How to file gift tax
There are three main ways to file a gift tax return.
1. How to report directly to the tax office in writing
2. How to file a tax return through a tax agent
3. How to make an electronic report through the Hometax website
Cash gift: Hometax self-report
In the case of cash donations, self-report using the Hometax website is very simple.
What to prepare: Certificate
(If you are using Hometax for the first time, you must go through the registration process for the official certificate after registering as a member.)
The beneficiary is the person receiving the gift, and the person liable to pay the gift tax is the person receiving the gift.
The beneficiary must report directly to the beneficiary’s accredited certificate. 현금 증여 신고
Donated property can be deducted up to 50 million won over 10 years. 좋은뉴스
Gifted property deductions should be considered on the basis of the recipient of the gift. If your lineal ascendant is limited to 50 million won, you can deduct only 50 million won for 10 years, including the amount you receive from your grandmother, grandfather, mom, and dad. After 10 years from the date of receipt, the deduction limit for gifted property is reinstated.
This is an example of how I received 50 million won from my lineal ascendant for the first time.
1. After connecting directly to the Hometax site, log in with the official certificate.
2. Click Report/Pay < Gift Tax.
3. Click Gift Tax < Create Final Return.
You must report within 3 months from the date of receipt of the gift.
4. Gift tax return < When you move on to the final return, you will see a screen like the one below.
It is explained in detail.
Enter the resident registration number of the donor (the person who gives the property) and click the search button, and the name will be automatically checked and entered.
The beneficiary (the person receiving the property) also enters the resident registration number and presses the OK button to automatically complete the input of the name and address. You must enter the phone number manually.
The relationship with the donor should be entered in terms of me. In the case of a gift from a mother or father to a son or daughter, enter ‘ja’.
In view of the complexity of family relations in Korea, it is explained in detail by clicking the inquiry button.
Part to be entered after additional confirmation
In case the beneficiary is a minor: In the case of a minor, the deduction amount of the donated property is different. For an adult, up to 50 million won can be deducted for 10 years, but for a minor, up to 20 million won can be deducted for 10 years.
In case the beneficiary is a non-resident: In the case of a non-resident, the gift property deduction does not apply and all gift tax is payable.
In case of a gift that skips generations: There is a regulation that 30% of the calculated gift tax amount is added.
5. After saving, move to the next < The screen for entering the details of the gifted property is confirmed.
In the case of cash, please enter the following information.
Classification of gifted property: Donated property-general
Type of gifted property: Cash
Valuation method: market price such as cash (except above)
If you enter it, you will see the assessed value of the gift property detail screen. You can enter your donation amount here.
6. After saving, the next move < tax calculation input screen is confirmed.
You must enter the gift property deduction for 50 million won in order to be verified as eligible for deduction.
The field you enter corresponds to the taxable amount of gift tax.
7. Save and move to the next < Please complete the report submission.
Finally, after reporting, be sure to check the details of the receipt once again.
Hometax site < Report/Pay < Gift tax < Setp 2. You can check the details of the report in the report details.
※ Submission of supporting documents: Important information not to be missed
After completing the report, there is one more thing that you really need to proceed with the final step.
Hometax < Report/Payment < Gift tax < Proof documents must be submitted.
After clicking, find and view the items you reported in the list of reports to be submitted
At this time, as proof, you only need to submit the account transfer details as evidence, and only PDF files can be submitted, but the site automatically converts jpg, bmp, gif, tif, png, etc. into PDF files. Also, the file size to be submitted at one time is limited to 50M, so files must be submitted in divided files.
In the case of cash donation, it is relatively easy to report, so you can directly use the Hometax site.If you have already received gift tax 10 years ago, if you enter additional information, the site will calculate the tax and give you the amount. Fees can also be paid within the site, so you can proceed from start to finish at Hometax.
If you have property to donate, these days, using tax-related tax laws, you can make a gift plan and proceed with the gift. If you are making or receiving a gift, we recommend that you plan ahead of time on how you can save money.