Article 69 (Reduction or Exemption of Capital Gains Tax on Self-Cultivated Farmland)

Where a resident residing in the location of the farmland, as prescribed by Presidential Decree, has directly cultivated land in a manner prescribed by Presidential Decree for at least eight years [or at least three years, where the farmland subject to the direct payment subsidy for management transfer, as prescribed by Presidential Decree, is transferred to the Korea Rural Community Corporation under the 「Korea Rural Community and KRESA Act」 or a corporation whose main business is agriculture, as prescribed by Presidential Decree (hereinafter referred to as "agricultural corporation" in this Article), by December 31, 2026], the tax equivalent to 100 percent of the capital gains tax shall be reduced or exempted for income arising from the transfer of land falling under the category prescribed by Presidential Decree among such cultivated land. Provided that, where such land has been incorporated into a residential zone, etc., or where a pre-allotment designation for land other than farmland has been received before the land readjustment prior to the transfer of ownership under the 「City Development Act」 or any other Act, the tax equivalent to 100 percent of the capital gains tax shall be reduced or exempted only for income arising up to the date of incorporation into a residential zone, etc., or the date of receiving the pre-allotment designation for land other than farmland, as prescribed by Presidential Decree. <Amended by Act No. 10470, Dec. 27, 2010, Act No. 11139, Dec. 31, 2011, Act No. 11601, Jan. 1, 2013, Act No. 13558, Dec. 15, 2015, Act No. 14466, Dec. 20, 2016, Act No. 16103, Dec. 24, 2018, Act No. 17906, Dec. 28, 2021, Act No. 20138, Dec. 31, 2023>

Any person intending to receive the reduction or exemption under paragraph ① shall file an application for reduction or exemption in the manner prescribed by Presidential Decree.