On the 3rd, National Tax Service Commissioner Lim Gwang-hyeon said, "If the heavy capital gains tax on multiple dwellings owners is reinstated, taxes for owners of two to three dwellings would increase by as much as 2.3 to 2.7 times."
Administrator Lim wrote on Facebook that day, "We ran a simulation to see how much the tax burden would increase if the suspension of the heavy capital gains tax ends." He added, "If the (dwelling) capital gain is 1 billion won, the (tax burden) for owners of two dwellings would surge by up to 2.3 times, and for those with three or more dwellings by up to 2.7 times."
Administrator Lim also wrote, "Looking at cases around 2021, when the current heavy-tax rules were in effect, the number of capital gains transfers of dwellings by multiple-dwelling owners in regulated areas jumped from 39,000 in 2019 to 71,000 at the time of the announcement in 2020, and to 115,000 in 2021, when the rules took effect."
He then said, "How disheartened must many people who trusted the government's policy and made reasonable decisions have felt when the policy was suspended in 2022," adding, "Consistency is crucial in tax policy. Normalization is now underway."
Meanwhile, regarding the suspension of the heavy capital gains tax on multiple-dwelling owners, the government decided under the Oct. 15 real estate measures last year to exempt the heavy tax if, in areas newly added to regulated zones, a sales contract is signed by May 9 and the final payment and registration are completed within up to six months. In Seoul, all areas except Gangnam, Seocho, Songpa, and Yongsan fall under this, as do Gwacheon, Gwangmyeong, Seongnam (Bundang, Sujeong, Jungwon), Suwon (Yeongtong, Jangan, Paldal), Anyang Dongan, Uiwang, Hanam, and Yongin Suji.
The government is also said to have decided to apply the suspension of the heavy capital gains tax to areas that were already regulated before the Oct. 15 measures were announced, on the condition of "signing a sales contract by May 9 and completing the final payment and registration within three to four months." Seoul's Gangnam, Seocho, Songpa, and Yongsan are included in these areas. The National Tax Service said, "Until the end of the suspension of the heavy capital gains tax, we will operate a 'dedicated reporting and consultation window for heavy capital gains tax in regulated areas.'"