Gift tax

Tax on property received from someone still living

In detail

It applies to shares and funds handed over for nothing, not only to cash, and the recipient is the one who pays. Most systems set an annual exempt allowance and tax only the part above it. When the shares are later sold, whether the acquisition cost carries over from the giver or resets to the value on the day of the gift depends on the system.

Example

With an allowance of 1,100,000 a year, receiving shares worth 3,000,000 leaves 1,900,000 within scope.

Differences by country

Japan — Japan's gift tax (calendar-year method) gives each recipient a basic deduction of 1.1 million yen a year (as of 2026). Gifts made within a set period before death are added back for inheritance tax even when they fall under it.

South Korea — Korea totals gifts over 10 years and deducts up to ₩600 million from a spouse, and ₩50 million from parents or grandparents for an adult (₩20 million for a minor) (as of 2026).

Related terms

Inheritance tax Acquisition cost Capital gains tax

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