ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

Problems and Improvement Measures of Taxation on Housing Reconstruction and Redevelopment Unions

  • Seo, Jeong Soo Department of Taxation, Kangnam University

Asian Tax Journal Vol. 15 No. 6 (2014), pp. 369-397

Abstract

To cope with the purpose of 「Urban Maintenance Law」 which is designed to regulate housing redevelopment business and reconstruction one in a constant manner by strengthening the publicity of housing re－construction, this study suggests some improvement measures considering a systematic adequacy of the two items of first, when to acquire the land and buildings of the unions of housing re－construction and redevelopment and second, whether to levy an acquisition tax on general sale of land. Firstly, regarding the period to acquire the land and buildings of housing reconstruction and redevelopment businesses, the acquisition tax and property tax should be effective from the day of a use－approval delivered, but in the case of being actually used or a temporary use－approval before the delivery day, it is suggested that the days of the actual use or the temporary useapproval day should be the acquisition period, and an authoritative interpretation from the perspective of 「Corporation Tax Law」 should be also considered equally for the adequacy of system with regional taxation law when interpreting. The improvement measures suggested by this study make it possible to sum up the land value, the unit cost of the buildings, the acquisition of general sale of land and buildings together, consequently more convenient treatment in accounting of the unions and systematic adequacy for acquisition tax, property tax and corporation tax. Secondly, for the acquisition tax of housing redevelopment and reconstruction businesses, it should be divided into sale for members of the unions and general sale, where non－profit sale for the members get tax exemption, whereas profit－oriented general sale imposes a tax on the unions. For corporation tax and value added tax, sale for members and general sale are now divided and non－profit sale for the members gets tax－free and profit－oriented general sale is taxed, but when it comes to acquisition tax, such taxation principle is currently not applied. Accordingly, it is judged that tax exemption for non－profit sale for the members but taxation on the unions with profit－oriented general sale could increase the adequacy of the system of acquisition tax, corporation tax and value added tax.

Keywords

  • housing reconstruction union
  • housing redevelopment union
  • acquisition tax
  • property tax
  • system adequacy

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