Targeting Rental Business Operators Violating Public Duty... 3,692 Tax Audits Conducted

National Tax Service Focuses on Checking Tax Evasion Mainly Related to Violation of Mandatory Rental Period

[Sejong=Asia Economy Reporter Kim Hyunjung] The National Tax Service (NTS) is set to conduct tax audits on approximately 3,962 rental business properties found to have violated public obligations.

On the 31st, the NTS announced that it will review 3,692 rental business properties reported by the joint task force (TF) of the Ministry of Land, Infrastructure and Transport and local governments nationwide for violations of public obligations under tax law. If necessary, the NTS plans to strictly handle cases according to law and principles through additional tax audits. However, cases where taxpayers have filed amended returns or where the NTS has already imposed additional taxes will be excluded.

The properties identified as violating rental business public obligations are distributed regionally as follows: ▲Seoul 1,128 cases ▲Gyeonggi 668 cases ▲Other provinces 1,776 cases. By housing type, the breakdown is ▲Apartments 1,421 units ▲Multi-family housing 915 units ▲Detached houses 335 units ▲Officetels 330 units ▲Row houses and others 691 units.

Currently, registered rental business operators receive various benefits under tax law, including ▲exclusion from comprehensive real estate holding tax consolidation ▲capital gains tax exemption (for primary residences) ▲exclusion from capital gains tax surcharges ▲application of long-term holding special deductions and additional deductions for capital gains tax ▲rental income tax reductions (for small-sized housing), among others.

The government excludes various benefits such as tax exemptions and reductions and reclaims related taxes if operators violate the requirements stipulated by law. The NTS has regularly checked whether rental business operators violated tax obligations after receiving tax benefits and has reclaimed taxes accordingly.

In particular, last November, the NTS conducted audits on 3,000 high-income rental business operators with high suspicion of inaccurate reporting by analyzing high-priced and multiple-home rental operators.

An NTS official explained, "We will meticulously verify tax evasion by rental business operators who violate public obligations and strengthen cooperation with related agencies to strictly respond to real estate tax evasion and realize fair taxation."

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