Whether one household is subject to non-taxation on one house for rental housing;

The application of the non-taxation provision on one house for one household to rental housing refers to the relevant house in cases where the relevant house is leased for not less than five years after commencing the lease before December 31, 200.

Transfer income tax on long-term rental houses under Article 97 of the Restriction of Special Taxation Act

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Purport of Claim

The Defendant’s disposition of imposition of capital gains tax of KRW 125,736,460 against the Plaintiff on January 8, 2007 shall be revoked.

1. Details of the disposition;

A. On April 14, 2003, the Plaintiff registered five households of 00 ○○-dong ○○○○○○-dong, 00 ○○○○-dong, 701 405, 702 405, 610, 1408, 704 1207 as rental housing (hereinafter “instant rental housing”) as rental housing, and then registered as rental business operator until now.

B. On January 11, 1993, the Plaintiff purchased and resided in 120,307,000 apartment houses from ○○○○○-dong, ○○○○○-dong, ○○○○○○-dong, 502 Dong 1202 (hereinafter “instant apartment houses”) at 120,300 won, and sold it to Nonparty ○○-dong on June 30, 2006.

C. On August 31, 2006, the Plaintiff deemed that the instant apartment falls under the “rental housing” under Article 97(2) of the Restriction of Special Taxation Act (hereinafter “the Act”), and on the premise that the instant apartment falls under the “rental housing”, the instant apartment falls under the expensive housing which is one house for one household, and the Plaintiff scheduled and paid KRW 21,65,82 as capital gains tax.

D. On January 8, 2007, the Defendant: (a) concluded that the instant apartment does not constitute “one house for one household”; (b) recognized that the instant apartment does not constitute “one house for one household”; and (c) accordingly, the Defendant corrected and imposed capital gains tax on the Plaintiff by correcting and imposing capital gains tax on the Plaintiff (hereinafter referred to as “instant disposition of imposition”). (d) deeming that the instant apartment does not constitute “one house for one household”; and (b) concluded that the instant apartment does not constitute a “one house for one household” as prescribed by Article 97(1) of the Act, such as “rental house” as prescribed by Article 97(1) of the Act.

E. The Plaintiff, who is dissatisfied with the instant disposition, filed an objection on March 19, 2007, but was dismissed on April 18, 2007, and filed a request for review on May 31, 2007, but the decision of dismissal was dismissed on September 20, 2007, and received a written decision on October 1, 2007.

[Ground of recognition] The statements in Gap 1, 2, 3, 5, 6 and 10, and the whole purport of the pleading

2. Relevant statutes;

It is as shown in the attached Form.

3. The plaintiff's assertion

In applying the "one house for one household" under Article 89 (1) 3 of the Income Tax Act, which prescribes the subject of non-taxable transfer income under Article 97 (2) of the Act, the "rental house which is not considered as a house owned by the resident concerned" should not be interpreted as a "house for five or more years after commencing the lease before December 31, 200." Therefore, the disposition of this case without applying Article 97 (2) of the Act, on the ground that the rental house in this case is not a "rental house for five or more years after commencing the lease before December 31, 200."

4. Determination

The key issue of this case is whether the term "rental housing" under Article 97 (2) of the Act is deemed as "rental housing in the case of leasing for five or more years after commencing the lease before December 31, 200, or as alleged by the plaintiff, or whether it is a simple rental housing as alleged by the plaintiff.

(3) In light of the legislative purpose of Article 97 (1) 3 of the Act, if the above-mentioned housing is transferred after the commencement of lease on or before December 31, 200, the above-mentioned housing shall be regarded as "rental housing"; (4) in the case of "one house for one household" under Article 89 (1) 3 of the Income Tax Act, the above-mentioned housing shall not be regarded as a house owned by the resident; and (2) in the case of "one house for one household" under Article 97 (1) 2 of the Act, the above-mentioned housing shall not be regarded as a house owned by the resident; and (3) in the case of "one house for one household" under Article 97 (1) 1 of the Act, the above-mentioned housing shall not be regarded as a house for 5 years or more; and (4) in the case that a rental business operator transfers the rental housing for 5 years or more, it shall not be regarded as a house subject to reduction or exemption under Article 97 (2) of the Act.

5. Conclusion

Thus, the plaintiff's claim shall be dismissed as it is without merit.

annex. Relevant statutes

○ Reduction or exemption of transfer income tax on long-term rental houses under Article 97 of the Restriction of Special Taxation Act

(1) The tax amount equivalent to 50/100 of the transfer income tax on the income accruing from the transfer of national housing falling under any of the following subparagraphs (including the land appurtenant thereto not exceeding twice the total floor area of the relevant building) by a resident as prescribed by the Presidential Decree shall be abated or exempted: Provided, That in case of a rental house leased for not less than 5 years from among the constructed rental houses under the Rental Housing Act, a rental house leased for not less than 5 years from among the purchased rental houses under the same Act after acquisition and lease after January 1, 1995 (limited to the house not occupied at the time of acquisition) and a rental house leased for not less than 10 years from among the purchased rental houses under the same Act, the tax amount equivalent to 10/100 shall be abated or exempted:

1. Houses newly built during the period from January 1, 1986 to December 31, 2000; and

2. Multi-unit houses newly built on or before December 31, 1985 that had not been occupied as of January 1, 1986.

(2) In applying the provisions of Article 89 (1) 3 of the Income Tax Act, a rental house shall not be deemed a house owned by the relevant resident.

○ Reduction or exemption of transfer income tax on long-term rental houses under Article 97 of the Enforcement Decree of the Restriction of Special Taxation Act.

(1) The term "resident prescribed by Presidential Decree" in the main sentence of the part, other than each subparagraph of Article 97 (1) of the Act means the resident who leases not less than 5 rental houses.

○ Article 89 of the Income Tax Act

(1) No income tax on capital gains (hereinafter referred to as the "capital gains tax") shall be levied on the following incomes:

3. Income accruing from a transfer of such one house for one household as prescribed by the Presidential Decree (high-priced houses whose prices exceed the standard prescribed by the Presidential Decree) and the appurtenant land within the area calculated by multiplying the area of the land on which the building is built by the ratio as determined by region by the Presidential Decree (hereafter in this Article, referred to as the “land annexed to the house”);

○ Article 95 of the Income Tax Act

(3) Notwithstanding the provisions of paragraph (1), gains on transfer and the amount of special long-term holding deduction for assets falling under expensive houses (including land appurtenant thereto) excluded from the object of non-taxation on capital gains under Article 89 (1) 3 shall be the amount calculated under the conditions as prescribed by the Presidential Decree.

○ Scope of expensive houses Article 156 of the Enforcement Decree of the Income Tax Act

(1) The term "high-priced house the value of which exceeds the standard prescribed by the Presidential Decree" in Article 89 (1) 3 of the Act means a house and its appurtenant land, the sum of the actual transaction values at the time of transfer (where a part of a house is transferred, referring to the amount calculated by dividing the sum of the actual transaction values by the ratio occupied by the area transferred in the whole house area) exceeds 600 million won.

○ Calculation of transfer margin, etc. on high-priced houses Article 160 of the Enforcement Decree of the Income Tax Act

(1) The gains on transfer and the amount of special long-term holding deduction for assets falling under expensive houses under Article 95 (3) of the Act shall be the amount calculated by the following formula:

1. Transfer margin applicable to the assets falling under expensive houses;

Transfer margin under Article 95 (1) of the Act; and

X

Transfer value - 600 million won

Transfer Value