Gyeonggi Province has become the first in the nation to publish and distribute the "TokTok (TOK TALK) Acquisition Tax" booklet and e-book, which organizes the acquisition tax system in an interactive Q&A format, on August 4.
The name "TokTok Acquisition Tax" signifies a tax conversation guide that provides answers when you ask questions ("TOK" and "TALK" being a play on words).
Gyeonggi Province selected 500 frequently asked questions from taxpayers and included them in the booklet, dividing the content into a "Basic Section"?covering basic tax rates, criteria for single and multiple home ownership, and acquisition tax reductions for first-time home or vehicle buyers?and an "Advanced Section," which addresses corporate acquisitions, inheritance and gifts, majority shareholders, and requirements and cases for tax reductions and additional taxation.
The booklet is characterized by its inclusion of specific real-life examples and relevant legal provisions, making it easy to understand and use for everyone from novice taxpayers to tax officials.
Among the main topics, the most common inquiry was about acquisition tax reductions for vehicle purchases by parents with multiple children. According to the revised Local Tax Special Cases Restriction Act, which took effect on January 1, 2025, individuals raising two or more children under the age of 18 are eligible for acquisition tax reductions when acquiring and registering a vehicle.
For vehicles with seven or more seats, if there are three or more children, the acquisition tax is fully exempted; if there are two children, a 50% reduction applies. For vehicles with six or fewer seats, if there are three or more children, up to 1.4 million won is exempted, and if there are two children, up to 700,000 won is reduced by 50%.
There were also many questions regarding tax reductions when purchasing a home after childbirth. For households with children born after 2024, if a home valued at 1.2 billion won or less is purchased within five years of the child's birth, up to 5 million won in acquisition tax can be reduced. However, this only applies to households that own a single home.
Gyeonggi Province distributed the printed booklets to city and county tax departments, and also published the e-book version for easy access anytime and anywhere on the Gyeonggi Province e-book website (ebook.gg.go.kr).
Ryu Youngyong, head of the Gyeonggi Province Tax Administration Division, stated, "We have produced this acquisition tax casebook to realize taxpayer-centered tax administration," and added, "We will continue to develop and distribute various tax administration content and further strengthen our capacity to respond to civil inquiries."
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