ARTICLE 97-7 (TAXATION SPECIAL PROVISIONS FOR LAND TRANSFERRED TO HOUSING BUSINESS OPERATORS)

Where a resident transfers land to a housing business operator, as referred to in Article 2 (7) of the Special Act on Private Rental Housing (hereinafter referred to as "housing business operator" in this Article), who intends to construct 300 or more units of public-supported private rental housing, the tax amount equivalent to 10/100 of the capital gains tax on the income generated from such transfer shall be reduced or exempted. <Amended by Act No. 14079, Jan. 16, 2018>

In cases where a housing business operator falls under any of the following subparagraphs, the amount equivalent to the tax reduced or exempted under paragraph (1) shall be paid as income tax or corporate tax when reporting the taxable income for the tax period in which the reason occurred. <Amended by Act No. 13804, Jan. 19, 2016; Act No. 14079, Jan. 16, 2018> 1. In the case of a person designated as the implementer of the development project for public-supported private rental housing pursuant to Article 23 of the Special Act on Private Rental Housing: Where the land is not designated as a supply promotion district under Article 22 of the Special Act on Private Rental Housing within the period prescribed by the Enforcement Decree of this Act from the date of land transfer, or where it is designated as a supply promotion district but not constructed as public-supported private rental housing covering 50/100 or more of the area for paid supply within the supply promotion district within the period prescribed by the Enforcement Decree of this Act from the date of designation of the supply promotion district. 2. In the case of a housing business operator other than that referred to in subparagraph 1: Where approval for the business plan under Article 15 of the Housing Act or permission for construction under Article 11 of the Building Act (hereinafter referred to as "approval for business plan, etc." in this Article) for the construction of public-supported private rental housing on the land is not obtained within the period prescribed by the Enforcement Decree of this Act from the date of land transfer, or where such approval for business plan, etc. is obtained but the ratio of the total floor area of public-supported private rental housing to the total floor area of all buildings within the project site does not reach 50/100 or more within the period prescribed by the Enforcement Decree of this Act from the date of approval for the business plan.

The calculation of the capital gains amount eligible for reduction or exemption under paragraph (1) and other necessary matters shall be prescribed by the Enforcement Decree of this Act.