Relaxation of Comprehensive Real Estate Tax Threshold to 1.1 Billion KRW for Single-Homeowners... Effective from This Year

National Assembly Main Chamber. / Photo by Dongju Yoon doso7@

[Asia Economy Reporter Hyunju Lee] The comprehensive real estate holding tax (종부세) threshold for first-generation single-homeowners will be eased from the current 900 million KRW to 1.1 billion KRW. The amendment will take effect immediately upon promulgation.

On the 31st, the National Assembly held a plenary session and passed the "Partial Amendment to the Comprehensive Real Estate Holding Tax Act (Alternative)" containing this provision. Out of 219 members present, 169 voted in favor, 30 against, and 20 abstained, resulting in final approval.

With this legal amendment, the additional deduction amount for first-generation single-homeowners will increase from the current 300 million KRW to 500 million KRW. Applying this to the existing deduction amount of 600 million KRW, the tax threshold will be eased from 900 million KRW to 1.1 billion KRW. Going forward, first-generation single-homeowners with a publicly announced housing price of 1.1 billion KRW or less will be excluded from the 종부세 tax base, while those with housing prices exceeding 1.1 billion KRW will benefit from the increased deduction amount.

The amendment will be implemented immediately after promulgation according to the supplementary provisions and will apply to taxpayers whose tax obligations arise in the year of implementation, meaning the deduction amount will be increased starting from this year's taxable income.

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