Please tell me in detail about gift property deduction.

The core system to reduce taxes when receiving a gift is the gift property deduction.

Gift property deduction is applied only when the recipient of the gift is a resident, and the deduction limit varies depending on the relationship with the donor.

When receiving a gift from a spouse, up to 600 million won is deductible over 10 years, up to 50 million won for lineal ascendants (including step-parents) or lineal descendants, and up to 20 million won when a minor receives from a lineal ascendant.

For other relatives, that is, blood relatives within the 6th degree and in-laws within the 4th degree, up to 10 million won is deductible.

For other recipients, gift property deduction does not apply.

However, if the gift property falls under the special taxation cases stipulated in the Restriction of Special Taxation Act, such as startup funds or shares of small and medium-sized enterprises for business succession, deduction of up to 500 million won is possible, and overlap application with general gift property deduction is not possible.

Also, gift property deduction cannot be applied when bearing gift tax on title trust property.