Taeyoungho Proposes Amendment to Raise Comprehensive Real Estate Tax Threshold from 600 Million to 900 Million Won

[Asia Economy Reporter Yoo In-ho] On the 18th, Tae Young-ho, a member of the Future United Party, took the lead in proposing a revision to the Comprehensive Real Estate Tax Act that raises the comprehensive real estate tax imposition standard for houses from 600 million won to 900 million won and stipulates the fair market value ratio (the ratio reflecting the tax base) in the law.

Under the current Comprehensive Real Estate Tax Act, in the case of houses, the tax base for the comprehensive real estate tax is calculated by deducting 600 million won (900 million won for single-home households) from the sum of the publicly announced prices and then multiplying by a ratio determined by presidential decree. Representative Tae said, "Since the method of calculating the tax base directly affects the amount of tax payable, it is necessary to specify it directly in the law."

Regarding the background of the bill proposal, Representative Tae explained, "The comprehensive real estate tax imposition standard for houses has been frozen for over 10 years despite inflation and rising housing prices, resulting in an increased actual tax burden on taxpayers."

According to the National Assembly's Planning and Finance Committee, the number of taxpayers subject to the comprehensive real estate tax on houses in 2018 was 393,243, an 18.5% increase from the previous year, and the decided tax amount was 443.2 billion won, a 14.3% increase from the previous year. The number of taxpayers subject to the comprehensive real estate tax, which was only 194,700 in 2014, doubled in four years.

Representative Tae argued, "The Moon Jae-in administration's comprehensive real estate tax policy has a punitive taxation nature imposed on residents of Seoul and the metropolitan area," and added, "In the mid to long term, the comprehensive real estate tax should be abolished and integrated into property tax, and real estate price adjustments should be made through acquisition tax or capital gains tax."

Earlier, Representative Tae proposed an amendment to the Comprehensive Real Estate Tax Act as his first bill to exclude single-home households from the scope of comprehensive real estate tax imposition.

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