Lim Kwanghyun Says Heavier Capital Gains Tax on Multi-Homeowners Could Boost Taxes by Up to 2.7 Times

Simulation of Tax Burden Released via Social Media
"Consistency Is Crucial in Tax Policy"

National Tax Service Commissioner Lim Kwanghyun said on the 3rd, "If the temporary suspension of the heavier capital gains tax on multi-homeowners ends, in the case of a capital gain of 1 billion won, the tax burden for owners of two homes will surge by up to 2.3 times, and for those owning three or more homes by up to 2.7 times."

On this day, Commissioner Lim wrote on Facebook, "I ran a simulation to see how much the tax burden would increase if the temporary suspension of the heavier capital gains tax on multi-homeowners ends," making these remarks. With the end of the temporary suspension approaching, the head of the tax administration directly mentioned the scale of the tax increase, stressing the need to normalize the tax system.

Im Kwanghyun, Commissioner of the National Tax Service. The Asia Business Daily DB

Commissioner Lim said, "Looking at cases around 2021, when the current heavier taxation rules were in effect, the number of home transfer cases by multi-homeowners in designated adjustment areas surged from 39,000 in 2019 to 71,000 at the time of the announcement in 2020, and to 115,000 in 2021 when the rules took effect," adding, "How disheartened must many people have been in 2022 when the policy was suspended, even though they had trusted the government's policy and made reasonable decisions like this."

Commissioner Lim also emphasized the importance of policy credibility. He said, "Government policies, especially tax policies, must be consistent. Normalization is now under way," and added, "As soon as the details of the end of the temporary suspension of the heavier capital gains tax are finalized and announced, the National Tax Service will operate a 'dedicated filing and consultation desk for heavier capital gains tax in designated adjustment areas' until the suspension ends."

Im Gwanghyun, Commissioner of the National Tax Service, Facebook.

Meanwhile, on the same day, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance Koo Yooncheol also reaffirmed the policy to end the temporary suspension of the heavier capital gains tax on multi-homeowners as scheduled, saying, "To restore policy credibility and normalize the market, we plan to end the temporary suspension of the heavier capital gains tax on multi-homeowners," and confirming that the temporary suspension of the heavier capital gains tax on multi-homeowners, which expires on May 9, will end as planned.

This content was produced with the assistance of AI translation services.