These days, Korea is suffering from a low birth rate. As a result, the government wants to make plans for children, but it provides special benefits to couples who are worried about their home prices or child support costs.
It is a neonatal acquisition tax reduction system that reduces real estate acquisition tax by 100% up to 5 million won for families who have given birth to newborns.
This is information that will help those who are planning to give birth in 2024, so please check it out and take this benefit.
Newborn Childhood Acquisition Tax Reduction System
Table of Contents
1. the neonatal acquisition tax reduction system
2. Conditions for Newborn Acquisition Tax Reduction
3. How to apply for a reduction in acquisition tax for newborns
4. Precautions for the reduction of acquisition tax for newborns
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First, let’s look at the neonatal acquisition tax reduction system.
1. the neonatal acquisition tax reduction system
To encourage childbirth, the government will implement a tax support system that will reduce real estate acquisition taxes by 100 percent for the first time, up to 5 million won, for households who gave birth to newborns for two years from January 1, 2024 to December 31, 2025.
the neonatal acquisition tax reduction system
Item Contents
Period January 1, 2024 to December 31, 2025
100% reduction in benefits acquisition tax
5 million won limit
Acquisition tax is required to purchase real estate, which is between 1% and up to 12% depending on the number of houses, area, and price.
Calculating real estate acquisition tax
With the introduction of the first home purchase system, the acquisition tax rate for single homeowners is applied as follows. 신생아 취득세 감면
acquisition tax rate according to housing prices
1% of houses under 600 million won
1~3% of houses with more than 600 million won and less than 900 million won
3% of homes worth more than 900 million won
In addition, a local education tax of 0.3% will be levied, and a special farming and fishing village tax of 0.2% will be imposed if the area of the house exceeds 85 square meters.
If you are planning to purchase a property, it is recommended that you calculate the acquisition tax in advance and make a purchase plan.
Next, let’s look at the targets for neonatal acquisition tax reduction.
2. Conditions for Newborn Acquisition Tax Reduction
Childbirth households that meet the following conditions can receive 100% exemption from acquisition tax up to 5 million won when acquiring a house.
01. If a newborn baby is delivered between January 1, 2024 and December 31, 2025, (including a spouse)
02. Housing must be acquired for the purpose of actually living with the child who gave birth
03. If a house is acquired within the past one year or the next five years from the date of birth, a homeowner in one household may also receive benefits
04. Even if you give birth within 5 years from the date of acquisition of a house, you are also included in the benefits
Please check the above conditions carefully and check if you have any applicable matters.
Next, let’s look at how to apply for a reduction in neonatal acquisition tax.
3. How to apply for a reduction in acquisition tax for newborns
Unfortunately, the method of applying for a reduction in acquisition tax due to the birth of a newborn has not been officially announced. However, based on experience, it is expected to proceed in a similar way to the first housing acquisition tax reduction system.
Applications for the reduction of acquisition tax following childbirth are expected to be made online for the convenience of the people and at the tax department of each local government.
And it is expected that there will be a request to submit a document regarding the house purchased within five years of giving birth.
Next, let’s look at the precautions for the reduction of neonatal acquisition tax.
4. Precautions for the reduction of acquisition tax for newborns
01. Acquisition declaration and payment must be completed within 60 days from the date of payment of the balance of the house.
02. Even for houses that have already been acquired, you can also benefit if you give birth within one year from the date of acquisition.
03. It is also recognized as a benefit if it becomes one house for one household within three months from the date of acquisition of the house.
So far, we have looked at the real estate acquisition tax reduction system, conditions for reduction, application methods, and precautions for newborn babies in 2024.
If you are planning to give birth after 2024, please check out the various childcare support policies that will be expanded from 2024 as well as the reduction in the acquisition tax for newborns. I hope it helps you a lot. Thank you.