A Study on the Introduction of Inheritance Tax System from the Perspective of the 3rd Distribution in China: Focusing on the Implications of Tax Support for Family Business Succession

China's social economy has undergone continuous changes since the reform and opening in 1978, and the people's standard of living has also grown significantly. As of 2023, the number of high-income people with personal assets of 10 million yuan or more is about 1.7 million. However, the gap in national income in China is gradually increasing and deepening. Currently, the Chinese government is making every effort to resolve the national income gap, and is mobilizing all possible policies to close the gap between the rich and the poor through various means and methods. Among them, the most direct control method on the financial side is taxation on income and property, for example, 'imposition of inheritance tax'. Considering the current economic situation in China and the gap between the rich and the poor, the introduction and implementation of the inheritance tax system is sufficient. In addition, in terms of tax, it plays an important role in promoting the third distribution as an important part of the tax system. In order to establish an inheritance tax system to promote the tertiary distribution, related problems should be solved, preferential policies should be established, and the establishment of an inheritance tax avoidance system should be strengthened. On the other hand, it is essential to consider when establishing the inheritance tax system, and it is necessary to prepare a tax support plan for the succession of the family business to protect the permanence of the family business. The succession of family companies can be said to be very important in securing management stability of family companies that play an important role in the national economy and leading the birth of luxury companies with international competitiveness.Accordingly, the Chinese government should actively expand support to promote the succession of family business assets, such as introducing family business inheritance deductions when introducing the inheritance tax system, applying a low-rate special tax rate to pre-inheritance, and extending the payment deadline to facilitate the payment of inheritance tax. In addition, it is necessary to abolish or additionally expand the inheritance deduction limit in consideration of the characteristics of each industry, such as manufacturing. Finally, it is desirable to expand the limit to apply up to 60 billion won, the same limit as the family business inheritance deduction, in accordance with the legislative purpose of the family business inheritance deduction, considering the need for prior donation to support stable family business succession and smooth management in special cases of prior donation.