Approximately 310,000 taxpayers were subject to the maximum tax cap for Comprehensive Real Estate Holding Tax last year, 72 times larger than in 2017 when President Moon Jae-in was inaugurated.
According to data submitted by lawmaker Kim Sang-hoon of the People Power Party with the Planning and Finance Committee on Monday, the number of taxpayers subject to the highest incremental increase rate turned out to 309,053.
The current law states that households with one property will be subject to 150 percent of last year's property and comprehensive real estate holding tax. In contrast, those with multiple properties will be subject to 300 percent of last year's taxes. In 2017, only 4,301 were subject to the tax cap, but the number increased to 62,358 in 2019 and 128,553 in 2020, and 309,053 in 2021. The number increased by 71.9 times in 2021 compared to 2017.
The number of applicable taxpayers increased due to higher published housing prices and comprehensive real estate holding tax and fair market value, which impacted the significant rise in comprehensive real estate holding tax. Initially, the prevailing view was that fewer taxpayers would be subject to the tax rate as the cap for taxpayers owning two properties in regulated areas was adjusted from 200 to 300 percent. On the contrary, however,
the figure increased. Accordingly, the unpaid comprehensive real estate holding tax exceeding the tax cap stood at 241.8 billion won, 468 times the amount in 2017 (at 500 million won).
Last year, among those subject to the tax cap rate, households holding a single property amounted to 161,831, which was higher than those subject to heavy tax rates, including those owning multiple properties, at 147,222. "President Moon said that he would enforce higher holding tax rates for those owning multiple properties during his term, but in reality, the tax burden also became heavier for those with a single property," Kim pointed out.