The land value increment tax shall be levied on the basis of the net increment of the value of land, when the ownership thereof is transferred, or after the lapse of ten full years though the ownership thereof has not been transferred.
The period of ten full years referred to in the preceding paragraph shall begin from the date when the value of land is assessed for the first time according to Act.

In areas where the construction works referred to in Article 147 are executed, the land value increment tax shall be levied after the lapse of five full years since the completion of such work.

The gross increment of the value of land shall be determined according to the following provisions:
(1)Where any land which has undergone no transfer since the assessment of its value is transferred by a sale without the right of redemption, the amount by which its present sales price exceeds its value originally assessed shall be taken as the gross increment of the value of such land.
(2)Where any land which has undergone no transfer since the assessment of its value is transferred through inheritance or donation, the amount by which its value assessed at the time of the transfer exceeds its value originally assessed shall be taken as the gross increment of the value of such land.
(3)Where any land which has undergone transfers since the assessment of its value is transferred again, the amount by which its value at the present transfer exceeds its value at the penultimate transfer shall be taken as the gross increment of the value of such land.

“The value of land originally assessed” and “the value of land at the penultimate transfer” referred to in the preceding Article shall be called the original value of land.
In case a violent fluctuation of commodity prices occurs, the original value of land mentioned in the preceding paragraph shall be adjusted according to the local price index by the Special Municipal or County (City) financial authorities and with the concurrence of the local assembly.

The gross increment of the value of any land minus the amount of tax remission shall be the net increment of the value of such land.

The land value increment tax shall be levied at the following rates:
(1)Where the net increment of the value of any land is no more than 100 per cent of the original value of such land, the rate shall be 20 per cent of the net increment.
(2)Where the net increment of the value of any land is no more than 200 per cent of the original value of such land, the rate shall be 40 per cent of that part of the net increment which exceeds the original value by more than 100 per cent, aside from the rate prescribed in the preceding section.
(3)Where the net increment of the value of any land is no more than 300 per cent of the original value of such land, the rate shall be 60 per cent of that part of the net increment which exceeds the original value by more than 200 per cent, aside from the rates prescribed in the preceding section.
(4)Where the net increment of the value of any land is over 300 per cent of the original value of such land, the rate shall be 80 per cent of that part of the net increment which exceeds the original value by more than 300 per cent, aside from the rates prescribed in the preceding section.

Where the ownership of any land is transferred by a sale without the right of redemption, the land value increment tax shall be levied on the seller. Where the ownership of any land is transferred through inheritance or donation, the said tax shall be levied on the heir or donee, as the case may be.

Where any land has undergone no transfer after the lapse of ten full years since the assessment of its value, or after the lapse of five years since the completion of the construction works which have been carried on in the area where the said land is located, the land value increment tax shall be levied on the landowner.
If the land referred to in the preceding paragraph is subject to dien, the land value increment tax shall be levied on the dien-holder, but the dien-obligor shall refund the payment thereof without interest to the dien-holder when the dien- obligor redeems the land.

In computing the net increment of the land value, the capital expenses incurred by the landowner for the improvement of his land and the “construction benefit charge” paid by him shall, if any, be deducted from the gross increment of the value of his land.