The nation is making every effort to stabilize housing prices, which are rising day by day, but we cannot control the rise in prices. It is the real estate transfer income tax that always emerges as a policy tool to solve these problems. Interest in the tax system on property transfers is higher than ever. The current capital gains tax exemption regulations for one household are complicated and have loopholes to enjoy capital gains due to the tax exemption rules for one household.
It is necessary to consider whether it is a means to the safety of the people's housing life or a reasonable measure to the effect that it is a guarantee of freedom of transfer of residence. It is also questionable whether these benefits are given to all people who enjoy living in a residential area without discrimination.
If the current temporary one-generation one-house capital gains tax exemption system is to stabilize people's housing transfers, it would be fair to say that it is only a benefit enjoyed by homeless people.
The current income tax law provides relatively large benefits to homeowners through a tax-free system. For a house with a first-generation house worth less than 900 million won, tax-free benefits will be given regardless of the area or type of house if it meets the tax-free requirement.
Taxpayers tend to prefer housing in areas where capital gains are expected to be large, creating a problem where demand is concentrated in Seoul and other areas. It is no exaggeration to say that by exploiting this, the method of buying a house, holding it for a certain period of time, and moving into a new house again and again is being replaced by a measure to encourage speculation for capital gains.
In addition, the tax system should allow taxpayers to more accurately understand what cases are taxable and how much they pay if they are tax boxes, and there should be rationality and simplicity in structure, but the current capital gains tax is not easy for ordinary taxpayers who are not familiar with the tax code, and even tax experts are often not aware of the taxable tax on a single household. It is necessary to improve the current capital gains tax exemption system for the first-generation one-house capital gains tax.
The plan calls for the use of the duty-free system by further reinforcing the current special long-term deduction for long-term ownership of long-term homes if they stay in the same house for a long time. If the first-generation one-house capital gains tax exemption system is replaced by the duty-free system and the deduction system depending on the period of possession, the distorted problems in the real estate market will be improved.