The same benefits are granted when public obligations are fulfilled
Owners of multi-family houses “need to interpret the authority”
A view of the residential area in Seoul from Namsan. photo = Yonhap News
Registered housing rental companies have also been recognized as ‘win-win landlords’. It accepted the market’s point that it would be against equity to not give benefits to the fulfillment of public obligations such as a win-win landlord, such as limiting the increase in rent.
An official from the Ministry of Strategy and Finance said on the 23rd, “The win-win landlord can receive transfer tax exemption benefits even when the rate of increase is limited to 5% using the right to apply for contract renewal by the tenant. We have decided to give the same benefits of this measure if they are satisfied.” Registered rental business operators are given public obligations, such as limiting the increase in rent to 5% or less during the rental obligation period. Failure to do so will result in penalties such as cancellation of rental registration, return of tax benefits, and imposition of fines for negligence.
In accordance with the government’s decision, registered rental business operators who limit the increase in rent to 5% or less in contracts signed for the period from December 20, last year to December 31, 2024, will remain in the status of one house after the obligatory rental period for the house expires. If you sell in the company, you can get a transfer tax exemption without real residence for two years. If the lessor and the rental property are the same and the increase in rent is limited to 5% or less compared to the previous contract, the two-year obligation of real residence is exempted even if the lessee changes.
However, if the lessee leaves the two-year contract after limiting the rent by 5%, regardless of the cause attributable to the tenant, the win-win lessor benefits are not provided to the landlord. An official from the government explained, “There may be unhappy lessors, but there are cases where lessors and lessees work together to get tax benefits, stay for only one or two days and cancel the lease, so we inevitably set the rental period.”
Further discussion is expected on the scope of the multi-family house owner’s recognition as a mutually beneficial tenant. Unlike multi-family houses, which are classified as multi-family houses after classification registration, multi-family houses are classified as detached houses under the tax law. For this reason, if the owner does not own another house, he becomes a single owner regardless of the number of rental objects in the multi-family house.
In such a situation, it is unclear whether a win-win rental benefit will be provided even if only 1 out of 10 households contract with less than 5% of the total without real residence in this situation, or whether all 10 households will receive benefits by observing the 5% increase rate. A government official said, “It is a matter of interpretation, so an authoritative interpretation is necessary.”
Oh Se-seong, reporter at Hankyung.com email@example.com
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