Korean Gift Tax Calculator
Enter the gift amount and your relationship to the donor to instantly calculate Korean gift tax — including deduction by relationship, progressive rate, and 3% self-report credit.
Total gifts received from same donor within 10 years
Estimated Gift Tax
Applied rate 10%
- Gift deduction
- 50,000,000 KRW
- Tax base
- 50,000,000 KRW
- Calculated tax
- 5,000,000 KRW
- Self-report credit (3%)
- −150,000 KRW
- Tax payable
- 4,850,000 KRW
Simplified calculation based on Korean Inheritance & Gift Tax Act §53·56. Property valuation, generation-skipping surcharge (30%), and penalty taxes are not included. Consult a tax accountant or use Hometax for actual filing.
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What this tool does
Korean gift tax (증여세) is paid by the recipient (donee) when receiving assets for free. Under the Inheritance and Gift Tax Act §53, a deduction is allowed based on the relationship between donor and donee — up to KRW 600M for spouses, KRW 50M for adult lineal descendants, KRW 20M for minor lineal descendants, and KRW 10M for other relatives — cumulated over a 10-year window. Progressive rates from 10% (up to KRW 100M) to 50% (over KRW 3B) apply under §56. Filing voluntarily within 3 months earns an additional 3% credit on the calculated tax. This calculator instantly outputs the deduction, tax base, calculated tax, self-report credit, and final tax payable. Note: property valuation, generation-skipping surcharge (30%), and penalty taxes are not included.
Who uses this
- Estimate gift tax before parents transfer cash KRW 50M to an adult child
- Calculate spousal gift tax after KRW 600M deduction on property transfer
- Simulate additional gift tax when prior gifts exist within the 10-year window
- Check minor child stock gift tax using the KRW 20M deduction limit
- Compare payable tax with and without the 3% self-report credit
How to use (3 steps)
- 1Enter the gift amount — cash value, appraised property value, or stock market value.
- 2Select the donor relationship. The deduction is applied automatically based on the relationship chosen.
- 3Enter any prior gifts received from the same donor within the past 10 years (0 if none), check the self-report box, and the payable tax appears instantly.
Formula
Tax Base = Gift Amount − Relationship Deduction − Prior 10-year Gifts Calculated Tax = Tax Base × Rate − Progressive Deduction [Rate table] Up to KRW 100M : 10% (deduction: 0) Up to KRW 500M : 20% (deduction: 10M) Up to KRW 1B : 30% (deduction: 60M) Up to KRW 3B : 40% (deduction: 160M) Over KRW 3B : 50% (deduction: 460M) Final Tax = Self-report → Calculated Tax × 0.97 No report → Calculated Tax (no credit)
Examples
Example 1: Parent gifts KRW 100M to adult child
Gift amount KRW 100M, relationship 'Ancestor → adult descendant'. Deduction: KRW 50M. Tax base: KRW 50M. Calculated tax: 50M × 10% = KRW 5M. With self-report credit: 5M × 0.97 = KRW 4.85M payable.
Example 2: Spouse gifts KRW 1B
Gift amount KRW 1B, relationship 'Spouse'. Deduction: KRW 600M. Tax base: KRW 400M. Calculated tax: 400M × 20% − 10M = KRW 70M. With self-report credit: 70M × 0.97 = KRW 67.9M payable.
Example 3: Additional KRW 30M gift after prior KRW 30M from same parent
The adult child already received KRW 30M from the same parent 5 years ago. Remaining deduction: 50M − 30M = KRW 20M. Tax base: 30M − 20M = KRW 10M. Calculated tax: 10M × 10% = KRW 1M. With self-report: KRW 970,000 payable.
Frequently asked questions
Who pays Korean gift tax — the giver or the receiver?
The recipient (donee) pays. If the donor pays on behalf of the recipient, that payment itself is treated as an additional gift and taxed accordingly.
What does '10-year aggregation' mean?
Gifts from the same donor are aggregated over a 10-year window when applying the deduction limit. For example, if you received KRW 30M from a parent 5 years ago, only KRW 20M of the KRW 50M adult-descendant deduction remains for a new gift.
When is the filing deadline?
You must file and pay within 3 months from the last day of the month in which the gift occurred. Filing on time earns the 3% self-report credit. Late filing incurs a 20% non-filing penalty plus daily interest.
How is property valued for gift tax purposes?
The market value (recent comparable transactions) is used as the primary valuation. When market value is unavailable, supplemental methods such as the published standard price (기준시가) are used. Enter your best estimate into the calculator.
What is the generation-skipping surcharge?
If grandparents skip the parent generation and gift directly to grandchildren, a 30% surcharge is added to the calculated tax. This calculator does not include that surcharge — consult a tax accountant if this applies.
Cautions
- •This calculator is for reference only and has no legal effect. Actual tax payable may differ.
- •Property valuation, generation-skipping surcharge (30%), and penalty taxes are not reflected.
- •If prior 10-year gifts already exceed the deduction limit, no further deduction is available.
- •Missing the 3-month filing deadline forfeits the 3% self-report credit and triggers penalty taxes.
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Last reviewed: 2025-06-24