A view shows apartment complexes in Seoul on Nov. 21. (Yonhap)
The National Assembly on Tuesday approved a revision to the Income Tax Act that calls for easing a threshold of capital gains tax exemption on real estate sales for those with only one home.
The bottom limit of the assessed value of real estate properties subject to capital gains tax will be raised from 900 million won ($756,000) to 1.2 billion won for owners of only one home following approval from the parliament's strategy and finance committee.
The limit was set at 900 million won since 2008, but considering inflation and home price hikes, the lawmakers decided to raise the cap and ease the tax burden of one-home owners.
The revision will come into effect once it is promulgated. Considering the promulgation process, it is expected to be enforced from mid-December.
The ruling Democratic Party and the main opposition People Power Party previously agreed on raising the cap but faced the government's opposition, which led to additional discussions at subcommittees. (Yonhap)