(1) Where a domestic corporation transfers any of the following parcels of land or buildings (including facilities and structures appurtenant to such buildings), association members' right to residency under subparagraph 9 of Article 88 of the Income Tax Act, and purchase rights under subparagraph 10 of the same Article as a right to acquire houses (hereafter in this Article and Article 95-2 referred to as "land, etc."), it shall pay the amount of tax calculated pursuant to the relevant subparagraph as corporate tax on capital gains on the transfer of land, etc., in addition to the corporate tax calculated by applying the tax rate prescribed in Article 55 to the tax base prescribed in Article 13. In such cases, the greatest tax amount shall apply to an asset where at least two of the following subparagraphs are applicable to that asset: <Amended on Jan. 1, 2014; Dec. 23, 2014; Aug. 18, 2020>
1. Where the domestic corporation transfers any of the following real estate by no later than December 31, 2012, the amount of tax calculated by multiplying the capital gains by 10/100:(a) A house referred to in subparagraph 2 (including the land appurtenant thereto; hereafter in this paragraph, the same shall apply), which is real estate located within any designated area under Article 104-2 (2) of the Income Tax Act;(b) Idle land referred to in subparagraph 3, which is real estate located within the designated area under Article 104-2 (2) of the Income Tax Act;(c) Other real estate prescribed by Presidential Decree as necessary for stabilizing the prices of real estate, because the prices of such real estate has risen or are likely to rise sharply;
2. Where a residential house specified by Presidential Decree (including the land appurtenant thereto) or a residential building, which is not used at ordinary times for residence but used only for recreation, summer vacations, entertainment, or any similar purpose (hereafter in this Article, referred to as "vacation house") is transferred, the amount of tax calculated by multiplying capital gains on the transfer of land, etc., by 20/100 (or 40/100 in cases of capital gains on the transfer of unregistered land, etc.); provided, the foregoing shall not apply to any residential house (including the land appurtenant thereto) at a rural village in an Eup/Myeon specified in Article 3 (3) or (4) of the Local Autonomy Act, where such residential house meets the scope and criteria prescribed by Presidential Decree;
3. Where any idle land is transferred, the amount of tax calculated by multiplying capital gains on transfer of land, etc., by 10/100 (40/100 for gains from the transfer of unregistered land, etc.).
4. Where association members' right to residency under subparagraph 9 of Article 88 of the Income Tax Act, and purchase rights under subparagraph 10 of the same Article as a right to acquire houses is transferred, the amount of tax calculated by multiplying capital gains on land, etc. by 20/100.
(2) "Idle land" referred to in paragraph (1) 3 means the land used for any of the following purposes during the period specified by Presidential Decree while a person owns the land: <Amended on Jan. 1, 2013; Dec. 23, 2014; Jul. 24, 2015>
1. A dry field, paddy field, or an orchard (hereafter in this Article, referred to as "farmland"), which is either of:(a) Land owned by a corporation that does not run farming as its main business; provided, excluded herefrom is any farmland prescribed by Presidential Decree permitted to be owned by a corporation under the Farmland Act and other statutes;(b) Farmland in an urban area (excluding an area designated by Presidential Decree; hereafter in this item, the same shall apply) as defined in subparagraph 1 of Article 6 of the National Land Planning and Utilization Act, among areas in the Special Metropolitan City, a Metropolitan City (excluding a Gun area in a Metropolitan City; hereafter in this paragraph, the same shall apply), a Metropolitan Autonomous City (excluding an Eup/Myeon area in a Metropolitan Autonomous; hereafter in this paragraph, the same shall apply), a Special Self-Governing Province (excluding an Eup/Myeon area in an administrative city established under Article 10 (2) of the Special Act on the Establishment of Jeju Special Self-Governing Province and the Development of Free International City; the same shall apply hereafter in this paragraph), or a Si (excluding an Eup/Myeon area in a Si in the combined form of urban and rural communities prescribed in Article 3 (4) of the Local Autonomy Act; the same shall apply hereafter in this paragraph); provided, excluded herefrom is any farmland for which the period set by Presidential Decree has not lapsed from the date such farmland is included in any urban area in the Special Metropolitan City, a Metropolitan City, a Metropolitan Autonomous City, a Special Self-Governing Province, or a Si;
2. Forest land; provided, excluded herefrom are:(a) A seed-gathering forest or an experimental forest designated under the Creation and Management of Forest Resources Act, a forest protection zone designated under Article 7 of the Forest Protection Act, and other forest land prescribed by Presidential Decree as necessary for protecting and nurturing forests or for the public interest;(b) A forest land prescribed by Presidential Decree, which is owned by any corporation that runs the forestry as its main business or by a corporate forest manager as provided for in the Creation and Management of Forest Resources Act;(c) A forest land prescribed by Presidential Decree, which has reasonable grounds to believe that such forest land is directly related to the business of any corporation, in consideration of its owner, location, utilization status, holding period, area, and other factors;
3. Any of the following ranch areas; provided, excluded herefrom is a ranch area prescribed by Presidential Decree, which has reasonable grounds to believe that such ranch area is directly related to the business of any corporation, in consideration of its owner, location, utilization status, holding period, area and other factors:(a) A ranch area owned by any corporation that runs the livestock business as its main business, the scale of which exceeds the standard size of the livestock area prescribed by Presidential Decree, or which is located in an urban area (excluding any urban area prescribed by Presidential Decree; the same shall apply hereafter in this item) of the Special Metropolitan City, a Metropolitan City, a Metropolitan Autonomous City, a Special Self-Governing Province, or a Si (excluding where the period set by Presidential Decree has not lapsed from the date the ranch area is included in the urban area);(b) A ranch area owned by any corporation that does not run the livestock business as its main business;
4. Land, other than farmland, forest land, or ranch areas, except for any of the following land:(a) Land exempt from property tax under the Local Tax Act or any relevant Act;(b) Land subject to the aggregate taxation of property tax or the separate taxation under Article 106 (1) 2 and 3 of the Local Tax Act;(c) Land prescribed by Presidential Decree which has reasonable grounds to believe that such land is directly related to the business of a corporation, in consideration of its utilization status, fulfillment of duties imposed by any relevant Act, the revenue amount, and other factors;
5. Land, the area of which exceeds an area computed by multiplying the multiple rate set by Presidential Decree by the area of land on which a house is built, among land appurtenant to such house as referred to in Article 106 (2) of the Local Tax Act;
6. Land appurtenant to a vacation house; provided, where the boundary of the land appurtenant to a vacation house are not definite, the area of land equivalent to 10 times the floor area of the building shall be deemed the land appurtenant thereto;
7. Land similar to the land provided for in subparagraphs 1 through 6, prescribed by Presidential Decree, which has reasonable grounds to believe that such land is not directly related to the business of a corporation.
(3) In applying paragraph (1) 3, where any parcel of land becomes idle as its use is prohibited under any statute or due to exceptional circumstances prescribed by Presidential Decree after its acquisition, such land may not be deemed idle, as prescribed by Presidential Decree.
(4) Paragraph (1) shall not apply to any capital gains on transfer of any of the following land, etc.; provided, the same shall not apply to any capital gains on transfer of unregistered land, etc.:
1. Income accruing from the disposal of land, etc. made by the adjudication of bankruptcy;
2. Income accruing from the exchange, sub-division, or consolidation of farmland directly cultivated by a corporation in circumstances prescribed by Presidential Decree;
3. Income accruing on the grounds prescribed by Presidential Decree, including a disposition of replotting under the Act on the Improvement of Urban Areas and Residential Environments or other statutes.
(5) "Unregistered land, etc." referred to in paragraphs (1) and (4) means the land, etc., transferred by a corporation without registering the acquisition thereof; provided, excluded herefrom is any parcel of land, etc., acquired on a long-term installment plan, the contract terms of which make it impossible to register its acquisition as at the time it is acquired, and other land, etc., prescribed by Presidential Decree.
(6) Capital gains on the transfer of land, etc., shall be an amount computed by subtracting the book value thereof as at the time of transfer from the transfer value of land, etc.; provided, the capital gain on the transfer of land, etc., that a nonprofit domestic corporation acquired on or before December 31, 1990 may be determined by subtracting the greatest amount, among the book value and the values appraised under Articles 60 and 61 (1) of the Inheritance Tax and Gift Tax Act as at January 1, 1991 from the transfer amount. <Amended on Dec. 23, 2014>
(7) In applying paragraphs (1) through (6), the scope of farmland, forest land, or ranch areas, the criteria for determining the main business, the method for calculating capital gains on transfer of land, etc., where any loss incurred from the transfer of such land, etc., during the relevant business year, the business year in which any profit or loss generated from the transfer of land, etc., falls, and other necessary matters shall be prescribed by Presidential Decree.
(8) Paragraph (1) 2 and 3 shall not apply to any gain accruing from the transfer of land, etc., by no later than December 31, 2012.[This Article Wholly Amended on Dec. 30, 2010]