Under a new amended law on real estate tax expected to come into force in either 1998 or 1999, the tax base will be assessed from a common market price level as a result of which the eventual tax will differentiate various property values, and the principle of tax justice will thus be strengthened. The full wording was issued as Act No. The law on inheritance and gift tax, except for rates, is in accord with laws applied in other advanced countries. Inheritance tax is charged on property acquired by will and law, under a final decision of a court which is in charge of the inheritance procedure. Property includes immovable property, apartment and non-apartment premises, movable property, securities, money, claims, property rights and other property values.
Taxable persons are an heirs who acquire property.
The tax base is the price of property acquired by an heir decreased by devisor's debts that are transferred onto the heir, by the price of property exempt from inheritance tax, and by other amounts. Gift tax is levied on property acquired freely on the basis of legal procedure other than the death of a devisor. Relieved from gift tax is property acquired upon a duty set by a legal regulation, and benefits, allowances and subsidies allocated from public budgets. The taxable person is the acquirer of the property. In the case of donating to a foreign country, the tax is paid by the donor.