Korean economy suffered from the soaring housing price inflation for the past three years after recovering in 2000 to the pre-1997 economic crisis level. Prices of some condominium type apartments in several districts of Seoul metropolitan area have doubled up due to the exhaustion of available residential urban land and the strict regulations on converting land uses. Also, some macro economic factors like low interest rates and easy monetary policies played the critical role to boost the speculative demand for those types of housing.
Faced with this soaring house prices Korean government resorted to the traditional anti-specultive measures like raising the capital gains tax burden arising from home sales and clamping down on mortage lendings. Since the Korean tax system involved in the housing market transaction have been fatally flawed in the sense that the seller’s reported sales prices reported to the national administration and the buyer’s reported acqusition prices doesn’t match, the effective tax burdens for those transfer taxes has been quite low. Both sellers and buyers involved in the real estate transaction can safely collaborate to under-report the sales price and reduce their ‘Capital gains tax’ and ‘Acquisition/Registration tax’ burden respectively. The prevalence of ‘fake sales contract’ limited the effectiveness of policy-oriented tax measures. (The rest omitted)
- 실지거래가격 신고에 따른 적정세율 추정 및 제도적 실행방안(On the real estate transfer tax assessment reform: Some alternatives for taxation based on the real transaction prices)
실지거래가격 신고에 따른 적정세율 추정 및 제도적 실행방안(On the real estate transfer tax assessment reform: Some alternatives for taxation based on the real transaction prices)
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Economic Administration|