Inheritance Tax in North Korea

North Korea does not impose a separate inheritance tax, estate tax, or gift tax. Transfers of wealth between individuals are generally not subject to tax. This guide covers the current tax treatment and considerations for wealth transfers.

Inheritance Tax

There is no inheritance tax in North Korea in practice. Beneficiaries who inherit assets are not subject to any tax on the value of the inheritance. This applies to all types of inherited assets.

Estate Tax

North Korea does not levy an estate tax on the estate of a deceased person. The estate is not required to file an estate tax return or pay any tax upon death.

Gift Tax

There is no gift tax in North Korea. Gifts made during a person's lifetime are not subject to tax, regardless of the amount or the relationship between the donor and recipient.

Property Registration on Inheritance

While there is no inheritance tax, the transfer of property through inheritance may trigger nominal registration fees. These are typically minimal administrative charges.

Capital Gains on Inherited Assets

When the beneficiary later sells an inherited asset, capital gains tax may apply as ordinary income. The cost basis is generally the market value at the time of inheritance.

International Considerations

• North Korean residents inheriting foreign assets: No DPRK tax on inheritance
• Non-residents inheriting North Korean assets: No DPRK tax on inheritance

Succession Planning

Despite the absence of inheritance and gift taxes, proper estate planning is recommended, especially for foreign investors with assets in North Korea. Consider international tax implications if beneficiaries are tax residents of other countries.