For self-use residential land sold by title owner, the land value increment tax shall be 10% of the total incremental value of the land for urban land up to 3 acres and for non-urban land up to 7 acres; the total incremental value for part of land in excess of 3 acres or 7 acres shall be taxed according to the rate schedule stipulated in the foregoing article.
The preceding provision does not apply to land that was used for business purpose or rented in the last year before its sale.
The provisions in the first paragraph hereof do not apply to land where the assessed value of the self-use residence thereon is less than 10% of the assessed present value of the land, unless the construction of the residence has been completed for more than one year.
Landowner may use the tax rate provided in the first paragraph hereof for calculation of land value increment tax once in his or her lifetime.
In the case that the landowner sells another self-use residential land after the terms of the preceding paragraph has been exhausted, the land value increment tax imposed thereon shall not be governed by the once in the lifetime restriction as provided in the preceding paragraph if the following conditions are met:
a) That the amount of the urban land sold doesn’t not exceed an area of 1.5 acres and that of non-urban land sold doesn’t not exceed 3.5 acres;
b) At the time of selling, the landowner, his or her spouse, and his or her minor children have no other house except the self-use residence sold;
c) The landowner has owned the self-use residential land for a period of over 6 years before its sale;
d) The landowner, his or her spouse, and his or her minor children have maintained their household registration at the location of on the self-use residential land and owned the self-use residence for a period of consecutive 6 years before its sale;
e) The land has never been used for business purposes or rented in the last 5 years before its sale.
The actual loss in tax revenue to municipal or county (city) governments resulting from the provisions in the preceding paragraph will be made up by the central government. The aforesaid dedicated funds for making up lost tax revenue shall not be restricted by Article 23 of the Budget Act which forbids the use of proceeds from the issue of government bonds on current expenditure prior to the implementation of the amended Act Governing Allocation of Government Revenues and Expenditures which expands the scale of tax revenues under the allocation of central government.
The calculation of actual loss in tax revenue described in the preceding paragraph will be decided by the central competent authority together with the municipal and county (city) governments through consultation.