The Korea Real Estate Investment Trusts (REITs) Association noted on the 20th that it has uploaded a video on its YouTube channel 'K-REITs TV' to help REITs investors easily understand separate taxation.
REITs investors can apply for separate taxation at securities firms, receiving a tax rate of 9.9% on dividends from the investment amount of up to 50 million won for three years based on the purchase amount. This provides a tax-saving effect as it is lower than the dividend income tax rate of 15.4%. Income from separate taxation is also unrelated to comprehensive income taxation.
Currently, Kiwoom Securities and MERITZ Securities allow applications for separate taxation on REITs via their mobile trading systems (MTS). Other securities firms must apply by phone or visit a branch.
The Korea Real Estate Investment Trusts Association is currently recommending to the government that the investment limit for separate taxation be raised to a maximum of 200 million won. It is also requesting that securities firms revamp their systems to facilitate easy applications for separate taxation through MTS. A representative of the Korea Real Estate Investment Trusts Association said, 'We will strive for tax savings for REITs investors and revitalization of the REITs market.'