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South Korea to Raise Possession Tax on Owners of High-priced and Multiple Home and Land from 2019

Updated:2018-7-9 9:45:51    Source:www.tannet-group.comViews:63

It is reported that South Korea's government announced a plan on July 6th to raise possession tax on owners of high-priced and multiple home and land from next year.

The revised tax code aimed to increase tax burden for high-priced and multiple home and land owners to control speculative investment in the real estate market, while the possession tax for commerce buildings and factory land would be unchanged, according to the Ministry of Strategy and Finance.

If the tax code is revised according to the government's plan, approximately another 742.2 billion won (662 million U.S. dollars) was expected to be collected in property possession tax from some 349,000 home and land owners.

The tax code revision would have little impact on one-home owner.

Those who possess a home worth 1.2 billion won (1.07 million U.S. dollars) in posted price, or 1.7 billion won (1.52 million U.S. dollars) in market price, will be required to pay 50,000 won (44.6 U.S. dollars) more in property tax from next year.

Those having a home worth 3.5 billion won (3.12 million U.S. dollars) in posted price, or 5 billion won (4.5 million U.S. dollars) in market price, will be required to pay 4.33 million won (3,863 U.S. dollars) more in possession tax.

People who have at least three high-priced homes will be required to pay additional 11.79 million won (10.520 U.S. dollars) in property possession tax from next year.

With the higher possession tax rate, the government expected the ratio of property possession tax to gross domestic product (GDP) to rise from 0.8 percent in 2015 to 1 percent by 2022. (Source: Xinhua News)

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