There is no inheritance tax in Singapore
In the United States, the scope of product benefits is broad.
The immigration march of the rich continues.
For permanent residents rather than just studying abroad
Various job opportunities are open
“I left for my children’s education and work.”
The 53rd Study Abroad Expo held at COEX in Gangnam-gu, Seoul in 2023. [사진 = 연합뉴스]
# Mr. Jang (64) lives in Seocho-gu, Seoul. They are the so-called “super rich” who have tens of billions of earnings in financial and real assets through investments in stocks and real estate. Mr. Jang plans to immigrate to the United States to invest because of the burden of estate and gift taxes.
Assuming Mr. Jang bequeaths 5 billion won to one adult child, a gift tax of 1.04 billion won will be increased to 3 billion won, and the maximum tax rate of 50% will be applied to the remaining 2 billion higher than this, as a result. in an additional 1 billion won, for a total of 2.2 billion won. The problem is that we don’t have billions of money won right now.
However, if Mr.
Mr. Jang said, “People with assets have earned a lot of money by studying and working hard on their own, but in Korea, there seems to be a lot of prejudice that they have accumulated wealth through means illegal.” There is less discrimination against people with assets and they are encouraged to immigrate to places where their tax burden can be reduced. go,” he said.
# Mr. Kwon, in his 50s and living in Bundang, Gyeonggi-do, recently received investment immigration counseling for his children’s education and employment issues. This is because it is more beneficial for children to obtain permanent residence through investment immigration rather than simply sending them abroad to study. The US work visa (H-1B), which is a lottery system, requires a work-based sponsor and is highly competitive. On the other hand, it is relatively easy to get an immigrant investor visa (EB-5) by paying only $800,000 (about KRW 1.1196 billion).
![Inheritance/gift tax [매경DB]](https://i0.wp.com/pimg.mk.co.kr/news/cms/202411/11/news-p.v1.20241110.839834f21b0841bc84494218b53e0133_P2.jpg?w=900&ssl=1)
news/cms/202411/11/news-p.v1.20241110.839834f21b0841bc84494218b53e0133_R.jpg" data-width="643" data-height="653" /> enlarge picture Inheritance/gift tax [매경DB]
It is being investigated that the discontent of the super rich exploded as the policy of reserved inheritance and gift tax, which prevents the legitimate inheritance of wealth, continued for 25 years. An official in the investment immigration industry said, “All countries that are popular for investment immigration have better tax benefits than Korea,” and added, “It cannot be denied that “Taxation is the biggest reason for immigration.”
Many wealthy people are emigrating for education and employment for the sake of their children’s future, believing that Korea’s growth engine will decline and the supply of quality jobs will decrease.
According to the investment immigration industry on the 10th, conferences are held continuously in the second half of the year in response to consultation requests from wealthy recent arrivals. In October alone, more than four investment immigration companies held conferences. As competition intensifies, the number of firms using experts such as tax accountants and US attorneys to provide customized immigration strategy consulting for each customer has to go up
“The rich, who have assets of hundreds of billions of earnings, often focus on Singapore, which does not have an inheritance tax,” said Jo Woong-gyu, a lawyer at Barun Law Firm and an asset succession expert. if their children are middle school or high school students or college students, they immigrate to the United States for educational purposes “I think about it a lot,” he said.
news/cms/202411/11/news-p.v1.20241110.b8de889fa6fc47ef805636939af32425_R.jpg" data-width="939" data-height="498" /> enlarge picture In Korea, it is really difficult to get rich because of the heavy tax burden. The highest inheritance and gift tax rate in Korea is by far the highest in the world. The maximum tax rate for both inheritance and gift tax is 50% (when it exceeds 3 billion won), which is about twice the average of the Organization for Cooperation and Development Economic (OECD) (26%). It is second only to Japan (55%), but Korea’s share will increase to 60% if the maximum price is added to the shareholder. In Europe, France (45%) and the United Kingdom (40%), which are considered relatively high tax rates, are also lower than Korea. Sweden and the Czech Republic have abolished inheritance tax, while China and Singapore have no concept of inheritance tax at all.
According to the National Assembly Budget Office, Korea’s inheritance and gift tax burden compared to total taxes as of 2022 is 2.1%, which is more than five times higher than the average of the Organization for Economic Co-operation and Development (OECD) of 0.4%. The US is only 0.6% and the UK is only 0.8%. The highest tax rate in Japan is 5 percentage points higher than ours, but the share of estate tax in total taxes is 1.5% as of 2021, which is much lower than in Korea.
![US passport [사진 = 연합뉴스]](https://i0.wp.com/pimg.mk.co.kr/news/cms/202411/11/news-p.v1.20241110.dde9f2061ad8455ca39c5c19e9df47cb_P1.jpg?w=900&ssl=1)
news/cms/202411/11/news-p.v1.20241110.dde9f2061ad8455ca39c5c19e9df47cb_R.jpg" data-width="767" data-height="507" /> enlarge picture US passport [사진 = 연합뉴스]
The highest estate tax rate in the United States, the preferred investment immigration destination of wealthy Koreans, is not low at 40%. However, the abundance of extraction benefits is considered a plus. According to the US Internal Revenue Service, as of this year, there is no tax in the US even if you inherit up to $13.61 million (about 19 billion won). Thanks to generous deduction limits, less than 0.1% of people pay estate tax in the United States.
Recently, the government announced a tax law change to reduce the burden of inheritance tax by strengthening the deduction for children. When the government announced the change to the tax law last July, it announced that it would reduce the highest inheritance tax rate, which has been in place for 25 years, from 50% to 40%. Instead, a proposal was proposed to change the maximum tax rate range from ‘more than 3 billion won’ to ‘more than 1 billion won’.
The government also plans to convert the current estate tax system, which is an inheritance tax system, to an estate acquisition tax system in the medium and long term. Inheritance tax is a method of imposing an inheritance tax on property that is based on the deceased (deceased). Choi Sang-mok, Deputy Prime Minister of the Economy and Minister of Strategy and Finance, said at a press conference last September, “We will submit a heritage building tax bill to the National Assembly as early to the first half of next year. “
However, the wealthy believe that the chances of the amendment being accepted in the National Assembly, where the opposition party is in the majority, are low. An official from the securities company Wealth Management (WM) said, “Because the opposition party, which is advocating tax cuts for the rich, is the majority party, there are many rich people who believe that it is not likely to be the inheritance tax liability. He said, “They cannot continue to protect their assets and their family’s wealth.” “That’s why we continue to consider immigration as an option.
2024-11-10 22:23:00
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