National Tax Service Releases 2023 Standard Market Prices (Draft) for Officetels and Commercial Buildings
[Asia Economy Sejong=Reporter Kim Hyewon] Next year, the standard market price of officetels and commercial buildings nationwide is expected to rise by an average of over 6%.
On the 18th, the National Tax Service (NTS) announced the "2023 Standard Market Price Proposal for Officetels and Commercial Buildings" with this information.
The NTS calculates and publicly announces the standard market price per square meter for each unit by collectively assessing the land and building values of officetels and commercial buildings (including land) at least once a year. The current announcement covers officetels nationwide and commercial buildings of a certain scale (3,000㎡ or 100 units) located in the metropolitan area, five major metropolitan cities, and Sejong Special Self-Governing City, based on data surveyed as of September 1.
According to the standard market price proposal, the standard market price for officetels nationwide will increase by an average of 6.24%, and for commercial buildings by an average of 6.33% next year. The increase rate for officetels is lower than this year’s (8.05%), but for commercial buildings, it is higher than this year’s (5.34%).
The largest increase in officetel standard market prices is in Seoul (7.31%), followed by Gyeonggi (7.21%), Daejeon (5.08%), Incheon (3.98%), and Busan (2.91%). Daegu (-1.56%) and Sejong (-1.33%) show a decrease in officetel standard market prices.
The increase rate for commercial building standard market prices is highest in Seoul (9.64%), followed by Gyeonggi (5.10%), Busan (3.89%), Incheon (2.39%), and Daegu (2.24%). Only Sejong (-3.51%) shows a decline in commercial building standard market prices.
The standard market price is used when the market price is unknown for calculating inheritance and gift taxes, as well as capital gains tax. It is not used for local taxes such as acquisition tax and property tax, nor for comprehensive real estate tax or social insurance premiums such as health insurance fees.
If there are any objections to the standard market price proposal, opinions can be submitted via Hometax or mail from today until the 8th of next month.
The NTS will review the submitted opinions and, after deliberation by the Evaluation Review Committee, will finalize and announce the standard market prices for officetels and commercial buildings on the 30th of next month.
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