Will Rental Business Owners' Comprehensive Real Estate Tax Benefits Decrease?… Byeon Changheum "Considering Strengthened Management"

Minister of Land, Infrastructure and Transport Byeon Chang-heum is responding at the Land, Infrastructure and Transport Committee plenary meeting held at the National Assembly on the 22nd. (Photo by Yonhap News)

[Asia Economy Reporter Moon Jiwon] Byun Changhoom, Minister of Land, Infrastructure and Transport, announced that he is considering strengthening the comprehensive real estate tax management for registered rental business operators to reduce their benefits.

On the 22nd, during the National Assembly Land, Infrastructure and Transport Committee's work report, Minister Byun responded to Jin Seongjun, a member of the Democratic Party of Korea, who pointed out that "the exclusion from the comprehensive real estate tax aggregation for registered rental business operators is based on the time of business registration, so even if housing prices rise later, rental business operators continue to receive the aggregation exclusion benefits," by saying, "I will review the data considering system improvements."

Currently, when rental business operators register, if the official housing price is 600 million KRW or less in the metropolitan area, or 300 million KRW or less in other regions, they are excluded from the comprehensive real estate tax aggregation. However, even if the official price rises significantly afterward and exceeds these thresholds, they are not removed from the exclusion, leading to criticism that registered rental business operators continue to receive undue benefits.

Since Minister Byun directly mentioned reviewing system improvements on this day, there is a prospect that management in this regard may be strengthened in the future. Going forward, tax authorities are expected to check the official price of the relevant real estate each time they calculate the comprehensive real estate tax for rental business operators and impose taxes accordingly, which is likely to increase the comprehensive real estate tax burden on rental business operators.

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