Development Cost Estimation and Review Institutions According to Law
Composed of Experts Such as Certified Public Accountants, Tax Accountants, and Lawyers
"Providing One-Stop Service from Levy Calculation to Consultation"
Samil PwC announced on the 22nd that it has launched a specialized service team dedicated to handling all tasks from the calculation, review, to the reporting of development charges arising from land development.
The Samil Development Charge Specialized Service Team is a legally registered institution for the calculation and review of development costs. It plans to provide development charge calculation and reporting services in a one-stop manner along with other local tax filings.
Development charges are quasi-taxes collected from project implementers on the profits generated from various development projects. They were introduced under the Act on the Return of Development Gains. This system is designed to recover development gains from land development to prevent speculation and promote efficient land use. It taxes the net profit?calculated by deducting development costs from the increase in land prices caused by housing site development, industrial complexes, logistics complexes, golf course development, redevelopment projects, etc., on sites above a certain size?at rates of 20% or 25%. Project implementers must calculate development costs according to relevant laws and report them to local governments within 40 days from the completion date. Failure to comply may result in a fine of up to 2 million KRW.
Considering that development charges are not classified as taxes and are little known even among tax professionals, Samil PwC formed a dedicated team earlier this year composed of certified public accountants, tax accountants, cost analysts, and lawyers in accordance with the Act on the Return of Development Gains. This team has been registered as an official institution for the calculation and review of development costs.
Yang In-byeong, a partner at Samil PwC leading the Development Charge Specialized Service Team, stated, “We have successfully handled numerous development charge reporting tasks for completed urban developments, apartment sites, and single-family home sites in the Yongin area of Gyeonggi Province and other local regions recently. Based on the real estate development expertise we have accumulated so far, we have become the first accounting firm capable of providing one-stop services from local tax advisory related to land development to development charge calculation and consultation.”
For more details, please visit the Samil PwC website.
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