The inconsistency between the taxable object and the tax base for personal income tax on real estate transfers

Current personal income tax law classifies income from real estate transfers as taxable income but calculates tax directly on the transfer price rather than on the actual economic gain. This approach may create tax liability even when a transaction generates no profit and may encourage parties to declare transfer prices below actual payments, thereby reducing tax-administration effectiveness and market transparency. The study analyzes the inconsistency between the taxable object and tax base, compares real estate transfer taxation with capital transfer taxation, and considers related tax, civil, and notarization consequences. It recommends determining taxable income based primarily on the difference between the transfer price and acquisition cost plus reasonable expenses, while retaining taxation at a fixed rate on the transfer price as an alternative when taxpayers cannot substantiate acquisition costs or deductible expenses.