▪ Inheritance tax systems are classified into the estate tax method and the inheritance acquisition tax method based on taxation criteria.
▪ Among 24 OECD countries imposing inheritance tax, four use the estate tax, whereas 20 employ the inheritance acquisition tax.
▪ Comparison of deductions between estate tax countries and inheritance acquisition tax countries
▪ Comparison between estate tax and inheritance acquisition tax methods
▪ On March 12, 2025, the government announced a reform plan to revise the inheritance tax system from the estate tax method to the inheritance acquisition tax method (implementation target: 2028).
▪ Scenario analysis of changes in effective tax rates (ETR) on inheritance property when transitioning taxation methods
▪ The analysis results indicate that when transitioning tax methods, the inheritance acquisition tax method has a relatively lower ETR compared to the estate tax method, contingent upon the degree of inheritance property dispersion in the scenario.
▪ Both supporting and opposing opinions exist regarding the transition of inheritance tax methods
▪ Discussion needed on tax avoidance prevention and tax administration