Discussions on the real estate tax revision bill are intensifying ahead of its submission to the National Assembly, with the issue of whether to increase the basic deduction for non-resident homeowners' inheritance tax becoming a key point of contention. The government previously reduced the basic deduction for non-resident homeowners from 900 million won to 1 billion won, but criticism has been raised that it is difficult to clearly distinguish between actual residence and non-residence. As a result, there is a possibility that the deduction will be adjusted upward to around 1.2 billion won. However, the government is expected to emphasize the 'actual residence principle' and maintain differentiation between actual residents and non-residents. In addition, the upper limit of tax burden was expected to be raised from the current 150% to 200%, but there are voices within the ruling party calling for maintaining the 150% level to mitigate the impact. The final decision is expected to be made through the National Assembly voting process.
