheritance tax according to the percentage of the inherited building each gotten or obtained.
The deadline for reporting estate tax is that an heir with an address in Korea must submit a record within six months from the commencement of inheritance, and a successor with an address in an international nation must send a report within nine months, however if even among the beneficiaries has an address in Korea, he/she has to send a record within 6 months. If a report is submitted within the above deadline, a tax credit score can be received, wherease if it is not reported within the above target date, an extra tax obligation for unfaithful reporting have to be paid.
2. Method of settlement of estate tax
A voluntary payment system is in place for the repayment of estate tax, which must be paid to the tax obligation office, the Bank of Korea, and tje postal workplace having territory over the area of tax obligation settlement for the estate tax determined along with the inheritance tax record.
3. the installation payment of inheritance tax
If the amount of tax to be paid exceeds 10 million won under the Estate tax and Gift Tax obligation Act, beneficiaries can pay part of the total up to be paid within 45 days after the settlement period, and it is replaced by writing it in the installment column of the estate tax standard record and volonteer payment invoice without completing a different application for installment.
4. Yearly credit of inheritance tax
The inheritance tax computed according to the above tax obligation base describes the case of additional deductions from the estate tax calculated by foreign tax credit scores, short-term tax credit histories, and reported tax credit ratings.
In obtaining annual pension of estate tax, the above installation repayment does not use, and the taxpayer needs to send an application for yearly pension and obtain authorization from the head of the qualified tax office by supplying security matching for tax used. In principle, the annual pension plan period is 3 years, but it can be expanded as much as 15 years.
5. repayment of estate tax
In concept, tax payments are made in cash, but if certain lawful needs are fulfilled, there is a repayment system that is paid in home apart from cash, and similar to annual pension applications, an application for payment must be submitted separately to obtain consent from the head of the experienced tax workplace.
The heir passed away on January 22, 2007, leaving 14 successors, including their partner, with 10 of them being international nationals staying in international countries. The acquired building consisted of 3 suites located in Seocho-dong, 5 vacation homes, and one detached residence in Jeju-do, possessed forest land in Gangwon-do, andd a deposit of 317,111,865 won, consisting of term down payments and basic deposits. The rental properties in Seocho-dong and the rental properties in Jeju-do are leased, with an overall rental down payment of 40 million won.
2. Estimation Approach for Estate Tax
Worth of Instance Acquired Building
* One suite of the same dimension in the exact same complex was offered around August 2006, and its price was made use of to examine the value of the acquired suites.
* The Jeju suites and separated residences were examined at the official rate of homes given by the Ministry of Construction and Transport.
* The Gangwon-do woodland was bought around September 2006, so its worth was evaluated based on the real acquisition price.
* The down payment was based on the balance certificate, and the overall value of the inherited home was 1,955,164,665 won.
The inheritance tax is determined as 1,910,164,665 won after deducting 45 million won for funeral prices and 40 million won for debt (rental deposit) from the worth of tjhe inherited residential or commercial property.
Inheritance deduction quantity
The inheritance deduction quantity is KRW 200 million in basic deduction, KRW 500 million in partner reduction, KRW 390 million in kid deduction (13 individuals, KRW 30 million per child), and KRW 63,422,373 (20% of down payments) in total from the above estate tax rate.
Therefore, the standard amount of inheritance task is KRW 756,742,292 (= 1,910,164,665 won-1,153,422,373 won), and the tax obligation quantity determined by using the modern deduction of 30% and KRW 60 million is KRW 167,022,687 (= 756,742,292 won x 30/100 -60 million won).
You have the choice to voluntarily proclaim and work out a total tax payment of KRW 150,320,419, with a 10% tax deduction, by reporting and clearing up the computed tax obligation amount of KRW 167,022,687 by July 21, 2007, which markes the 6th month given that the inheritance began.
1. Worth of acquired home
It describes the worth of home that includes all products of financial value taht can be exchanged for money and all lawful or de facto rights of residential or commercial property worth as home attributable to the heir at the time of death.
In general, the amount of property, down payments, and money is typical, and it is a principle to report non-debt property legal rights, bonds, and life insurance as inherited residential or commercial property.
2. Taxed worth of inheritance tax
The taxable value of inheritance tax describes the amount obtained by deducting energy costs, funeral service expenditures, and financial obligations from the value of the inherited home examined according to the analysis approach prescribed by the Estate tax and Gift Tax Act and including the worth of the present throughout a certain duration prior to the beginning of inheritance.
3. Inheritance reduction amount
It is a system for the stability of the beneficiary’s life adn maintenance of standard living by reducing the burden of estate tax in factor to consider of the financial influence of the successor’s fatality. There are standard reductions, spouse inheritance reductions, various other personal partnerships, collective deductions, and financial residential or commercial property inheritance reductions, and fundamental deductions of 200 million won, spouse inheritance deductions of 500 million won, and youngster reductions of 30 million won per person, and monetary property reductions will certainly deduct 20% of the economic home value.
4. Conventional amount of estate tax and tax obligation price
( 1) The estate tax base describes the typical worth for calculating the inheritance tax, and it describes the worth obtained by subtracting the inheritance deduction from the inheritance tax value.
( 2) The inheritance tax price adjustments according to the typical worth of the above task, adn the tax price of 10% below 100 million won, 20% listed below 500 million won, 30% listed below 1 billion won, 40% listed below 3 billion won, anbd 50% above 3 billion won will be used individually depending on each tax obligation rate to determine the inheritance tax
5. Taxed value of inheritance tax.
The estate tax calculated according to the above tax base describes the case of extra deductions from the estate tax calculated by international tax obligation credit scores, short-term tax obligation debts, and reported tax obligation credit reports.
As an exmaple, if you submit an estate tax report within 6 months from the beginning of inheritance, you can pay the quantity deducted from 10% of the computed inheritence tax.