The Taxable Value of Real Estate Withholding Tax: Issues and Implications

Published on April 24, 2023
Published by Tax Policy Analysis IIDivision

   「The Taxable Value of Real Estate Withholding Tax: Issues and Implications」 examined the taxation of real estate holdings, the status of taxable prices, as well as associated issues, and proposed improvement measures in the context of utilizing publicly announced real estate prices.
   In Korea, the real estate holdings tax is implemented through both a Comprehensive Real Estate Tax, which is a national tax, and a Property Tax, which is a local tax, and the taxable price is determined based on a publicly announced real estate price.
   In Korea, the publicly announced real estate price has different announcement entities and price announcement methods depending on the type of real estate, while in major countries such as the United States, the taxable price of real estate holdings is generally assessed by local government-affiliated organizations regardless of the real estate type.
   Issues arise in each stage of researching, evaluating (calculating), verifying, and utilizing publicly announced prices as the taxable price for real estate holdings tax. Therefore, it is essential to undertake policy improvement initiatives to address specific challenges within each process.