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Ministry of Strategy and Finance “Non-metropolitan area subject to taxation is insignificant”

The government clarified that “the proportion of housing subject to taxation (in non-metropolitan areas) is insignificant” in response to the media’s criticism of the burden of comprehensive real estate tax (special property tax) in non-metropolitan areas.

On the afternoon of the 28th, the Ministry of Strategy and Finance said in the clarification data related to the property tax on the afternoon of the 28th, “As a result of analyzing the amount of property tax for housing divisions by provinces and cities outside of the metropolitan area, the amount of property tax for housing divisions in 2021 varies by region, but multi-homeowners and corporations outside Seoul The proportion of the amount of tax paid is 93-99%.”

According to the Ministry of Strategy and Finance, the ratio of multi-homeowners and corporations nationwide to pay 88.9% of this year’s property tax notice, and that among the proportions of houses with a market price of 1.6 billion won (approved land price 1.1 billion won) by city and province, the non-metropolitan area was insignificant.

According to this, the number of houses with a market value of more than 1.6 billion won is ▲Seoul 300,000 (86.6%) ▲Gyeonggi 34,919 (10.1%) ▲Incheon 386 (0.1%). 11.11% of the total number of houses (18,34,692) is concentrated in the metropolitan area. On the other hand, in non-metropolitan areas, ▲Busan 6410, Daegu 3201, and Daejeon 702, etc.

Based on this, the Ministry of Strategy and Finance emphasized, “This means that most of the taxpayers who have an address in a non-metropolitan area are multi-homeowners, corporations, or owners of houses in the metropolitan area such as Seoul.”

In this regard, Lee Hye-ri, director of the Urban Planning Research Institute, said, “The share of houses that have to pay the property tax is 2.8% of the total, and less than 1% of this is in the provinces. It is true that the upward adjustment should be made in consideration of the inflation rate, but it is true that most of them are concentrated in Seoul. In rural areas, the response to taxation is not very sensitive,” he explained.

On the other hand, Seo Jin-hyeong, a professor of business administration at Kyungin Women’s University, president of the Korean Real Estate Association, said, “In the case of rural areas, even if there are many corporations, there are people who actually increase the tax rate by 150% to 1000%. It’s not reasonable. “This is unfair in view of tax equity and ability to bear taxes,” he said.

[ 경기신문 = 현지용 기자 ]

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