Paying Tax in Installments
The Samsung Group owner family is likely to adopt installment payment for the inheritance tax related to the late chairman Lee Kun-hee. Specifically, the family members are likely to pay one-sixth of the tax during the filing within this month and pay the rest for five years to come.
The inheritance tax includes 11.04 trillion won related to stocks, and the total inheritance tax including realty and works of art is estimated at 13 trillion won or so.
The Ministry of Economy and Finance determines the interest on the tax in view of one-year time deposit rates. The rate was 1.8 percent when he died last year and was lowered to 1.2 percent last month as a result of a change in tax law enforcement regulations.
The installment payment requires collateral and its value must exceed 10.8 trillion won if the inheritance tax is 13 trillion won. This means most of the bequest is likely to be used as collateral.