Suncheon to Reduce Acquisition Tax on Housing for Childbirth and Childcare

Acquisition Tax Exemption Up to 5 Million Won in Calculated Tax Amount

Suncheon City, Jeollanam-do (Mayor Noh Gwan-gyu) announced that, in accordance with the revision of the Local Tax Special Cases Restriction Act (effective January 1, 2024), acquisition tax reductions will be implemented from this year for households with childbirth and child-rearing when acquiring a house.

From January 1 of this year to December 31 of next year, parents who have given birth to a child and acquire a house priced at 1.2 billion KRW or less within 5 years from the date of birth, or who acquire a house (only if acquired after January 1, 2024) and give birth within one year to use it as a child-rearing house, will receive a 100% acquisition tax reduction up to a limit of 5 million KRW.

[Photo by Suncheon City]

However, the reduction applies only if acquiring the house results in a one-household-one-home status, and the child born and the parents must reside continuously in the reduced house for more than 3 years.

Taxpayers who received the reduction must self-report and pay the acquisition tax if they sell, gift, or use the house for other purposes before completing the 3-year continuous residence period.

Taxpayer A, residing in Suncheon City, received a 4.4 million KRW acquisition tax reduction after purchasing a house in May following childbirth in February this year, and taxpayer B received a refund of 4 million KRW acquisition tax after giving birth in April following house acquisition in January this year.

The city has so far granted acquisition tax reductions totaling 3.8 million KRW for 9 cases of households acquiring houses for childbirth and child-rearing.

A city official stated, “We will continue to do our best to ensure that citizens can benefit through active promotion of local tax reduction measures.”