Cabinet approves exemption from heavier tax for owners of multiple homes until May 9

The Cabinet on Tuesday approved revisions to enforcement decrees that will exempt owners of multiple homes from higher capital gains taxes if they file for sales permits by May 9. Under the revisions to the enforcement decrees of the Income Tax Act and the Real Estate Transaction Reporting Act, the grace period for owners of multiple homes in designated speculative areas will end as scheduled on May 9, but those who apply for land transaction permits by the same day will be excluded from the heavier tax. The move comes as President Lee Jae Myung proposed measures to allow extra time for owners of multiple homes to sell their properties before the exemption ends, considering the time needed to obtain a land transaction permit. The heavy taxation, which was temporarily postponed under the previous President Yoon Suk Yeol administration, will resume after nearly four years. A maximum tax rate of up to 75 percent will apply to capital gains from the sale of homes owned by multiple-property holders in designated speculative areas, mostly in the wider capital region, as part of the government'

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