Article 98-6 (Special Taxation on Capital Gains Tax for Purchasers of Unsold Completed Housing)

If a resident or a non-resident who has no place of business in the Republic of Korea under Article 120 of the Comprehensive National Tax Act (hereinafter referred to as "non-resident" in this Article) transfers housing falling under any of the following subparagraphs, the tax amount equivalent to 50 percent of the capital gains tax shall be reduced or exempted (limited to housing that meets the requirements of subparagraph 1) for income generated from the transfer within 5 years from the acquisition date of the housing, and if transferred after 5 years from the acquisition date, an amount equivalent to 50 percent of the capital gains for the 5 years from the acquisition date of the housing shall be deducted from the taxable capital gains amount of the housing. In this case, if the deducted amount exceeds the taxable capital gains amount, the excess amount shall be deemed to be zero. <Amended by Act No. 13556, Aug. 28, 2015; Act No. 13764, Jan. 19, 2016> 1. Housing that a business entity supplying housing under Article 54 of the Housing Act and other businesses prescribed by Presidential Decree (hereinafter referred to as "business entity, etc." in this Article) has leased for not less than 2 years by concluding a lease agreement by December 31, 2011, and which a resident or non-resident acquired by concluding the first sales contract with such business entity, etc. 2. Housing that a resident or non-resident acquired by concluding the first sales contract with a business entity, etc. for unsold completed housing and has leased for not less than 5 years (limited to cases where the resident or non-resident has registered as a business operator under Article 168 of the Comprehensive National Tax Act and as a private rental housing business operator under Article 5 of the Special Act on Private Rental Housing, and has concluded a lease agreement before December 31, 2011).

For income generated from the transfer of housing to which paragraph ① applies, notwithstanding the provisions of Article 95 (2) and Article 104 (1) 3 of the Comprehensive National Tax Act, the long-term holding special deduction amount and tax rate shall be applied as follows. <Amended by Act No. 12267, Jan. 1, 2014> 1. Long-term holding special deduction amount: the amount calculated by multiplying the capital gains by the deduction rate by holding period according to Table 1 of Article 95 (2) of the Comprehensive National Tax Act (Table 2 in cases falling under the proviso of the same paragraph). 2. Tax rate: the tax rate according to subparagraph 1 of Article 104 (1) of the Comprehensive National Tax Act.