Answer

Kindly find the reply to your inquiry as follows:

 

(1) Number of Houses and Inclusion in Taxable Base

 

In the case of acquiring a house through inheritance, it is not included in the count of houses if it falls under any of the following criteria:

 

1) A house where five years have not elapsed from the inheritance start date to the taxable date.

2) A house with a ownership ratio of 40% or less.

3) A house with a publicly announced value equivalent to the ownership ratio below 40% (For houses located outside the metropolitan area, the value should be below 300 million won).

 

In the given scenario, since the ownership ratio is 1/3, the inherited house is not counted in the number of houses without a time limit (5 years), but the ownership ratio is included in the taxable base.

 

Inheritor	Ownership Ratio	Included in the Count of Houses	Included in Comprehensive Real Estate Taxable Base	Note
A	1/3	No	Publicly Announced Value × 1/3	Since the ownership ratio is 40% or less, it is not included in the count of houses; however, the ownership ratio is included in the taxable base.
B	1/3	No	Publicly Announced Value × 1/3
C	1/3	No	Publicly Announced Value × 1/3

 

 

(2) Application for Exclusion of House Count in Tax Rate Calculation

 

For those wishing to apply for an exclusion of the house count when applying the tax rate, the taxpayer must submit the "Application for Exclusion of House Count in Tax Rate Calculation" to the head of the local tax office during the combined exemption declaration period for the relevant year (from September 16 to September 30).

 

*From the second year after the initial submission, if there are no changes in the submitted information, it continues to apply without a separate application.

 

 (2) Related Legislation

 

Comprehensive Real Estate Tax Enforcement Standards Article 9-4-3-7 [Calculation of the Number of Houses when Applying the Tax Rate for Comprehensive Real Estate Tax on Households with 3 or More Houses]

 

For those subject to high taxation rates with three or more houses or those subject to adjustment in designated areas with two houses, when determining the number of houses and whether an area is subject to adjustment as of the taxable date (June 1), the following houses are not included in the count:

 

③ Inherited Houses

 

Houses acquired due to inheritance meeting any of the following criteria:

 

1) Houses for which five years have not elapsed from the inheritance start date to the taxable date.

2) Houses with an ownership ratio of 40% or less.

3) Houses with a publicly announced value equivalent to the ownership ratio below 40% (For houses located outside the metropolitan area, the value should be below 300 million won).

 

Local Tax Act Article 107 [Taxpayer]

 

① Those who practically own property as of the property tax base date have an obligation to pay property tax. However, in cases falling under any of the following subparagraphs, the person specified in each subparagraph is regarded as the taxpayer.

 

1. In the case of shared property: For the portion corresponding to that share (If there is no indication of the share, it is considered to be equal).

 

② Despite paragraph 1, those falling under any of the following subparagraphs as of the property tax base date have an obligation to pay property tax.

 

2. When the property under inheritance has commenced, and the inheritance registration has not been completed, and the practical possessor has not reported, the primary inheritor as stipulated by the Ministry of Public Administration and Security Ordinance.