₩87.3M in inheritance tax need not be paid at once — the interest you pay to spread it over seven years
Inheritance tax above ₩10M can be split: half now and the rest within two months at no interest. Above ₩20M it can be paid in yearly installments over up to ten years, with a 3.1% annual surcharge on the balance. For ₩87.3M, each installment must exceed ₩10M, so it becomes eight payments over seven years of ₩10,912,500 each, with ₩9,472,050 in surcharges for a total of ₩96,772,050.
Conditions used in the video
- Inheritance tax
- ₩87.3M (estate ₩1B · no spouse · one child)
- Split payment requires
- tax above ₩10M
- Installments require
- tax above ₩20M · security · application within the filing deadline
- Installment limit
- inheritance tax 10 years · gift tax 5 years
- Surcharge rate
- 3.1% a year (national tax refund interest rate)
- Minimum per installment
- above ₩10M
Results
- Split payment
- half now, the remaining ₩43.65M within 2 months · no interest
- Installments
- 8 payments over 7 years · ₩10,912,500 each
- Total surcharge
- ₩9,472,050
- Total paid
- ₩96,772,050
- First payment
- on the filing deadline · no surcharge
- Why not ten years
- each payment must exceed ₩10M, so eight is the maximum
At a glance
The split carries no interest; installments add ₩9,472,050.
- Lump sum₩87.3M
- Split (2 months)₩87.3M
- Installments, 8 over 7 years₩96,772,050
Why it works this way
If ₩87.3M of inheritance tax arrives and there is no such cash in the account, there are two paths: a split payment and yearly installments.
Inheritance and Gift Tax Act Article 70(2).
- Tax above ₩10Mhalf by the filing deadline
- Remaining ₩43.65Mwithin 2 months
- Interestnone
At ₩20M or less, only the portion above ₩10M is deferred.
Installments let tax above ₩20M be paid yearly over up to ten years. A 3.1% annual surcharge applies to the balance. Because each payment must exceed ₩10M, ₩87.3M allows at most eight payments over seven years, not ten years.
Inheritance and Gift Tax Act Articles 71 and 72 · engine figures.
- Each payment₩10,912,500 × 8
- Surcharge₩9,472,050 (3.1% a year)
- Total₩96,772,050
The first payment falls on the filing deadline and carries no surcharge. The surcharge applies to the seven that follow.
Security must be provided and the application filed within the filing deadline. The limit is ten years for inheritance tax and five for gift tax, and the 3.1% rate follows the national tax refund interest rate, so it changes when the notice changes.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
Inheritance and Gift Tax Act Article 70(2) (Split payment)
In force Current (checked 2026-09-05)
Where the tax payable exceeds ₩10M, part may be paid within two months after the deadline: the portion above ₩10M if the tax is ₩20M or less, up to 50% of the tax if it exceeds ₩20M.
What this means
Deferring half for two months costs no interest. If cash is only a little short, this is the first path.
Inheritance and Gift Tax Act Articles 71 and 72 (Installments · Surcharge)
In force Current (checked 2026-09-05)
Where the tax exceeds ₩20M, installments over up to ten years (five for gift tax) are allowed on providing security and applying within the filing deadline. Each installment must exceed ₩10M. The surcharge follows the national tax refund interest rate (3.1% a year).
What this means
The longer the spread, the larger the surcharge. The ₩10M floor per payment shortens the period automatically when the tax is small.
Run it on your own numbers
The calculator opens with these conditions already filled in. Change the figures and your own case comes straight out.
Open the Inheritance Tax Instalments
Frequently asked
Can I use both the split and installments?
No. Once installments are applied for, the split does not apply. It is one or the other.
Why seven years and not ten?
Each installment must exceed ₩10M. Dividing ₩87.3M into payments above ₩10M gives at most eight, which is the first payment plus seven years.
Is the 3.1% surcharge fixed?
No. It follows the national tax refund interest rate, so it changes when the Ministry of Economy and Finance revises the notice.
What can be pledged as security?
Real estate, financial assets, tax payment guarantee insurance and other security recognized under the Framework Act on National Taxes. It is filed with the application within the deadline.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.