Article 61 (Taxation Special Cases on Capital Gains from Transfer of Head Office Outside the Seoul Metropolitan Area Overcrowded Development Zone)

Deleted <2001.12.29>

For a domestic corporation whose head office or principal office is located in the Seoul Metropolitan Area Overcrowded Development Zone, the capital gains arising from the transfer of land and buildings of the head office or principal office, which is transferred by December 31, 2028, for the purpose of relocating the head office or principal office outside the Seoul Metropolitan Area Overcrowded Development Zone, may not be included in gross income when calculating the income amount for the business year, within the scope of the amount remaining after deducting the carryover losses as provided in Article 13 (1) 1 of the Corporate Tax Act as of the end of the business year immediately preceding the transfer date, in accordance with the Presidential Decree. In this case, the amount calculated as prescribed by the Presidential Decree shall be included in gross income in equal installments over five business years, starting from the business year that includes the date five years after the transfer date. <Amended by 2010.1.1, 2011.12.31, 2014.12.23, 2017.12.19, 2018.12.24, 2020.12.29, 2022.12.31, 2025.12.23>

If a domestic corporation that has applied Article 3 falls under any of the following subparagraphs before the entire amount of non-taxable capital gains is included in gross income, the amount calculated as prescribed by the Presidential Decree among the non-taxable amounts shall be included in gross income when calculating the income amount for the business year in which the reason occurred. In this case, the provisions of the latter part of Article 33 (3) shall apply mutatis mutandis to the amount included in gross income (excluding amounts included in gross income due to the cessation of business or dissolution through merger or spin-off and merger). <Amended by 2010.1.1, 2014.12.23> 1. Cases where it is not deemed to have relocated its head office or principal office outside the Seoul Metropolitan Area Overcrowded Development Zone as prescribed by the Presidential Decree. 2. Cases where an office exceeding the standards prescribed by the Presidential Decree is established within the Seoul Metropolitan Area Overcrowded Development Zone. 3. Cases where the proceeds from the disposal of land and buildings of the head office or principal office in the Seoul Metropolitan Area Overcrowded Development Zone are used for purposes other than those prescribed by the Presidential Decree. 4. Cases where the business ceases to operate or the corporation is dissolved.