Article 9-3 (Scope of Income from Felling of Non-Taxable Timber, etc.)

When applying Article 12, subparagraph 2, item (e) of the Act, the afforestation period shall be calculated as follows. <Amended on Feb. 18, 2010> 1. For timber self-afforested, the period from the date of completion of planting to the date of felling or transfer. 2. For timber planted by contract, the period from the date of receipt of such timber to the date of felling or transfer. 3. In the case of purchasing timber afforested by another person, the period from the date of purchase to the date of felling or transfer. 4. For timber received as a gift, the period from the date of receipt of the gift to the date of felling or transfer. 5. For timber inherited, the period from the commencement date of afforestation according to subparagraphs 1 through 4 of the deceased to the date of felling or transfer by the heir. 6. In the case of acquiring rights by a profit-sharing contract (a contract where the owner of the forest land, the person bearing the costs, and the person afforesting enter into an agreement to afforest, and to share the profits from the felling or transfer of the afforested forest in a certain ratio. The same shall apply hereafter in this Article and Article 51, paragraph 9), the period from the date of acquisition of such rights to the date of transfer.

In the case of subparagraphs 1 and 2 of paragraph 1, the date of completion of planting or the date of receipt shall be applied to the forest stand unit (forest stand: a group of timber that has the same forest condition and can be distinguished from its surroundings, serving as a unit for forest management) of the afforested forest land.