South Korea property-tax inquiries surge as National Tax Service backlog grows

  • National Tax Service received 2,726 property-tax interpretation requests through July.
  • Capital gains tax accounted for 2,262 requests, or 83% of the total.
  • Unanswered property-tax requests reached 1,578 by July, including 230 older than 365 days.

South Korea's National Tax Service received 2,726 requests for tax-law interpretations covering capital gains tax, comprehensive real estate tax, and inheritance and gift taxes from January through July. The figure exceeded the 2,673 requests recorded in 2024 and represented 91.3% of a separately cited annual total of 2,987. Capital gains tax inquiries accounted for 2,262 requests, or 83% of the total, while comprehensive real estate tax inquiries reached 87, already above the 83 recorded in 2024. The surge followed the May 10 reinstatement of heavier capital gains taxation for multiple-home owners and an August proposal to tie the Long-Term Holding Special Deduction more closely to owner occupancy and introduce a cap. Unanswered cases across the three categories reached 1,578 by July, including 230 pending for more than 365 days. The average processing time was 114.5 days, and the longest case lasted 766 days, increasing uncertainty for taxpayers considering property sales or gifts.

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