Partial Passage of Comprehensive Real Estate Tax Relief Bill Expected... 'Special Deduction' Unlikely to Be Agreed This Month

Temporary Two-Homeowners and Elderly to Face Reduced Comprehensive Real Estate Tax Burden
Comprehensive Real Estate Tax Agenda Not Raised at the Full Meeting of the Planning and Finance Committee on the 15th

Confusion Expected Among Joint Spouse Taxpayers
Ruling Party: "We Will Do Our Best to Reach an Agreement with the Opposition"

[Image source=Yonhap News]

[Asia Economy Reporters Hyunju Lee and Hyunji Kwon] A revision bill to the Comprehensive Real Estate Tax Act, which aims to reduce the tax burden for temporary two-homeowners, elderly homeowners, and long-term single-homeowners, is expected to pass the plenary session on the 7th. However, the proposal to partially raise the non-taxable threshold for the comprehensive real estate tax for single-homeowners from 1.1 billion KRW is currently at a deadlock between the ruling and opposition parties and is expected to be discussed further after the Chuseok holiday.

Ryu Seong-geol, a member of the National Assembly’s Planning and Finance Committee and a representative of the People Power Party, stated at the party’s floor strategy meeting held that day, "If the revision bill is passed in today’s plenary session, temporary two-homeowners and inherited homeowners will be recognized as single-homeowners," adding, "Elderly and long-term homeowners will also be allowed to defer the payment of the comprehensive real estate tax until the time they dispose of their homes."

He continued, "Regarding the basic deduction amount for the comprehensive real estate tax non-taxable threshold for single-homeowners, although the People Power Party proposed a compromise plan to the Democratic Party, it remains at a standstill," and pointed out, "About 120,000 couples with joint ownership may experience confusion related to the special provisions."

In the case of couples with joint ownership, as pointed out by Representative Ryu, if a special deduction is introduced, they could choose between an individual taxation method where each spouse receives a 600 million KRW deduction totaling 1.2 billion KRW, or a taxation method applying the basic deduction of 1.1 billion KRW along with special deductions and tax credits for elderly and long-term homeowners. However, since the criteria for the comprehensive real estate tax special provisions have not yet been agreed upon, confusion is expected regarding which taxation method to choose.

The full meeting of the Planning and Finance Committee is scheduled for the 15th, but it is reported that comprehensive real estate tax-related agenda items have not been submitted. The ruling and opposition party floor leaders have only agreed to include agenda items related to the settlement of accounts and the national audit in that meeting.

Representative Ryu said, "I hope the Democratic Party will quickly conclude negotiations with the ruling party on the comprehensive real estate tax to eliminate the anticipated confusion," and added, "We will do our best to cooperate with the opposition party."

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