Inheritance tax system reform, aircraft parts tax exemption
The Korea Herald republishes a weekly legislative report by local law firm DR & AJU LLC to provide the latest information on bills approved, proposed, pending and set to be promulgated. -- Ed.
Proposed Bill: Partial Amendment to the Inheritance Tax and Gift Tax Act
Proposed by Rep. Kwon Young-se (People Power Party)
● This amendment abolishes the inheritance tax on a surviving spouse by eliminating the current deduction cap of 3 billion won ($2.03 million), thereby allowing a full deduction of the inherited amount.
Proposed Bill: Partial Amendment to the Financial Investment Services and Capital Markets Act
Proposed by Rep. Jung Sung-kook (People Power Party)
● This amendment includes cryptocurrencies as eligible investment assets for asset management companies, enabling collective investment schemes under the Financial Investment Services and Capital Markets Act to issue and trade cryptocurrency-related products.
Pending Bill: Partial Amendment to the Distribution Industry Development Act
Proposed by Rep. Huh Young (Democratic Party of Korea)
● This amendment expands the range of measures available to local governments when a superstore shows insufficient progress in implementing its regional cooperation plan. Authorities may not only recommend improvements but also disclose the subject and content of those recommendations, issue performance orders or impose charges to compel compliance.
Promulgated Bill: Customs Act
Competent Authority: Ministry of Economy and Finance
● This bill extends the tax exemption period for aircraft parts through the end of this year to support the aviation industry. It also broadens the scope of virtual asset service providers required to submit taxation data, aiming to curb illegal trading and property concealment through virtual assets by delinquent taxpayers.
● This amendment introduces an inheritance acquisition tax system, under which heirs pay inheritance tax based on the amount of the property they receive.
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