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🇰🇷 South Korea /Economy & Trade

Democrats leave room to further ease property-tax deductions for nonresident homeowners

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • The government submitted a revised tax package that keeps the 1.2 billion won basic deduction for nonresident owners of a single home and shifts the long-term capital-gains deduction toward actual residence.
  • The Democratic Party called the revision reasonable but said lawmakers could adjust details during the regular session’s tax review.
  • Some Seoul lawmakers want the deduction for nonresident homeowners raised to 1.4 billion won, while the party also plans an inheritance and gift-tax bill aimed at preventing stock-price suppression.

The government has kept the basic comprehensive real-estate tax deduction for nonresident owners of a single home at 1.2 billion won, but the ruling Democratic Party has not closed the door on changing that decision.

The revised tax package, submitted to the National Assembly on Sept. 3, would reshape the long-term holding deduction for capital-gains tax around actual residence. The Democratic Party described the plan as a practical adjustment that makes a residence-centered tax system clear.

A reasonable result reached after listening to the views of the public and the market and deliberating between the party and government.

· Han Byung-doThe Democratic Party floor leader described the government’s revised tax package.

Han Byung-do, the party’s floor leader, called it “a reasonable result reached after listening to the views of the public and the market and deliberating between the party and government.” The party policy committee likewise called it a realistic and reasonable adjustment. Han said the party would listen to public opinion and improve the quality of the budget and tax system during the Assembly’s review of tax bills.

We will listen to the public’s voices and improve the quality of the budget and tax system.

· Han Byung-doHan left open further adjustments during parliamentary review.

Within the party, lawmakers representing Seoul districts have repeatedly argued that the basic deduction for nonresident single-home owners should also rise to 1.4 billion won, matching the deduction for actual residents. Lawmakers are also watching whether the proposal to replace the long-term holding deduction with a long-term residence-income deduction will be revised.

A member of the party’s task force on housing-market stabilization said there had been little disagreement within the party over the capital-gains tax reform, but that its effects on the market, including jeonse and monthly-rental supply, would be examined closely. The broad principle of residence-based deductions would remain, the lawmaker said, while some details could change. The party is also considering revisions to a government proposal to phase out preferential long-term holding deductions for registered rental businesses. Separately, it said it would prepare an inheritance and gift-tax amendment aimed at preventing measures that push down stock prices.

The broad principles will remain, but we will discuss the details flexibly.

· Unnamed Democratic Party policy task force lawmakerThe lawmaker described the party’s position on residence-based deductions and capital-gains tax reform.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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