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On the 1st, the government revised the '2026 Tax Reform Plan' to increase the property tax (property tax and comprehensive real estate tax) at the Cabinet meeting, but the capital gains tax portion will proceed as originally proposed. The capital gains tax reform aims to reduce the deduction for the holding period for single-home owners, and to switch to a residence deduction. The Democratic Party conveyed to the government the opinion to postpone the strengthening of the capital gains tax for single-home owners following the easing of the property tax, but the government plan confirmed at the Cabinet meeting only included the property tax reduction.  The Democratic Party plans to push for further amendments during the National Assembly deliberation process, but the government intends to maintain a tax policy policy that differentiates property and capital gains taxes based on the length of residence for single-home owners, so the tug-of-war between the party and government is expected to continue. If the tax reform bill passes the National Assembly, the basic capital gains deduction for single-home owners who have lived there for more than 10 years (with a capital transaction value of 3 billion won or less) will be greatly expanded from the current 2.5 million won per year to 225 million won per year. On the other hand, even for single-home   owners with a market value exceeding 3 billion won, the deduction level is adjusted according to capital gains. If a new 1 billion won deduction limit per residence period is added to the current long-term holding special deduction, the capital gains tax burden for high-priced homes with short residence periods and large capital gains will increase even more. The special long-term holding deduction system will be completely abolished starting in 2029 and replaced by a residence-focused 'long-term residence income deduction.' ,,, If a single-home owner who rents an apartment in Seoul worth around 3 billion won for 2 years and rents for 8 years based on a capital gain of 2 billion won estimates capital gains, the current deduction requires about 100 million won (including local income tax), but after the deduction is abolished in 2029, the tax will be 470 million won!!!!!!