Public Administration Committee Passes Local Tax Act... Property Tax Rate on Houses Under 600 Million Won Reduced by 0.05%p

[Image source=Yonhap News]

[Asia Economy Reporter Lim Chun-han] A plan to introduce a special tax rate that lowers the property tax rate by 0.05 percentage points for three years starting next year on houses with a publicly announced price of 600 million KRW or less owned by single-homeowners has passed the National Assembly's Public Administration and Security Committee.

The Public Administration and Security Committee approved the amendment to the Local Tax Act containing this provision at its plenary session. The People Power Party did not attend the meeting, citing attendance at a party caucus as the reason.

The reduction in property tax rates is a supplementary measure prepared by the government to reduce the tax burden on low-income households following the realization of publicly announced prices, which raises real estate official prices up to 90% of market prices.

For houses with a publicly announced price of 100 million KRW or less, the maximum reduction is 30,000 KRW; for 100 million to 250 million KRW, 30,000 to 75,000 KRW; for 250 million to 500 million KRW, 75,000 to 150,000 KRW; and for 500 million to 600 million KRW, 150,000 to 180,000 KRW.

The reduction rate ranges from 22.2% to 50%. Houses with a publicly announced price of 100 million KRW or less will receive a 50% reduction benefit, although the amount itself is small.

Earlier, the Ministry of the Interior and Safety explained that based on the property tax imposed this year, among 10.86 million single-homeowner households, those with publicly announced prices of 600 million KRW or less account for 94.8% (10.3 million households). The reduced tax rate will apply from the property tax imposed next year. The tax base date is June 1.

Meanwhile, the amendment also includes provisions to add new types of tobacco, which use parts other than tobacco leaves as raw materials, to the scope of tobacco subject to tobacco consumption tax.

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