ENGLISH

- A division of property is fundamentally a sharing of joint property amassed by cooperation of the spouses during marriage, and gift tax, which is imposed on gifted property (Article 4(1) of the Inheritance Tax and Gift Tax Act), has no application because the receipt of a division of property is not a gift under Article 2(6) of the Inheritance Tax and Gift Tax Act.

- Property received in division is not an income under Article 4 of the Income Tax Act, and income tax, which is imposed on income (Article 3 of the Income Tax Act), does not apply either.

- If title to real estate is transferred as a division of property, the transferee must pay acquisition tax, local education tax, and special rural development tax according to the Local Tax Act (Articles 7 and 150 of the Local Tax Act; Article 3 of the Act on Special Rural Development Tax).

- A division of property on divorce means that the former spouses take their respective shares of the property jointly amassed during marriage, and as such, when the title in real estate is transferred as a division of property, judicial precedent rules that the mutual transfer of real estate formerly in each spouse’s title neither constitutes assignment for consideration nor can any economic advantage gained by the person dividing in having the obligation for the division of property extinguished by the division of property be deemed an asset in an exchange relationship with the assignment of the divided property, taking it outside the realm of assignment for consideration and excluding it as a subject of transfer income taxation (Supreme Court Judgment 96Nu14401 announced on February 13, 1998).