Sejong City, Housing Acquisition Tax Rates 'Segmented' from 1% to 3%... 4% Applied for Four or More Houses

[Asia Economy (Sejong) Reporter Jeong Il-woong] The acquisition tax rate applied to paid housing transactions will be segmented into 1% to 3%, and the acquisition tax rate for multi-homeowners with four or more houses per single household will be separately applied at 4%.

Sejong City announced on the 7th that, following the passage of a partial amendment to the Local Tax Act at the National Assembly plenary session at the end of last year, it will reorganize and implement the acquisition tax system for paid housing transactions within the jurisdiction starting January 1 of this year.

Based on this, in Sejong from this year, the acquisition tax rate for houses priced over 600 million KRW up to 750 million KRW will be adjusted to 1% to 2% (previously 2%), and for houses priced over 750 million KRW up to 900 million KRW, the rate will be adjusted to 2% to 3% (previously 2%).

However, for houses priced between 750 million KRW and less than 900 million KRW, contracts made by December 31 of last year and acquisitions (final payment) made by March 31, 2020 (in the case of apartment sales, by December 31, 2022) will continue to be subject to the previous 2% tax rate, the city explained.

Acquirers of four or more houses per single household are excluded from the revised special acquisition tax rates of 1% to 3% for paid housing transactions and will be separately subject to the general acquisition tax rate of 4%. Here, a single household is based on the resident registration household, and spouses and unmarried children under 30 years old are considered part of the same household even if they live separately.

However, for houses contracted by December 3 of last year, to protect taxpayer trust, if acquisition (final payment) is made by March 31 of this year (in the case of apartment sales, by December 31, 2022), the 4% acquisition tax rate for four or more houses per single household will be exempted, and the previous tax rate will be applied.

Park Sang-guk, head of the city’s Taxation Division, said, “We expect that this acquisition tax system improvement will enhance tax equity and establish a fair real estate transaction order.”

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