Land value increment tax is collected on the total incremental value at the time of the transfer of the title of the land which has previously been set at a certain value. For land that has a Dien Right established, the original land owner (or the Dien Right assignor) must make prepayment of land value increment tax and the said tax paid is refunded without interest when the land is redeemed.
The taxpayers of land value increment tax are as follows:
The tax rates on regular land under the land value increment tax come in 3 classes.
a= Total amount of Land Value Increment
b= Originally set land price or the reported value of last transfer (adjusted per consumer price index. )
Reduction tax rate=Original tax rate -[(Original tax rate - Min. tax rate) x reduction ratio]
1.If held formore than 20 years, thereduction ratio is 20%
2.If held formore than 30 years, thereduction ratio is 30%
3.If held formore than 40 years, thereduction ratio is 40%
If the sale of self-use residential land by the title owner satisfies the following conditions, the land value increment tax thereof shall be collected at a privileged rate of 10%.
- Date ： 2011-11-16
- Hit： 1260