If a single homeowner aged 60 or older moves out by reducing the size of their house, they will be able to transfer 100 million won of the difference to their pension account.
A pension account is a tax-saving product in which the government provides various tax benefits to ensure the people's income in retirement. If you deposit into a pension account, you can save a significant portion of the 15.4% interest and dividend income tax.
The Ministry of Strategy and Finance plans to implement the amendment to the Enforcement Decree of the Income Tax Act, which contains these contents, from July 1 this year.
The government has decided to allow married couples with one home, where one of the couple is 60 or older, to pay 100 million won of the profit to a pension account when they sell their existing home and buy a cheaper home.
The target house is a case where the standard market price is less than KRW 1.2 billion and the payment is made to the pension account within 6 months from the date of selling the existing house.
It does not apply if you are buying a home that is more expensive than your existing home.
(Photo = Yonhap News)