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PAPA(American: non-Resident) Gave Me 20K U$, Do I(American: resident) need to Pay the Gift tax in Korea?


As an expat living in Korea, understanding the local tax regulations can be a bit daunting, especially when it comes to receiving gifts from abroad. If you're in a similar situation, here's a helpful guide to navigate the process.


#### Scenario:

You're a mother of two-year-old twins, and your father has generously sent you $20,000 from the United States. Now, you're wondering if you need to pay gift taxes in Korea and how to go about it.


#### Do You Need to Pay Gift Taxes?

Yes, you do. In Korea, gift taxes apply to both residents and non-residents who receive gifts from abroad. The tax rate varies from 10% to 50%, depending on the value of the gift. For a gift of $20,000, you would likely fall into the lower tax brackets.


#### When and How to File?

You need to file and pay the gift tax within three months from the end of the month in which you received the gift. For example, if you received the gift on June 2nd, you would need to file and pay by the end of September.


#### Steps to Follow:

1. **Determine the Value**: Convert the gift amount to Korean Won using the exchange rate on the date you received the gift.

2. **Calculate the Tax**: Apply the appropriate tax rate to the converted amount.

3. **File the Tax Return**: Submit the necessary forms and evidences to the Korean tax authorities.

4. **Pay the Tax**: Ensure the payment is made within the stipulated time frame to avoid penalties.


#### Need Help?

If you're unsure about any part of the process, it's always a good idea to consult with a tax professional like Jz in Korea. They can provide detailed guidance and ensure you comply with all regulations.


Navigating gift taxes might seem overwhelming, but with the right information and support, you can handle it smoothly. Happy parenting and good luck with your tax filing!


Q: I'm a mothe of twin(2 years old) and my dad send me 20K U$ from the states for my twin and I need to pay gift taxes?

I've living in Korea for the last 6 years now, and how much do I need to pay and when?


A: Yes, you need to pay the gift taxes and you need to file and pay in 3 months from the end of the month you received. For example, if you receive it on June. 2, you need to file and pay by the end of Sep.






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