[Tax Column] While attention in commercial real estate transactions is focused on capital gains tax or acquisition tax, the main culprit causing unexpected tax bombs and cash flow blockages in practice is 'Value Added Tax (VAT).' Signing a contract without reviewing relevant clauses in advance and facing an additional VAT burden ranging from tens of millions to hundreds of millions of won…
When acquiring a small commercial building under joint ownership, it is rare to purchase it entirely with equity. There is inevitably a loan amount involved, and in order to reduce income tax by having the interest expenses on the loan recognized as necessary business expenses from future rental income…
Recently, among the wealthy, establishing a "family corporation" is increasingly seen as a necessity, not an option, when purchasing commercial real estate. This is due to the significantly lower corporate tax rate (10-20%) compared to the highest individual income tax rate (49.5%) and the ease of inheritance for children. However, a corporation is not a magic wand.
Building a new building is a significant investment, a dream come true for building owners. However, most builders focus on design, construction, and permitting, overlooking tax pitfalls and often face unexpected tax consequences. Real estate taxes are based on factors such as the tax base date, the location of the corporation, and the real estate…
The content of stabilization measures and the decision to own a future home are a dream for some, a key means of preserving asset value for others, and a foundation for their livelihoods. Therefore, any hasty policy will inevitably be detrimental to everyone. This…
When filing your comprehensive income tax return, you'll often receive advice on how to reduce income and gift taxes on rental income. Consulting on tax-saving strategies reveals several basic and detailed guidelines for tax savings. For this…
