The tax standard for comprehensive real estate tax (comprehensive real estate tax) for 1 household and 1 homeowner will be eased from 1.1 billion won to 1.2 billion won.



The tax base for multi-housing owners is also eased from KRW 600 million to KRW 900 million, and those with two houses in the target area for adjustment are excluded from heavy taxation on multi-housing properties.



For three or more houses, heavy taxation is imposed when the total tax base exceeds KRW 1.2 billion.



The top tax rate for comprehensive real estate tax will also be lowered from 6% to 5%.



The National Assembly held a plenary session today and passed an amendment to the Comprehensive Real Estate Tax Act with these contents.



The proposed bill is an amendment prepared by the ruling and opposition parties through discussions in the standing committee and negotiations with the in-house leadership. From next year, the basic deduction amount will be raised from the current 600 million won to 900 million won, and the additional deduction for a single homeowner will be lowered from 500 million won to 300 million won. It's the gist.



As a result of the vote at the plenary session, it was passed with 200 votes in favor, 24 against, and 34 abstentions out of 258 present.



When the New Year's amendment is promulgated, single-homed people will be able to receive deductions of up to 1.2 billion won and multi-homed people up to 900 million won, respectively.



It is a measure to correct the excessive tax burden of 'low-price 2 homeowners' compared to 'high-priced 1 homeowner'.



Under the existing structure, a person with a single home can receive a deduction of up to 1.1 billion won by adding a basic deduction of 600 million won and an additional deduction of 500 million won for a single home owner, whereas the upper limit of the deduction is limited to a maximum of 600 million won for a person with two low-priced homes, which is unreasonable. It has been pointed out that



As the amount of basic deduction increases, a homeowner in the joint name of a married couple will receive a basic deduction of 900 million won each for a total of 1.8 billion won.



Heavy taxation will also be abolished for up to two households.



Previously, the heavy tax rate was applied to second-homeowners if they owned a house in the area subject to adjustment, but this was converted to the new lowered basic tax rate and applied.



Through this amendment, the basic tax rate was lowered from the current 0.6% to 3.0% to 0.5 to 2.7%.



For multi-homed people with 3 or more houses, the progressive tax system will be maintained from the tax base exceeding 1.2 billion won, but the tax rate will be 2.0-5.0%.



In other words, if the total tax base for three or more houses is less than KRW 1.2 billion, it will be excluded from heavy taxation, and the highest comprehensive real estate tax rate will be lowered by 1 percentage point (p) from the current 6% to 5%.



Initially, the government and the ruling party pushed for the revision of the law, claiming the same level of heavy taxation (abolition) for owners of 3 or more houses as those with 2 houses, but the Democratic Party strongly opposed it, saying it was 'encouraging real estate speculation'.



In the end, in the process of discussions with the standing committee and negotiations with the leadership in the hospital, an agreement between the ruling and opposition parties was reached on the line of partially easing the heavy penalty standards for people with three or more homes and lowering the highest tax rate.