Namyangju City, Local Tax Reform Including Expansion of Automobile Acquisition Tax Reduction to Overcome Low Birthrate

Local Taxes to Change from 2025
Revisions and Application of Local Tax Laws Closely Related to Citizens' Lives

Namyangju City, Gyeonggi Province (Mayor Joo Gwang-deok) announced on the 3rd that local tax-related laws closely connected to citizens' lives will be revised and applied starting this year.

Namyangju City Hall view. Provided by Namyangju City

The local tax reform includes key measures such as △expanding automobile acquisition tax reductions to overcome low birth rates △exempting acquisition tax for small-sized housing to reduce housing cost burdens for low-income citizens △strengthening tax benefits to support businesses and individual entrepreneurs △simplifying procedures for taxpayer convenience.

First, to overcome low birth rates and support public welfare, families with two children will receive a 50% reduction in automobile acquisition tax, and families with three children will continue to receive a 100% exemption on automobile acquisition tax for three years.

Additionally, to promote a culture of shared child-rearing between companies and society, acquisition tax and property tax for all daycare centers operated by companies, whether directly managed or entrusted, will be 100% exempted, and resident tax (business office portion) for individual entrepreneurs directly managing daycare centers will be waived.

To reduce housing costs for low-income citizens, acquisition tax up to 3 million KRW will be exempted this year for small-sized housing (excluding apartments) purchased for the first time in a lifetime.

Furthermore, for taxpayer convenience, the annual automobile tax can be paid in a lump sum, maintaining a deduction rate of about 5% for benefits.

In particular, to encourage employment expansion in small and medium-sized corporations, the exemption criteria for resident tax (employee portion) imposed when hiring staff have been raised from a total monthly salary of 150 million KRW or less to 180 million KRW or less.

Moreover, to promptly protect taxpayers' rights, the public notice procedure for one month after the local tax review committee's deliberation has been omitted, simplifying the suspension process of delinquent tax disposition.

Jang Dong-dan, Head of the Taxation Division, stated, “Namyangju City will continue to actively promote local tax information that citizens can easily understand, reduce tax burdens through efficient management, and do its best to provide taxpayer convenience so that more benefits can be enjoyed.”