LAND EXCESS-PROFITS TAX ACT

Article 1(Purpose) #

The purpose of this Act is to ensure the equity of tax burden, stability of land prices, and efficient utilization of land, and further to contribute to the sound development of the national economy by recovering ,as tax, excess profits from any idle land obtained by its owner, due to the rise of land prices, etc. caused by any development project and other social and economic factors.

Article 2(Definitions) #

For the purpose of this Act, <Amended by Act No. 4803, 4807, Dec. 22, 1994>

1. the terms “development project” and “development charges” mean the same as prescribed in subparagraphs 2 and 4 of Article 2 of the Restitution of Development Gains Act;

2. the term “land excess profits” means the amount calculated by deducting the amount as prescribed in Article 11 (1) 1 through 3 from the land price at the end of the taxable period minus the land price at the beginning of the taxable period;

3. the term “increment of normal land value” means the amount calculated by applying the rising rate of the normal land value as prescribed in Article 13, to the land price at the beginning of the taxable period;

4. the term “land” means the same meaning as prescribed in the Land Register Act;

5. the term “idle land, etc.” means the land which is the object of taxation of land excess profit tax, and which falls under Article 8 or 9;

6. the term “building” means the same meaning as prescribed in subparagraph 4 of Article 104 of the Local Tax Act;

7. the term “transfer” means the same meaning as prescribed in Article 88 (1) of the Income Tax Act, and Article 59-2 (2) of the Corporate Tax Act;

8. the term “transfer of ownership” means that the ownership of land is virtually transferred onerously or gratuitously by transfer, succession, donation or other cause;

9. the term “acquisition” means an original or successive acquisition, and de facto acquisition onerously or gratuitously of all the ownership by sale, exchange, donation, contribution, investment in kind in a corporation, filling-up or reclamation of a public water surface, and other similar cause;