While the ruling party is pushing for partial easing of the comprehensive real estate tax, if a couple owns a house in a joint name, they are not considered as one householder, so noise continues. However, some analysts say that it can be advantageous because it is possible to apply for a change to charge the tax in a single name.
border-top: 3px solid #cf0a2c;
According to the Ministry of Strategy and Finance and the National Tax Service on the 27th, if a couple owns one house jointly, they are not considered as one householder.
This is because “one householder” refers to a person who owns a house when only one of the members of the household owns one house alone.
According to the Income Tax Act, a first-generation is defined as a family unit in which a resident and his/her spouse, siblings, etc. live at the same address. Double spouses are grouped in the same generation even if they live separately.
In particular, the comprehensive real estate tax applies tax rates as if you own a house, even if you own only a share of the house or annexed land. In other words, if a couple jointly owns a house with a 50% stake each, they are considered to own one house each within a household. Similarly, if a couple owns two houses, they become multi-family dwellers, each owning two houses.
For this reason, the owner of a single house under the joint name of a married couple receives a deduction of 1.2 billion won in total by applying the general deduction amount (600 million won) instead of the basic deduction amount (900 million won) for one householder.
Since a married couple is not a single householder, they are not included in the subject of tax relief promoted by the ruling party. Some have pointed out that the combined deduction amount for married couples should also be raised in line with the expansion of the deduction scope for single-family homeowners, but there is currently no basis for providing additional benefits to the spouses jointly.
Previously, the ruling party confirmed the party’s opinion that limits the tax base to be imposed on first-generation, one-family homeowners to the top 2% of publicly available prices. After ranking from 0 to 100% of the total amount of publicly announced real estate owned by an individual, one homeowner in the lower section based on the top 2% is excluded from taxation.
As of this year, the price of the top 2% of all houses is estimated to be in the low range of 1.1 billion won based on the official price. This is lower than the deductible for a married couple’s joint name (1.2 billion won).
However, if real estate prices rise in the future, the 2% baseline is likely to rise further. In the future, if the public announcement of a single householder exceeds the baseline of 1.2 billion won, the incentive to maintain the joint title of the couple will disappear.
However, under the current system, co-owners can apply for a change in the tax rate in a way that is more favorable to them, either jointly or single.
In addition, if the combined deduction amount for married couples, which is 1.2 billion won in total, is increased by 600 million won per person, the possibility that the basic tax deduction amount will be increased in the end cannot be excluded.
The ruling party announced that it would review additional application plans for single-family couple co-owners while finalizing the party’s argument on the property tax. However, it is reported that the current 2% baseline is lower than the 1.2 billion won deductible in the joint name of the couple, so there is no need to come up with a supplementary plan right now.