(1) No tax on capital gains (hereinafter referred to as "capital gains tax") shall be levied on the following incomes: <Amended by Act No. 12169, Jan. 1, 2014; Act No. 14389, Dec. 20, 2016; Act No. 16104, Dec. 31, 2018; Aug. 18, 2020; Dec. 8, 2021>
1. Income generated from disposition by an adjudication of bankruptcy;
2. Income generated from exchange, division, and annexation of farmland in any of the cases prescribed by Presidential Decree;
3. Income generated from a transfer of any of the following houses (excluding high-priced houses with an aggregate actual transaction value exceeding 1.2 billion won at the time of transfer of the house and land appurtenant thereto) and land appurtenant thereto (hereafter referred to as "land appurtenant to a house" in this Article) with an area not larger than the area calculated by multiplying the area of the land on which a building is built by the multiple prescribed by Presidential Decree for each region:(a) The house that meets the criteria prescribed by Presidential Decree, where one household owns one residential house;(b) Houses specified by Presidential Decree, where a household acquires another house before it transfers one house, or owns at least two houses due to inheritance, cohabitation of parents for supporting, marriage, or other similar cause;
4. Income generated from a transfer of the right to acquire a house as an association member, where one household that owns a right to acquire a house as an association member) [referring to a household that owns an existing house that falls under subparagraph 3 (a) as at the date of approval of the management and disposal plan under Article 74 and the date of approval of the project implementation plan under Article 29 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement (or the date of removal of the existing house, if the existing house is removed before such dates of approval)] meets any of the following requirements and transfers the right: Provided, That capital gains tax shall be levied, where an aggregate actual transaction value of the right to acquire a house as an association member exceeds 1.2 billion won:(a) Where the household does not own any other house or right to buy a house as at the date of transfer;(b) Where the household holds one house in addition to a right to acquire a house as an association member (limited to cases where it does not hold a right to buy a house) as at the date of transfer and transfers the right to acquire a house as an association member within three years from the date of acquisition of the house (including where the household is unable to transfer the house within three years due to any of the causes specified by Presidential Decree).
5. The liquidation money paid pursuant to Article 20 of the Special Act on Cadastral Resurvey due to the decrease of an area on official cadastral records as a result of the determination of a boundary under Article 18 of that Act.
(2) Notwithstanding paragraph (1), paragraph (1) 3 shall not apply where one household transfers a house (including land appurtenant thereto; hereafter the same shall apply in this Article) and a right to acquire a house as an association member or a right to buy a house owned by the household: Provided, That the foregoing shall not apply where a household acquires a house for dwelling during the implementation period of a reconstruction project or a redevelopment project as defined in the Act on the Improvement of Urban Areas and Residential Environments or an autonomous housing improvement project, a housing improvement project in a city block, a small-scale reconstruction project, or a small-scale redevelopment project as defined in the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement, or where any of the inevitable circumstances specified by Presidential Decree exists. <Amended by Act No. 14389, Dec. 20, 2016; Act No. 14569, Feb. 8, 2017; Aug. 18, 2020; Dec. 8, 2021>
(3) The calculation of the actual transaction value and other necessary matters shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 8, 2021>[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]