'Local Tax Special Cases Including "Farmer Returnee Farmland Acquisition Tax Reduction" Extended for 3 Years Until 2027'

The exemption of acquisition tax on residential buildings obtained through rural housing improvement projects, a 50% reduction in acquisition tax on farmland acquired by returnees within three years of returning to farming, exemption of property tax on farmland provided as collateral for farmland pensions, and exemption of resident tax on business establishments directly used by farmers and fishermen for farming activities, among a total of eight local tax special cases in the agricultural sector, will be extended for three years from 2025 to 2027.

The Ministry of Agriculture, Food and Rural Affairs announced that the 2024 amendment to the Local Tax Act for the agricultural sector passed the National Assembly plenary session on the 26th and will be enforced from January 1, 2025. This amendment to the Restriction of Special Local Taxation Act extends the sunset period for special local tax cases in the agricultural sector.

Additionally, when reducing acquisition tax on farmland for returnees, the system previously reclaimed the reduced acquisition tax if there was non-agricultural income, but now the requirement for non-agricultural income has been relaxed so that reclamation occurs only if the income exceeds 37 million KRW, thereby promoting the influx of population into rural areas through return to farming.

Yoon Won-seup, Director of Agricultural Policy at the Ministry of Agriculture, Food and Rural Affairs, said, "With this extension of special local tax cases in the agricultural sector, we hope to improve the residential environment in rural areas, revitalize rural communities through the influx of urban residents, and support stable retirement life for retired farmers."

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