Estate and Gift Tax Act Article 5

When the transfer of property meets any of the following conditions, it shall be deem as a gift and subject to gift tax in accordance with the provisions of this Act:1.Where the transferor, within the statute of limitations for the right of action, exempts or assumes a debt free of charge, the amount of the debt exempted or assumed.2.Where the transferor transfers property or exempts or assumes a debt for a significant disproportionate consideration, the difference between the consideration and the value of the property or debt.3.Where the transferor uses their own funds to purchase property for another person without charge, the amount of the funds used. However, if the property is real estate, then the real estate itself.4.Where the transferor contributes capital to purchase property for another person for a significant disproportionate consideration, the difference between the capital contribution and the consideration.5.Property acquired by persons with limited legal capacity or no legal capacity shall be deemed a gift from their legal representative or guardian. However, if it can be proven that the funds used for the purchase belong to the purchaser, this provision does not apply.6.Sales of property between relatives within the second degree of kinship. However, if it can be demonstrated with reliable evidence that the full purchase price has been paid and that the payment was not made through a loan from the seller or by providing collateral to borrow from others, this provision does not apply.