In this article, you will learn more about how to report a gift of cash.
If you are making a cash gift (especially children), what documents must be submitted, and how to register and inquire, please refer to it and file a gift tax return yourself.
index
3 ways to report a cash gift
There are three ways to report a gift:
Electronic filing of gift tax at Hometax
Report on visit to the tax office having jurisdiction over the address of the beneficiary (recipient)
Reporting through a tax agent (tax accountant)
Reporting directly at Hometax is the easiest, but if you find it difficult to file at Hometax, you can visit the tax office or report it through a tax advisor.
The tax office may ask the employee how to fill out a return, but I think it would be difficult to get advice on tax law or help with tax savings. 현금 증여 신고
Nevertheless, if you are only going to file a gift tax return, it would be a good idea to visit the tax office and file a cash gift report. 좋은뉴스
However, if the value of the gift must be thoroughly assessed due to the gift of real estate, etc. or if the amount of tax is large, it is best to report the gift tax through a tax accountant.
The cost (fee) paid to a professional tax agent is not very high considering the risk of penalty such as penalty for not filing properly.
In this article, we will learn how to file gift tax electronically at Hometax.
The method of reporting a cash gift at Hometax of the National Tax Service is not very complicated, so it is the simplest and most convenient method for me personally.
How to report a cash gift at Hometax
So, let’s see how to report a cash gift at Hometax.
It is not difficult at all if you follow the cash donation report in order, so please follow it step by step.
Step 1. Go to the National Tax Service Home Tax (click) and go to Report/Payment -> Gift Tax.
How to report a cash gift
After logging in,
Select Tax return -> General gift return -> Periodic return.
How to report a cash gift
Step 2. Now, enter basic information such as donor date, donor, and beneficiary information.
How to report a cash gift
If you click the Confirm button next to the recipient’s resident registration number, the logged in recipient’s information is automatically entered.
(Important) Select the relationship by clicking the OK button on the relationship with the donor.
Choose the right one because the gift deduction amount varies depending on your relationship with the donor (learn more).
How to report a cash gift
A relationship can be viewed as a criterion for the person giving the gift. If a child receives a gift, the relationship with the donor becomes ‘child’.
Step 3. Now enter the gifted property.
At first, nothing appears on the list of gifted property statements.
In the gift property statement input, select the classification of the gifted property, the type of the gifted property, and the evaluation method as follows, enter the donated amount in the assessed value, and click the Register button.
How to report a cash donation
It will then be entered into the list of gifted property statements.
After confirming, at the bottom, select Save and Go to Next.
Child cash donation report
Step 4. Now enter the tax calculation.
This is the most important part of how to report a cash gift.
Please enter the exact amount of deduction for gifted property.
Child cash donation report
For spouses, lineal ascendants, and other relatives, KRW 600 million, KRW 50 million, and KRW 10 million are deductible, respectively.
(Report is required even if the gift tax is exempted)
Gift tax exemption limit, gift tax rate, and tax saving methods?
Referring to the above article, directly write the deduction amount in items 25-27 depending on the relationship with the donor.
Enter the deduction amount in item 25 if it is a gift between spouses, item 26 if it is a gift from a parent, and item 27 if it is a gift between siblings.
Then the contents of 30-34 will change.
If you donated less than 50 million won to your child’s cash gift report, the gift tax will be exempted, and everything below the tax base will be 0 won.
Step 5. Before proceeding to the next step, select Preview in the upper-right corner to review and finalize the report before submitting it.
Donation report document
This is the end of the tax return.
However, it can be considered that the declaration is complete only when you also submit the gift declaration documents.
We will continue to discuss below what documents are required and how to submit them.
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Registration of gift declaration documents
Cash donation report documents include other supporting documents such as debt facts.
If it is a cash gift, the three (or two) below will be the gift declaration documents.
Family Relations Certificate
Account transfer receipt (transfer details available)
Gift contract (if any)
The family relationship certificate is a required document to receive the gifted property deduction, and the account transfer receipt or documents confirming the transfer details are documents to determine the actual gift amount.
Donation report documents are registered as follows.
First, go to the report history inquiry and search the report history.
Donation report document
On the right side, “N” on whether to submit annexed documents is because you have not yet submitted a gift report document.
Donation report document
To submit documents, go to Hometax Report/Payment -> Gift Tax, and go to Attachment of Reporting and Submission of Proof Documents.
First, check the report details, and then click Attach Attachment on the right side of the list to register the gift report.
How to report a 50 million won donation
If the documents are normally registered, you can see that the submission status of the attached documents is changed to Y in the report details inquiry.
How to report gift tax
If the gift declaration documents have been submitted, the declaration is all over.
The results can be checked in the gift tax determination information inquiry. It takes six months to determine the gift tax.
Go to gift tax determination information inquiry
Therefore, it may not appear in the search results within 6 months (most of them do not appear), and there is no need to worry too much because the report is not wrong.
Even if it is reported normally, it may be viewed after 6 months, so if you report it correctly, you do not need to worry that it will not appear in the gift tax determination information inquiry.
concluding
Today we learned how to report a cash gift.
I think the most gift is between parent and child.
For more information on other gift taxes, see the gift tax page of the National Tax Service below, and for other questions, please use the National Tax Consultation Center.