Gyeonggi-do Conducts Comprehensive Acquisition Tax Filing Review, Recovers 8.1 Billion KRW

Gyeonggi Provincial Government

Gyeonggi Province has collected 8.1 billion KRW in local taxes through a comprehensive review of acquisition tax filings up to the end of May this year.

On the 14th, Gyeonggi Province announced that to secure tax revenue, it conducted a comprehensive review of a total of 111,184 cases, including 4,276 houses acquired by housing construction businesses over the past three years in 31 cities and counties such as Suwon City, and 105,908 internet real estate acquisition tax filings and payments.

During this review, Gyeonggi Province checked whether housing construction businesses that applied the general tax rate instead of the higher acquisition tax rate for housing acquisitions had acquired and used the houses as intended, and whether taxpayers who filed real estate acquisition tax online had applied appropriate tax rates and tax bases. As a result, 176 cases of misuse and underreporting of acquisition tax were detected, leading to the collection of 8.1 billion KRW in acquisition tax, local education tax, and special rural tax.

Among the major cases, Housing Construction Corporation A acquired a house in Suwon City and was required to demolish it and rebuild a house within three years to sell it, but it was found that the house was sold as is, resulting in an additional acquisition tax of 200 million KRW.

Mr. B, who filed acquisition tax online, acquired three houses in regulated areas and should have reported at the higher tax rate (12%), but paid at the general tax rate (1-3%). During this review period, he paid an additional 150 million KRW in acquisition tax.

Gyeonggi Province plans to continuously monitor houses acquired by housing construction businesses for thorough post-management and strengthen prior guidance for internet filing and payment cases.

Choi Won-sam, head of the Taxation Division of Gyeonggi Province, said, "When acquisition tax is filed online, unlike in-person filing, taxpayers determine the tax base themselves and file and pay accordingly. In this process, there are cases where additional penalties are incurred later due to unforeseen higher tax factors," urging careful filing.

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