What are the requirements for applying for gift tax installment payment?

Gift tax installment payment can only be applied for when certain requirements are met, and both requirements and procedures must be fulfilled for approval.

First, the requirements for applying for gift tax installment payment are as follows.

(1) Meeting tax amount criteria

Gift tax installment payment can be applied for only when the gift tax to be paid exceeds 20 million won.

If the amount is below the standard, installment payment is not allowed.

(2) Provision of collateral

To apply for gift tax installment payment, you must provide tax payment collateral equivalent to the amount of installment payment tax.

Generally, real estate, surety insurance, and financial assets are used as collateral.

(3) Compliance with application deadline

Gift tax installment payment is recognized only when applied within the statutory application deadline.

Gift tax installment payment must be applied for within the gift tax reporting deadline (3 months from the end of the month in which the gift date falls), and if a decision notification is received, it can be applied for within 14 days from the date of notification.

Next, the gift tax installment payment procedure is divided according to the time of application.

If applied simultaneously with the gift tax filing, installment payment is received together at the time of filing, and the processing period varies depending on whether it is filed within the deadline.

Generally, it is processed within approximately 6 months when filed within the deadline, and within approximately 3 months when filed after the deadline.

On the other hand, if applied after receiving the decision notification of the tax base and tax amount from the tax office, it is processed within approximately 14 days from the date of application.

All procedures are received by the competent tax office and proceeded by determining approval after review.

In conclusion, gift tax installment payment is possible only when all of meeting requirements + application within deadline + provision of collateral are fulfilled.

If necessary, please review the satisfaction of requirements and procedures in advance through consultation with an inheritance specialist attorney.