The gift tax benefits will be expanded when you get married.
Due to the agreement between the ruling and opposition parties on November 30, donations to children during marriage are expected to increase. We will look into this part.
Dec 18, 2023
1. Parents' inheritance tax deductions for newlyweds increase when they get married.1) Now2) Change3) Meaning4) Criticism2. Impact on the Real Estate Market1. Rise in rental prices2. Building a downward spiral in the depressed housing market
1. Parents' inheritance tax deductions for newlyweds increase when they get married.
On November 30, 2023, the National Assembly's Strategy and Finance Committee decided on the revision of the tax law by ruling and opposition parties.
1) Now
Gift tax exemption was applied only to 50 million won within 10 years. (Up to 100 million won for couples)
2) Change
An additional 200 million won can be deducted for newlyweds who are getting married, 100 million won per person, opening the way for newlyweds to receive a total of 300 million won, including the existing system.
In addition, when giving birth to a child, you can receive an additional 100 million won deducted regardless of marriage.
3) Meaning
The bill is significant in promoting the transfer of wealth from the generation of high-asset parents to the generation of children.
Currently, the average total tax amount in the Korean jeonse market is around 280 million won, which is likely to be used as a sufficient resource for this.
4) Criticism
The main content of the opposition is that the reorganization of the gift tax will allow the increase in jeonse prices to be on the sidelines, and that it could be a policy that could worsen the gap between the rich and the poor, which can only be applied to rich families that can donate 300 million won.
2. Impact on the Real Estate Market
1. Rise in rental prices
Currently, it can be seen that the Korean real estate market is in a gap-reducing section where the decline in housing prices and the rise in rental prices are combined. This is the time when the so-called jeonse price is steadily rising.
이In this situation, it can be seen that the increase in cash assets of the 30s can affect the increase in jeonse prices to some extent.
![[포토] 전세 수요 늘어 전세가 상승](https://image.inblog.dev?url=https%3A%2F%2Fssl.pstatic.net%2Fstatic.news%2Fimage%2Fnews%2Fm%2F2018%2Ffavicon%2F06%2Fandroid_legacy_xxxhpdi_192x192.png&w=828&q=85)
![[포토] 전세 수요 늘어 전세가 상승](https://image.inblog.dev?url=https%3A%2F%2Fimgnews.pstatic.net%2Fimage%2F018%2F2023%2F12%2F11%2F0005635569_001_20231211114401052.jpg%3Ftype%3Dw800&w=828&q=85)
2. Building a downward spiral in the depressed housing market
Due to the subsequent downturn in the housing market, transactions in the housing market are significantly decreasing. In this situation, the blood transfusion of funds for newlyweds, potential buyers, can be a driving force to drive buying in the appropriate downside. It can be seen as an attractive revision of the tax law for smart real estate buyers who will buy a house in the downside market.
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