I. Version 2.0 of the Differential Tax Rate of the House Tax

To reduce the tax burden on individual owner-occupied houses, encourage effective utilization of houses, and rationalize the house tax, the Ministry of Finance (MOF) has referred to the experience of local governments in implementing the differential tax rate of the house tax and developed a plan for version 2.0 of the differential tax rate of the house tax. The amendment of the House Tax Act was promulgated on January 3, 2024, and went into force on July 1, 2024. The statutory house tax rates are as follows:

1. In order to increase the tax burden of taxpayers who own multiple houses without utilizing them effectively, the statutory tax rate of non-owner-occupied residential houses is raised from the range between 1.5% and 3.6% to the range between 2% and 4.8%.

2. To reduce the tax burden for a person, his/her spouse, and minor children owning only one residential house in the country, with the current value of the house not exceeding a certain amount, the house tax rate for such house is reduced to 1%.

3. To encourage house owners to lease their unused properties and to consider the involuntary nature of inheriting co-owned houses, thus making houses vacant, the statutory tax rate for inherited co-owned residential properties and rental properties whose rental incomes are declared and reach the Local Prevailing Rental Standard is reduced to the range between 1.5% and 2.4%.

4. Considering that the housing supply is increased with constructed houses by builders and the amount of time needed for buyers to make a purchase due to high housing prices, the statutory tax rate of residential houses for sale, which are owned by builders within 2 years, is modified to the range between 2% and 3.6%.

Ⅱ. Statutory house tax rates and collection rates of each local government