Article 97-2 (Special Exception on Reduction of Capital Gains Tax for Newly Built Rental Housing)

A resident, as prescribed by Presidential Decree, shall be exempted from capital gains tax arising from the transfer of a newly built rental housing (hereinafter referred to as "newly built rental housing" in this Article) which has been leased for five years or more and is subsequently transferred, provided that the housing falls under any of the following subparagraphs (including land within twice the total floor area of the building attached thereto): <Amended on Aug. 28, 2015> 1. Construction rental housing under the Special Act on Private Rental Housing or the Special Act on Public Housing, which falls under any of the following sub-paragraphs: a. Housing newly built during the period from August 20, 1999, to December 31, 2001. b. An apartment house newly built before August 19, 1999, which had not been occupied as of August 20, 1999. 2. Purchased rental housing under the Special Act on Private Rental Housing or the Special Act on Public Housing, which falls under any of the following sub-paragraphs, and where the lease commenced after acquisition (limited to cases where a sales contract was entered into and a down payment was made during the period from August 20, 1999, to December 31, 2001) and leasing commenced after August 20, 1999 (limited to housing that had not been occupied at the time of acquisition): a. Housing newly built after August 20, 1999. b. Housing falling under subparagraph 1, sub-paragraph b.