Pyeongtaek City Provides Advance Notice for Acquisition Tax Reporting on Large Projects Including Apartments

Sending Related Materials on Laws, Precedents, and Cases to Prevent Corporate Damage from Underreporting

On the 24th, Pyeongtaek City in Gyeonggi Province announced that it will implement the 'Pre-Notification System for Acquisition Tax on Large Business Sites' to reduce problems arising from the lack of expertise of companies during the tax payment process.

This pre-notification system is in response to repeated cases where acquisition corporations of large business sites such as apartment complexes underreport the acquisition price due to a lack of expertise in local tax laws. Underreporting acquisition tax causes companies to unintentionally incur additional taxes, and from the local government's perspective, it leads to delays in tax collection and an increased workload due to tax appeals.

Accordingly, the city plans to send a notice within 10 days from the date of approval for use of the property to acquisition corporations of large business sites involved in urban development projects, redevelopment/reconstruction, and development projects with a total floor area of 10,000㎡ or more. The notice will summarize acquisition cost data recognized as the 'de facto acquisition price' based on local tax laws, precedents, and cases.

Moon Jeong-hong, head of the Taxation Division of Pyeongtaek City, stated, "We will continue to actively discover and operate taxpayer support policies to reduce the burden on taxpayers related to local taxes and provide tax administration that satisfies our citizens."