The tax bomb? … 65% of the total taxable number for payers of 1 million won or less



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2Multi-homed people with more than one home pay 82% of the total tax amount

Of the 744,000 people subject to full property tax notification this year, 65% of them are taxpayers whose tax is less than 1 million won.

According to the Ministry of Strategy and Finance on the 26th, 744,000 people were informed of the final tax this year and 4.2687 trillion won were notified.

Among the 744,000 people, 67,000 (notified amount of 1,814.8 billion won) have been informed of the housing tax that is levied on the possession of expensive housing, which is only 1.3% of the nation’s total.

This year’s increase in the number of persons subject to final housing tax and in the tax amount is due to the adjustment of the realization rate (market price reflection rate) for houses with a price market of 900 million won or more. Homes with less than 900 million won were frozen at 68%, as in the previous year, while market prices from 9 to 1.5 billion were raised to 66 → 69%, from 15 to 3 billion 67 → 75% and 69 → 80% over 3 billion.

Due to the reorganization of the final tax law in 2018, the fair market price ratio increased by 5% annually, as well as 85% in 2019 and 90% in 2020, also a factor in the increase in personnel and taxes.

Although the number of people subject to tax increased, it was found that it was only 1.3% of the total population, and in particular 376,000 multi-homed people with two or more houses paid 82% (1,496 trillions) of the total amount of taxes paid.

In addition, 432,000 taxpayers who have a tax burden of 1 million won or less among taxpayers subject to taxation are 64.9% of total taxpayers.

For long-term holdings or seniors, you can receive up to 70% of the tax credits (10-30% over 60 and 20-50% over 5).

○ Top Seoul apartment prices (in January) and tax rate

cigar

(Billions won)

Price published

(Billions won)

1Generation1House tax amount(Ten thousand won)

No tax credit applied

Maximum deduction(70%) to apply

’19

’20

’19

’20

’19

’20

’19

’20

A

13.5

13.5

9.0

9.3

0

8

0

3

B.

12.8

14.5

8.5

10.8

0

34

0

10

C.

14.2

16.0

9.2

11.6

5

46

2

14

D.

19.3

24.2

13.2

18.6

125

249

38

75

IS

27.0

32.5

18.8

25.4

472

801

142

240

* 2 houses or less (excluding 2 houses in the area subject to rectification) For homeowners, the upper limit of the detailed rates applies, not taxing the amount exceeding 150% of the tax amount of the “property tax + tax on the property tax “of the previous year.

For example, in the case of an apartment with a market price of 1.35 billion won (published price of 930 million won) in central Seoul (based on a family and a house), an average of 80,000 won if there is no tax deduction and 30,000 won if all 70% deductions are received. Pay the fee.

Likewise, apartments with a market price of 1.45 billion won (list price of 1.08 billion won) are subject to a tax of 100,000 to 340,000 won depending on whether they are deducted or not.

High-priced apartments with a market price of 2.42 billion won (announced price of 1.86 billion won) are also subject to a tax of 750,000 to 2.49 million won depending on the elderly and long-term ownership.

On the other hand, from next year’s taxation, changes to the tax law enacted in August of this year will apply, including the increase in the tax rate for multi-homed people and the expansion of credits. tax for a family member and a single family.

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