Transfer income tax, heavy tax forthe multihousing owner

31^st Jan 2018

Written by Hyun, Seon Ki

Translated by Park, Eun Kyung

1.Outline

10%was added to the basic transfer income tax for the multihousing owner who hasover 3 houses in the designated speculative zone from 3^rd August2017.

10%~20%will be added to the transfer income tax for the multihousing owner from 1^stApril 2018.

Letme look through a revised income tax.

2.Transfer income tax, heavy tax for the transfering houses from 3^rdAugust 2017 to 31^st March 2018.

Condition:Having over 3 houses, house in the designated speculative area, transfer 3^rdAug 2017~31^st March 2018.

10%will be added to the general exceed progressive tax rates 6~42%.

Butlong term retain special deduction will be applied in this case.

(1)Over 3 houses calculation method.

    Over 3 houses and it should be met followconditions.  

1) House location

    Capital area, and 5 th metropolitan city (Daejun,KwangJu, Daegu, Busan, Ulsan)

    (But military area etc in the Incheon,Kyunggi-Do will be excluded)

2) House price

     Over 300 million.

(2)House which is not added 10% and applied general exceed progressive rate

① Rental house of private newly purchasedrental house operator after 30^th Oct 2013.  

   ② Purchased rentalhouse operator before 29^th Oct 2013.

   ③ Rental house of construction rentalhouse.

   ④ unsold apartment operator outsidecapital area.

   ⑤ Long term rental house applied TaxReduction and Exemption Control Act.

   ⑥ Free rental house for long term employee.

   ⑦ Newlyconstructed house applied Tax Reduction and Exemption Control Act.

   ⑧ Cultural asset house

   ⑨ Heritance 1 house

   ⑩ Mortgageexecution house which is payment in substitutes.

   ⑪ Long termdaycare center

   ⑫ Small house

   ⑬ 1 house possessionexcluded above house condition.