(1) The amount of capital gains shall be calculated by deducting the amount of special deduction for long-term holding from the amount (hereinafter referred to as "gains on transfer") obtained by deducting necessary expenses under Article 97 from the total of capital gains under Article 94 (hereinafter referred to as "transfer value").
(2) "Amount of special deduction for long-term holding" in paragraph (1) means the amount calculated by multiplying gains on the transfer of an asset (limited to the gains on the transfer of land or a building before the approval of a management and disposal plan under Article 74 of the Act on the Improvement of Urban Areas and Residential Environments or before the approval of a project implementation plan under Article 29 of the Act on Special Cases concerning Unoccupied House or Small-Scale Housing Improvement, where the right to acquire a house as an association member is transferred) by the deduction rate for the relevant holding period in accordance with Table 1 below, as an asset specified in Article 94 (1) 1 (excluding unregistered assets transferred pursuant to Article 104 (3) and assets specified under Article 104 (7)), the holding period of which is at least three years, or the right to acquire a house as an association member (excluding the right acquired from an association member), among the assets specified in Article 94 (1) 2 (a): Provided, That, in cases of an asset identified as one house for one household (including land appurtenant thereto) prescribed by Presidential Decree, it means the sum of the amount calculated by multiplying the capital gain on the asset by the deduction rate for the relevant holding period in Table 2 below and the amount calculated by multiplying the deduction rate by residence period: <Amended by Act No. 11146, Jan. 1, 2012; Act No. 11611, Jan. 1, 2013; Act No. 12169, Jan. 1, 2014; Act No. 13558, Dec. 15, 2015; Act No. 14569, Feb. 8, 2017; Act No. 15225, Dec. 19, 2017; Aug. 18, 2020>[Table 1](3) Notwithstanding paragraph (1), gains on transfer and the amount of special deduction for long-term holding of assets falling under a high-priced house (including land appurtenant thereto) excluded from the object of non-taxation on capital gains under Article 89 (1) 3 and the right to acquire a house as an association member excluded from the object of non-taxation on capital gains under the proviso, with the exception of the items, of subparagraph 4 of the same paragraph, shall be calculated, as prescribed by Presidential Decree. <Amended on Dec. 31, 2019>
(4) The holding period of assets prescribed in paragraph (2) shall begin on the date of acquisition of the assets and end on the date of transfer of the assets: Provided, That, in cases falling under Article 97-2 (1), the period shall begin on the date the spouse or lineal ascendant or descendant who donates the asset acquired the asset, while the period shall begin on the date the decedent acquired the relevant asset, if the relevant asset is within the ratio eligible for the application of the deduction for inheritance of a family business under Article 97-2 (4) 1. <Amended by Act No. 12169, Jan. 1, 2014; Act No. 13558, Dec. 15, 2015; Act No. 14389, Dec. 20, 2016>
(5) Matters necessary for calculating the amount of capital gains shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]