Parliamentary Committee on Inheritance Tax Revision
Allowing inheritance tax to be paid for cultural assets and works of art
Inheritance tax installment payment from 5 years to 10 years
Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, answers questions from lawmakers at the plenary meeting of the Strategy and Finance Committee held at the National Assembly in Yeouido, Seoul on the afternoon of the 30th. News 1
From next year, there will be a way to pay inheritance tax instead of artworks or cultural assets. Inheritance tax can be divided over a period of up to 10 years.
The National Assembly Planning and Finance Committee held a plenary session on the 30th and voted to amend some tax laws in the Inheritance and Gift Tax Act to establish special cases for paying inheritance tax on cultural assets and artworks.
Accordingly, only cultural assets and works of historical, academic, and artistic value can be paid in lieu of the inheritance tax with works of art or cultural assets at the request of the Minister of Culture, Sports and Tourism.
The current law permits only real estate and securities to be paid in person. In the meantime, the cultural circles have requested the introduction of a payment system for artworks on the grounds that it can prevent the export of nationally important cultural assets and use them for the public good.
Inheritance tax payment is possible only when the amount of inheritance tax paid exceeds the financial value of the inherited property or exceeds 20 million won. This is because there is a concern that a ‘rich tax cut’ would occur if there were no restrictions.
In addition, the arrears period for inheritance tax on general inherited property will be extended from the current maximum of 5 years to a maximum of 10 years. The extension of the arrears payment period will be applied from January 1, next year, when inheritance begins.
An installment payment is a system that provides security for tax payment such as securities and allows the tax to be divided over a certain period of time if the amount of inheritance tax paid exceeds 20 million won. The United States, United Kingdom and Germany allow up to 10 years in arrears.
The scope of mid-sized companies eligible for family inheritance deduction will be expanded from less than 300 billion won to less than 400 billion won in sales. The limit of agricultural inheritance deduction will also be increased from the current 1.5 billion won to 2 billion won.
The amendment bill decided on this day is expected to be presented and decided at the plenary meeting as early as next month after being reviewed by the Legislative and Judiciary Committee of the National Assembly.
Sora Lee reporter wtnsora21@hankookilbo.com
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