How Will the Samsung Family Pay Inheritance Tax Exceeding 12 Trillion Won?

[Sejong=Asia Economy Reporter Kim Hyunjung] As the Samsung family announced plans to pay more than 12 trillion won in inheritance tax, the highest level among domestic and foreign business owners, attention is also focused on the specific schedule and payment methods.

According to Samsung and the National Tax Service on the 28th, the bereaved family of the late Chairman Lee Kun-hee plans to pay the estimated inheritance tax of over 12 trillion won in six installments over five years starting this month through the installment payment system. This amount exceeds the total inheritance and gift tax revenue of 10.4 trillion won collected by the National Tax Service last year.

According to Article 71 of the Inheritance and Gift Tax Act, if the tax amount to be paid exceeds 20 million won, the taxpayer pays one-sixth of the declared tax amount when filing the inheritance tax, and the remainder is paid in installments over five years. Assuming the Lee family’s tax payment amount is 12 trillion won, they will pay 2 trillion won by the end of this month, the filing and payment deadline, and pay the rest by 2026. The bereaved family must pay one-sixth of the cumulative amount by April 30 each year. Basically, the same amount is paid annually, but if the one-sixth of the cumulative amount is not met, prepayment of an amount equal to or greater than the installment amount is allowed.

When paying inheritance tax in installments, a portion of the inherited shares must be provided as collateral, and additional charges for installment payment are imposed. If the tax is filed and paid within six months after the deceased’s death, a deduction equivalent to 3% of the calculated tax amount can be received. Since inheritance tax is paid according to the address of the deceased, it is expected to be under the jurisdiction of the Yongsan Tax Office.

This content was produced with the assistance of AI translation services.