Article 69-4 (Reduction or Exemption of Capital Gains Tax on Self-Cultivated Forest Land)

With respect to income arising from the transfer of forest land that is located in the area of the forest land, has been directly managed by a resident as prescribed by Presidential Decree for 10 years or more in the method prescribed by Presidential Decree after obtaining approval for a forest management plan under Article 13 of the Act on the Creation and Management of Forest Resources, and is forest land as prescribed by Presidential Decree, the tax amount shall be reduced or exempted according to the following table. Provided, however, that if the said forest land is incorporated into a residential zone, etc., or if a designation as a pre-allotment land other than forest land is received before the expropriation and redistribution of land under the Urban Development Act or any other Act, the tax amount shall be reduced or exempted only for income that has arisen up to the date of incorporation into a residential zone, etc., or the designation as a pre-allotment land, as prescribed by Presidential Decree. ┌──────────┬────────────────┐ │ Period of direct management │ Amount of tax reduction or exemption │ ├──────────┼────────────────┤ │ 10 years or more but less than 20 years │ Amount equivalent to 10/100 of capital gains tax │ ├──────────┼────────────────┤ │ 20 years or more but less than 30 years │ Amount equivalent to 20/100 of capital gains tax │ ├──────────┼────────────────┤ │ 30 years or more but less than 40 years │ Amount equivalent to 30/100 of capital gains tax │ ├──────────┼────────────────┤ │ 40 years or more but less than 50 years │ Amount equivalent to 40/100 of capital gains tax │ ├──────────┼────────────────┤ │ 50 years or more │ Amount equivalent to 50/100 of capital gains tax │ └──────────┴────────────────┘