Answer
Greetings!
Thank you for contacting Serim Tax Corporation. We appreciate your inquiry, and we would like to provide the following response to your question.
According to Article 13 of the National Tax Basic Act, if a church is recognized as a corporation, it is subject to corporate tax only on income-generating activities.
Transfers of real estate that have been used for more than 3 years for their original purpose are not considered income-generating activities under Article 4 of the Corporate Tax Act and Article 3 of the Enforcement Decree of the same law. However, when transferring occupancy rights after the commencement of redevelopment, it is considered a transfer of the right to acquire real estate, not the transfer of real estate previously used for its original purpose.
Since the right to acquire real estate is enumerated as an income-generating activity in Article 4(3)(6) of the Corporate Tax Act, the transfer of occupancy rights is considered an income-generating activity, and corporate tax is levied on any gains from such a transfer.
Please refer to the relevant regulations below for more information.
Thank you.