[Asia Economy Sejong=Reporter Son Seon-hee] A bill excluding temporary two-homeowners due to moving or inheritance and low-priced houses in rural areas from the housing count passed the National Assembly standing committee on the 1st. This eliminates the heavy burden by applying special cases for comprehensive real estate tax (Comprehensive Real Estate Holding Tax, 종부세).
However, the introduction of a special deduction (300 million KRW) intended by the government for single-homeowners was not realized. Accordingly, the comprehensive real estate tax imposition standard for single-homeowners remains at the existing official price of 1.1 billion KRW.
According to the National Assembly and the Ministry of Economy and Finance on the day, the National Assembly's Planning and Finance Committee approved the partial amendment bill of the Comprehensive Real Estate Holding Tax Act with these contents. It includes deferring the payment of comprehensive real estate tax until the time of inheritance, gift, or transfer for elderly and long-term holding single-homeowners, and excluding temporary two-homeowners, inherited houses, and low-priced houses in rural areas from the housing count when determining single-homeowner status.
The amendment will be applied from the comprehensive real estate tax notices at the end of November, and the National Tax Service plans to send preliminary guidance letters to eligible persons in early September. Taxpayers wishing to apply for the special case can apply to the head of the competent tax office from the 16th to the 30th of next month according to the preliminary guidance.
The government initially pursued raising the comprehensive real estate tax imposition standard to an official price of 1.4 billion KRW by introducing a special deduction (300 million KRW) for single-homeowners, but it was not included in this amendment due to opposition from opposition parties. The Democratic Party expressed a negative stance on applying the special deduction, arguing that the comprehensive real estate tax itself targets high-priced houses.
However, since the Democratic Party has left the possibility of further discussion open, the government intends to continue consultations within the year. If a consensus is reached later, retroactive application to this year's comprehensive real estate tax notices or future refund processing is also being considered.
Meanwhile, on the same day, the Planning and Finance Committee also approved a partial amendment to the Customs Act to change the exchange rate applied for converting to Korean won when determining customs taxable prices from the existing foreign exchange selling rate to the base exchange rate.
The change in the applied exchange rate is scheduled to be implemented next month, and the Ministry of Economy and Finance stated that it is expected to reduce the burden on taxpayers and contribute to price stabilization by lowering customs duties and value-added tax imposed on imported goods.
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