SEOUL– The National Assembly on Tuesday approved a revision to the Income Tax Act that calls for easing a threshold of capital gains tax exemption on real estate sales for those with only one home.
It also passed a bill on postponing the planned taxation of cryptocurrencies and other virtual assets.
The bottom limit of the assessed value of real estate properties subject to capital gains tax will be raised from 900 million won (US$756,000) to 1.2 billion won for owners of only one home following approval from the parliament’s strategy and finance committee.
The limit was set at 900 million won since 2008, but considering inflation and home price hikes, the lawmakers decided to raise the cap and ease the tax burden of one-home owners.
The revision will come into effect once it is promulgated. Considering the promulgation process, it is expected to be enforced from mid-December.
The committee also approved a bill to delay the government’s plan to impose a 20 percent tax on capital gains from transactions of virtual assets from January 2022 to January 2023.
The financial authorities have been opposing lawmakers’ plan on both capital gains tax revision and virtual asset taxation.
Finance Minister Hong Nam-ki said he is worried that expanding capital gains exemption could stir unease over the housing market in the country, while insisting that taxation of virtual assets should be carried out as planned.
Meanwhile, the committee also approved a revision to a law regarding inheritance and gift taxes that allows people to pay taxes in artworks and cultural pieces that have historical and aesthetic value.
Source: Yonhap News Agency