재개발조합의 과세문제 = Redevelopment Association and Taxation Issue

다국어 초록 (Multilingual Abstract)

Housing redevelopment business refers to business executed to improve the living standards in areas where foundation facilities are inferior and buildings are aged. The main body in such housing redevelopment business is called Housing Redevelopment and Maintenance Association (hereinafter called Housing Redevelopment Association), and it is a legal entity under Built Environment Renewal Development Act (hereinafter called Urban Renewal Act). Various national and state taxations apply to Housing Redevelopment Association and its members. This paper will discuss whether Housing Redevelopment Association should be considered non-profit organization for tax purposes, and taxation issues for recognition of association member's right of residence as a form of housing, and other controversial issues.
First, Housing Redevelopment Association must be regarded as profit organization according to corporate tax law interpretation. It is difficult to define Housing Redevelopment Association as a profit organization because it is a legal entity under the assumption that it was established for the purpose of public benefit called redevelopment and that it creates profit. Housing Redevelopment Association is established under Urban Renewal Act; and therefore, corporate tax law article 1 section 2-A, which refers to entities established under the article 32 of the civil law, does not apply to the Association. However, it is still not included in list of entities described in corporate tax law article 1 section 2-8. Therefore, Housing Redevelopment Association should be taxed as profit organization according to corporate tax law interpretation.
Second, income tax law article 89 section 2, article 104 section 1-2-4 and 1-2-6, which includes right of residence in the number of housings for capital gains calculation formula, should be deleted according to the legislation. The income tax law amendment in December 31, 2005 reinforced capital gains tax by including not only housings but also right of residence from redevelopment and reconstruction as number of housings in possession in capital gains assessment. However, such amendment is not appropriate in legislation perspective, because it goes against simplification of operation of general new housing purchase rights and impartiality, tax exemption for one-housing-per-one-family and heavy taxation on multiple housings for one family.