One out of four apartments in Seoul should pay the tax… “Is it the Seoul tax, not the final tax?”

Input 2021.04.05 08:45 | Revision 2021.04.05 10:00

This year, the rate of increase in public housing prices for apartments and other apartments reached the highest level (19.08%) since 2007 (22.7%) during the Roh Moo-hyun administration, and it was confirmed that the burden on the middle class in Seoul increased significantly.

In particular, the government stated that the proportion of apartment houses with a public announcement of 900 million won or more in Seoul subject to comprehensive real estate tax was 16%, but when limited to apartments, this ratio was found to increase to about 25%. In the end, one out of four apartments in Seoul is subject to the tax tax, so criticism is raised that it is a’Seoul tax’.

According to the’National Apartment Quantity Data for Each Public Housing Disclosure Price Section’ submitted by Rep. Eun-Hye Kim of the National Assembly’s National Land Transport Commission, the publicly announced total of 4,06167 apartments in Seoul this year with a disclosure price of 900 million won or more. It was found to be about 24.2% of the target apartments (168 million,864 units). It was 12.37% in 2019 and 16.8% in 2020. Multi-family housing includes apartments, row houses, multi-family houses, and dormitories.

When looking at apartments subject to the tax tax by region, the proportion of Seoul occupied 80%, some point out whether it is actually a tax targeting Seoul. Of the 5,15,084 apartments with a national disclosure price of more than 900 million, Seoul accounted for 4,06167, accounting for 78.9%. The corresponding proportion was Gyeonggi-do (15%), Busan (2.4%), and Incheon (0.2%), which were quite low in other regions. The tax is classified as a national tax, so the tax source belongs to the government, not to the municipality or municipality.

The number of apartments subject to tax tax is increasing rapidly in quantity. This year, the number of apartments (40,6167 units) in Seoul with a public disclosure of more than 900 million won (40,6167 units) increased by 120,000 units from 275,959 units last year, reaching 47.2%. Last year, the number of apartments with a public disclosure of more than 900 million won increased 38.2% compared to 19,9646 in 2019, increasing the scope of tax payment.

Even considering the peculiarity that the tax is levied on a per-person basis, considering that the burden of multi-homeowners is high, there is a high possibility that the number of houses that should be included in the actual taxation will increase. In the case of multi-homed people, the tax is levied starting from the case where the total public announcement amount is more than 600 million won. Considering the Ministry of Land, Infrastructure and Transport’s announcement that multi-homed people pay 82% of the total real estate tax notified last year (1,8148 billion won) It is expected that the number of houses of 600 million to 900 million won, which should be included in the tax tax as a property owned by multi-homeowners, is considerable.

Rep. Kim Eun-hye said, “The comprehensive real estate tax, which was once a tax paid by the top 1%, has been transformed into a middle class tax in the current government. In particular, as the publicly announced price has risen sharply this year, the citizens of Seoul are in a state of fear of taxes.” It is necessary to review the overall taxation criteria for the taxation as it will have a negative impact on the company,” he said.