I don’t have money, so I can’t pay taxes? It has never exceeded 3% of applicants for installment payment

Controversy over the recurrent tax burden
The rate of application for installment payment is 0.66%~2.95%
“Applicants for installment payment are likely to increase significantly this year”

A view of the Seocho-gu area as seen from Namsan Mountain in Seoul. yunhap news

While the comprehensive real estate tax notice was announced this year, the ‘controversy over the tax burden’ is repeated, saying, “I do not have the money to pay the estate tax” because I have a lot of assets but low income. Are there really many who have a weak bearing power among taxpayers? According to the data on the status of application for tax payment in installments (including housing and land) on the National Statistics Portal on the 23rd, the number of people (including individuals and corporations) who applied for tax payment in installments between 2008 and 2019 never exceeded 3%. The highest rate of installment payments was 2.95% (12,176 out of 412,543) in 2008. Even in the era of the ‘super-strong taxation tax’, which was based on a tax base of 600 million won and aggregation by generation, the rate of applying for installment payments was only 3%. In 2009, when the tax base was raised from 600 million won to 900 million won and the tax rate was lowered from 1% to 3% to 0.5% to 2% due to the revision of the Family Tax Act in September 2008, the proportion of installment payments was 1.81% (3863 out of 212,618 people). ) was significantly reduced. The proportion of installment payments continued to decline, dropping to less than 1% in 2015 (0.94%, 2666 out of 288,064 people). It was a time when the number of people paying the property tax itself decreased as the eased standards and factors that led to a fall in real estate prices overlapped. The proportion of installments fell to 0.66% in 2018 (3067 out of 463,527) and rose again to 1.70% (1089 out of 59,088) in 2019. Installment payment is a system operated for those who have difficulty in making lump-sum payment, and it is considered one of the indicators that can measure the ability to pay the tax on the property tax among the statistical indicators related to the property tax. If the amount of tax is 5 million won or less, the amount excluding 2.5 million won, and if the tax amount exceeds 5 million won, 50% or less of the amount can be paid in installments over 6 months. In May, Senator Kim Sang-hoon of the People’s Strength of People’s Power also issued a report that was concerned about the burden of the tax burden, saying, “The number of applicants for the tax payment in installments in 2019 (1089 people) increased sharply compared to 2018 (3,067 people).” The proportion of installment payments in 2019 was 1.70%, which was 1.81% in 2009 when the estate tax was eased. Prospects are divided as to whether the number of applicants for installment payment will increase sharply this year, when the number of people subject to taxation of property tax has increased significantly. Shin Bang-su, a tax accountant (normal tax firm), said, “Since the tax base for single-family homeowners has been raised from 900 million won to 1.1 billion won, the tax burden is not that high, so it is difficult to be eligible for installment payments (more than 2.5 million won). Although it has grown significantly, it is not unexpected, but it is likely that we have already stockpiled cash through methods such as raising the deposit for Jeonse.” On the other hand, Klitschko, a former tax official who runs a tax-related blog, said, “Of those who bought a house as a second-homeowner or a corporation in an area subject to adjustment, there were a few cases where they had to pay millions of won until last year, then nearly tripled and had to pay tens of millions of won. “It is clear that the number of installment payments will increase due to the difficulty in making lump-sum payments,” he said. By Jin Myung-seon, staff reporter [email protected]



Reference-www.hani.co.kr

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