The judgment below is reversed and the case is remanded to Seoul High Court.

The grounds of appeal are examined.

1. Article 97(1) of the former Restriction of Special Taxation Act (amended by Act No. 13499, Aug. 28, 2015) and Article 97(1) of the Enforcement Decree of the Restriction of Special Taxation Act (hereinafter collectively referred to as the “Special Provision”) stipulate that where a resident who leases at least 5 units of a rental house transfers the newly constructed national housing, etc. during the period from January 1, 1986 to December 31, 200 after the lease of at least 10 years after commencing the lease on or before December 31, 200, capital gains tax on the transfer of such rental house shall be exempted.

Where a joint business is conducted by leasing a house jointly owned by several persons, each joint owner shall be deemed to have leased such rental house, except in extenuating circumstances, in calculating the number of houses of rental housing in the Special Provision.

The reasons are as follows. A.

In the event that a joint business is operated by leasing a house jointly owned by several persons, the relevant rental house belongs to the partnership-ownership of the joint business proprietor constituting the partnership under the Civil Act, and each joint business proprietor’s right to the whole rental house (see Article 271(1) of the Civil Act). Therefore, each joint business proprietor may be deemed to have leased all rental houses through the partnership irrespective of

This legal principle applies to the case where the co-inheritors jointly engage in the rental business after the lessor died.

B. The Special Provision, by promoting the supply of small-sized rental housing for a certain period, provides benefits of reduction or exemption of capital gains tax on long-term rental houses for the purpose of stabilizing the residential life of homeless people and promoting the housing construction economy.

Even if at least five units of rental housing jointly owned by many people are leased for a long time, it shall promote the supply of rental housing, thereby contributing to stabilizing the residential life of homeless people and promoting housing construction games.