Yongin City "Temporary Two-House Owners, Avoid Heavy Acquisition Tax"

[Suwon Ilbo=Reporter Park Noh-hoon] Giheung-gu, Yongin City announced on the 24th that it is providing advance notice to ensure temporary two-house owners do not suffer disadvantages from heavy acquisition tax as the housing disposal grace period arrives.

With the amendment to the Local Tax Law Enforcement Decree taking effect last August, temporary two-house owners must dispose of their previous residence within a three-year housing disposal grace period to receive the single-house owner tax rate.

If both houses are included in adjusted areas, the previous residence must be disposed of within one year.

If not disposed of within the grace period, two-house owners must pay 8% acquisition tax. This is 5-7% more than the 1-3% acquisition tax for single-house owners.

Additionally, they must pay penalties for failure to report accurately (10% underpayment penalty) and failure to pay on time (0.025% daily penalty).

As the housing disposal grace period for temporary two-house owners whose both houses are included in adjusted areas arrives in August, the district plans to send advance notices and conduct ongoing publicity to prevent residents from suffering disadvantages due to heavy acquisition tax.

A district official stated, “We are providing advance notice to reduce the burden of heavy taxation that occurs when taxpayers are unaware of regulations and to prevent tax base omissions,” adding “We hope temporary two-house owners will dispose of their previous residence by the housing disposal grace period.”