Ministry of Economy and Finance on Delay in Special Comprehensive Real Estate Tax Treatment for Single-Homeowners: "Time is Tight... Errors May Occur"

[Asia Economy Sejong=Reporter Son Seon-hee] As the passage of a bill to apply the special case for raising the comprehensive real estate tax (Comprehensive Real Estate Tax, 종부세) taxation standard for single-homeowners (from 1.1 billion KRW to 1.4 billion KRW) is delayed in the National Assembly, the Ministry of Economy and Finance expressed concerns on the 22nd, stating, "If time is tight, errors may occur."

On the afternoon of the same day, Ko Gwang-hyo, Director of the Taxation Office at the Ministry of Economy and Finance, met with reporters at the Government Complex Sejong and said, "The plan is to select eligible applicants by September 6 and have them apply between the 16th and 30th, but the later the bill is passed, the less likely notifications can be sent."

Earlier, through the tax reform plan announced last month, the government declared that it would raise the basic deduction standard to 1.4 billion KRW by adding a special deduction of 300 million KRW for single-homeowners in 2023. It also plans to apply special exceptions to exclude temporary two-homeowners, inherited homes, and low-priced homes in provincial areas from the housing count. However, related laws such as the Comprehensive Real Estate Tax Act and the Restriction of Special Taxation Act, which reflect these changes, have not yet been passed and remain pending in the National Assembly.

Director Ko said, "The National Tax Service must conduct error screening on the application details by the end of this month, but as the bill's passage is delayed, the time to screen errors is gradually decreasing," and reiterated, "The administration needs sufficient time to thoroughly review everything."

If the special case application cannot be made next month due to the National Assembly's delay in passing the bill, taxpayers will have to file their comprehensive real estate tax returns themselves in December. Regarding this, Director Ko urged, "Those who are not notified will have to calculate and report their property tax as well in December, which will be difficult," adding, "There is not much time left."