When the land which is not subject to land value increment tax pursuant to Article 28-3 has the title transferred, Dien created, or is changed to self-owned land of trustee pursuant to Paragraph 1, Article 35 of the Trust Act, the original land value of the land prior to its non-taxable status or the latest transfer value approved by the competent authority shall be used for computation of price increase amount and impose land value increment tax. But in the case that meets the proviso in Paragraph 2 of Article 39, the original land value shall be determined accordingly.
In a testamentary trust where land is the trust property, when the land becomes subject to land value increment tax according to the preceding paragraph, its original land value shall be the assessed present value at the time of death of the legator.
Transfer of self-owned land for trust and the trust deed stipulates the beneficiary of trust property to be the truster and to have interest in the entire trust, if the beneficiary of a trust dies during the life of the trust, when the land becomes subject to land value increment tax according to the first paragraph hereof, its original land value shall be the assessed present value at the time of death of the beneficiary.
In case the aforesaid truster is discovered to have improperly evaded or reduced the tax burden for him or for other person(s) by the trust deed transfer, the preceding provision does not apply.
If the land subject to land value increment tax as described in the first paragraph hereof has situation where the truster or trustee had paid improvement expenses or supplemental land value tax as described respectively in subparagraph 2 of Paragraph 1 or Paragraph 3 of Article 31 hereof prior to the creation of trust or during the life of the trust, the deductions provided in the same article are applicable; the trustee in the second and third paragraph hereof had paid the preceding expenses and the land value tax after the death of the legator and the beneficiary, the deductions provided in the same particle are applicable.
At the effective date of the amendment of this Act on June 12, 2015, the preceding three paragraphs shall be applicable to the cases not currently being assessed or pending final decision.