Enforcement Rules of the Estate and Gift Tax Act Article 44

The lands reserved for public facilities included in the estate of a decedent eligible for an estate tax exemption pursuant to Article 50-1 of the Urban Planning Act, the taxpayer may apply for paying estate tax in kind using the said property.Where the beneficiary of a gift is also the taxpayer as described under Paragraph 1, Article 7 of the Act, the taxpayer may apply for paying gift tax in kind using the reserved lands for public facilities included in the property received that are eligible for a gift tax exemption pursuant to Article 50-1 of the Urban Planning Act.Except for the lands which were owned by the decedent or the donor before being designated to be reserved for public facilities, or the lands which were transferred to the decedent or the donor because of inheritance after being designated to be reserved for public facilities with no records of transfer of ownership other than by inheritance during the period from the date of designation and the date of transfer, the amount of estate tax and gift tax payable which may be offset by the lands reserved for public facilities as mentioned in the preceding paragraphs shall be subject to limitation calculated as follows:The limitation of tax payable which can be offsetted by the lands reserved for public facilities = The estate tax or gift tax payable based on the Act × (the value of the public facilities reserved lands surrendered for tax payment ÷ the total amount of the estate or gift assets)