Full Taxation on Rental Income from Houses Under 20 Million KRW... First Year for Tax Filing This Year

If Registered with Both Tax Office and Local Government, Various Tax Benefits Provided
Strengthened Tax Audits Focused on High-Income Rental Operators with Multiple or High-Value Homes

[Asia Economy Reporter Kwangho Lee] From this year, full taxation on housing rental income with an import amount of 20 million KRW or less will be implemented. Owners of two or more houses with monthly rental income and owners of three or more houses with a total deposit exceeding 300 million KRW must report the business status, including income amount, by the 10th of next month, and file and pay income tax in May.

The National Tax Service (NTS) announced on the 7th that until last year, only housing rental businesses with an import amount exceeding 20 million KRW were subject to income tax filing, but this year is the first year that housing rental businesses with an import amount of 20 million KRW or less must also file.

From this year, if a housing rental business does not register as a business with the tax office, an additional penalty tax (0.2% of the import amount) will be imposed. Business registration must be completed within 20 days from the rental start date.

Housing rental businesses must report the business status, including income amount, to the tax office with jurisdiction over the business location by the 10th of next month, and notification letters for business status reporting will be sent starting from the 15th of this month.

Reports can be easily filed through Hometax. The NTS provides guidelines and examples for filling out the report on the NTS website to assist with accurate reporting.

Additionally, from May 1st to June 1st, income tax (including comprehensive income with rental income) must be filed and paid to the tax office with jurisdiction over the taxpayer's address.

The NTS plans to provide as much support as possible, including convenient electronic filing services such as automatic retrieval of rental properties and materials to assist with accurate reporting.

After income tax filing, the NTS will conduct thorough tax audits focusing on high-value housing and multi-house rental businesses with high suspicion of tax evasion by integrating and analyzing accumulated tax infrastructure.

An NTS official urged, "Please fulfill your tax obligations sincerely, including business registration, with the awareness that 'accurate reporting is the best tax saving'."

This content was produced with the assistance of AI translation services.