Individuals subject to comprehensive real estate tax decreased 60% YoY

Individuals responsible for payment of comprehensive real estate holding tax in 2023 have declined by 60 percent year-on-year. With the number of taxpayers subject to comprehensive real estate holding tax reduced to one-third of the previous year, the total sum of comprehensive real estate holding tax also decreased by 30% year-on-year.

The Finance Ministry stated on Wednesday that the number of individuals subject to taxation of comprehensive real estate holding tax was estimated to be 499,000, down by 61.1 percent, or 784,000, compared to last year’s 1,283,000. The total tax income was estimated at 4.7 trillion won, down by 2 trillion won year-on-year. The decrement mainly arose from the reduction in housing property tax. The number of individuals subject to comprehensive real estate holding tax on housing was set at 412,000, down by 783,000, or 65.5 percent, from last year’s 1,195,000.

The reduction of the number of individuals subject to comprehensive real estate holding tax and the amount of tax income is attributable to the increase in the basic tax credit threshold from 600 million won to 900 million won (for a single house owner, from 1.1 billion won to 1.2 billion won), while the publicly notified property price, which serves as the tax base, has been slashed significantly. The publicly notified property price of multi-family housing, including apartments and row houses, across the country has declined by 18.61 percent year-on-year.

The amount of comprehensive real estate holding tax decreased from 3.3 trillion won to 1.5 trillion won year-on-year. The National Tax Service started to issue comprehensive real estate tax notifications a week ago. The tax must be paid by Dec. 15.


Do-Hyong Kim dodo@donga.com