This year, 480,000 people in Seoul will pay 2.8 trillion won in tax on housing sales…

It was found that half of this year’s comprehensive real estate tax (special property tax) is paid by Seoul landlords. Compared to a year ago, the number of beneficiaries increased 1.2 times and the amount of tax paid 2.3 times, respectively. Subjects from the metropolitan area, including Gyeonggi and Incheon, accounted for about 80% of the total (about 70% of the tax amount). In the non-metropolitan area, the number of people subject to specific tax and the amount of tax increased significantly in Sejong and North Chungcheong Province.

According to the ‘status of notification of property tax on housing sales by province in 2021’ released by the National Tax Service on the 23rd, this year, 480,000 people in Seoul were subject to tax notification, and the amount of tax was 2.776.6 trillion won. This year, 51% of the total number of people to be notified (947,000 people) and 49% of the total tax amount notified (5.6789 trillion won). Compared to last year (393,000 people, 1.18 trillion won), the number of people to be notified and the amount of tax to be notified increased by 22% and 134%, respectively. Considering that the number of privately owned houses in Seoul is 2.64,316 (as of last year), one in six to seven people will pay the property tax this year.

In Gyeonggi Province this year, 238,000 people were taxed 1.168.9 trillion won in tax. Compared to a year ago, the number of people increased by 1.6 times and the amount of tax increased by 4.5 times. It is analyzed that this is because an increase in the number of people who have moved their address to other areas such as Gyeonggi-do has increased as house prices in Seoul soared. According to the data on regional economic trends for the third quarter of the National Statistical Office, the net outflow of Seoul from the first to third quarters of this year was 77,071, while the net inflow to Gyeonggi-do during the same period was 126,383. As a result, the subject of the property tax in Seoul also decreased, and its share in the nation decreased from the number of persons (59%) and the amount of tax (65%) last year.

In the metropolitan area, including Incheon, the number of taxpayers paying 741,000 people this year was 78% of the total, and the amount of tax billed was 4.1 trillion won, accounting for 72% of the total.

Due to the nationwide rise in house prices, it was found that the number of people subject to tax and the amount of tax in non-metropolitan areas also doubled compared to the previous year. Income tax is a tax levied per person, and related statistics are based on the address of the subject of taxation (the location of the head office for a corporation), not based on the location of the house. It is also analyzed that the fact that if a person living in a non-metropolitan area purchases a high-priced house in Seoul, it is included in the subject of taxation in the area where they have their real address, not in Seoul, which is also analyzed to have influenced the increase in the subject of the property tax and the amount of tax in the non-metropolitan area.

Among the 17 cities and provinces, the largest increase in the amount of tax notice was found in Chungcheongbuk-do. As it increased from 8 billion won last year to 70.7 billion won this year, the amount of tax notices nearly doubled. Gwangju (7.5 times) and Jeonnam (7.3 times) also saw the largest increase in tax amount. The largest increase in the number of people was in Sejong. The number of taxpayers in Sejong increased from 4,000 last year to 11,000 this year, a nearly threefold increase. In addition, Jeonbuk, Chungnam, Jeollanam-do, and Busan also each increased by about doubling.

Meanwhile, the National Tax Service announced on the previous day that 947,000 people would be subject to tax notice on housing sales in 2021. The deadline for filing and paying tax is from the 1st to the 15th of the following month. The final tax amount may be reduced from the notified tax amount according to the taxpayer’s aggregation exclusion report.

A panoramic view of an apartment building in Seoul seen from Namsan on the 22nd, when the comprehensive real estate tax bill was sent. Reporter Kang Yoon-joong

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