South Korea Makes History with First Ever Art-Based Inheritance Tax Payment
Seoul, South Korea – In a landmark move for the country’s art sceneand tax system, the National Museum of Modern and Contemporary Art (MMCA) will receive four pieces of art, including a work by renowned Chinese painter Zeng Fanzhi, as payment for inheritance tax. This marks the first instance of South Korea utilizing the in-kind payment provision for inheritance tax since its implementation in 2023.
The news was announced jointly by the Ministry of Culture, Sports and Tourism (MCST) and the art community on October 7th. The inclusion of Zeng Fanzhi’s work, a significant figure incontemporary Chinese art, adds further weight to the event.
The in-kind payment option, introduced in a tax law amendment passed in late 2021, allows heirs to pay inheritance tax with assets other than financial assets, such as art, real estate, or other valuable items. This provision is applicable when the inheritance tax liability exceeds 20 million Korean won (approximately 105,000 Chinese yuan) and surpasses the value of financial assets within the inheritance.
The MCST, after conducting a thorough analysisof the historical, academic, and artistic value of the donated artwork, deemed it necessary for the nation’s cultural heritage and approved the tax payment in kind. This decision signifies a shift in South Korea’s approach to inheritance tax, recognizing the cultural and economic value of art and encouraging its preservation within the country.
Theinclusion of Zeng Fanzhi’s work in this historical transaction highlights the growing international recognition of contemporary Chinese art. It also signifies a potential trend for South Korea to become a more active player in the global art market, particularly in acquiring valuable pieces for its national collections.
This event is expected to stimulate further discussion anddebate on the role of art in national heritage and the potential of utilizing art as a form of tax payment. It remains to be seen how this pioneering initiative will shape future inheritance tax policies and the development of South Korea’s art scene.
References:
- Yonhap News Agency. (2024, October 7). South Korea’s First Art-Based Inheritance Tax Payment. Retrieved from [link to source article]
- Ministry of Culture, Sports and Tourism. (2024). Press Release: First In-Kind Payment for Inheritance Tax. Retrieved from [link to MCST press release]
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