The Democratic Party Proposes Expanding the Special Deduction for First-Generation Single-Homeowners to 1.4 Billion Won

與 Price and Livelihood Stability Special Committee to Propose Legislation
1-Generation 1-House Deduction Amount Expanded from 1.1 Billion KRW to 300 Million KRW
Temporary 2-Households, Inherited and Local Low-Price Houses Excluded from Housing Count

[Image source=Yonhap News]

[Asia Economy Reporter Hyunji Kwon] The ruling party, the People Power Party, is expanding benefits for single-home households to stabilize the rental market. They plan to introduce a special deduction for single-home households for this year only and propose a bill to defer comprehensive real estate tax payments for the elderly and long-term holders.

The People Power Party's Special Committee on Price and Livelihood Stability held its 6th meeting on the 5th at the National Assembly in Yeouido, Seoul, to discuss these measures. Ryu Seong-geol, the committee chairman, told reporters after the meeting, “To support the new government's economic policy direction and real estate tax policy, we have decided to propose partial amendments to the Restriction of Special Taxation Act and the Comprehensive Real Estate Tax Act at the committee level.” Ryu will be the main sponsor of these bills.

The core focus is on easing the tax burden for single-home households. Ryu explained, “The main content of the amendment to the Restriction of Special Taxation Act is to temporarily introduce a special deduction for single-home households only for 2022,” adding, “The current basic deduction amount is 1.1 billion KRW, and an additional 300 million KRW will be granted.” He continued, “The main content of the amendment to the Comprehensive Real Estate Tax Act reflects measures to defer tax payments for elderly and long-term holders who are single-home households.” A special exception will also be newly established to apply single-home household benefits to temporary two-home owners, inherited homes, and low-priced homes in provincial areas. These homes will not be counted when calculating the number of houses.

Additionally, the committee decided to expand support for general tenants. They plan to increase the monthly rent tax credit from the current 10-12% to 12-15% and raise the income deduction for principal and interest repayment on jeonse deposits from the current 3 million KRW to 4 million KRW.