Gyeonggi-do Detects 519 Violations of Housing Acquisition Tax Reduction... Recovers 639 Million KRW

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Gyeonggi Province conducted a 'planned investigation of omitted tax sources' related to the regulations on housing acquisition tax reductions, uncovering 519 cases and collecting approximately 639 million KRW in additional taxes.

Gyeonggi Province targeted 122,135 houses in the province that received acquisition tax reductions from 2016 to 2020. From the 31st of last month to the 25th of this month, the investigation initially selected 668 cases subject to investigation, including violations of reduction obligations.

Additionally, for 661 rental houses identified during the joint investigation on public obligation violations of housing rental business operators conducted by the Ministry of Land, Infrastructure and Transport and local governments from September to December last year, the province also checked whether local taxes should be additionally collected.

The investigation results showed additional tax collections as follows: ▲ 17 cases of 'Rural Housing Improvement Project Houses' violating the obligation to reside continuously for two years (29 million KRW) ▲ 154 cases of 'Low-income Housing' involving sale or gift within two years (137 million KRW) ▲ 65 cases of 'Rental Business Operators' Rental Houses' used for other purposes including lodging businesses (45 million KRW) ▲ 283 cases of 'First-time (Newlywed) Home Purchase Houses' failing to report moving-in within three months (428 million KRW).

The current system reduces acquisition tax for taxpayers who meet certain conditions to stabilize housing and alleviate the economic burden of actual homebuyers without housing. However, contrary to the original intent, if a taxpayer sells the house for short-term price gains after receiving the tax reduction or rents it out without actual residence, the tax reduction can be reclaimed.

Kim Min-kyung, head of the Tax Justice Division of the province, said, "Since last year, a new regulation allows acquisition tax reductions for first-time home purchases regardless of age or marital status, leading many taxpayers to show interest and inquire about applying for the tax reduction." She added, "If you receive an acquisition tax reduction for a house that does not meet the reduction conditions or fails to comply with obligations, you may have to pay acquisition tax later including additional penalties, so you should carefully review and apply."

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