2 years before the actual rate of disclosure… property tax break
The government has decided to reduce property tax and comprehensive real estate tax next year to the 2020 level.
To this end, it was decided to virtually scrap the government’s public price realization scheme.
Contact reporters to find out more.
Reporter Paeng Jae-yong.
Yes, this afternoon Lands, Infrastructure and Transport Minister Won Hee-ryong announced plans to lower real estate ownership taxes.
The key is to lower the so-called realization rate, which is the ratio of the official price to the actual transaction price of real estate next year.
The Ministry of Land, Infrastructure and Transport has decided to reduce the official price realization rate from 71.5% this year to the 2020 level.
In this way, the rate of realization of the published price of flats will be reduced to 69% on average and 53.6% for single family houses.
It is to turn back the clock to just before the official price realization road map established by the Moon Jae-in administration is implemented.
In fact, it can be seen that he has entered the process of eliminating the realization plan.
Minister Won Hee-ryong emphasized the need to normalize the policy, saying that “various problems have been highlighted, such as an increase in the tax burden due to the sudden increase in publicly announced prices.”
In particular, he criticized that “90% of the realization rate is considered to come from ignorance or ignorance of the market.”
It is said that the property tax will also go down, but has there been a specific reduction?
There are two main things that the government has established as a plan to reduce property tax, namely local tax.
One is to reduce the rate of realization of the public price explained above, and the other is to reduce the ratio of fair market value multiplied by the public price to calculate the property tax.
It has already been cut from 60% to 45% this year, but one home owner will reduce this rate next year.
The reduction rate is expected to be confirmed around April next year after the price of public housing is revealed.
The official price realization rate and the fair market value rate reduction are only possible by amending the Enforcement Decree, but the government has also decided to control the rapid increase in taxes by amending the relevant laws.
Even if the publicly announced price skyrockets, the rate of tax increase is limited to a maximum of 5% so that the property tax burden does not increase suddenly.
In addition, it is a policy to allow deferment of property tax payment until the time of inheritance or gift of a house for those who are 60 years of age or older and long-term owners of 5 years or more.
However, the tax cap and the payment deferral system are legislative matters, so whether they are introduced or not depends on the discussions in the National Assembly in the future.
So far, we have delivered from the Seoul Government Complex. ( [email protected] )
# Real estate #holding tax #official_price_realization_rate #reduced_to_the_level_of_the_year_before_last