Article 98-7 (Tax Special Provision for Capital Gains Tax on Acquired Unsold Housing)

Where a resident, on or before December 31, 2012, enters into a sales contract for the first time with a business entity that supplies housing under Article 54 of the Housing Act or another business operator prescribed by Presidential Decree, or acquires housing by virtue of such contract, and such housing is unsold housing prescribed by Presidential Decree as of September 24, 2012, with an acquisition cost of 900 million won or less (hereinafter referred to as "unsold housing" in this Article) (limited to cases where a contract deposit has been paid), if such unsold housing is transferred within 5 years from the date of acquisition, the tax amount equivalent to 100 percent of the capital gains tax shall be reduced. If such unsold housing is transferred after 5 years have passed from the date of acquisition, the capital gains amount accrued during the 5 years from the date of acquisition of the unsold housing shall be deducted from the taxable capital gains amount for capital gains tax. 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. 13069, Jan. 19, 2016>

When applying paragraph ①, the calculation of capital gains accrued during the 5 years from the date of acquisition of unsold housing and other necessary matters shall be prescribed by Presidential Decree.