---
title: Tax experts clarify that standard overseas mission work remains exempt from gift tax under new regulations
url: https://www.faithfulnews.com/en/tax-experts-clarify-that-standard-overseas-mission-work-remains-exempt-from-gift-tax-under-new-regulations
published: 2026-09-25T20:49:07+00:00
language: en
section: Mission and Aid
source: https://www.newsnjoy.or.kr/news/articleView.html?idxno=400766
organizations: Tob Association, National Council of Churches in Korea, Korea World Mission Association, Nam Seoul Pyeongchon Church
publisher: FaithfulNews
---

# Tax experts clarify that standard overseas mission work remains exempt from gift tax under new regulations

A panel of accounting experts stated that normal and healthy overseas mission activities do not face gift tax concerns under the revised tax regulations. The experts held a briefing on September 21 in Seoul to explain the practical implications of the changes to the Inheritance and Gift Tax Act. They emphasized that the recent amendments do not prohibit mission work or constitute religious persecution. Instead, the changes are viewed as an opportunity to enhance the transparency of how mission funds are managed and spent.

The government revised the enforcement decree of the Inheritance and Gift Tax Act in February 2026. This revision limited the scope of religious organizations eligible for gift tax exemptions to domestic entities. Following this change, some church groups and media outlets expressed concern that overseas mission expenses might be subject to significant gift taxes, potentially causing a decline in mission activities. A public hearing held in August by the National Council of Churches in Korea and the Korea World Mission Association highlighted these fears, with one expert describing the situation as a serious state of potential stagnation for overseas mission work.

Accountant Choi Ho-yoon explained that mission organizations and denominations can still receive tax-exempt status when they use donated funds for direct purpose-driven projects such as relief, disaster aid, or scholarships. He noted that it is an overly definitive interpretation to claim that mission work is impossible due to the tax decree. Under the law, gifts to mission recipients remain tax-free if the single transfer is under 500,000 won and the cumulative amount does not exceed 10 million won. Therefore, typical overseas mission fields do not need to worry about gift tax issues.

However, Choi warned that transferring assets to other overseas organizations, known as inter-legal-entity donations, may incur gift tax. He pointed out that while public interest corporations generally require government approval for such transfers, this process is often bypassed by convention. He stressed that religious legal entities should conduct missions directly with the funds they receive. Simply passing money to individuals overseas creates legal risks. Additionally, transferring real estate such as buildings or land to local individuals abroad may trigger gift tax issues, for which there is currently no legal solution. Choi suggested that institutional proposals are needed to ensure tax exemptions when establishing churches and appointing local pastors overseas.

Accountant Lee Chun-hwa stated that the actual content of the revision has barely changed. She cited previous tax rulings from 2011 and 2023 which already indicated that gifting domestic assets to overseas religious or non-profit entities could be subject to gift tax. She argued that the ruling was simply codified into law, and organizations that have operated correctly in the past can continue to do so without worry. The core issue is whether the funds are used for public interest and purpose-driven projects. If organizations manage funds transparently and can demonstrate their public benefit, there is no problem, even with large transfers.

Lee also highlighted a regulatory gap where religious organizations lack a clear competent authority for obtaining approvals for large asset acquisitions. She noted that neither the Seoul Metropolitan Government nor the Ministry of Culture, Sports and Tourism handles these approvals, and tax offices claim they cannot process them. She urged the government to provide support rather than just control. Mission pastor Kim Tae-jung from Nam Seoul Pyeongchon Church proposed that mission organizations should unify their donation channels into dedicated organizational accounts, conduct pre-verification for local projects, manage large projects in separate accounts with receipts, and report results to donors after project completion.