Gift tax is not set by this gift — an earlier gift within ten years raised the rate
You received ₩100M from your father last year and paid ₩4.85M in gift tax; this year you receive ₩200M more. The tax this time is not the ₩19.4M you get by looking at ₩200M alone but ₩33.95M. The extra ₩14.55M is there because last year's ₩100M raised this year's rate. Gift tax adds up everything received from the same person within ten years to set the rate, the ₩50M deduction comes once per ten years, and father and mother count as one person.
Conditions used in the calculation
- Case
- ₩100M from father last year · ₩200M more this year · adult child
- Step ①
- deductions add up over ten years: spouse ₩600M · adult child ₩50M · minor ₩20M · other relatives ₩10M
- Step ②
- rates add up over ten years: gifts of ₩10M or more from the same person are combined for progression · tax already paid is credited
- Step ③
- who counts as the same person: a lineal ascendant's spouse counts as the same giver
- Rates
- 10% to ₩100M · 20% to ₩500M · 30% to ₩1B · 40% to ₩3B · 50% above
- Filing
- within three months of the end of the month of the gift · 3% filing credit
Results
- ₩200M on top of ₩100M (within ten years)
- ₩33.95M (₩19.4M if ₩200M alone · difference ₩14.55M)
- ₩200M ten years later
- ₩19.4M (no combination · deduction revived)
- The first ₩100M
- ₩50M deduction · ₩50M × 10% · 3% → ₩4.85M
- Combined calculation
- ₩100M + ₩200M = ₩300M − ₩50M = taxable ₩250M · 20% − ₩10M progressive credit = ₩40M − last year's ₩5M · 3% → ₩33.95M
- ₩200M alone
- ₩150M × 20% − ₩10M = ₩20M · 3% → ₩19.4M
- Father ₩100M + mother ₩100M
- ₩200M from one person → ₩19.4M · counted separately ₩4.85M × 2 = ₩9.7M, a ₩9.7M error
- One ₩50M deduction
- about ₩5M of tax
- With two children
- ₩50M each, so splitting the gift uses the deduction twice
- Spouse
- ₩600M deducted per ten years · the second ₩600M is fully taxable
At a glance
₩33.95M when received on top of ₩100M within ten years; ₩19.4M alone or after ten years.
- ₩200M alone · ten years later₩19.4M
- ₩200M on top of ₩100M (within ten years)₩33.95M
Why it works this way
Last year you received ₩100M from your father and paid ₩4.85M in gift tax. This year you received ₩200M more. Looking at ₩200M alone, the tax is ₩19.4M, but the actual bill is ₩33.95M. ₩14.55M more. The money received this time did not grow; last year's ₩100M raised this year's rate. Gift tax adds up everything received from the same person within ten years to set the rate. Most people, unaware of this, think splitting gifts lowers the tax. A common mistake is thinking each parent giving separately doubles the deduction, but it comes once. We count where ₩33.95M comes from and when it returns to ₩19.4M.
Inheritance and Gift Tax Act Article 53.
- Deductionsspouse ₩600M · adult child ₩50M · minor ₩20M · relatives ₩10M. Combined over ten years, not per gift
- The first ₩100M₩50M deduction · ₩50M × 10% · 3% filing credit → ₩4.85M
- ₩200M more within ten yearsno deduction · all ₩200M taxable. One ₩50M deduction is about ₩5M of tax
Claim the deduction twice and you face a reassessment. The deduction belongs to the recipient, ₩50M per child per ten years, so with two children each has ₩50M and splitting uses it twice. A spouse gets ₩600M per ten years, so moving ₩600M carries no tax, but the second ₩600M is fully taxable.
Step ② Rates add up over ten years, and this is where the ₩14.55M comes from. Anything of ₩10M or more received from the same person within ten years is added to this gift to set the rate: 10% to ₩100M, 20% to ₩500M, 30% to ₩1B, 40% to ₩3B, 50% above. ₩100M + ₩200M = ₩300M less ₩50M gives taxable ₩250M; 20% less the ₩10M progressive credit gives ₩40M; less last year's ₩5M and the 3% filing credit gives ₩33.95M. ₩200M alone is ₩150M × 20% − ₩10M = ₩20M less 3%, ₩19.4M, so the ₩14.55M difference is the price of combination. Most people get confused here: tax already paid is only credited. The combination threshold is ₩10M, so smaller amounts are not added, but years of living allowances can cross it, and bank records are the evidence.
The parenthesis in Inheritance and Gift Tax Act Article 47(2).
- Rulewhere the giver is a lineal ascendant, the giver's spouse counts as the same person
- Father ₩100M + mother ₩100M₩200M from one person · one ₩50M deduction · ₩200M − ₩50M = ₩150M → ₩19.4M
- Counted separately₩4.85M × 2 = ₩9.7M, ₩9.7M off the real figure
A grandfather is a different person, so grandparents and parents are not combined, but a gift directly to a grandchild carries a 30% surcharge. Not knowing this, you believe you saved and get caught at filing.
The ten-year line is where combination ends. After ten years the earlier gift drops out and the deduction revives, so ₩200M received ten years later is ₩19.4M. The same ₩200M splits by ₩14.55M on a single date, so the rule is to divide large amounts by ten-year blocks. File within three months of the end of the month of the gift for the 3% credit; miss it and penalties apply. File even when no tax is due, because the return records the ten-year history and the source of funds. But if an inheritance opens within ten years, the gift goes back into the estate; the gift-tax ten years and the inheritance-tax ten years are the same. Giving large assets early is the next lecture.
All three steps are passed: the deduction once per ten years, rates on the ten-year total, parents as one person. ₩200M on top of ₩100M is ₩33.95M, not ₩19.4M; not knowing the combination costs ₩14.55M, claiming the deduction twice brings a reassessment, and missing the filing costs the 3%. Two things to do now: record every gift within ten years by date and amount, and time the next gift from the day ten years pass. Real estate and shares are valued separately and generation-skipping carries a surcharge, so consult a tax adviser.
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 53 (Gift deductions)
In force Current (checked 2026-09-05)
Spouse ₩600M, lineal ascendant ₩50M (₩20M for a minor), lineal descendant ₩50M, other relatives ₩10M. The limit applies to gifts combined over ten years.
What this means
The deduction comes once per ten years. Only what remains after earlier use is available.
Inheritance and Gift Tax Act Article 47(2) (Taxable value · combination)
In force Current (checked 2026-09-05)
Where gifts received from the same person (including the spouse of a lineal ascendant giver) within ten years before the gift total ₩10M or more, that value is added to the taxable value.
What this means
The rate applies to the ten-year total. Father and mother are one person.
Inheritance and Gift Tax Act Articles 58 and 69(2) (Credit for tax paid · Filing credit)
In force Current (checked 2026-09-05)
Gift tax paid on the added gifts is credited against the computed tax. A 3% credit on the computed tax for filing within the deadline.
What this means
Tax already paid is only credited. The rate raised by combination stays.
Inheritance and Gift Tax Act Articles 68 and 57 (Filing deadline · Generation-skipping surcharge)
In force Current (checked 2026-09-05)
File within three months of the end of the month of the gift. Where the recipient is a lineal descendant other than a child, a 30% surcharge on the computed tax.
What this means
Filing within three months earns the 3% and leaves a record. A direct gift to a grandchild adds 30%.
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.
Frequently asked
Is last year's gift tax refunded?
No. The rate is reset on the combined amount and last year's ₩5M is simply credited. It is not paid twice, but the combination raises the rate and adds ₩14.55M.
Does each parent giving separately double the deduction?
No. A lineal ascendant's spouse counts as the same giver. ₩100M from father and ₩100M from mother is ₩200M from one person, with a single ₩50M deduction.
Are gifts from a grandfather combined with the parents'?
No. Grandparents and parents are different persons and are not combined. But a generation-skipping gift carries a 30% surcharge.
Are monthly living allowances gifts?
The combination threshold is ₩10M. If years of allowances cross it, they are combined, and bank records are the evidence.
Does everything really reset after ten years?
Yes. After ten years the earlier gift drops out of the combination and the ₩50M deduction revives. ₩200M received ten years later is ₩19.4M.
Must I file when no tax is due?
Yes. The return records the ten-year history and the source of funds. The deadline is three months from the end of the month of the gift.
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.