The National Tax Service (NTS) has announced a major administrative shift to ease the tax burden on married couples co-owning a single home. The tax agency will directly compare taxation methods and proactively guide couples toward the most advantageous option. Furthermore, the agency plans to review past tax records to identify and refund excess comprehensive real estate holding taxes (Jongbusee) paid by taxpayers unaware of specialized provisions.

Commissioner Lim Kwang-hyun stated that the NTS will calculate and notify co-owning couples of the most favorable tax option for the first time, while returning excessively paid taxes. NTS analyses show about 5,700 taxpayers would benefit from applying the special joint-ownership provision, while about 2,900 existing applicants would save money by canceling it. The tax authority has pre-screened these groups and will individually notify them via mobile or postal mail.

Couples can apply for the special provision or cancel existing applications between September 16 and 30. Those who apply during this window will see adjusted amounts automatically reflected in their November tax notices. Taxpayers can also file using their preferred method during the regular December reporting period.

Historically, comprehensive real estate holding taxes shifted to individual-based taxation following a 2008 Constitutional Court ruling, which created a risk of heavier taxation for co-owning couples. To fix this, a special provision was introduced in 2021, allowing co-owning couples to choose single-owner tax treatment with a 1.2 billion KRW basic deduction and up to 80% age and holding-period tax credits.

However, opting for the special provision is not always beneficial. As individual basic deductions rose to 900 million KRW, some couples benefit more from skipping the special provision to claim individual 900 million KRW deductions each, totaling 1.8 billion KRW in combined basic deductions. Because citizens find it difficult to navigate these changing thresholds, the NTS is stepping in with customized pre-screening.

Beyond current guidance, the NTS is establishing a review process to trace historical records, identify individuals who overpaid due to lack of awareness, and guide them through refunds. Commissioner Lim emphasized that this measure aligns with proactive administration policies, aiming to minimize public inconvenience and ensure citizens receive rightful tax benefits.

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