Inheritance Houses Excluded from Comprehensive Real Estate Tax for Up to 3 Years... Enforcement Decree of Tax Law Promulgated

Ministry of Economy and Finance Announces Revised Tax Law Enforcement
'Jongbuse Bomb' from Sudden Housing Inheritance Expected to Decrease

[Asia Economy Sejong=Reporter Kwon Haeyoung] From now on, inherited houses will be excluded from the calculation of comprehensive real estate tax for 2 to 3 years after inheritance. This is expected to reduce cases where multi-homeowners face a 'bomb' of heavy comprehensive real estate tax due to inheriting houses.

The Ministry of Economy and Finance announced on the 15th that it has promulgated the follow-up enforcement decree of the 2021 revised tax law containing this content, and it will be enforced from that day.

First, in the case of inherited houses, the number of houses will be excluded from the comprehensive real estate tax calculation for 2 to 3 years from the date of inheritance commencement (date of death of the decedent). In the metropolitan area and special self-governing cities (excluding eup and myeon areas) and metropolitan cities (excluding gun areas), the exclusion period is 2 years, while in other regions it is 3 years.

Accordingly, if a single homeowner who already owns one house inherits one more house, previously they were considered a two-homeowner and subjected to a tax rate of 1.2% to 6.0%, but from now on, they can be subject to a tax rate of 0.6% to 3.0%. Taxation will be based on the tax base date of June 1st of this year, and even if the inheritance occurred before the enforcement of the decree, if 2 years (3 years in local areas) have not passed from the date of inheritance commencement to the tax base date, the new regulation can be applied. However, comprehensive real estate tax already paid due to inherited houses cannot be refunded.

Additionally, social enterprises, social cooperatives, and Jongjung (clan associations) have been added to corporations subject to the general progressive tax rate, easing the tax burden. Accordingly, a basic deduction amount of 600 million KRW, progressive tax rates (0.6% to 3.0%, 1.2% to 6.0%), and tax burden limits (150%, 300%) will be applied.

Also, houses scheduled for demolition by housing construction businesses, cultural assets registered by city/province, and houses used for daycare centers can be exempted from comprehensive real estate tax through exclusion from aggregation.

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