The government will expand the scope of the special case for one jointly owned dwelling. As a result, tax burdens are expected to ease for couples who own one dwelling under joint ownership.
According to the government on the 25th, the Ministry of Economy and Finance plans to revise the Enforcement Decree of the comprehensive real estate tax law next month to expand the scope of the special case for one jointly owned dwelling. Under the current law, a one-household, one-dwelling owner receives a basic deduction on the comprehensive real estate tax up to 1.2 billion won and is eligible for up to an 80% tax credit for seniors and long-term holding. The core of the revised decree is to expand the subjects eligible for this special case.
Currently, when a couple jointly owns one dwelling, one person among them can be designated as the taxpayer for that dwelling. If the taxpayer is the husband and the husband received the dwelling through inheritance, the one-dwelling special case still applies. However, if the taxpayer is the wife and the wife inherits the dwelling, she is classified as a multiple-dwelling owner and cannot receive the deemed one-household, one-dwelling special case.
When the amendment takes effect, even if the wife inherits the dwelling in the example above, she will be able to receive the 1.2 billion won basic deduction and the seniors and long-term holding tax credit. However, if it is judged that the existing method of the couple's combined 1.8 billion won basic deduction is more advantageous, that method can still be chosen.
An official at the Ministry of Economy and Finance (MOEF) said, "With the revision of the enforcement decree, (couples who jointly own one dwelling) will be able to choose between 'a 1.8 billion won basic deduction' and 'a 1.2 billion won basic deduction + up to an 80% seniors and long-term holding tax credit.'"