Korea Real Estate Dealer Comparative Tax and VAT Calculator

Why review dealer comparative tax and housing VAT together?

An individual who buys, repairs and resells housing in South Korea needs more than a revenue-minus-cost calculation.
When affected housing falls under Income Tax Act Article 64, annual ordinary income tax is compared with the special-rule tax.
A supply of housing exceeding the national housing size also requires a separate review of building VAT.
Other income, recognized expenses, housing count, surcharge exclusions and exclusive floor area can change the result even when the sale margin is identical.

This is a South Korea 2026 calculator, with rules checked on October 5, 2026.
Initial amounts are fictional and scope, surcharge and VAT conditions start unverified.
Selected calculated tax stays pending until the necessary assumptions are confirmed.

Inputs and avoiding duplicate expense deductions

Use verified tax acquisition and sale dates: acquisition from 2000 and a sale during 2026, with acquisition no later than sale.
Confirm household housing count, inventory homes and includable occupancy or pre-sale rights, and the designated-area status at sale.
Amounts are whole KRW; exclusive area permits two decimal places.
Each monetary input is capped at KRW 1 trillion and floor area at 2,000 m².

Article 64 compares annual totals

T means ordinary progressive tax.
Decree Article 122 refers to transfer-rule expenses, the basic deduction and long-term holding deductions, but Act Article 95(2) excludes Article 104(7) surcharge assets from the long-term holding deduction.
Verified affected housing therefore receives no long-term deduction in this tool.
Business profit from excluded housing remains in ordinary and residual income calculations.

There is an important source discrepancy: current Form 40(1), the calculated-tax statement for housing dealers, instructs removing affected income before the capital-gains basic deduction and then applying comprehensive income deductions.
Its residual reference is T(max(0, P − affected gains before basic deductions)).
The Article 64/Decree 122 wording instead produces the P − H reference above.
Both residual-tax references are shown. Select a basis only after tax review; selected tax remains pending when the basis is unverified.
Selection records an assumption and does not adjudicate the applicable legal treatment.

2026 progressive, surcharge and short-holding rates

Holding periods use calendar anniversaries rather than days divided by 365.
Acquisition on October 1, 2025 and sale on October 1, 2026 is exactly one year; September 30 is under one year.
These short-holding comparisons apply to verified affected assets in the annual special calculation. A short holding alone does not make an otherwise excluded resale an Article 64 asset.

Multiple sales: allocate the allowance once and aggregate bases

The KRW 2,500,000 basic deduction is annual for the relevant income group.
Subtract amounts already used on other transfers and enter the remainder.
The tool allocates it in sale-date order across verified affected gains; same-date sales use input order.
This allowance and comprehensive income deductions are separate calculations.

Multiple affected sales containing a short holding, or a loss on affected housing, withhold the annual selected result pending review of rate groups and loss offsets.
Do not invent an expense allocation or joint-business share to remove the pending state.
Save the inputs and review report for a qualified Korean tax adviser.

National housing size: inclusive 85 m² and restricted 100 m² limits

The sources are Restriction of Special Taxation Act Article 106(1)4, its Decree Article 106(4)1, and Housing Act Article 2(6).
Area alone cannot establish statutory housing status for an officetel, mixed-use building or special multi-family supply.
Land is exempt under VAT Act Article 26(1)14, so do not apply VAT to the entire property price.

Net building value, VAT-inclusive consideration and input credits

A net building value of KRW 200,000,000 produces KRW 20,000,000 output VAT.
Entering KRW 220,000,000 as VAT inclusive produces the same amount.
KRW 5,000,000 verified input VAT gives a KRW 15,000,000 balance; KRW 25,000,000 gives −KRW 5,000,000.
A negative balance is a potential refund for review, not confirmed cash.

VAT Act Articles 29, 30, 38 and 39 govern the value, rate and input-credit rules.
Do not invent a building/land allocation or deduct unsupported purchases.
Exempt supply allocation, common input VAT and a comprehensive business transfer require separate review.
Before VAT scope is verified, output VAT remains an input-based reference while the filing balance is pending.

Worked example: KRW 100 million gain and verified two-home surcharge

This fictional example acquires housing on October 1, 2023 and sells on October 1, 2026.
The net sale is KRW 500,000,000, acquisition KRW 390,000,000 and transfer-rule expenses KRW 10,000,000, with no other income or business-only expenses.
It assumes KRW 1,500,000 income deductions, KRW 2,500,000 remaining basic deduction, verified statutory housing and a two-home surcharge, and a verified statutory-wording residual basis.

The statutory-wording residual base is KRW 1,000,000 and its tax KRW 60,000.
The current-form instructions’ pre-basic-deduction removal instead gives zero residual tax, B = KRW 38,185,000, local tax KRW 3,818,500 and combined income tax KRW 42,003,500.
The tool exposes this difference and requires a verified basis; it does not automatically establish the applicable treatment.
With three or more homes under the statutory basis, B is KRW 47,995,000. With verified exclusion from this special rule, A is KRW 19,035,000.
Keep the verified-status, expenses, deduction and residual-method assumptions with the example.

Preliminary filing dates are separate from annual calculated tax

Income Tax Act Article 69 requires reporting land/building resale gains and tax two months after the end of the sale month, including zero gains and losses.
A sale on October 1, 2026 has a base preliminary filing date of December 31, 2026.
December sales have the end of February in the following year as their base date.

Housing VAT follows its supply dates and VAT filing periods.
That is why annual income tax and transaction VAT are not combined into one final payment.
Transfer base dates to your calendar and confirm the actual filing deadline and form through the tax office or Hometax.

Practical uses and saving the review

1. Before signing, confirm whether the allocated building amount includes VAT and budget output VAT separately.
2. Enter a second planned resale in the same year to review the used allowance and progressive aggregation.
3. Keep business-only expenses separate and review how the different income and transfer gains affect residual tax.
4. Treat pending conditions as missing evidence, not zero tax.
5. Save the review TXT or print the assumptions, verified basis, deductions, results and transaction filing dates.

The verified fictional example button supports checking the arithmetic; it does not verify your circumstances.
Additional national tax over other income subtracts the calculated tax on other income alone.
Business-loss offsets can make this modelled difference negative, but it is not a cash refund or allocated tax for one sale.
Reconcile final credits, prepayments, payment rounding and actual dealer status with the accounts and return.

Frequently asked questions