Gyeonggi Province recovers 8.5 billion won in unpaid inheritance acquisition taxes from over 2,000 people

Gyeonggi Province has successfully recovered 8.47 billion won (approximately $6.3 million USD) in unpaid acquisition taxes from more than 2,000 individuals who inherited property over the past five years. The provincial government conducted a special investigation into inheritance property acquisition taxes from May 11 to July 10.

The investigation cross-referenced information on deceased individuals over the last five years with acquisition tax filing records within Gyeonggi Province. This process identified 3,228 cases of inherited property where taxes were evaded by 2,156 individuals. The primary reason cited for the non-compliance was a lack of understanding of tax laws.

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Inheritance acquisition tax is different from the general registration timing, making it easy for taxpayers to confuse.

According to South Korean law, acquisition tax on inherited property must be reported and paid within six months from the end of the month in which the deceased (the decedent) passed away. However, many taxpayers mistakenly believed the tax payment was due only when the property title was officially transferred, leading them to miss the reporting deadline. One individual, who inherited an apartment after their spouse's death, was found to have evaded the tax and was subsequently required to pay 58 million won.

Noh Seung-ho, head of Gyeonggi Province's Tax Justice Division, acknowledged that the timing for reporting inheritance acquisition tax differs from the property title transfer, making it a common point of confusion for taxpayers. He stated that the province will continue to provide active guidance to prevent taxpayers from facing penalties like additional charges due to date errors. Simultaneously, the province remains committed to thorough tax source investigations to uphold fair taxation.

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We will continue to provide active guidance to prevent taxpayers from facing disadvantages such as additional charges due to date errors, and we will also continue thorough tax source investigations for fair taxation.