Government Finalizes Tax Law Revision Plan: Cancels Cut to 900 Million Won, Keeps 150% Cap... Stock Valuation Rules Excluded

In the real estate tax reform plan announced by the government on September 1, the basic deduction for non-resident single-homeowners in the comprehensive real estate holding tax will be restored to 1.2 billion won from the previously proposed 900 million won. The government also decided to abandon its earlier plan to raise the maximum tax burden limit for the comprehensive real estate holding tax from 150% to 200%, opting instead to maintain the current 150% limit.

Measures to improve the valuation method for listed stocks, which is relevant to suppressing stock prices, will be addressed through amendments to enforcement ordinances rather than the law itself. The final plan is expected to be decided after further deliberation in the National Assembly.

Yonhap News

The Ministry of Economy and Finance announced that 11 revised tax bills, including these measures, were approved at a Cabinet meeting presided over by President Lee Jaemyung on this day. The administration will submit the finalized 2026 tax reform bill to the National Assembly by September 3. The reform plan will be confirmed following deliberation in the regular session of the National Assembly.

The government announced the tax reform plan on August 3 through the Tax System Development Review Committee, then underwent inter-ministerial consultations and the legislative preview process.

The previously proposed tax reform had called for lowering the basic deduction for non-resident single-homeowners from 1.2 billion won to 900 million won, and for non-resident married couples with joint ownership, limiting the deduction to 400 million won each, for a total of 800 million won.

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