Home News Dropped the ‘tax bomb’ on the 22nd… Even if the standard is raised to 1.1 billion won amid skyrocketing house prices, taxpayers and tax revenue surge

Dropped the ‘tax bomb’ on the 22nd… Even if the standard is raised to 1.1 billion won amid skyrocketing house prices, taxpayers and tax revenue surge

by news dir

National Tax Service to send tax bills for this year on the 22nd
Briefing on specific details such as the Ministry of Finance and the scale of taxation
Increase in public price and tax rate increases taxpayers and tax revenue

▲ Promotion of tax relief
On the 7th, a banner to promote the ruling party is hanging in downtown Seoul stating that the comprehensive real estate tax base line for one household per household will be relaxed. As the revised tax law was promulgated at the cabinet meeting on the same day, the tax base was raised from 900 million won to 1.1 billion won.
News 1

The comprehensive real estate tax (special property tax) bill for this year will be released on the 22nd. This is the first taxation since the disclosure price of one house per household was raised from 900 million won to 1.1 billion won. The point to watch is whether the 800,000 taxable line will be broken.

According to the government on the 21st, the National Tax Service will send a tax notice for this year on the 22nd. You can check it on the same day at Hometax, an internet tax payment service, and it will be delivered within 24 to 25 days by mail. The deadline for reporting and payment is from December 1 to 15. On the 22nd, the Ministry of Strategy and Finance will announce specific details regarding the notification of the ‘2021 housing sale property tax’. The amendment to the Property Tax Act, which relaxed the tax base to reflect the trend of rising house prices, came into effect on September 7th. The market price of an apartment with an official price of 1.1 billion won is about 1.6 billion won.

In addition, the Democratic Party’s special real estate committee predicted that 765,000 people will be eligible to pay the estate tax this year. This is an increase of 100,000 from the number of taxpayers last year of 665,000. When the existing tax base of 900 million won was maintained, the number of people decreased by 89,000 from the estimated 854,000. Property tax revenue from the housing segment is expected to quadruple from 1.459 trillion won last year to 5.736.3 trillion won this year.

Even though the tax base was relaxed from 900 million won to 1.1 billion won, the number of taxpayers and tax revenue increased even more. This means that the effect was halved because the law could not keep up with the rate of increase in house prices. The Democratic Party’s real estate special committee explained, “The impact of the soaring house price and the realization of the announced price is huge.”

There is also an expectation that there is a possibility that the number of taxpayers will exceed 800,000. As the announced price rises sharply this year, the actual taxable person may exceed the forecast. This year, the rate of increase in public housing prices nationwide recorded 19.09%, the largest increase in 14 years.

Interest is also focused on whether tax revenue will exceed 6 trillion won as the property tax rate rises. This year, the general property tax rate for single-family homeowners rose 0.1-0.3 percentage points from 0.5-2.7% to 0.6-3.0%, and the tax rate for multi-homeowners doubled from 0.6-3.2% to 1.2-6.0%.

Concerns have spread that a ‘super-strong tax bomb’ will be dropped due to the increase in the tax rate. In Seoul, the tax on property taxes for those who own two 30-pyeong ‘bright’ houses in Seocho-gu and Mapo-gu will increase by about 160% from 34 million won last year to 88 million won this year. When property tax is added, the property tax exceeds 100 million won.

Then, on the 19th, 1st Vice Minister of Strategy and Finance Lee Won Lee said, “The tax bill is not sent to 98% of the people. “The concerns are exaggerated,” he said. Democratic presidential candidate Lee Jae-myung also launched a political offensive against Yoon Seok-yeol, the People’s Power presidential candidate, who pledged to fully reconsider the taxation, saying, “Only the top 1.7% of the taxpayer pays the tax.”

Reporter Sejong Lee Young-joon [email protected]

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