Starting from the new year, households with two children will receive a 50% discount on vehicle acquisition tax.

Households with three or more children are exempted 100%... Approval of the amendment to the 'Local Tax Relations Act'

 

(Seoul=Yonhap News) Reporter Lee Sang-seo = Starting from the new year, the criteria for multi-child households will be eased from three children to two children, and various benefits such as reduced acquisition tax for automobiles will also be introduced.

The Ministry of the Interior and Safety announced on the 31st that the revision bill of the 'Local Tax Revenue Relationship Act' containing this content was approved at the Cabinet meeting.

The upcoming revision, which will be implemented on January 1 next year, includes the introduction of tax support for two-child households and expanded reductions in initial home acquisition taxes to address the low birthrate issue, as well as support for vulnerable groups such as people with disabilities and national veterans.

First, in order to align with policies to overcome low birth rates, the criteria for multi-child households (under 18 years old) will be relaxed from three children to two children.

 

Accordingly, two-child households will also be able to receive a 50% reduction in vehicle acquisition tax. Existing households with three or more children will continue to be exempt from 100% of the vehicle acquisition tax as before.

In addition, all acquisition and property taxes for all daycare centers operated by companies, regardless of whether they are directly managed or entrusted, will be fully exempted.

To reduce housing costs for ordinary residents, up to 3 million won in property acquisition tax will be exempted when purchasing a small house (excluding apartments) for the first time in their life.

A special provision has been established so that if you live in a small or low-cost house through a lease and then purchase that house, you can reapply for the first-time home purchase tax reduction (up to 2 million won) even if you buy another house later.

The system that provides a 100% exemption from vehicle acquisition tax and vehicle tax for disabled persons and veterans has been extended for three more years.

To encourage the influx of resident population in areas experiencing population decline, individuals without a house or those owning only one house who purchase a property in such areas can receive a reduction of up to 50% on property acquisition tax.

The 100% exemption benefits for acquisition tax and property tax received when corporations and factories are relocated outside the congested regulation zones for balanced national development and regional economic revitalization have been extended for an additional three years.

The threshold for the amount of objection application that allows taxpayers to appoint family members as representatives to ease the burden of representative costs has been raised from 'less than 10 million won' to 'less than 20 million won'.

The deduction rate for paying the annual automobile tax in a lump sum and receiving benefits was scheduled to be reduced to 3% next year, but it has been decided to maintain the current level of approximately 5%.

The Ministry of the Interior and Safety plans to conduct job training to ensure that local government tax officials accurately understand the matters related to the implementation of this revision.

Han Soon-ki, Director of the Local Finance and Economy Bureau at the Ministry of the Interior and Safety, said, "This revision focuses on overcoming low birth rates, supporting economic stability for people's livelihoods, revitalizing the regional economy, protecting taxpayers' rights and interests, and improving convenience." He added, "We will work with local governments to ensure that benefits are effectively utilized."