The amount of tax for houses is higher than for land for the first time… Appeal to tax burden – Expected to surge in application for payment in installments
Mr. A (51), who lives in Seoul, recently received a comprehensive real estate tax (special property tax) bill of more than 3 million won and complained to the tax office. Mr. A said, “It has been less than 10 years since I married an elderly mother-in-law who owns a house, so I am subject to a special case, but the tax is imposed on a person with multiple houses. .
This year, for the first time ever, the number of people paying property taxes on houses and land exceeded 1 million. As house prices surged due to the rise in house prices and increased taxation on multi-family homeowners, the total property tax amount doubled from last year. It is predicted that the number of people subject to taxation and the amount of tax will increase significantly, and the number of objections will increase.
The National Tax Service announced on the 24th that the number of taxpayers to pay tax in 2021 was 1027,000, an increase of about 280,000 (38%) from last year (744,000). The number is the sum of 947,000 people for housing and 80,000 for land. The amount of tax to be announced is 8.6 trillion won, including housing (5.7 trillion won) and land (2.9 trillion won). This is twice the level of last year (4.3 trillion won). It is the first time since the introduction of the property tax in 2005 that the tax amount for housing has increased more than for land.
The number of people subject to land division tax increased by about 3,000 compared to the previous year. The amount of land sales tax increased by 400 billion won. The land division tax is interpreted as the effect that the official land price, which is the standard for calculating the tax amount, rises due to the increase in land price, and the fair market value ratio also rose from 90% to 95%. The tax is payable from the 1st to the 15th of the following month. If it is determined that the notified tax amount is unreasonable, an objection may be filed within 90 days of receipt of the notice. However, even if an objection is filed, the penalty is not charged once the notified amount is paid within the specified period. An official from the National Tax Service said, “There are not many objections to the tax alone because the tax amount is set in conjunction with the property tax.”
However, this year’s taxpayer’s objections and installment payments are expected to increase as the property tax increases more than expected. On the internet community, articles were posted one after another saying that they would file an objection, saying, “The tax on property taxes is too high, so I want to know the details of the calculation.”
Taxpayers who have to pay more than 2.5 million won in tax payable can apply for the installment payment by the 15th of the following month. Part of the tax amount must be paid by the 15th of the following month and the rest by June 15th of next year. According to the government, the amount of application for tax payment in installments last year was about 30% of the total tax amount.
The amount of tax revenue the government will collect is expected to increase more than the previous estimate. Previously, the government forecasted 5.1 trillion won in tax revenue this year and 6.6 trillion won next year.
Sejong = Reporter Joo Ae-jin [email protected]
Copyright by dongA.com All rights reserved.