Article 85-5 (Tax Special Treatment on Capital Gains from Transfer of Land, etc. for Daycare Centers)

When a person operating a workplace daycare center (hereinafter referred to as a "former daycare center" in this Article) under the 「Infant Care Act」 transfers the former daycare center by December 31, 2009, and acquires a new workplace daycare center (hereinafter referred to as a "new daycare center" in this Article) within one year from the date of transfer, the amount corresponding to the capital gains arising from the transfer of the former daycare center may be excluded from gross income or the tax deferral may be received according to the methods falling under the following subparagraphs: 1. Corporation: A method of excluding from gross income, when calculating the income amount for the business year, the amount calculated according to Presidential Decree. In this case, the amount shall be included in gross income in equal installments over three business years, commencing from the business year that includes the date three years after the end of the business year to which the date of transfer belongs. 2. Individual: A method of receiving tax deferral according to Presidential Decree.

A resident who has received tax deferral under subparagraph 2 of paragraph ① (in the case of subparagraph 2 of this paragraph, this refers to the heir of the resident) shall pay the deferred tax calculated according to Presidential Decree as capital gains tax by the deadline falling under each of the following subparagraphs in cases where any of the following subparagraphs occurs: 1. When the resident gifts the new daycare center: Within three months from the last day of the month to which the date of gift belongs. 2. When inheritance of the new daycare center is made due to the death of the resident: Within six months from the last day of the month to which the date of commencement of inheritance belongs.