In the Republic of Korea (hereinafter Korea), midsize businesses can benefit from the government’s inheritance tax deductions. However, such deductions are only limited to companies that post less than three billion KRW in annual sales. Korea’s inheritance tax rate is approximately fifty percent, which is almost twice as high as the twenty-six percent of the average inheritance tax rate of OECD member countries. If the successor of a company inherits the largest share with management rights, the tax rate can go up to sixty-five percent.
Foreign residents in Korea who are unfamiliar with Korean tax laws, often get charged additional punitive taxes imposed by the government, which eventually put their businesses at risk.
Consulting with an experienced inheritance attorney at Law Win will help you reduce business risks involved with the inheritance process and avoid unnecessary fees, taxes, or immoral conduct that may get between you and what is rightfully yours.