From June 1st… Even with a capital gain of 1 billion won, I will hold only 259 million won in my hand.
Joint briefing session with related ministries “The more the heavy tax enforcement date approaches, the more multi-homed people will be sold”
The government reaffirmed that the policy to strengthen the comprehensive real estate tax and capital gains tax scheduled for June 1 this year will be implemented as scheduled.
It is also planning to intensively check whether the contracts for loans with conditional housing disposition and conditional transfer are fulfilled.
The Ministry of Strategy and Finance, the Ministry of Land, Infrastructure and Transport, the Financial Services Commission, the National Tax Service, and the National Police Agency held a joint briefing session with related organizations at the Government Complex Sejong on the 18th and explained the performance of real estate policy and future plans.
The briefing session on this day reaffirmed the details of the measures that have been proposed so far without announcement of new real estate measures.
This is interpreted as saying that although the real estate countermeasures that the government has put out several times has not yet been effective, it has expressed a willingness to use all policy measures to stabilize the real estate market.
The government strengthened the tax burden at each stage before acquisition, possession, and disposal through measures such as June 17 and July 10 last year.
The government explained that it has significantly increased the acquisition tax rate on multi-households and corporations since August last year during the real estate acquisition stage.
◆Acquisition tax
The acquisition tax rate for multi-homed people was raised from up to 4% to up to 12%.
Before the amendment of the law, the housing acquisition tax for individuals was ▲1~3% for 3 homeowners or less ▲4% for 4homeowners.
However, from the acquisition on August 12 of last year, the tax rate is applied to ▲1 to 3% only for one homeowner and two homes outside the adjusted area, and 1 to 3% only for the second homeowner outside the adjusted area.
In addition, ▲ 8% for acquisition of 2 houses in the area subject to adjustment or 3 houses outside the area subject to adjustment ▲ 12% acquisition tax is imposed on 3 houses in the area subject to adjustment or 4 or more houses outside the area subject to adjustment.
For corporations, 12% applies to all housing acquisitions.
The number of houses is calculated in units of households, and even if a house is owned by shares with a person other than the same household, it is calculated as owning one house each. In the local tax law, a first household refers to a household composed of a family member (parents, spouse, children, brothers, sisters, etc.) listed on the resident registration sheet for each household pursuant to Article 7 of the Resident Registration Act.
Spouses and unmarried children under the age of 30 are considered to be in the same household, even if they are not listed on the same household resident registration card as the person who acquires the house.
However, even if a child under the age of 30 has an income of more than 40% (700,000 won per month) of the median income (1,75 million won per month for a single person), exceptions have been made so that if they live separately, they can be regarded as a separate household.
◆Comprehensive Real Estate Tax
From June 1, the government has decided to increase the comprehensive real estate tax rate for multi-homed people from 0.6-3.2% for each section to 1.2-6.0%, respectively, by 0.6-2.8 percentage points.
One homeowner or two homeowners in general areas rose slightly by 0.1 to 0.3 percentage points from 0.5 to 2.7 percent to 0.6 to 3.0 percent. For houses owned by corporations, the highest comprehensive real estate tax rate of 3% or 6% will be applied, and the basic deduction (600 million won) and the application of the upper limit for detailed charges will be abolished.
For example, if you own two houses with a market price of 2.5 billion won (announced price of 2 billion won), the tax will increase by 58 million won in 2021 compared to 2020.
◆Capital gains tax
From June 1, measures to strengthen capital gains tax on short-term holders of less than two years and the right to acquire real estate (such as sales rights) will also be implemented.
In the market, there was high hope that temporary reduction or exemption of the transfer tax could be implemented.
The government reaffirmed that the transfer tax will be implemented as it is.
The median transfer tax rate for multi-homed people in the area subject to adjustment is from 10-20% points to 20-30% points, and the transfer tax rate for houses held for less than two years, and the right to move in and sale for members of members for less than one year is 70%, and one year to two. If you have less than a year, each goes up to 60%.
The additional corporate tax rate for the transfer of housing by corporations has increased from 10 percentage points to 20 percentage points from January 1st.
According to an example of the government’s announcement, if a house with a market price of 2.5 billion won is assumed to be transferred at 1 billion won, the capital gains tax will increase by 110 million won after June 1.
In other words, if the housing in the area subject to adjustment is transferred and the basic capital gains deduction of 2.5 million won is applied, and it is transferred before May 31, including local income tax, the capital gains tax will be 2, from 531 million won to 644 million won for homeowners, 3 For a homeowner, a charge of KRW 644 million to KRW 740 million is charged.
Im Jae-hyun, head of the Ministry of Strategy and Finance’s taxation department, said at a briefing on the day, “It is important to implement the policy as announced, given the consistency and reliability of the policy.”
He also predicted that “as the implementation of the heavy duty system (higher tax rate) on June 1, more sales of multi-homed people will be released.”
Deputy Minister of the Ministry of Technology Bang Ki-seon said, “We are sorry that the market has not yet stabilized in the process of establishing new systems. This year, the government will also respond with all policy measures to stabilize the real estate market.” .
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