Article 94 (Scope of Transfer Income)

Transfer income shall be income arising in the relevant tax period, as follows. <Amended by 2010.12.27, 2014.6.3, 2014.12.23, 2016.12.20, 2017.12.19, 2018.12.31, 2019.12.31, 2020.12.29, 2024.12.31> 1. Income arising from the transfer of land (meaning that which is required to be registered in cadastral registers pursuant to the 「Act on the Establishment and Management of Geospatial Information, etc.」) or buildings (including facilities and structures attached to buildings). 2. Income arising from the transfer of rights related to real estate falling under any of the following subparagraphs: a. Rights to acquire real estate (including rights to acquire a building and the land attached thereto upon completion of the building). b. Superficies. c. Usufructuary right and registered real estate leasehold. 3. Income arising from the transfer of shares, etc., falling under any of the following subparagraphs: a. Shares, etc., of a listed corporation, which fall under any of the following: 1) Shares, etc., of a major shareholder of a listed corporation as determined by Presidential Decree, considering the ratio of owned shares, market capitalization, etc. 2) Shares, etc., transferred by a person who is not a major shareholder under 1), other than through transactions on a securities market. Provided, that shares, etc., transferred as a result of exercising stock purchase rights for the comprehensive exchange or transfer of shares under Article 360-2 and Article 360-15 of the 「Commercial Act」, or for the comprehensive exchange or transfer of shares under Article 360-5 and Article 360-22 of the same Act, shall be excluded. b. Shares, etc., of an unlisted corporation. Provided, that shares, etc., of small and medium-sized enterprises (hereinafter referred to as "small and medium-sized enterprises" in this Chapter) and medium-sized enterprises as determined by Presidential Decree, transferred through over-the-counter transactions prescribed in Article 286 (1) 5. of the 「Capital Markets and Financial Investment Business Act」 conducted by the Korea Financial Investment Association established under Article 283 of the same Act, by a person who is not a major shareholder of an unlisted corporation as determined by Presidential Decree, considering the ratio of owned shares, market capitalization, etc., shall be excluded. c. Shares, etc., issued by a foreign corporation or listed on a market in a foreign country, as determined by Presidential Decree. 4. Income arising from the transfer of assets falling under any of the following subparagraphs (hereinafter referred to as "other assets" in this Chapter): a. Goodwill transferred together with assets under subparagraphs 1. and 2. used in business (including goodwill that has not been separately valued but is recognized as being included in assets and transferred together under social norms, and economic benefits obtained by receiving authorization, permission, or license from administrative authorities). b. Usage rights, membership rights, and other rights to use facilities granted to members of an organization who have agreed to exclusively use facilities or use them under more favorable conditions than general users, regardless of their name (including shares, etc., of a corporation if the exclusive use of facilities or receipt of usage rights under more favorable conditions than general users is granted solely by owning the shares, etc., of the corporation). c. Shares, etc., of a corporation whose aggregate value of assets under 1) and 2) accounts for 50 percent or more of the total asset value of the corporation, when a majority shareholder (meaning a shareholder determined by Presidential Decree, considering the ratio of owned shares, etc., and hereinafter referred to as "majority shareholder" in this Chapter) transfers 50 percent or more of the shares, etc., of the corporation to a person other than the majority shareholder (including cases where a majority shareholder transfers shares to another majority shareholder and then the transferee majority shareholder re-transfers them to a person other than a majority shareholder, as determined by Presidential Decree). 1) Value of assets under subparagraphs 1. and 2. (hereinafter referred to as "real estate, etc." in this Article). 2) Value of shares of other corporations directly or indirectly held by the corporation, multiplied by the ratio of real estate, etc., held by such other corporations. In this case, the scope of other corporations and the method of calculating the ratio of real estate, etc., held shall be determined by Presidential Decree. d. Shares, etc., of a corporation engaged in business as determined by Presidential Decree, where the aggregate value of the items under subparagraphs 1) and 2. accounts for 80 percent or more of the total asset value. e. Rights to relocate under Article 12 (1) 2. and 3-2 of the 「Act on Special Measures for Restriction of Development Zone Designation and Management」 (hereinafter referred to as "relocation rights"), transferred together with assets under subparagraph 1. Provided, that cases where the value of the relocation rights is separately appraised and reported according to the method determined by Presidential Decree shall be excluded. 5. Income arising from transactions or acts involving financial investment products determined by Presidential Decree, such as derivatives, structured securities, etc. (hereinafter referred to as "derivatives, etc.") (excluding profits from transactions or acts involving derivatives under Article 16 (1) 13. and Article 17 (1) 10.). 6. Income arising from the transfer of rights to receive trust benefits (excluding beneficial certificates under Article 110 of the 「Capital Markets and Financial Investment Business Act」 and beneficial interests of investment trusts under Article 189 of the same Act, etc., as determined by Presidential Decree, hereinafter referred to as "trust beneficial rights"). Provided, that where control and management rights over trust property are effectively transferred through the transfer of trust beneficial rights, it shall be deemed as the transfer of the trust property itself.