Article 89 (Non-Taxable Transfer Income)

Income from the following categories shall not be subject to income tax on transfer income (hereinafter referred to as "transfer income tax"). <Amended by Act No. 12162, Jan. 1, 2014, Act No. 14467, Dec. 20, 2016, Act No. 16129, Dec. 31, 2018, Act No. 17500, Aug. 18, 2020, Act No. 18633, Dec. 8, 2021> 1. Income arising from disposition due to a declaration of bankruptcy. 2. Income arising from the exchange or consolidation of farmland falling under cases prescribed by Presidential Decree. 3. Income arising from the transfer of land attached to a house (hereinafter referred to as "residential annex land" in this Article) that meets any of the following subparagraphs, and land within the area calculated by multiplying the area where buildings are situated by the multiplier prescribed by Presidential Decree for each region (excluding high-priced houses where the total actual transaction value of the house and its attached land at the time of transfer exceeds 1.2 billion won): Provided, That this shall not apply to houses and their attached land where the total actual transaction value at the time of transfer exceeds 1.2 billion won. a. A house owned by one household as a single house, meeting the requirements prescribed by Presidential Decree. b. A house owned by one household in cases where they own two or more houses due to replacement acquisition of another house before transferring a single house, inheritance, cohabitation, marriage, etc., and meeting the requirements prescribed by Presidential Decree. 4. Income arising from the transfer of a right to subscribe for a unit from a cooperative (hereinafter referred to as "cooperative subscription right") by a single household holding one cooperative subscription right [a household that owned an existing house falling under subparagraph 3 (a) as of the date of approval of the management disposition plan under Article 74 of the 「Act on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents」 and the date of approval of the project execution plan under Article 29 of the 「Act on Special Cases concerning the Maintenance and Improvement of Small-Scale Housing Areas」 (if the existing house is demolished before the approval date, the date of demolition of the existing house)] and meeting any of the following subparagraphs: Provided, That if the actual transaction value of the cooperative subscription right at the time of transfer exceeds 1.2 billion won, transfer income tax shall be imposed. a. Not owning another house or a right to subscribe for a unit (right to receive a new unit after construction) as of the date of transfer. b. Owning one house in addition to one cooperative subscription right as of the date of transfer (limited to cases where no right to subscribe for a unit is owned) and transferring the said house within three years from the date of acquisition of the said house (including cases where transfer is not made within three years due to reasons prescribed by Presidential Decree). 5. Adjustment money received under Article 20 of the 「Act on Special Measures for Land Cadastral Rearrangement」 due to a reduction in the area on the cadastral register resulting from the determination of boundaries under Article 18 of the same Act.

The calculation of actual transaction value and other necessary matters shall be prescribed by Presidential Decree. <Newly inserted by Act No. 18633, Dec. 8, 2021>