preface
Summary of major revisions starting in 2025
Income Tax Act (Capital Gains Tax) 10

Chapter 1: Capital Gains Tax Savings Information

1 If you want to save on taxes, consult with an expert in advance.
14
2 If you are a multi-homeowner, register your rental property
It can reduce the burden of taxes.
15

Taxable items
3. What assets are subject to capital gains tax when sold? 17
4. In case the real estate provided as collateral is auctioned off
It is subject to capital gains tax.
19
5. When getting divorced, it is called ‘alimony’ rather than ‘division of property’
If the ownership of the property has been transferred
It is subject to capital gains tax.
21
6. If a couple acquires real estate in joint names,
It can reduce the tax burden when transferring.
23

Regarding tax exemption for one house per generation
7 In case the resident registration of parents who live separately is also registered
It is a good idea to get things straight before transferring a house.
24
8 1 The homeowner is studying in a building that is actually a house or a commercial building.
If you own another home, do your homework before transferring it.
Let's get this straight.
26
9. If a second homeowner has lost one home and is left with the land unoccupied,
If you transfer the remaining 1 house during construction, tax exemption applies.
You can receive it.
29
10 A single-family homeowner changed the use of his home to a restaurant.
If it is actually being used as a home at the time of transfer
Let's transfer it after changing it to a study residence.
31
11 When building a commercial-residential complex, the residential portion should be slightly larger.
If so, the entire building is recognized as a house.
33
12 In case of transferring a mixed-use house with the same floor area as the main house and the main house,
Let's check to see if there are any parts that can be considered residential, such as stairs.
35
13 If the house being transferred is an expensive house
Even if it is a first-generation, one-home home, taxes must be paid.
38
14 If a false contract is created, the capital gains tax exemption or reduction will not be applied.
39
15 Although it is not listed on the study list, there are unlicensed houses and in fact
If you have resided there, please actively prove it.
41
16 If it is registered as a study house but is actually an abandoned house,
It is better to clear your head and organize your studies.
44
17 Let's understand the 'holding for more than 2 years' rule and use it well.
46
18 In cases where there are unavoidable circumstances, it may not be held for more than two years.
The first generation, one house tax exemption rule may apply.
48
19 Even if you have two houses in the first generation, if you sell one house within a certain period of time,
There are cases where capital gains tax is exempted.
51
20 If you transfer without registering, you will suffer the following disadvantages.
57
21 Redevelopment and Reconstruction Projects and Capital Gains Tax 59
22 In case of selling a first-generation, first-home home before the 2-year mark,
Consider the date of final payment or registration transfer.
64
23 If you own a house located in the regulated area
Be careful.
65

Transfer period
24 When transferring real estate, depending on the holding period
There is a difference in the details.
67
25 If you are transferring two or more properties, adjust the transfer timing.
It can reduce the burden of taxes.
71
26 If the acquisition price cannot be confirmed when transferring real estate,
It is advantageous to transfer before the standard price announcement date.
72
27 Let’s be familiar with the long-term holding special deduction and actively utilize it.
73
28 Real estate reported at actual transaction price must be thoroughly supported by supporting documents.
You can reduce your tax burden by taking care of it.
76

Reporting and Payment
29 Be sure to report and pay (planned/confirmed) capital gains tax.
80
If it is discovered that you have overreported after reporting 30, you can file a correction request.
Let's get our taxes back.
84
31 If the tax to be paid exceeds 10 million won, it shall be divided
I can do it.
86

Capital gains tax reduction
32 If you transfer farmland after cultivating it for more than 8 years,
You can receive a reduction in capital gains tax.
87
33 Even if it is not farmland as of the date of transfer, it is recognized as farmland.
There are cases.
90
34 Know the exact scope of the farmland and if applicable
Let's use it actively.
92
35 When converting a sole proprietorship into a corporation, a contribution in kind or a business
If you choose the positive method, you can apply for carryover tax.
93
● Top 10 Frequently Asked Questions by Taxpayers - Capital Gains Tax 95

Chapter 2: Saving on Inheritance Tax

1. My parents passed away. Do I have to pay inheritance tax? 108
2 Legal Knowledge Related to Inheritance 110
3 Inheritance Tax Calculation Structure 113
4. If the debt is greater than the inheritance
It is advantageous to renounce the inheritance.
114
5 When you do not know the financial assets or real estate of the deceased
Let's use the one-stop inheritance service.
116
6 Inheritance tax is levied only on the assets owned by the deceased at the time of death.
Can I just report it? 120
7 Let's find out what is included in the inheritance.
121
8 The principle of valuation for inherited and gifted property is market value.
123
9 Life insurance and retirement benefits can also be considered inherited property.
125
10 If you wish to donate inherited property to a public interest corporation, you must do so within the reporting deadline.
Must appear.
127
11. Among the inherited properties, Geumyang Imya and Myotoin are exempt from inheritance tax.
Let's see if farmland is included.
129
12 Dispose of property 1-2 years before death
When withdrawing deposits, you must provide proof of use.
It must be thoroughly prepared.
131
13 Even if the representative of a small or medium-sized corporation engages in a financial transaction with the corporation,
Let's thoroughly prepare documentation of how the funds were used.
135
14 Even if the debt of the deceased exceeds 200 million won
Let's secure proof of use.
137
15 Within the gift property deduction limit
Let's make a gift to our spouse or children in advance.
139
16 When funeral expenses exceed 5 million won, relevant supporting documents must be submitted.
Let's take good care of it.
141
17 What debts are deductible when calculating inheritance tax?
Let's find out if it exists and make sure to receive the deduction without fail.
142
18 When inheriting a building, it is more advantageous to pay a deposit than a monthly rent.
145
19 I want to pass on the family business that I have been running for more than 10 years to my children.
In this case, let's actively utilize the business inheritance tax deduction system.
146
20 Let's make the most of the spousal inheritance tax deduction.
149
21 Among the inherited properties, if the testator and the heir lived together for more than 10 years
In case of one house per generation, inheritance tax deduction for cohabiting house
Let's review whether it applies.
151
If you inherit by skipping 22 generations,
You have to pay additional inheritance tax.
153
23 If you do not report inheritance tax, you will be charged more than if you reported it normally.
You have to pay more than 20% more in taxes.
155
24 If the tax is high, divide it or inherit real estate or
You can also pay with stocks.
156
25 Let's prepare for inheritance tax in advance by making a long-term tax plan.
159
26 If you let your guard down because the inheritance tax report is finished,
You may face great disaster.
162
● Top 10 Frequently Asked Questions by Taxpayers - Inheritance Tax 163

Chapter 3 Gift Tax Savings Information

1 Why is a gift with a burden subject to capital gains tax?
Let's find out if you need to report and pay.
176
2 Gift Tax Calculation Structure 178
3. If you get married or have a child, you can receive an additional deduction of 100 million won.
179
4 Let's be willing to pay the gift tax according to the pre-plan.
181
5 If you make a donation, leave evidence.
183
6. Let's make a donation before the public notice price or standard market price is announced.
185
7. The division of inherited property must be agreed upon before the inheritance is registered.
187
8 If you want to get back the donated property
Get it back within 3 months.
189
Within the range of 9.6 billion won, assets can be given to spouses.
It is good to give as a gift.
191
10 In case of acquiring large amount of property
Let's prepare for an investigation into the source of funds.
192
11 When repaying debt, the source of repayment funds must be investigated.
We must prepare.
193
12 In case an elderly person disposes of a large amount of property, the amount of funds
Let's thoroughly prepare evidence of the purpose of use.
195
13 If parents pay gift tax on behalf of their children
Gift tax is levied again.
197
If you skip 14 generations and make a gift, you will have to pay 30% more tax.
199
15 If you do not report gift tax, it will be lower than if you reported it normally.
You have to pay more than 20% more in taxes.
201
16. Even if a stepfather or stepmother gives a gift to a child, 50 million won
(20 million won for minors) is deducted.
203
17 Start-up capital or stocks in a family business operated for more than 10 years
If you give a gift to your children while you are alive, the gift tax special rate (10%) is applied.
It can be applied.
204
● Top 10 Frequently Asked Questions by Taxpayers - Gift Tax 206

I would like to express my sincere gratitude to all citizens who faithfully report and pay their taxes despite recent difficult domestic and international circumstances.
Your precious taxes are the driving force behind the social and economic systems of the Republic of Korea, including security, public order, education, and welfare.
It is also a strong support that ensures that the quality of life of the people can be improved evenly.
This booklet contains a variety of examples and explanations to help you understand taxes, as well as information on the latest tax law revisions.
In addition, we introduced the National Tax Service's various support policies to protect the welfare of small business taxpayers and the rights and interests of the people.
Going forward, the National Tax Service will continue to make various efforts that meet the expectations of the public and taxpayers, while also doing its utmost to be recognized as a "National Tax Service that does one thing right" by properly performing its primary duties.
We sincerely hope that this booklet will be helpful to taxpayers in faithfully filing and paying taxes, and will serve as a useful guide in resolving any questions you may have about taxes.