Article 104 (Tax Rates for Capital Gains)

The capital gains tax for residents shall be the amount calculated by applying the tax rates specified in the following subparagraphs to the capital gains taxable base for the relevant taxable period (hereinafter referred to as "calculated capital gains tax"). In such cases, if a single asset falls under two or more of the tax rates prescribed in the following subparagraphs, the larger calculated capital gains tax among those calculated by applying such tax rates shall be the tax amount. <Amended by Act No. 12257, Dec. 27, 2010, Act No. 12285, Jan. 1, 2014, Act No. 12957, Dec. 23, 2014, Act No. 13608, Dec. 15, 2015, Act No. 14467, Dec. 20, 2016, Act No. 15224, Dec. 19, 2017, Act No. 16127, Dec. 31, 2018, Act No. 16851, Dec. 31, 2019, Act No. 17508, Aug. 18, 2020, Act No. 17790, Dec. 29, 2020, Act No. 19234, Dec. 31, 2022, Act No. 20031, Dec. 31, 2024> 1. Assets falling under Article 94 (1) 1, 2, and 4: The tax rates under Article 55 (1) (in the case of pre-sale rights, 60/100 of the capital gains taxable base). 2. Assets prescribed in Article 94 (1) 1 and 2, with a holding period of not less than one year and less than two years: 40/100 of the capital gains taxable base [60/100 in the case of housing (including land attached thereto as prescribed by Presidential Decree, hereinafter the same applies in this paragraph), memberships in reconstruction/redevelopment unions, and pre-sale rights]. 3. Assets prescribed in Article 94 (1) 1 and 2, with a holding period of less than one year: 50/100 of the capital gains taxable base (70/100 in the case of housing, memberships in reconstruction/redevelopment unions, and pre-sale rights). 4. Deleted <by Act No. 17508, Aug. 18, 2020> 5. Deleted <by Act No. 12285, Jan. 1, 2014> 6. Deleted <by Act No. 12285, Jan. 1, 2014> 7. Deleted <by Act No. 12285, Jan. 1, 2014> 8. Non-business land under Article 104-3. ┌────────┬──────────────────────┐ │Capital Gains Taxable Base│Tax Rate │ ├────────┼──────────────────────┤ │Up to 14 million Won│16 percent │ ├────────┼──────────────────────┤ │Exceeding 14 million Won│2.24 million Won + (Excess over 14 million Won × 25 percent) │ │and up to 50 million Won││ ├────────┼──────────────────────┤ │Exceeding 50 million Won│11.24 million Won + (Excess over 50 million Won × 34 percent) │ │and up to 88 million Won││ ├────────┼──────────────────────┤ │Exceeding 88 million Won│24.16 million Won + (Excess over 88 million Won × 45 percent) │ │and up to 150 million Won││ ├────────┼──────────────────────┤ │Exceeding 150 million Won│52.06 million Won + (Excess over 150 million Won × 48 percent) │ │and up to 300 million Won││ ├────────┼──────────────────────┤ │Exceeding 300 million Won│124.06 million Won + (Excess over 300 million Won × 50 percent) │ │and up to 500 million Won││ ├────────┼──────────────────────┤ │Exceeding 500 million Won│224.06 million Won + (Excess over 500 million Won × 52 percent) │ │and up to 1 billion Won││ ├────────┼──────────────────────┤ │Exceeding 1 billion Won│484.06 million Won + (Excess over 1 billion Won × 55 percent) │└────────┴──────────────────────┘ 9. Assets falling under Article 94 (1) 4 c and d, considering the holding status of non-business land under Article 104-3, as prescribed by Presidential Decree. ┌────────┬──────────────────────┐ │Capital Gains Taxable Base│Tax Rate │ ├────────┼──────────────────────┤ │Up to 14 million Won│16 percent │ ├────────┼──────────────────────┤ │Exceeding 14 million Won│2.24 million Won + (Excess over 14 million Won × 25 percent) │ │and up to 50 million Won││ ├────────┼──────────────────────┤ │Exceeding 50 million Won│11.24 million Won + (Excess over 50 million Won × 34 percent) │ │and up to 88 million Won││ ├────────┼──────────────────────┤ │Exceeding 88 million Won│24.16 million Won + (Excess over 88 million Won × 45 percent) │ │and up to 150 million Won││ ├────────┼──────────────────────┤ │Exceeding 150 million Won│52.06 million Won + (Excess over 150 million Won × 48 percent) │ │and up to 300 million Won││ ├────────┼──────────────────────┤ │Exceeding 300 million Won│124.06 million Won + (Excess over 300 million Won × 50 percent) │ │and up to 500 million Won││ ├────────┼──────────────────────┤ │Exceeding 500 million Won│224.06 million Won + (Excess over 500 million Won × 52 percent) │ │and up to 1 billion Won││ ├────────┼──────────────────────┤ │Exceeding 1 billion Won│484.06 million Won + (Excess over 1 billion Won × 55 percent) │└────────┴──────────────────────┘ 10. Unregistered transferred assets: 70/100 of the capital gains taxable base. 11. Assets falling under Article 94 (1) 3 a and b: a. Shares, etc., transferred by a major shareholder (hereinafter referred to as "major shareholder" in this Chapter), as prescribed by Presidential Decree considering the proportion of owned shares, market capitalization, etc. 1) Shares, etc., held for less than one year, of a company other than a small and medium-sized enterprise: 30/100 of the capital gains taxable base. 2) Shares, etc., not falling under 1). <img src="http://www.law.go.kr/flDownload.do?flSeq=147191637" alt="img147191637"> ┌────────┬──────────────────┐ │Capital Gains Taxable Base│Tax Rate │ ├────────┼──────────────────┤ │Up to 300 million Won│20 percent │ ├────────┼──────────────────┤ │Exceeding 300 million Won│60 million Won + (Excess over 300 million Won × 25 percent) │ └────────┴──────────────────┘ </img> b. Shares, etc., transferred by a shareholder who is not a major shareholder. 1) Shares, etc., of a small and medium-sized enterprise: 10/100 of the capital gains taxable base. 2) Shares, etc., not falling under 1): 20/100 of the capital gains taxable base. 12. Assets falling under Article 94 (1) 3 c: a. Shares, etc., of a small and medium-sized enterprise: 10/100 of the capital gains taxable base. b. Other shares, etc.: 20/100 of the capital gains taxable base. 13. Derivatives, etc., falling under Article 94 (1) 5: 20/100 of the capital gains taxable base. 14. Trust beneficiary certificates falling under Article 94 (1) 6. ┌────────┬──────────────────┐ │Capital Gains Taxable Base│Tax Rate │ ├────────┼──────────────────┤ │Up to 300 million Won│20 percent │ ├────────┼──────────────────┤ │Exceeding 300 million Won│60 million Won + (Excess over 300 million Won × 25 percent) │ └────────┴──────────────────┘ </img>

"Unregistered transferred asset" in subparagraph 10 of paragraph (1) refers to the transfer of an asset prescribed in Article 94 (1) 1 and 2 by a person who acquired the asset without registering the acquisition of the asset. Provided, however, that assets prescribed by Presidential Decree shall be excluded.

If two or more assets falling under Article 94 (1) 1, 2, and 4 are transferred in the relevant taxable period, the calculated capital gains tax shall be the larger of the following amounts (in the case where there is a reduction in capital gains tax under this Act or other tax laws, this refers to the tax amount after deducting the reduction amount, and if the tax amount after deduction is larger, it refers to the calculated tax amount). In calculating the amount in subparagraph 2, assets under subparagraphs 8 and 9 of paragraph (1) shall be considered the same asset, and if a parcel of land is divided into non-business land under Article 104-3 and other land, each shall be considered a separate asset, and the calculated capital gains tax shall be calculated accordingly. <Newly Amended by Act No. 12957, Dec. 23, 2014, Act No. 15224, Dec. 19, 2017, Act No. 16127, Dec. 31, 2018, Act No. 16851, Dec. 31, 2019> 1. Calculated capital gains tax by applying the tax rates under Article 55 (1) to the sum of the capital gains taxable base for the relevant taxable period. 2. Sum of calculated capital gains taxes for each asset calculated according to paragraphs (1) through (4) and (7). Provided, however, that if the same subparagraph of paragraph (1), paragraph (4), or paragraph (7) applies to two or more assets, and there are two or more applicable tax rates, then for those assets, the sum of the calculated tax amounts obtained by applying the tax rates of each corresponding subparagraph of paragraph (1), paragraph (4), or paragraph (7) to the sum of the capital gains taxable bases of each asset, whichever is larger, shall be the total calculated tax amount.

In cases of transferring housing (including land attached thereto, hereinafter the same applies in this paragraph) falling under any of the following subparagraphs, a tax rate obtained by adding 20/100 (30/100 in the case of subparagraphs 3 and 4) to the tax rate under Article 55 (1) shall apply. In such cases, if the holding period of the housing is less than two years, the tax amount calculated by applying the tax rate obtained by adding 20/100 (30/100 in the case of subparagraphs 3 and 4) to the tax rate under Article 55 (1) and the tax amount calculated by applying the tax rates under subparagraph 2 or 3 of paragraph (1) shall be the larger amount as the calculated capital gains tax. <Newly Amended by Act No. 15224, Dec. 19, 2017, Act No. 17508, Aug. 18, 2020> 1. Housing located in an adjustment target area (hereinafter referred to as "adjustment target area" in this Article) under Article 63-2 (1) 1 of the Housing Act, which constitutes housing for two households in one household, as prescribed by Presidential Decree. 2. Housing located in an adjustment target area, where a household holds one house and one membership in a reconstruction/redevelopment union or one pre-sale right. Provided, however, that long-term rental housing, etc., as prescribed by Presidential Decree, shall be excluded. 3. Housing located in an adjustment target area, which constitutes housing for three or more households in one household, as prescribed by Presidential Decree. 4. Housing located in an adjustment target area, where a household holds housing and memberships in reconstruction/redevelopment unions or pre-sale rights, and the sum of their numbers is three or more. Provided, however, that long-term rental housing, etc., as prescribed by Presidential Decree, shall be excluded.