Government Announces Legislative Notice for Inheritance Acquisition Tax Introduction Amendment... Submission to National Assembly in May

Yonhap News

Starting in 2028, the inheritance acquisition tax system will be implemented, which levies inheritance tax based on the property each heir inherits rather than the total property of the decedent.

On the 19th, the Ministry of Economy and Finance announced that it will give public notice of the tax law amendment bill containing this content until April 28. This bill includes the 'Plan to Introduce Inheritance Acquisition Tax for Rationalizing the Inheritance Taxation System' announced by the Ministry on the 12th, which involves a major overhaul of the Inheritance and Gift Tax Act and partial amendments to the Framework Act on National Taxes.

According to the amendment, the blanket deduction for personal exemptions will be abolished, and 500 million KRW will be applied to direct descendants such as children, while 200 million KRW will be applied to other heirs such as siblings. A minimum threshold guaranteeing at least 1 billion KRW of personal exemption will be newly established, considering the current tax exemption point (1 billion KRW).

To prevent indirect inheritance, a special comparative taxation system will be introduced that imposes additional inheritance tax on indirect inheritance through a third party compared to cases where the heir inherits directly.

An official from the Ministry of Economy and Finance stated, "The government plans to submit the bill to the National Assembly in May after a 40-day public notice period until April 28."

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