YONGIN — Yongin said on the 27th that the requirements for exemption from the heavier acquisition tax applied to temporary two-home owners in regulated zones have changed under a revised enforcement decree of the Local Tax Act, and urged residents to take note.
Regulated zones are housing areas designated and managed by the government where home prices are seen as at risk of sharp increases. Once designated, they can face tighter rules than other areas on lending, applications for new housing, resale and taxes.
Under the revised decree, anyone who acquires a home in a regulated zone on or after Oct. 1 and temporarily becomes a two-home owner must dispose of their existing home within two years to qualify for exemption from the heavier acquisition tax. The previous deadline was three years.
In Yongin, the Giheung and Suji districts are currently designated as regulated zones. Buyers acquiring a home in those areas should therefore be sure to check the contract date, the acquisition date and the location of their existing home.
Those who signed a sales contract and paid a deposit by Aug. 26, however, fall under the previous rules and can still be granted the three-year disposal period. The three-year deadline also continues to apply if the newly purchased home is in a regulated zone but the existing home is outside one.
"Confusion can arise when people do not know the acquisition tax rules precisely," a city official said. "Please check the applicable rules carefully before buying a home."