Temporary Two-Homeowners and Seniors Tax Relief Bill for Comprehensive Real Estate Tax Passes Judiciary Committee

Ahead of Passage in the Plenary Session on the 7th
Reflected in November's Comprehensive Real Estate Tax Notices

Kim Do-eup, Chairman of the National Assembly's Legislation and Judiciary Committee, is presenting the partial amendment bill of the Comprehensive Real Estate Tax Act (Jongbu Tax Act) at the full committee meeting held at the National Assembly on the 6th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Hyunju Lee] An amendment to reduce the comprehensive real estate tax burden for temporary two-homeowners, elderly individuals, and long-term single-homeowners passed the National Assembly's Legislation and Judiciary Committee on the 6th.

On the afternoon of the same day, the Legislation and Judiciary Committee held a plenary session at the National Assembly and approved the partial amendment bill to the Comprehensive Real Estate Tax Act.

If the amendment is finally passed at the plenary session on the 7th, those who acquired a new home for moving but could not immediately dispose of their existing home, or those who acquired a home through inheritance, or those who own low-priced local homes without speculative intent will be eligible for the comprehensive real estate tax relief special cases.

The amendment also includes a provision to defer the payment of the comprehensive real estate tax until the time of disposal for single-homeowners who meet the requirements of being aged 60 or older, owning the home for more than 5 years, and having income below a certain level (total salary of 70 million KRW or comprehensive income of 60 million KRW).

Meanwhile, the amendment to the Restriction of Special Taxation Act to raise the basic deduction amount for comprehensive real estate tax for single-homeowners from the current official appraisal value of 1.1 billion KRW was not passed.

The ruling party and government initially proposed lowering the fair market value ratio from the originally planned 100% to 60% and raising the tax base for comprehensive real estate tax to an official appraisal value of 1.4 billion KRW, an increase of 300 million KRW, aiming to restore the tax burden for single-homeowners to the 2020 level. During negotiations, the Democratic Party argued that the fair market value ratio should be raised to 80%, while the People Power Party proposed lowering the special deduction amount to 1.2 billion KRW instead of 1.4 billion KRW, but the Democratic Party did not accept this.

The special cases under the amendment to the Comprehensive Real Estate Tax Act for temporary two-homeowners, elderly individuals, and long-term single-homeowners will apply from the comprehensive real estate tax notices issued at the end of November this year.

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