Gyeongnam Province Strengthens Inheritance Property Management System

Comprehensive Inheritance Acquisition Tax Audit Implemented to Prevent Penalties for Late Payment

Gyeongnam Provincial Government. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] Gyeongsangnam-do will conduct a comprehensive investigation of inheritance acquisition tax by the end of this year.

The province announced that the investigation is being carried out to encourage voluntary reporting and payment of acquisition tax on inherited property and to prevent omitted tax sources.

According to the province, under the Local Tax Act, heirs must report and pay acquisition tax within six months from the end of the month in which the date of inheritance commencement, i.e., the date of death of the decedent, falls.

If the report and payment are not made within the deadline, an additional penalty of 20% of the acquisition tax for non-reporting and a late payment surcharge of 0.022% per day will be imposed.

A provincial official explained, “Inheritance registration is often delayed due to heirs’ lack of awareness about acquisition tax reporting on inherited property or disputes among heirs over property division, which leads to omitted acquisition tax reporting and results in economic disadvantages such as additional penalty payments.”

To prevent this, Gyeongsangnam-do plans to establish a management system for inherited property together with 18 cities and counties in the province even after the comprehensive investigation is completed.

They intend to continuously provide guidance and management from the date of inheritance commencement until the acquisition tax payment is made.

▲ Posting of permanent notices in the civil service offices of city/county halls and eup/myeon/dong community centers ▲ First guidance on reporting deadlines, tax rates, and exemption conditions will be provided upon issuance of death reports of heirs.

Additionally, ▲ Monthly investigation of deceased persons and decedents with inherited property ▲ Mailing of voluntary inheritance acquisition tax reporting notices within one month from the end of the month in which the inheritance commencement date falls, providing information on reporting and tax payment obligations.

Subsequently, the history of notice mailings and the status of reporting and payment will be checked regularly to minimize missed guidance to heirs, and one more reminder will be sent before the reporting deadline to increase voluntary reporting rates.

Furthermore, continuous inspection and management of inheritance acquisition will be conducted, and for inherited property not reported by the deadline, acquisition tax will be promptly imposed ex officio after prior tax notice.

Shim Sangcheol, head of the Taxation Division, said, “We plan to continuously devise taxpayer convenience policies for Gyeongsangnam-do residents, including prior guidance to prevent taxpayers from bearing penalties due to lack of legal awareness,” adding, “Through the comprehensive investigation, we will discover omitted and evaded tax sources and operate fair tax administration.”

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