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| ▲ Gyeonggi Province Governor Lee Jae-myeong urged the government to abolish the general real estate tax preferential treatment for housing rental companies. | |
| Ⓒ Park Jeong-hoon |
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“It is difficult to understand why the Ministry of Information and Infrastructure created an exception rule that excludes housing leasehold tax from the property tax even if the housing price rises, even if the housing price rises and becomes subject to the tax tax.”
Gyeonggi Governor Lee Jae-myeong urged the abolition of the general real estate tax preferential treatment for housing rental business owners.
Governor Lee posted on his Facebook page on the afternoon of the 6th,’Housing price stabilization is from the will and determination of policy makers, the people’s policy trust, and the perfect policy on three beats… It was argued in the article titled,’Should abolish the preferential tax treatment for housing rental companies.
Earlier, on the 5th, Gyeonggi-do delivered a proposal to the Ministry of Strategy and Finance, asking the government to reinforce taxation by reducing the benefits of tax exemption for housing rental businesses.
Governor Lee said, “There is an answer to the stabilization of house prices to President Moon Jae-in’s saying,’I will not make money with real estate,’ and’A large supply of lifelong housing (extremely long-term public leases for the middle class).” “If the right policy to materialize the will is formulated and implemented, the house price will inevitably be stabilized by the trust of the people and the market,” he raised his voice.
“In addition to adequate supply, tax, financial, and regulatory benefits should be provided for real-demand housing, and policies for strengthening taxation, limiting financial benefits, and strengthening regulations should be strictly enforced so that unearned income speculative gains are impossible for speculative investment housing.” He emphasized, “If a mass supply of high-quality, inexpensive basic housing (rental type or sale type) is supplied in large quantities to prevent fear demand, the principle of accommodation and supply will operate normally, and the house will become a’residential’ means.
“President Moon’s Lifetime Housing has a solution for stabilizing house prices”
He added, “If the supply of housing is adequately provided in a situation where the housing supply rate is around 100%, and the practice of owning a house only by end users is established, the stability of the house price will surely follow.” He pointed out that the speculative frenzy will always be reenacted.”
In particular, the governor said, “There is no reason to give tax preferential treatment for rental housing owned by a housing leasing business operator compared to 1 housing for actual residence.” “It is difficult for housing rental companies to understand why the Ministry of Information and Communication made an exception rule that excludes tax from the tax, no matter how high the house price rises.”
In the case of a house, the current taxation tax law requires that the sum of the published price of the house owned as of the annual property tax tax base date (6.1) exceeds a certain amount (600 million won or 900 million won). However, the rental business entity does not pay the tax levies even if it owns several rental houses with the official housing price exceeding 600 million won as of the tax base date.
In the case of rental housing businesses, even if the official price of the rental housing exceeds 600 million won, the tax is fully exempted. This is because rental housing is stipulated on the basis of the published housing price on the date when the lease commences or the year when the application for total exclusion was first filed. (Related article: Even if you own 19 rental houses over 600 million won, the final tax is 0 won?)
Governor Lee said, “Because of the strange enforcement decree, a rental business entity with 26 houses in Gyeonggi Province owns 19 houses in excess of 600 million KRW, which is subject to taxation based on the official housing price in 2020. He explained that he will be exempted from the tax (estimated 260 million won) for the reasons below.
“So, according to the general tax principle, the Ministry of Information and Records officially suggested that the tax is taxed based on the value at the time of taxation. If you are satisfied, you do not need the National Assembly legislation and just change the enforcement decree.” “It is necessary” and urged an immediate revision.