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2단비교


법인세법

2단보기 법률정보 목록표 법인세법 제19930호 20240101 법인세법 제19193호 20230701 법인세법 제17924호 20210316
법인세법 제17799호 20211230 법인세법 제17758호 20210101 법인세법 제17652호 20210101 법인세법 제17476호
20200101 법인세법 제16833호 20200101 법인세법 제16096호 20190101 법인세법 제16008호 20190101 법인세법
제15222호 20180101 법인세법 제15022호 20181101 법인세법 제14386호 20170101 법인세법 제13555호
20160101 법인세법 제13550호 20151231 법인세법 제13499호 20151229 법인세법 제13448호 20151025 법인세법
제13426호 20160125 법인세법 제13230호 20150928 법인세법 제12850호 20150101 법인세법 제12420호
20150319 법인세법 제12166호 20140101 법인세법 제12153호 20140101 법인세법 제11873호 20130701 법인세법
제11607호 20130101 법인세법 제11603호 20130101 법인세법 제11128호 20120701 법인세법 제10907호
20120126 법인세법 제10898호 20111026 법인세법 제10423호 20110101 법인세법 제10361호 20101209 법인세법
제10337호 20100901 법인세법 제10221호 20110101 법인세법 제9924호 20100101 법인세법 제9898호 20100101
법인세법 제9763호 20100310 법인세법 제9673호 20090521 법인세법 제9401호 20090731 법인세법 제9346호
20190101 법인세법 제9267호 20090101 법인세법 제8852호 20080229 법인세법 제8141호 20070101 법인세법
제7908호 20060925 법인세법 제7838호 20060101 법인세법 제7317호 20050101 법인세법 제7289호 20050701
법인세법 제7117호 20040129 법인세법 제7005호 20040101 법인세법 제6852호 20030701 법인세법 제6558호
20020101 법인세법 제6293호 20010101 법인세법 제6259호 20000203 법인세법 제6047호 20000101 법인세법
제5581호 19990101 법인세법 제5553호 19981001 법인세법 제5533호 19980410 법인세법 제5525호 19980224
법인세법 제5503호 19980401 법인세법 제5418호 19980101 법인세법 제5374호 19980101 법인세법 제5193호
19970101 법인세법 제5192호 19970101 법인세법 제5109호 19960101 법인세법 제5108호 19960630 법인세법
제5033호 19960101 법인세법 제4804호 19950101 법인세법 제4803호 19960101 법인세법 제4743호 19940701
법인세법 제4664호 19940101 법인세법 제4561호 19940101 법인세법 제4282호 19910101 법인세법 제4165호
19900101 법인세법 제4120호 19890701 법인세법 제4020호 19890101 법인세법 제3794호 19860101 법인세법
제3577호 19830101 법인세법 제3473호 19820101 법인세법 제3270호 19810101 법인세법 제3200호 19800101
법인세법 제3141호 19781205 법인세법 제3099호 19781205 법인세법 제2932호 19770701 법인세법 제2931호
19770101 법인세법 제2792호 19760101 법인세법 제2686호 19750101 법인세법 제2566호 19730303 법인세법
제2521호 19730216 법인세법 제2316호 19720101 법인세법 제2154호 19700101 법인세법 제2130호 19680804
법인세법 제2125호 19690731 법인세법 제2050호 19690101 법인세법 제2047호 19681122 법인세법 제1982호
19680101 법인세법 제1964호 19680101 법인세법 제1720호 19660101 법인세법 제1673호 19650101 법인세법
제1489호 19640101 법인세법 제1186호 19630101 법인세법 제823호 19620101 법인세법 제695호 19610824
법인세법 제571호 19610101 법인세법 제505호 19590101 법인세법 제414호 19570101 법인세법 제320호 19540331
법인세법 제263호 19521214 법인세법 제257호 19521105 법인세법 제200호 19510607 법인세법 제199호 19510607
법인세법 제161호 19501201 법인세법 제62호 19491107

CHAPTER I GENERAL PROVISIONS

법령 이단보기 Article 1 (Purpose)

The purpose of this Act is to impose taxes fairly, ensure the proper fulfillment
of tax liability and contribute to facilitating collection of fiscal revenue, by
prescribing the requisition and procedures for imposing corporate tax.
[This Article Newly Inserted on Dec. 24, 2018]
[Previous Article 1 moved to Article 2 <Dec. 24, 2018>]

법령 이단보기 Article 2 (Definitions)

The terms used in this Act are defined as follows: <Amended on Jan. 1, 2013;
Dec. 24, 2018; Dec. 31, 2022>1. The term "domestic corporation" means a
corporation with its headquarters, main office or actual business management
place located in the Republic of Korea;

2. The term "non-profit Korean corporation" means any of the following
corporations among Korean corporations:

(a) A corporation incorporated pursuant to Article 32 of the Civil Act;

(b) A corporation whose purpose is similar to that provided for in Article 32 of
the Civil Act (excluding a corporation that may distribute profits to its
stockholders, employees, or investors, other than a cooperative corporation,
etc. prescribed by Presidential Decree), which is incorporated pursuant to the
Private School Act or other special Acts;

(c) An organization deemed a corporation under Article 13 (4) of the Framework
Act on National Taxes (hereinafter referred to as "organization deemed a
corporation");

3. The term "foreign corporation" means an organization that has its
headquarters or main office in a foreign country in the form of a corporation
that meets the standards prescribed by Presidential Decree (limited to such a
corporation that does not have a place for actual management of its business in
the Republic of Korea);

4. The term "non-profit foreign corporation" means a foreign government, foreign
local government or non-profit foreign corporation (including an organization
deemed a corporation) among foreign corporations;

5. The term "business year" means one fiscal period for the calculation of
income of a corporation;

6. The term "consolidated tax return system" means a system by which two or more
domestic corporations file a corporate tax return and pay corporate tax as a
single unit that calculates the amount of tax based on a single tax base, as
prescribed in Chapter II-3;

7. The term "consolidated corporation" means a corporation to which the
consolidated tax return system applies;

8. The term "consolidated group" means all consolidated corporations;

9. The term "consolidated parent corporation" means a consolidated corporation
that consolidates and controls another consolidated corporation of a
consolidated group;

10. The term "consolidated subsidiary corporation" means a corporation
consolidated and controlled by a consolidated parent corporation;

10-2. The term “consolidated control” means cases where a domestic corporation
holds at least 90/100 of the total number of issued shares or the total amount
of investment of another domestic corporation. In such cases, the holding ratio
shall be calculated as follows:

(a) Non-voting shares or investment shares shall be included;

(b) Treasury stocks held under the Commercial Act or the Financial Investment
Services and Capital Markets Act shall be excluded;

(c) Up to 5/100 of the total number of issued stocks, as stocks acquired by
workers through an employee stock ownership association referred to in the
Framework Act on Labor Welfare and other stocks prescribed by Presidential
Decree, shall be deemed to be held by the relevant corporation;

(d) In cases prescribed by Presidential Decree, in which shares or investment
shares of a domestic corporation are indirectly held through another domestic
corporation, such shares or investment shares shall be aggregated, as prescribed
by Presidential Decree;11. The term "consolidated business year" means one
fiscal period for the calculation of income of a consolidated group;

11. The term "consolidated business year" means one fiscal period for which the
income of a consolidated group is calculated;

12. The term "specially related person" means a person who has an economic
relationship with a corporation or a relationship prescribed by Presidential
Decree, such as a management control relationship. In such cases, the person
himself/herself is also regarded as a specially related person of that person;

13. The term "merging corporation" means a corporation incorporated following a
merger or existing after a merger;

14. "Merged corporation" means a corporation which ceases to exist following a
merger;

15. The term "divided corporation" means a corporation that is divided according
to division (including divisional mergers; hereinafter the same shall apply);

16. The term "corporation established through division" means a corporation
incorporated following division.

[This Article Wholly Amended on Dec. 30, 2010]
[Moved from Article 1; previous Article 2 moved to Article 3 <Dec. 24, 2018>]
[Enforcement Date: Jan. 1, 2024] Subparagraph 9, 10, and 10-2 of Article 2

법령 이단보기 Article 3 (Taxpayer)

(1) Any of the following corporations are liable to pay corporate tax on any
income pursuant to this Act: <Amended on Dec. 30, 2010>

1. A domestic corporation;

2. A foreign corporation which has income from a domestic source.

(2) The State and local governments (including local government associations;
hereinafter the same shall apply) among domestic corporations are not liable to
pay corporate tax on any income. <Amended on Dec. 24, 2018>

(3) Consolidated corporations are jointly liable to pay corporate tax (including
corporate tax on capital gains from the transfer of land, etc. referred to in
Article 55-2 by each consolidated corporation and corporate tax computed by
applying special tax provisions for promoting investment and collaborative
cooperation under Article 100-32 of the Restriction of Special Taxation Act) on
income for each consolidated business year under Article 76-14 (1). <Amended on
Dec. 30, 2010; Dec. 23, 2014; Dec. 19, 2017; Dec. 24, 2018>

(4) Any person who withholds corporate tax under this Act is liable to pay the
relevant corporate tax. <Amended on Dec. 24, 2018>

[Title Amended on Dec. 24, 2018]
[Moved from Article 2; previous Article 3 moved to Article 4 <Dec. 24, 2018>]

법령 이단보기 Article 4 (Scope of Taxable Income)

(1) Corporate tax shall be imposed on the following income of a domestic
corporation: Provided, That it shall be limited to the income specified in
subparagraphs 1 and 3 in cases of non-profit domestic corporations:

1. Income for each business year;

2. Liquidation income;

3. Capital gains from the transfer of land, etc. referred to in Article 55-2.

(2) In applying paragraph (1) 1, the income of a consolidated corporation for
each business year means the income for each consolidated business year referred
to in Article 76-14 (1).

(3) In applying paragraph (1) 1, the income of a non-profit domestic corporation
for each business year shall be limited to the income accruing from any of the
following business or revenues (hereinafter referred to as "profit-making
business"):

1. Business specified by Presidential Decree among business engaging in
manufacturing, construction, wholesale, retail sales, repair of consumer
products, real estate, rental, or business services;

2. Interest income as prescribed in Article 16 (1) of the Income Tax Act;

3. Dividend income as prescribed in Article 17 (1) of the Income Tax Act;

4. Revenues accruing from the transfer of stocks, preemptive right to new
stocks, or investment shares;

5. Revenues accruing from the disposal of fixed assets: Provided, That the
revenues specified by Presidential Decree, among revenues accruing from the
disposal of fixed assets directly used for essential business activities, shall
be excluded;

6. Revenues accruing from the transfer of assets prescribed in Article 94 (1) 2
and 4 of the Income Tax Act;

7. Revenues prescribed by Presidential Decree, which accrues from continuing
activities be paid, other than those referred to in subparagraphs 1 through 6.

(4) Corporate tax shall be imposed on the following income of a foreign
corporation:

1. Income accrued from domestic sources for each business year;

2. Capital gains from the transfer of land, etc. referred to in Article 95-2.

(5) In applying paragraph (4) 1, income accrued from domestic sources of a
non-profit foreign corporation for each business year shall be limited to the
income accruing from profit-making business.

[This Article Wholly Amended on Dec. 24, 2018]
[Moved from Article 3; previous Article 4 Deleted]

법령 이단보기 Article 5 (Trust Income)

(1) With regard to income that reverts to trust property, the beneficiary to
receive the profits of the trust shall be deemed the owner of the trust property
for the purposes of this Act. <Amended on Jan. 22, 2020>

(2) Notwithstanding paragraph (1), in the case of any of the following trusts
that meets the requirements prescribed by Presidential Decree (excluding an
investment trust referred to in Article 9 (18) 1 of the Financial Investment
Services and Capital Markets Act), the corporate tax on the income that reverts
to the trust property may be paid by the trustee of such trust [limited to a
domestic corporation or a resident defined in the Income Tax Act (hereinafter
referred to as "resident")] according to the relevant trust agreement. In such
cases, each trust property shall be deemed a domestic corporation: <Newly
Inserted on Dec. 22, 2020>

1. A purpose trust referred to in the proviso, with the exception of the
subparagraphs, of Article 3 (1) of the Trust Act;

2. A trust issuing beneficiary certificates referred to in Article 78 (2) of the
Trust Act;

3. A limited liability trust referred to in Article 114 (1) of the Trust Act;

4. Other trusts similar to those prescribed in subparagraphs 1 through 3, which
are prescribed by Presidential Decree.

(3) Notwithstanding paragraphs (1) and (2), in cases of a trust where no
beneficiary is specified or exists or a trust that meets the requirements
prescribed by Presidential Decree, such as a trustor having actual control over
trust property, the trustor of such trust shall be liable to pay corporate tax
on the income that reverts to the trust property. <Newly Inserted on Dec. 22,
2020>(4) No revenues and expenditures from trust property of a corporation
regulated by the Financial Investment Services and Capital Markets Act
(excluding special accounts of an insurance company referred to in Article 251
(1) of the same Act; hereinafter the same shall apply) shall be deemed the
revenues and expenditures that revert to the corporation. <Amended on Dec. 22,
2020>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 6 (Business Year)

(1) A business year shall be one fiscal period prescribed by statutes or a
corporation's articles of incorporation: Provided, That this period shall not
exceed one year.

(2) A domestic corporation, the business year of which is not prescribed by
statutes or its articles of incorporation shall separately determine its
business year and report it to the head of the tax office having jurisdiction
over the place of tax payment (the head of the tax office as prescribed in
Article 12; hereinafter the same shall apply), along with a report on
incorporation referred to in Article 109 (1) or the registration of business
referred to in Article 111.

(3) A foreign corporation with a place of business in the Republic of Korea as
prescribed in Article 94 (hereinafter referred to as "domestic place of
business"), the business year of which is not prescribed by the Acts and
subordinate statutes or its articles of incorporation shall separately determine
its business year and report it to the head of the tax office having
jurisdiction over the place of tax payment, along with a report on the
establishment of a domestic place of business referred to in Article 109 (2) or
the registration of business referred to in Article 111.

(4) A foreign corporation with no domestic place of business which earns income
referred to in subparagraph 3 or 7 of Article 93 shall separately determine its
business year and report it to the head of the tax office having jurisdiction
over the place of tax payment within one month from the date such income is
first earned.

(5) Where a corporation liable to file a report under paragraphs (2) through (4)
fails to do so, the business year of such corporation shall be from January 1 to
December 31 of each year.

(6) In applying paragraphs (1) through (5), matters necessary for determining
the start date of a corporation's first business year shall be prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 7 (Change of Business Year)

(1) A corporation which intends to change its business year shall report thereon
to the head of the tax office having jurisdiction over the place of tax payment
within three months from the end date of the immediately preceding business
year, as prescribed by Presidential Decree.

(2) Where a corporation fails to file a report by the deadline specified in
paragraph (1), the corporation's business year shall be deemed unchanged:
Provided, That for a corporation, the business year of which is determined by
statutes, its business year shall be deemed changed at the time the amended
provisions concerning the change of the business year in such statutes have
effected, although no report is filed under paragraph (1).

(3) Where a business year is changed pursuant to paragraph (1) or the proviso to
paragraph (2), the period from the start date of the previous business year to
the date preceding the start date of the changed business year shall be deemed
one business year: Provided, That where such period does not exceed one month,
it shall be included in the changed business year.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 8 (Constructive Business Years)

(1) Where a domestic corporation is dissolved during a business year (excluding
a dissolution due to a merger or division, and restructuring of corporation
prescribed in Article 78), any of the following periods shall be deemed one
business year: <Amended on Dec. 24, 2018>

1. The period from the start date of the business year until the registration
date of dissolution (referring to the registration date of bankruptcy where a
corporation is dissolved on the grounds of bankruptcy and the date of
dissolution for any organization deemed a corporation; hereinafter the same
shall apply);

2. The period from the day following the registration date of dissolution until
the end date of the relevant business year.

(2) Where a domestic corporation is dissolved during a business year due to a
merger or division, the period from the start date of the business year until
the registration date of the merger or division shall be deemed one business
year of that dissolved domestic corporation. <Amended on Dec. 24, 2018>

(3) Where a domestic corporation undergoes restructuring pursuant to any
subparagraph of Article 78 during a business year, it shall be deemed that the
business year before the restructuring of corporation continues. <Newly Inserted
on Dec. 24, 2018>

(4) The business year of a domestic corporation in the course of liquidation
shall be deemed one business year by the following classifications: <Amended on
Dec. 24, 2018>

1. Where the value of residual assets is determined during the business year:
The period from the start date of the business year until the date the value of
residual assets is determined;

2. Where the domestic corporation continues its business pursuant to Article
229, 285, 287-40, 519, or 610 of the Commercial Act: The following periods:

(a) The period from the start date of the business year until the registration
date of continuation (referring to the date of actual continuation of business
where continuation is not registered; hereinafter the same shall apply);

(b) The period from the day following the registration date of continuation
until the end date of the business year.

(5) Where a domestic corporation is subject to a consolidated tax return system
during a business year, the period from the start date of the business year to
the date preceding the start date of the consolidated business year shall be
deemed one business year. <Amended on Dec. 24, 2018>

(6) Where a foreign corporation with a domestic place of business ceases to have
the domestic place of business during a business year, the period from the start
date of the business year until the date it ceases to have the place of business
shall be deemed one business year: Provided, That the same shall not apply where
it continues to have another place of business in the Republic of Korea.
<Amended on Dec. 24, 2018>

(7) Where a foreign corporation with no domestic place of business reports to
the head of the tax office having jurisdiction over the place of tax payment the
fact that it no longer has the domestic source income accrued from the real
estate referred to in subparagraph 3 of Article 93 or the domestic source income
accrued from transfer of real estate, etc. referred to in subparagraph 7 of the
same Article, the period from the start date of the business year to the filing
date of such report shall be deemed one business year. <Amended on Dec. 24,
2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 9 (Place of Tax Payment)

(1) The place where a domestic corporation shall pay its corporate tax shall be
the place where its registered headquarters or main office is located (the
location of the actual business management place where no headquarters or main
office is located in the Republic of Korea): Provided, That for an organization
deemed a corporation, it shall be the place prescribed by Presidential Decree.

(2) The place where a foreign corporation shall pay its corporate tax shall be
the place where its domestic place of business is located: Provided, That for a
foreign corporation with no domestic place of business which earns income
referred to in subparagraph 3 or 7 of Article 93, it shall be the location of
each of its assets.

(3) Where a foreign corporation falling under paragraph (2) has at least two
domestic places of business, the location of the main place of business
prescribed by Presidential Decree shall be the place of tax payment, and where a
corporation has at least two assets, the place prescribed by Presidential Decree
shall be the place of its tax payment.

(4) The place where corporate tax withheld under Article 73, 73-2, 98, 98-3,
98-5 or 98-6 shall be the location of the relevant person liable for withholding
prescribed by Presidential Decree: Provided, That where a person liable for
withholding referred to in Article 98 or 98-3 has no domestic place of business,
it shall be the place prescribed by Presidential Decree. <Amended on Dec. 31,
2011; Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 10 (Designation of Place for Tax Payment)

(1) Where the commissioner of the competent regional tax office (referring to
the commissioner of a regional tax office prescribed in Article 12; hereinafter
the same shall apply) or the Commissioner of the National Tax Service deems that
the place of tax payment determined under Article 9 is inappropriate for a
corporation in circumstances prescribed by Presidential Decree, he/she may
designate a place of tax payment, notwithstanding Article 9.

(2) Where the commissioner of the competent regional tax office or the
Commissioner of the National Tax Service designates a place of tax payment under
paragraph (1), he/she shall give a notice to the relevant corporation, as
prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 11 (Alteration of Place of Tax Payment)

(1) Where a corporation's place of tax payment is altered, the corporation shall
report such fact to the head of the tax office having jurisdiction over the new
place of tax payment within 15 days from the date of the alteration, as
prescribed by Presidential Decree. In such cases, where a corporation of which
the place of tax payment has been altered has reported the alteration under
Article 8 of the Value-Added Tax Act, the alteration of the place of tax payment
shall be deemed reported. <Amended on Jun. 7, 2013>

(2) Where no report is filed under paragraph (1), the former place of tax
payment shall be a corporation's place of tax payment.

(3) Where a foreign corporation ceases to have a domestic place of tax payment
falling under Article 9 (2), it shall report such fact to the head of the tax
office having jurisdiction over the place of tax payment.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 12 (Jurisdiction of Taxation)

Corporate tax shall be imposed by the head of the tax office having jurisdiction
over the place of tax payment prescribed in Articles 9 through 11 or the
commissioner of a regional tax office.
[This Article Wholly Amended on Dec. 30, 2010]
CHAPTER II CORPORATE TAX ON INCOME OF DOMESTIC CORPORATION FOR EACH BUSINESS
YEAR SECTION 1 Tax Base and Calculation Thereof
Subsection 1 Common Provisions

법령 이단보기 Article 13 (Tax Base)

(1) The corporate tax base on the income of a domestic corporation for each
business year shall be calculated by deducting the following amounts and income
in the following order from the income earned for each business year: Provided,
That, the maximum deductible amount under subparagraph 1 shall be 80/100 of the
income for each business year (but 100/100 for a corporation prescribed by
Presidential Decree, including a small and medium enterprises referred to in
Article 6 (1) of the Restriction of Special Taxation Act (hereinafter referred
to as “small and medium enterprises”) and enterprises performing a
rehabilitation plan: <Amended on Dec. 22, 2020; Dec. 31, 2022>

1. The amount that satisfied each of the following requirements among the
carried forward losses pursuant to Article 14 (3):

(a) Losses incurred during each business year starting within 15 years before
the start date of the current business year;

(b) Losses included in the tax base reported under Article 60 or determined or
corrected under Article 66 or reported for revision under Article 45 of the
Framework Act on National Taxes;

2. Non-taxable income provided for in this Act and other statutes;

3. Income deductions prescribed in this Act and other statutes.

(2) In calculating the tax base in paragraph (1), the following amount shall not
be carried over for deduction to the subsequent business years following the
relevant business year:

1. Non-taxable income and income deductions that are not deducted when
calculating the tax base of the relevant business year;

2. Income deductions that are not deducted by applying the minimum tax pursuant
to Article 132 of the Restriction of Special Taxation Act.

[This Article Wholly Amended on Dec. 24, 2018]

법령 이단보기 Article 14 (Income for Each Business Year)

(1) The income of a domestic corporation for each business year shall be the
amount calculated by subtracting the total amount of deductible expenses
incurred during the relevant business year from the total amount of gross income
accrued during the relevant business year. <Amended on Dec. 24, 2018>

(2) Where the total amount of deductible expenses incurred during a business
year exceeds the total amount of gross income accrued during the business year,
such excess shall be the losses of a domestic corporation for each business
year.

(3) Losses carried forward of a domestic corporation are the losses of each
business year incurred before the start date of each business year and those
that are not deducted when calculating the tax base of the subsequent business
years. <Newly Inserted on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
Subsection 2 Calculation of Gross Income

법령 이단보기 Article 15 (Scope of Gross Income)

(1) The gross income shall be the amount of profits or income (hereinafter
referred to as “earnings”) generated by transactions which increase the net
assets of a corporation, except for capital input or financing and what is
provided in this Act. <Amended on Dec. 24, 2018>

(2) The following amounts shall be deemed gross income: <Amended on Dec. 31,
2011; Dec. 24, 2018; Dec. 22, 2020>

1. Where securities are purchased from an individual who is a related party at
the prices lower than the market prices referred to in Article 52 (2), the
amount of the difference between such market prices and the relevant purchase
prices;

2. The amount of foreign corporate tax referred to in Article 57 (4), calculated
as prescribed by Presidential Decree and eligible for a tax credit pursuant to
paragraph (1) of the same Article;

3. The amount of income distributed under Article 100-18 (1) of the Restriction
of Special Taxation Act.

(3) Matters necessary for the scope and classification, etc. of earnings shall
be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 16 (Constructive Dividends or Distributions)

(1) Any of the following amounts shall be deemed the amount of profit dividends
or surpluses distributed from a corporation when calculating the amount of
income for the business year of a domestic corporation which is a stockholder or
investor (hereinafter referred to as "stockholder, etc.") of other corporation:
<Amended on Dec. 31, 2011; Dec. 20, 2016; Dec. 24, 2018>

1. The sum of money acquired by a domestic corporation which is a stockholder,
etc. through the retirement of stocks, reduction of capital, retirement or
withdrawal of an employee, or reduction of investment and the value of other
assets in excess of the amount necessary to acquire the relevant stocks or
investment shares (hereinafter referred to as "stocks, etc.");

2. The value of stocks, etc., that a domestic corporation which is a
stockholder, etc. acquires by transferring all or some of corporation's surplus
to capital or financing: Provided, That the same shall not apply where any of
the following amounts is transferred to capital:

(a) An amount prescribed by Presidential Decree as the capital reserve referred
to in Article 459 (1) of the Commercial Act;

(b) The revaluation reserve prescribed in the Assets Revaluation Act (excluding
an amount equivalent to any difference in the revaluation of land under Article
13 (1) 1 of the same Act);

3. Where the equity ratio of any domestic corporation which is a stockholder,
etc. of a corporation, other than the corporation, increases because such
corporation transfers its capital, as prescribed in the items of subparagraph 2
while holding treasury stocks and equity shares, the value of stocks, etc.,
equivalent to the equity ratio so increased;

4. The amount of money and the value of other assets acquired by a domestic
corporation which is a stockholder, etc. of a dissolved corporation (including
members of an organization deemed a corporation) through distribution of
residual assets of the corporation in excess of the amount necessary for the
acquisition of the relevant stocks, etc.;

5. The cost of a merger acquired by a domestic corporation which is a
stockholder, etc. of a merged corporation, in excess of the amount necessary for
the acquisition of the stocks, etc., of the merged corporation;

6. The costs of a division acquired by a domestic corporation which is a
stockholder, etc. of a corporation established through division or the
disappearing counterpart corporation to a division and merger, in excess of the
amount necessary for the acquisition of the stocks of the divided corporation or
disappearing counterpart corporation to a division and merger (limited to stocks
reduced by retirement or other means where the divided corporation survives the
division).

(2) The cost of a merger and division in paragraph (1) 5, 6, Articles 44 and 46
shall be the following amounts: <Newly Inserted on Dec. 24, 2018>

1. The cost of a merger: The sum of values of stocks, etc., of a merging
corporation acquired through merger from the merging corporation (including a
domestic corporation holding the total number of outstanding stocks or total
investment amount of a merging corporation as at the registration date of the
merger) and the values of money or other assets;

2. The cost of a division: The sum of values of stocks of a corporation newly
established through division or the counterpart corporation to the division
(including the domestic corporation that holds the total number of outstanding
stocks of the counterpart corporation to the division and merger or the total
amount of investment) acquired through division from a corporation newly
established through division or the counterpart corporation to the division and
the values of money or other assets.

(3) In applying paragraph (1), matters necessary for the timing for the
distribution of profit dividends or surpluses, the evaluation of the value of
stocks, etc., and other matters, shall be prescribed by Presidential Decree.
<Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 17 (Non-Inclusion of Gains from Capital Transactions in Gross
Income)

(1) None of the following amounts shall be included in the gross income for the
purpose of calculating the amount of income of a domestic corporation for each
business year: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 15, 2015; Dec. 24,
2018>

1. An amount exceeding the par value of stocks issued: Where stocks are issued
in excess of the par value, the amount exceeding the par value of stocks issued
(referring to the amount exceeding the amount counted as capital, out of the
issue price, in cases of non-par value stocks): Provided, That where stocks,
etc. are issued by converting debts into equity, the amount of such stocks
issued in excess of the market price referred to in Article 52 (2) shall be
excluded herefrom;

2. Marginal profits from an all-inclusive share swap: The amount exceeding the
increased capital of a wholly-owning parent corporation, where the maximum limit
of capital increase referred to in Article 360-7 of the Commercial Act exceeds
the increased capital of the wholly-owning parent corporation as a result of an
all-inclusive share swap referred to in Article 360-2 of the same Act;

3. Marginal profits from an all-inclusive share transfer: The amount exceeding
the equity capital of a wholly-owning parent corporation newly incorporated,
where the maximum limit of the equity increase referred to in Article 360-18 of
the Commercial Act exceeds the equity capital of the wholly-owning parent
corporation as a result of an all-inclusive share transfer referred to in
Article 360-15 of the same Act;

4. Marginal profits from capital reduction: The amount exceeding the amount paid
for the cancellation of stocks and the return of stock prices and the amount
appropriated for compensation for losses exceeding the amount reduced;

5. Marginal profits from a merger: The amount exceeding the amount of debts to
which the surviving corporation succeeds from the disappearing corporation and
the increased amount of the equity capital of the surviving corporation or the
equity capital of the corporation newly incorporated as a consequence of the
merger, where the value of the assets to which the corporation surviving a
merger pursuant to Article 174 of the Commercial Act succeeds from the
disappearing corporation exceeds the amount of debts to which the surviving
corporation succeeds from the disappearing corporation and the increased amount
of the equity capital of the surviving corporation or the equity capital of the
corporation newly incorporated as a consequence of the merger: Provided, That
the amount identified as gross income under this Act shall be excluded, where
the value of assets to which the surviving corporation succeeds from the
disappearing corporation exceeds the amount of debts to which the surviving
corporation succeeds from the disappearing corporation, the amount paid to
stockholders of the disappearing corporation, and the value of stocks;

6. Marginal profits from a division: The amount exceeding the amount of debts to
which a corporation succeeds from the investing corporation, the amount paid to
stockholders of the investing corporation, and the equity capital of the
corporation newly incorporated or the increased amount of the equity capital of
the surviving corporation, where the value of the assets invested in a
corporation newly incorporated as a consequence of a division or a division and
merger referred to in Article 530-2 of the Commercial Act or in a corporation
surviving such division or such division and merger exceeds the amount of debts
to which such corporation succeeds from the investing corporation, the amount
paid to stockholders of the investing corporation, and the equity capital of the
corporation newly incorporated or the increased amount of the equity capital of
the surviving corporation.

(2) Amounts prescribed by Presidential Decree which are not subject to
subparagraph 6 of Article 18 among the amounts in excess referred to in the
proviso to paragraph (1) 1 shall not be included in the gross income of the
relevant business year and may be appropriated for covering losses incurred in
each business year thereafter.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 18 (Non-Inclusion of Evaluation Profits in Gross Income)

None of the following amounts shall be included in the gross income for the
purpose of calculating the amount of income of a domestic corporation for each
business year: <Amended on Dec. 31, 2011; Jan. 1, 2014; Dec. 24, 2018; Dec. 31,
2019; Dec. 31, 2022>

1. Profits from the evaluation of assets: Provided, That profits from the
evaluation referred to in each subparagraph of Article 42 (1) shall be excluded
herefrom;

2. The income on which tax is already imposed for each business year (including
non-taxable or exempted income under this Act or other statutes);

3. An amount refunded or refundable, out of the corporate tax or local corporate
income tax not included in deductible expenses under subparagraph 1 of Article
21, but set off against other taxes;

4. Interest on the refund of overpaid or erroneously-paid national or local
taxes;

5. Output tax of value-added tax;

6. An amount appropriated for covering carried forward losses prescribed by
Presidential Decree among the value of assets gratuitously acquired (excluding
national subsidies under Article 36), and the amount of reduced debt due to
exemption from or expiration of debts;

7. An amount paid or payable by a consolidated subsidiary corporation or
consolidated parent corporation under Article 76-19 (2) or (3);

8. Dividends (limited to the book value of stocks held by a domestic
corporation) received by decreasing the capital reserve under Article 461-2 of
the Commercial Act: Provided, That the dividends on the capital reserve not
falling under each item of Article 16 (1) 2 shall be excluded.

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Subparagraph 7 of Article 18

법령 이단보기 Article 18-2 (Non-Inclusion of Domestic Corporations' Dividend Income in
Gross Income)

(1) The amount calculated by subtracting the amount in subparagraph 2 from the
amount in subparagraph 1, among profit dividends or surplus distributions or
constructive dividends or distributions provided in Article 16 (hereafter in
this Article and Article 76-14, referred to as "dividend income") that a
domestic corporation (excluding a non-profit domestic corporation that
appropriates reserve funds for proper purpose business as deductible expenses
pursuant to Article 29) receives from other corporation invested by the relevant
domestic corporation (hereafter in this Article, referred to as "invested
corporation") shall not be included in gross income for the purpose of
calculating the amount of income for each business year. In such cases, where
the amount is less than zero, it shall be deemed nil: <Amended on Dec. 31, 2019;
Dec. 31, 2022>

The ratio of investment in invested corporationThe ratio of non-inclusion in
gross incomeAt least 50 percent100 percentAt least 20 percent but less than 50
percent80 percentLess than 20 percent30 percent

2. The amount calculated as prescribed by Presidential Decree, considering the
ratio of non-inclusion in gross income and the amount of investment in invested
corporation referred to in subparagraph 1 among the interest on borrowings to
the total assets of a domestic corporation, where interest on borrowings has
been paid by the domestic corporation in each business year.

(2) Paragraph (1) shall not apply to any of the following dividend incomes:
<Amended on Dec. 22, 2020>

1. The dividend income accruing upon holding stocks, etc. acquired within three
months prior to the base date of dividend distribution;

2. Deleted. <Dec. 31, 2022>

3. The dividend income paid by any corporation which is entitled to income
deductions on the dividend payable under Article 51-2 or Article 104-31 of the
Act on Restriction on Special Cases concerning Taxation;

4. The dividend income paid by any corporation (limited to corporation
prescribed by Presidential Decree), which is entitled to the non-taxation,
exemption, or reduction of corporate tax under this Act and the Restriction of
Special Taxation Act;

5. The amount of dividend income received from corporate taxable trust property
entitled to income deduction with respect to the dividends paid pursuant to
Article 75-14.

(3) In applying paragraphs (1) and (2), matters necessary for the method for
computing the ratio of equity investment by a domestic corporation in an
invested corporation, amounts excluded from gross income, the scope of
borrowings and interest on borrowings, submission of a detailed dividend income
statement, etc. shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 24, 2018]
[Moved from Article 18-3; previous Article 18-2 moved to Article 18-3 <Dec. 24,
2018>]

법령 이단보기 Article 18-3 Deleted. <Dec. 31, 2022>

“”’

법령 이단보기 Article 18-4 (Non-Inclusion of Dividend Income of Foreign Subsidiaries
in Gross Income)

(1) Where a domestic corporation (excluding indirect investment companies, etc.
referred to in Article 57-2 (1)) has a foreign subsidiary [referring to a
foreign corporation in which the domestic corporation has invested by holding at
least 10/100 of the total number of its outstanding voting stocks or the total
amount of investment (5/100 in the case of a foreign corporation conducting an
overseas resources development project under Article 22 of the Act on
Restriction on Special Cases concerning Taxation), and which meets the
requirements prescribed by Presidential Decree; hereafter in this Article and
Article 41 the same shall apply], an amount equivalent to 95/100 of the dividend
or distribution of surplus received from such foreign subsidiary or an amount
deemed to be dividend or distribution pursuant to Article 16 (hereafter in this
Article referred to as “dividend income”) shall not be included in gross income
for the purpose of calculating the amount of income for each business year.

(2) Where a domestic corporation receives dividend income from a foreign
corporation (excluding foreign subsidiaries) in which the relevant domestic
corporation has invested after reducing its capital reserve, which is of a
nature equivalent to the dividend not included in gross income under
subparagraph 8 of Article 18, the amount equivalent to 95/100 of such amount
shall not be included in gross income for the purpose of calculating the amount
of income for each business year.

(3) Paragraph (1) shall not apply to the amount deemed to have been distributed
to a domestic corporation with respect to retained earnings of a specific
foreign corporation under Articles 27 (1) and 29 (1) and (2) of the Adjustment
of International Taxes Act and to the amount of dividend income when such
retained earnings are actually distributed.

(4) Notwithstanding paragraph (1), the amount falling under any of the following
shall be included in gross income for the purpose of calculating the amount of
income for each business year:

1. Dividend income received from a specific foreign corporation that meets all
the requirements prescribed in the subparagraphs of Article 27 (1) of the
Adjustment of International Taxes Act, as dividend income prescribed by
Presidential Decree;

2. Dividend income paid to a domestic corporation following the transaction of
hybrid financial instruments (referring to financial instruments that have the
characteristics of both equity and liabilities, as prescribed by Presidential
Decree);

3. Dividend income, similar to those provided for in subparagraphs 1 and 2,
prescribed by Presidential Decree.

(5) A domestic corporation that intends to be governed by paragraph (1) shall
submit a detailed statement of dividend income received from its foreign
subsidiary to the head of the tax office having jurisdiction over the place of
tax payment.

(6) In applying paragraphs (1) through (5), matters necessary for the method for
calculating the ratio of investment made by a domestic corporation in a foreign
subsidiary, the method for calculating the amount excluded from gross income,
the submission of a detailed statement of dividend income from a foreign
subsidiary, etc. shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 31, 2022]
Subsection 3 Calculation of Deductible Expenses

법령 이단보기 Article 19 (Scope of Deductible Expenses)

(1) Deductible expenses shall be losses or expenses (hereinafter referred to as
“deductible expenses”) incurred by transactions which reduce the net assets of a
corporation, excluding return of capital or financing, disposition of surplus
funds, and what is provided for in this Act. <Amended on Dec. 24, 2018>

(2) The deductible expenses shall be losses or expenses incurred in connection
with the business of a corporation which are generally accepted as ordinary or
directly related to profits, except those otherwise prescribed by this Act and
other statutes. <Amended on Dec. 24, 2018>

(3) Losses distributed under Article 100-18 (1) of the Restriction of Special
Taxation Act shall be deemed deductible expenses. <Amended on Dec. 24, 2018>

(4) Matters necessary for the scope and types of the deductible expenses and
other matters shall be prescribed by Presidential Decree. <Amended on Dec. 24,
2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 19-2 (Non-Inclusion of Bad Debts in Deductible Expenses)

(1) The amount of irrecoverable claims (hereinafter referred to as "bad debt
expenses") due to grounds prescribed by Presidential Decree, such as bankruptcy
of the debtor, among the claims held by a domestic corporation, shall be
included in deductible expenses for the purpose of calculating the amount of
income of the business year prescribed by Presidential Decree. <Amended on Dec.
24, 2018>

(2) Paragraph (1) shall not apply to any of the following claims: <Amended on
Dec. 24, 2018; Dec. 22, 2020; Dec. 29, 2020>

1. Claims for indemnity arising from debt guarantees (excluding debt guarantees
prescribed by Presidential Decree, such as debt guarantees referred to in any of
the subparagraphs of Article 24 of the Monopoly Regulation and Fair Trade Act);

2. Provisional payments, etc. in Article 28 (1) 4 (b). In such cases,
determining a specially related person shall be based on the time point of
lending.

(3) The amount recovered among bad debt expenses included in deductible expenses
under paragraph (1) shall be included in gross income for the purpose of
calculating the amount of income for the business year in which the date of
recovery falls.

(4) A domestic corporation that intends to apply paragraph (1) shall submit a
detailed statement of bad debt expenses to the head of the tax office having
jurisdiction over the place of tax payment, as prescribed by Presidential
Decree. <Amended on Dec. 24, 2018>

(5) Matters necessary for the scope and disposal of bad debt expenses and other
matters shall be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 20 (Non-Inclusion of Losses from Capital Transactions in
Deductible Expenses)

None of the following amounts shall be included in deductible expenses for the
purpose of calculating the amount of income of a domestic corporation for each
business year: <Amended on Dec. 19, 2017; Dec. 24, 2018>

1. The amount computed by counting the appropriation of surpluses as losses when
settlement of accounts is fixed;

2. Margins from the issuance of stocks at below par value: Where shares are
issued at a price below the par value pursuant to Article 417 of the Commercial
Act, the sum of the price below the par value and the issuance price of new
shares.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 21 (Non-Inclusion of Taxes and Public Charges in Deductible
Expenses)

None of the following taxes and public charges shall be included in deductible
expenses for the purpose of calculating the amount of income of a domestic
corporation for each business year: <Amended on Dec. 29, 2000; Dec. 31, 2001;
Dec. 30, 2006; Dec. 31, 2007; Dec. 26, 2008; Jan. 30, 2009; Jan. 1, 2010; Dec.
30, 2010; Jan. 1, 2014; Dec. 22, 2020; Dec. 29, 2020; Dec. 21, 2021; Dec. 31,
2022>

1. Corporate tax (including the amount of tax paid abroad on the income dividend
not included in gross income under Article 18-4 and the amount of foreign
corporate tax eligible for a tax credit under Article 57) or pro rata local
income tax paid or payable for each business year, the amount of tax paid or
payable (including penalty tax) due to non-performance of duties prescribed by
tax-related Acts, and the input tax of value-added tax (excluding the amount of
tax exempt from value-added tax or in circumstances prescribed by Presidential
Decree);

2. The unpaid amount of individual consumption tax or liquor tax on unsold
shipped-out goods: Provided, That the same shall not apply where the price of
the manufactured goods includes an amount equivalent to such amount of tax;

3. Fines, penalties (including an amount equivalent to fines or penalties stated
on a dispositions notice), administrative fines (including penalties and fines),
surcharges, and forced collection charge;

4. Public charges that are not mandatory under statutes and regulations;

5. Public charges imposed as sanctions for non-performance of duties, or a
violation of any of prohibitions or restrictions imposed under statutes and
regulations;

6. Amount paid or payable to a consolidated parent corporation or consolidated
subsidiary pursuant to Article 76-19 (2) or (3).

[Title Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Subparagraph 6 of Article 21

법령 이단보기 Article 21-2 (Non-Inclusion of Punitive Damages, etc. in Deductible
Expenses)

The amount specified by Presidential Decree that a domestic corporation paid in
excess of actually incurred losses as part of damages shall not be included in
deductible expenses, in calculating the amount of income for each business year
of the domestic corporation.
[This Article Newly Inserted on Dec. 19, 2017]

법령 이단보기 Article 22 (Non-Inclusion of Losses from Evaluation of Assets in
Deductible Expenses)

Losses from the evaluation of assets held by a domestic corporation shall not be
included in deductible expenses for the purpose of calculating the amount of
income of the domestic corporation for each business year: Provided, That the
losses from evaluation incurred by evaluating assets under Article 42 (2) and
(3) shall be included in deductible expenses. <Amended on Dec. 24, 2018>
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 23 (Non-Inclusion of Depreciation Costs in Deductible Expenses)

(1) Where a domestic corporation counts as losses the depreciation costs of
tangible and intangible assets prescribed by Presidential Decree, such as
buildings, machinery, equipment and patent rights, except land (hereafter in
this Article, referred to as "depreciable assets") when settlement of accounts
is fixed for the relevant business year, the depreciation costs appropriated,
within the limit of the amount computed as prescribed by Presidential Decree
(hereafter in this Article, referred to as "allowable depreciation"), shall be
included in deductible expenses for the purpose of calculating the amount of
income of a domestic corporation for the relevant business year, and the amount
appropriated in excess of the allowable depreciation shall not be included in
such deductible expenses. <Amended on Dec. 24, 2018>

(2) Notwithstanding paragraph (1), the depreciation costs of tangible assets and
intangible fixed assets prescribed by Presidential Decree, among depreciable
assets owned by a domestic corporation that applies the accounting standards
(hereinafter referred to as "Korean International Financial Reporting Standards
(K-IFRS)") under Article 5 (1) 1 of the Act on External Audit of Stock Companies
may be additionally included in the deductible expenses within the difference
where any of the following amounts for each item of asset exceeds the amount
included in the deductible expenses under paragraph (1): <Amended on Oct. 31,
2017; Dec. 24, 2018>

1. Assets acquired on or before December 31, 2013: Where the depreciation costs
are appropriated according to the previous method without applying the K-IFRS,
the amount equivalent to the depreciation costs to be included in the deductible
expenses under paragraph (1) (hereafter in this Article, referred to as
"previous depreciation costs");

2. Assets acquired on or after January 1, 2014: The amount equivalent to the
depreciation costs computed by applying the standard service life prescribed by
Ordinance of the Ministry of Strategy and Finance (hereafter in this Article,
referred to as "standard depreciation costs").

(3) Notwithstanding paragraph (1), where the relevant domestic corporation is
entitled to exemption from or reduction of corporate tax under this Act and
other statutes, the depreciation costs shall be included in the deductible
expenses, as prescribed by Presidential Decree, for the purpose of calculating
the amount of income of such domestic corporation for the relevant business
year. <Amended on Dec. 24, 2018>

(4) In applying paragraph (1), where a domestic corporation counts any of the
following amounts as losses, the allowable depreciation shall be calculated,
deeming that the amount is counted as depreciation costs, for the purpose of
calculating the amount of income of the domestic corporation for each business
year: <Newly Inserted on Dec. 24, 2018>

1. The amount spent to acquire depreciable assets;

2. Capital expenditure prescribed by Presidential Decree concerning depreciable
assets.

(5) The amount in excess of the allowable depreciation that is not included in
deductible expenses pursuant to paragraph (1) shall be included in deductible
expenses for the subsequent business years by the method prescribed by
Presidential Decree. <Newly Inserted on Dec. 24, 2018>

(6) Any domestic corporation which includes depreciation costs in deductible
expenses pursuant to paragraphs (1) through (5) shall submit a detailed
statement of depreciation costs to the head of the tax office having
jurisdiction over the place of tax payment, as prescribed by Presidential
Decree. <Amended on Dec. 24, 2018>

(7) In applying paragraphs (1) through (5), matters necessary for the method of
appropriating depreciation costs as deductible expenses, deciding the timing for
application of the K-IFRS, calculating previous depreciation costs and standard
depreciation costs, changing the depreciation method, the special cases
concerning and changes of service life, the special cases concerning the
calculation of allowable depreciation of secondhand assets, and the scope of
immediately depreciable assets, etc. shall be prescribed by Presidential Decree.
<Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 24 (Non-Inclusion of Donations in Deductible Expenses)

(1) "Donation" in this Article means the expenses (including the amount deemed
substantially donated through a transfer prescribed by Presidential Decree) that
a domestic company gratuitously spends directly irrelevant to its business.
<Amended on Dec. 24, 2018>

(2) Special donations referred to in subparagraph 1 among the donations spent by
a domestic corporation for each business year and donations carried forward
under paragraph (5) shall be sequentially included in deductible expenses within
the ceiling on inclusion in deductible expenses calculated pursuant to
subparagraph 2 , for the purpose of calculating the amount of income for each
business year; and the amount in excess of the ceiling on inclusion in
deductible expenses shall not be included in deductible expenses: <Amended on
Dec. 22, 2020; Aug. 17, 2021; Dec. 21, 2021; Dec. 31, 2022>

1. Special donation: Donation falling under any of the following:

(a) The value of money and valuables gratuitously donated to the State or a
local government: Provided, That this shall be limited to money and valuables
received under Article 5 (2) of the Act on Collection and Use of Donations,
where such money and valuables are subject to said Act;

(b) The value of contributions for national defense and money and valuables
contributed for the consolation and comfort of soldiers of the national armed
forces;

(c) The value of money and valuables contributed for victims of natural
disasters;

(d) Donations given to the following institutions (excluding hospitals) for
facility expenses, educational expenses, scholarships, or research funds:

(i) Private schools established under the Private School Act;

(ii) Non-profit educational foundations (limited to non-profit incorporated
foundations established for the purpose of paying facility expenses, educational
expenses, scholarships, or research funds for national, public or private
schools);

(iii) Polytechnic colleges defined in the Act on the National Lifelong
Vocational Skills Development Act;

(iv) Lifelong educational facilities that may use the name of major college
under the Lifelong Education Act and lifelong educational facilities in the form
of a distance college;

(v) Foreign educational institutions founded under the Special Act on
Establishment and Management of Foreign Educational Institutions in Free
Economic Zones and Jeju Free International City;

(vi) Industry-academic cooperation groups defined in the Industrial Education
Enhancement and Industry-Academia-Research Cooperation Promotion Act;

(vii) The Korea Advanced Institute of Science and Technology established under
the Korea Advanced Institute of Science and Technology Act, the Gwangju
Institute of Science and Technology established under the Gwangju Institute of
Science and Technology Act, the Daegu Gyeongbuk Institute of Science and
Technology established under the Daegu Gyeongbuk Institute of Science and
Technology Act, the Ulsan National Institute of Science and Technology
established under the Ulsan National Institute of Science and Technology Act,
and Korea Institute of Energy Technology established under the Korea Institute
of Energy Technology Act;

(viii) Seoul National University established under the Act on Establishing and
Administrating Seoul National University, Incheon National University
established under the Act on Establishing and Administrating Incheon National
University, and other similar schools prescribed by Presidential Decree;

(ix) Korean schools prescribed in the Act on the Educational Support for Korean
Nationals Residing Abroad (limited to schools that meet requirements prescribed
by Presidential Decree);

(x) Korea Student Aid Foundation established under the Act on the Establishment
of Korea Student Aid Foundation

(e) Donations given to the following hospitals for facility expenses,
educational expenses, or research funds:

(i) National university-affiliated hospitals established under the Act on the
Establishment of National University-Affiliated Hospitals;

(ii) National university-affiliated dental hospitals established under the Act
on the Establishment of National University-Affiliated Dental Hospitals;

(iii) Seoul National University Hospital established under the Establishment of
Seoul National University Hospital Act;

(iv) Seoul National Dental Hospital established under the Establishment of Seoul
National Dental Hospital Act;

(v) Hospitals operated by private schools as defined in the Private School Act;

(vi) National Cancer Center established under the Cancer Control Act;

(vii) Local medical centers established under the Act on the Establishment and
Management of Local Medical Centers;

(viii) National Medical Center established under the Act on Establishing and
Administrating the National Medical Center;

(ix) Hospitals operated by the Korean National Red Cross established under the
Organization of the Korean National Red Cross Act;

(x) Hospitals operated by the Korea Veterans Welfare and Healthcare Corporation
established under the Korea Veterans Health Service Act;

(xi) Korea Institute of Radiological and Medical Sciences established under the
Radiation and Radioisotope Use Promotion Act;

(xii) Hospitals operated by the National Health Insurance established under the
National Health Insurance Act;

(xiii) Medical institutions referred to in Article 43 (1) 1 of the Industrial
Accident Compensation Insurance Act;

(f) Donations given to corporations that meet requirements prescribed by
Presidential Decree, as non-profit organizations that mainly aim to raise and
distribute funds necessary for supporting social welfare services and other
social welfare activities;

2. Ceiling on amount includible in deductible expenses: the amount calculated
according to the following formula:

[The amount of standard income (the amount of income prior to including special
donations referred to in subparagraph 1 and general donations referred to in
paragraph (3) 1, excluding transfer gains or losses prescribed in Articles 44,
46 and 46-5, in deductible expenses; hereafter in this Article, the same shall
apply) - losses referred to in Article 13 (1) 1 (it shall be up to 80 percent of
standard income in the case of a corporation eligible for deduction of carry
forward losses to the extent of 80 percent of its income for each business year
pursuant to the proviso, with the exception of the subparagraphs, of Article 13
(1)] x 50 percent

(3) Out of donations made by a domestic corporation in each business year and
donations carried forward under paragraph (5), general donations referred to in
subparagraph 1 shall be included in deductible expenses when calculating the
amount of income for the relevant business year within the maximum amount
includible in deductible expenses calculated under subparagraph 2; however, the
amount exceeding the maximum amount includible in deductible expenses shall not
be included in deductible expenses: <Amended on Dec. 22, 2020; Dec. 31, 2022>

1. General donations: Donations prescribed by Presidential Decree in
consideration of public interest, such as social welfare, culture, arts,
education, religion, charity, science, etc. (excluding donations referred to in
paragraph (2) 1); hereafter in this Article the same shall apply)

2. Ceiling on amount includible in deductible expenses: the amount calculated
according to the following formula:

[The amount of standard income - losses referred to in Article 13 (1) 1 (it
shall be up to 80 percent of standard income in the case of a corporation
eligible for deduction of carry forward losses to the extent of 80 percent of
its income for each business year pursuant to the proviso, with the exception of
the subparagraphs, of Article 13 (1)) ? amount included in deductible expenses
pursuant to paragraph (2) (including an amount carried forward and included in
deductible expenses pursuant to paragraph (5)] x 10 percent (it shall be 20
percent in the case of a social enterprise defined in subparagraph 1 of Article
2 of the Social Enterprise Promotion Act)

(4) Donations, other than those prescribed in paragraphs (2) 1 and (3) 1, shall
not be included in deductible expenses for the purpose of calculating the amount
of income for the relevant business year. <Amended on Dec. 22, 2020>

(5) The amount of contributions that a domestic corporation spends in each
business year that has not been included in deductibles in excess of the
deduction limit for donations pursuant to paragraphs (2) and (3) shall be
carried forward and included in deductible expenses for each business year which
ends within 10 years from the start date of the business year following the
relevant business year, for the purpose of calculating the amount of income for
the business year carried forward, it shall be included in the deductible amount
within the range of the deductible limit for each donation referred to in
paragraphs (2) 2 and (3) 2. <Amended on Dec. 24, 2018; Dec. 31, 2019; Dec. 22,
2022

(6) Where an amount carried forward pursuant to paragraphs (2) and (3) is
included in deductible expenses, the amount carried forward pursuant to
paragraph (5) shall be included in deductible expenses before the amount of
donations paid in the relevant business year. In such cases, the amount carried
forward shall be included in deductible expenses from the amount carried forward
first. <Newly Inserted on Dec. 31, 2019; Dec. 22, 2020>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 25 (Non-Inclusion of Business Promotion Expenses in Deductible
Expenses)

(1) "Business promotion expense" in this Article means entertainment expense,
social expense, honorarium, or other expenses of a similar nature, however
named, spent by a domestic corporation for smoothly conducing business with
those directly or indirectly related to its business. <Amended on Dec. 24, 2018;
Dec. 31, 2022>

(2) Business promotion expenses paid by a domestic corporation in excess of the
amount prescribed by Presidential Decree on one occasion, which do not fall
under any of the following, shall not be included in deductible expenses for the
purpose of calculating the amount of income for each business year: Provided,
That the same shall not apply to any business promotion expenses prescribed by
Presidential Decree, such as those paid in any foreign country for farmers or
fishermen, which make it impractical to obtain documents evidencing that such
business promotion expenses fall under any of the followings, but the
expenditure of such business promotion expenses is objectively unquestionable:
<Amended on Dec. 30, 2010; Dec. 31, 2011; Jun. 7, 2013; Dec. 24, 2018; Dec. 31,
2022>

1. Business promotion expenses paid upon using any of the following (hereinafter
referred to as "credit card, etc."):

(a) Credit cards defined in the Specialized Credit Finance Business Act
(including items prescribed by Presidential Decree and similar to credit cards;
hereafter in Article 117, the same shall apply);

(b) Cash Receipts prescribed in Article 126-2 (1) 2 of the Restriction of
Special Taxation Act (hereinafter referred to as "Cash Receipts");

2. Business promotion expenses paid upon receiving an invoice referred to in
Article 121 of this Act or Article 163 of the Income Tax Act or a tax invoice
referred to in Articles 32 and 35 of the Value-Added Tax Act;

3. Business promotion expenses paid upon issuing a purchaser-issued invoice
referred to in Article 121-2 or purchaser-issued tax invoice referred to in
Article 34-2 (2) of the Value-Added Tax Act;

4. Business promotion expenses paid upon issuing cash receipts prescribed by
Presidential Decree.

(3) Where a sales slip, etc., is issued in the name of other credit card
merchant, etc., which is not the one that actually supplies the relevant goods
or services, the relevant amount of spending shall not be deemed the business
promotion expenses referred to in paragraph (2) 1 for the purposes of paragraph
(2) 1. <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>

(4) Business promotion expenses (excluding the amount which is not included in
deductible expenses pursuant to paragraph (2)) paid by a domestic corporation
for each business year in excess of the sum of the following amounts shall not
be included in deductible expenses in calculating the amount of income for the
relevant business year: <Amended on Dec. 24, 2018; Dec. 31, 2019; Dec. 31, 2022>

1. Standard ceiling: The amount calculated by the following formula:The amount
of standard ceiling: A x B x 1/12

A: 12 million won (36 million won for a small and small and medium enterprises)
B: The number of months for the relevant business year (the number of months
shall be calculated by calendar, and the number of days less than one month
shall be deemed one month.)

2. The ceiling by the amount of income: The amount computed by multiplying the
amount of income for the relevant business year (limited to the amount of income
prescribed by Presidential Decree) by the rates specified in the following
table: Provided, That with respect to the amount of income accrued from
transactions with a related party, it means an amount equivalent to 10/100 of
the amount computed by multiplying such amount of income by the rates specified
in the following table:

Amount of IncomeRate(a) Not exceeding 10,000,000,000 won0.3 percent(b) Between
10 billion won and 50 billion won30 million won＋(amount of income ? 10 billion
won) x 0.2 percent(c) At least 50 billion won1.1 billion won＋(amount of income ?
50 billion won) x 0.03 percent

(5) In applying paragraph (4), where the domestic corporation mainly engages in
real estate leasing business or meets the criteria prescribed by Presidential
Decree, the amount in excess of 50/100 of the sum of the amounts in all
subparagraphs of the same paragraph shall not be included in deductible expenses
in calculating the amount of income for the relevant business year. <Newly
Inserted on Dec. 24, 2018>

(6) Matter necessary for the scope and calculation of business promotion
expenses, keeping documents evidencing disbursement, etc. shall be prescribed by
Presidential Decree. <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>

[Title Amended on Dec. 31, 2022]
[Enforcement Date: July 1, 2023] The part pertaining to “purchaser-Issued
Invoice” in the amended provisions of Article 25 (2) 3
[Enforcement Date: Jan. 1, 2024] Article 25

법령 이단보기 Article 26 (Non-Inclusion of Excessive Expenses in Deductible Expenses)

Among the following deductible expenses, the amount deemed excessive or
inappropriate, as prescribed by Presidential Decree, shall not be included in
deductible expenses for the purpose of calculating the amount of income of a
domestic corporation for each business year:

1. Labor costs;

2. Expenses for fringe benefits;

3. Travel expenses and educational and training expenses;

4. Losses incurred or paid by a corporation in the course of jointly operating
or managing an identical organization or business with a person, other than the
corporation;

5. Expenses prescribed by Presidential Decree, other than those referred to in
subparagraphs 1 through 4, deemed to have little direct connection to the
business of a corporation.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 27 (Non-Inclusion of Non-Business Expenses in Deductible
Expenses)

Among expenses incurred by a domestic corporation, none of the following amounts
shall be included in deductible expenses for purposes of calculating the amount
of income of each business year: <Amended on Dec. 24, 2018>

1. An amount prescribed by Presidential Decree, such as expenses incurred in
acquiring and managing the assets prescribed by Presidential Decree, which are
deemed to have no direct connection to the business of the corporation;

2. Expenditures prescribed by Presidential Decree, other than the amount
prescribed in subparagraph 1, which are deemed to have no direct connection to
the business of the relevant corporation.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 27-2 (Special Cases, Including Exclusion of Expenses Incurred in
Relation to Passenger Vehicles for Business Use from Deductible Expenses)

(1) Depreciation costs of the passenger vehicles provided for in Article 1 (2) 3
of the Individual Consumption Tax Act (excluding passenger vehicles specified by
Presidential Decree and directly used for such business as transportation
business or motor vehicle sales business and passenger cars used for the purpose
of research and development, as prescribed by Presidential Decree; hereafter in
this Article and Article 74-2, referred to as "passenger vehicles for business
use") shall be included in deductible expenses for the purpose of computing the
amount of income for each business year, as prescribed by Presidential Decree.
<Amended on Dec. 24, 2018; Dec. 31, 2019; Dec. 21, 2021>

(2) The amount that does not fall in the scope of expenses prescribed by
Presidential Decree incurred for business use (hereafter in this Article,
referred to as "expenses incurred for business use"), among expenses specified
by Presidential Decree, such as depreciation costs, rental charges, and fuel
expenses generated during the relevant business year for passenger vehicles that
a domestic corporation has acquired or rented for business use (hereafter in
this Article and Article 74-2, referred to as "expenses incurred in relation to
passenger vehicles for business use") shall not be included in deductible
expenses for the purpose of computing the amount of income for the relevant
business year. <Amended on Dec. 24, 2018; Dec. 31, 2019; Dec. 21, 2021>

(3) In applying paragraph (2), where either of the following cost or amount, out
of expenses incurred for business use, exceeds eight million won during a
business year (referring to the amount calculated by multiplying eight million
won by the number of months during the relevant business year and then dividing
the amount therefrom by 12, where the relevant business year is less than one
year, or the amount calculated by multiplying eight million won by the number of
months during the period of owning or renting the relevant vehicle and then
dividing the amount therefrom by the number of months during the relevant
business year, where the vehicle was owned or rented for a certain period during
the business year), the excess amount (hereafter in this Article, referred to as
"excess of the ceiling on depreciation costs") shall not be included in
deductible expenses for the relevant business year but shall be carried over to
the following term and shall be included in deductible expenses by the method
prescribed by Presidential Decree: <Amended on Dec. 19, 2017>

1. The depreciation cost of each passenger vehicle for business use;

2. The amount specified by Presidential Decree as equivalent to depreciation
costs, among rental charges for each passenger vehicle for business use.

(4) Where the loss incurred in disposing of passenger vehicles for business use
exceeds eight million won for each passenger vehicle for business use (referring
to the amount calculated by multiplying eight million won by the number of
months during the relevant business year and then dividing the amount therefrom
by 12, where the relevant business year is less than one year), the excess
amount shall be included in deductible expenses by the method prescribed by
Presidential Decree, which is carrying over the amount to the following term.
<Amended on Dec. 24, 2018>

(5) For the purpose of applying paragraphs (3) and (4) to a domestic
corporation, "eight million won" shall be construed as "four million won"
respectively, where the domestic corporation engages mainly in real estate
leasing business or meets the criteria prescribed by Presidential Decree. <Newly
Inserted on Dec. 20, 2016>

(6) Each corporation that includes expenses incurred in relation to passenger
vehicles for business use pursuant to paragraphs (1) through (5) shall submit a
statement on the expenses incurred in relation to passenger vehicles for
business use to the head of the tax office having jurisdiction over the place of
tax payment, as prescribed by Presidential Decree. <Amended on Dec. 20, 2016>

(7) The method for calculating expenses incurred for business use, the methods
for calculating and carrying over the excess of the ceiling on depreciation
costs, and other necessary matters, shall be prescribed by Presidential Decree.
<Amended on Dec. 20, 2016>

[This Article Newly Inserted on Dec. 15, 2015]

법령 이단보기 Article 28 (Non-Inclusion of Interest Expenses in Deductible Expenses)

(1) Interest on the following loans shall not be included in deductible expenses
for the purpose of calculating the amount of income of a domestic corporation
for each business year: <Amended on Dec. 30, 2010; Dec. 31, 2011; Dec. 24, 2018>

1. Interest on debentures for which the creditor prescribed by Presidential
Decree is unknown;

2. Interest on, a discount of, or gains from bonds and securities referred to in
Article 16 (1) 1, 2, 5, and 8 of the Income Tax Act, which are prescribed by
Presidential Decree and for which the recipient is unknown;

3. Interest on loans appropriated for construction capital prescribed by
Presidential Decree;

4. Among interest on loans paid during each business year by a domestic
corporation which acquires or owns any of the following assets, the amount
calculated, as prescribed by Presidential Decree (the ceiling thereon shall be
the interest on loans equivalent to the value of the relevant assets):

(a) Assets referred to in subparagraph 1 of Article 27;

(b) Provisional payments, etc. prescribed by Presidential Decree to a related
party with no connection to the business of the relevant corporation.

(2) An amount prescribed by Presidential Decree and calculated by subtracting
the interest referred to in paragraph (1) 3 from the interest on loans
appropriated for construction capital, need not be included in the deductible
expenses for the purpose of calculating the amount of income of a domestic
corporation for each business year. <Newly Inserted on Dec. 30, 2010; Dec. 24,
2018>

(3) Where the provisions governing the non-inclusion of interest expenses in
deductible expenses stipulated in each subparagraph of paragraph (1) apply
concurrently, such provisions shall apply in the order prescribed by
Presidential Decree. <Amended on Dec. 30, 2010; Dec. 24, 2018>

(4) Matters necessary for the scope and calculation of loans and interest
expenses under paragraph (1) and other matters shall be prescribed by
Presidential Decree. <Amended on Dec. 30, 2010; Dec. 24, 2018>

[Title Amended on Dec. 30, 2010]
Subsection 4 Inclusion of Reserve Funds and Appropriation Funds in Deductible
Expenses

법령 이단보기 Article 29 (Inclusion of Reserve Funds for Proper Purpose Business in
Deductible Expenses for Non-Profit Domestic Corporation)

(1) Where a non-profit domestic corporation (limited to organizations prescribed
by Presidential Decree in cases of an organization deemed a corporation;
hereafter in this Article, the same shall apply) appropriates reserve funds for
proper purpose business as the deductible expenses to expend them for its proper
purpose business or general donations referred to in Article 24 (3) 1 (hereafter
in this Article, referred to as "proper purpose business, etc.") when settlement
of accounts is fixed for the relevant business year, such reserve funds for
proper purpose business shall be included in deductible expenses for the purpose
of calculating the amount of income for the relevant business year, which shall
not exceed the sum of the amounts by any of the following classifications
(referring to the amount computed by subtracting a loss from the sum of income
referred to in each item of subparagraph 1, where a loss has been incurred from
the profit-making business referred to in subparagraph 4): <Amended on Dec. 24,
2018; Dec. 22, 2020; Dec. 31, 2022>

1. The following amounts:

(a) The amount of interest income referred to in each subparagraph of Article 16
(1) of the Income Tax Act (excluding profits from non-business loans referred to
in Article 16 (1) 11 of the Income Tax Act);

(b) The amount of dividend income referred to in each subparagraph of Article 17
(1) of the Income Tax Act: Provided, That excluded herefrom is the amount of
dividend income accruing from stocks, etc., which is included in the taxable
value of the inheritance tax or gift tax or is subject to gift tax pursuant to
Article 16 or 48 of the Inheritance Tax and Gift Tax Act;

(c) The amount of interest incurred from loans to members or associates for
welfare projects of a non-profit domestic corporation established under any
special Act.

2. The amount computed by multiplying the income from other profit-making
business by 50/100 (80/100 for a corporation established under the Act on the
Establishment and Operation of Public Interest Corporations, which expends at
least 50/100 of the expenditures for its proper purpose business, for
scholarships).

(2) In applying paragraph (1), a non-profit domestic corporation subject to
audit by an auditor under subparagraph 7 of Article 2 and Article 9 of the Act
on External Audit of Stock Companies appropriates a reserve fund for proper
purpose business in the tax settlement invoice in Article 60 (2) 2, and the
relevant reserve fund is accumulated as reserve funds for proper purpose
business in disposing of the profits accruing during the relevant business year,
such amount shall be deemed included in deductible expenses when the settlement
of account is fixed. <Newly Inserted on Dec. 24, 2018>

(3) Where a non-profit domestic corporation that has appropriated the reserve
funds for proper purpose business as deductible expenses pursuant to paragraph
(1) has the amount expended for proper purpose business, it shall offset the
amount in sequential order beginning with the reserve funds for proper purpose
business appropriated for the business year. In such cases, where the amount
expended for proper purpose business, etc. in the relevant business year exceeds
the balance in the reserve funds for proper purpose business as at the end date
of the immediately preceding business year, such excess shall be deemed expended
from the reserve funds for proper purpose business to be appropriated for the
relevant business year. <Amended on Dec. 24, 2018>

(4) Where a non-profit domestic corporation that has appropriated the reserve
funds for proper purpose business as deductible expenses pursuant to paragraph
(1) is dissolved after it comprehensively transfers all rights and duties
concerning its business to other non-profit domestic corporation, the balance in
the reserve funds for proper purpose business as at the registration date of the
dissolution may be succeeded to by the other non-profit domestic corporation.
<Amended on Dec. 24, 2018>

(5) Where any of the following events occurs in relation to a non-profit
domestic corporation with a balance in the reserve funds for proper purpose
business, which has been included in deductible expenses pursuant to paragraph
(1), the balance (referring to an amount used for purposes other than its proper
purpose business, etc. in cases of subparagraph 5; hereafter in this Article the
same shall apply) shall be included in gross income for the purpose of
calculating the amount of income for the business year in which the relevant
event occurs: <Amended on Jan. 1, 2014; Dec. 24, 2018; Dec. 31, 2022>

1. Where the non-profit domestic corporation is dissolved (excluding where the
balance in the reserve funds for proper purpose business is succeeded under
paragraph (4));

2. Where the non-profit domestic corporation wholly discontinues its proper
purpose business;

3. Where the approval of an organization deemed a corporation is revoked or it
is changed to a resident under Article 13 (3) of the Framework Act on National
Taxes;

4. Where the non-profit domestic corporation fails to use the reserve funds for
proper purpose business appropriated as deductible expenses for proper purpose
business, etc., by the fifth anniversary of the end date of the relevant
business year (limited to a balance unused within such five years).

5. Where the reserve funds for proper purpose business are used for a purpose
other than the proper purpose business, etc.;

(6) A non-profit domestic corporation with a balance in the reserve funds for
proper purpose business, which has been included in deductible expenses pursuant
to paragraph (1), may partially reduce the balance and include it in deductible
expenses within five years from the end date of the business year in which the
reserve funds for proper purpose business was appropriated as deductible
expenses. In such cases, the balance first included in deductible expenses for a
certain business year shall be deemed first reduced and then the remainder shall
be deemed reduced successively. <Newly Inserted on Dec. 24, 2018>

(7) Where the balance of reserve funds for proper purpose business is included
in gross income pursuant to paragraphs (5) 4 and 5 and (6), an amount equivalent
to the interest calculated as prescribed by Presidential Decree shall be added
to corporate tax to be paid in the relevant business year. <Amended on Jan. 1,
2014; Dec. 24, 2018; Dec. 31, 2022>

(8) Paragraph (1) shall not apply to circumstances prescribed by Presidential
Decree, where reductions, exemptions, etc. are granted under this Act or other
statutes. <Amended on Dec. 24, 2018>

(9) A non-profit domestic corporation which intends to apply paragraph (1) shall
keep and maintain a statement on the appropriation and expenditure of the
relevant reserve funds and submit it to the head of the tax office having
jurisdiction over the place of tax payment, as prescribed by Presidential
Decree. <Amended on Dec. 24, 2018>

(10) The scope and succession of proper purpose business and the calculation of
income accrued from profit-making business pursuant to paragraphs (1) through
(5), and other necessary matters, shall be prescribed by Presidential Decree.
<Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 30 (Inclusion of Liability Reserve Funds in Deductible Expenses)

(1) Where a domestic corporation (excluding insurance companies defined in the
Insurance Business Act) operating an insurance business has appropriated the
liability reserve funds (hereinafter referred to as “liability reserve funds”)
as deductible expenses under the Fisheries Cooperatives Act and other Acts
related to the insurance business when the settlement of account is fixed, such
liability reserve funds appropriated shall be included in deductible expenses
for the purpose of calculating the amount of income for the relevant business
year up to the amount calculated, as prescribed by Presidential Decree. <Amended
on Dec. 24, 2018; Dec. 31, 2022>

(2) The liability reserve funds included in deductible expenses under paragraph
(1) shall be included in gross income when the amount of income for the
following business year or for the business year, to which the date three years
(where grounds prescribed by Presidential Decree, such as a dissolution, occur
before three years pass, the date the relevant grounds arise) from the end date
of the business year in which the liability reserve funds were included in
deductible expenses falls, is calculated, as prescribed by Presidential Decree.
<Amended on Dec. 24, 2018>

(3) Where the liability reserve funds are included in gross income for the
business year, to which the date three years from the end date of the business
year in which the date the liability reserve funds were included in deductible
expenses falls, as prescribed in paragraph (2), an amount equivalent to interest
calculated, as prescribed by Presidential Decree, shall be added to corporate
tax to be paid in the relevant business year. <Amended on Dec. 24, 2018>

(4) A domestic corporation which intends to apply paragraph (1) shall submit a
detailed statement on the relevant reserve funds to the head of the tax office
having jurisdiction over the place of tax payment, as prescribed by Presidential
Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 31 (Inclusion of Contingency Reserve Funds in Deductible
Expenses)

(1) Where a domestic corporation operating an insurance business has
appropriated the contingency reserve funds (hereinafter referred to as
“contingency reserve funds”) as deductible expenses under the Insurance Business
Act and other statutes when the settlement of account is fixed, such contingency
reserve funds appropriated shall be included in deductible expenses for the
purpose of calculating the amount of income for the relevant business year up to
the amount calculated, as prescribed by Presidential Decree.

(2) In applying paragraph (1), where a domestic corporation applying the K-IFRS
has appropriated contingency reserve funds in the tax settlement invoice
referred to in Article 60 (2) 2 and has accumulated an amount equivalent to such
contingency reserve funds as reserves of contingency reserve funds in disposing
of the profits during the relevant business year, it shall be deemed to have
appropriated them in deductible expenses, when the settlement of account is
fixed, up to the amount calculated, as prescribed by Presidential Decree.

(3) A domestic corporation which intends to apply paragraph (1) shall submit a
detailed statement on the relevant contingency funds to the head of the tax
office having jurisdiction over the place of tax payment, as prescribed by
Presidential Decree.

(4) Matters necessary for disposing of the contingency reserve funds in
paragraphs (1) and (2) shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 32 (Inclusion of Surrender Value Reserve Fund in Deductible
Expenses)

(1) Where an insurance company defined in the Insurance Business Act
(hereinafter referred to as "insurance company") appropriates reserves for
surrender value (referring to the amount reserved by an insurance company in
preparation of cancellation, etc. of insurance contracts, which is calculated
according to the formula prescribed by Presidential Decree; hereafter in this
Article the same shall apply) in a tax adjustment statement referred to in
Article 60 (2) 2, and the relevant amount is accumulated as reserves for
surrender value in disposing of profits for the relevant business year, it shall
be deemed that such amount is appropriated as deductible expenses when the
settlement of accounts is finalized, and such amount shall be included in
deductible expenses for the purpose of calculating the income for the relevant
business year.

(2) Any insurance company that intends to be governed by paragraph (1) shall
submit a detailed statement on surrender value reserves to the head of a tax
office having jurisdiction over the place of tax payment, as prescribed by
Presidential Decree.

(3) Matters necessary for including surrender value reserves in deductible
expenses under paragraph (1) and treating the relevant amount shall be
prescribed by Presidential Decree.

This Article Newly Inserted on Dec. 31, 2022]

법령 이단보기 Article 33 (Inclusion of Retirement Benefit Appropriation Funds in
Deductible Expenses)

(1) Where a domestic corporation appropriates funds for retirement benefits as
deductible expenses when the settlement of account is fixed for each business
year in order to pay retirement benefits to its executives or employees, such
retirement benefit appropriation funds appropriated shall be included in
deductible expenses for the purpose of calculating the amount of income for the
relevant business year up to the amount calculated, as prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

(2) Where a domestic corporation which has included retirement benefit
appropriation funds in deductible expenses under paragraph (1) pays retirement
benefits to any executive or employee, it shall be deemed paid from the
retirement benefit appropriation funds appropriated. <Amended on Dec. 24, 2018>

(3) Where a domestic corporation which has included retirement benefit
appropriation funds in deductible expenses under paragraph (1) is merged or
divided, the retirement benefit appropriation funds of the corporation as at the
registration date of the merger or division which is succeeded to the surviving
corporation, corporation established through division, or counterpart
corporation to the division and merger (hereinafter referred to as "surviving
corporation, etc.") shall be deemed retirement benefit appropriation funds held
by the surviving corporation as at the registration date of the merger or
division. <Amended on Dec. 24, 2018>

(4) Paragraph (3) shall apply mutatis mutandis where a business operator
comprehensively transfers his/her business to a domestic corporation.

(5) A domestic corporation which intends to apply paragraph (1) shall submit a
detailed statement on retirement benefit appropriation funds to the head of the
tax office having jurisdiction over the place of tax payment, as prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

(6) Matters necessary for disposition of retirement benefit appropriation funds
under paragraphs (1) through (4) shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 34 (Inclusion of Allowances for Bad Debts in Deductible
Expenses)

(1) Where a domestic corporation appropriates funds for bad debts to cover bad
debts from credit sales accounts, loans, and other claims equivalent thereto as
deductible expenses when the settlement of account is fixed for each business
year, such bad debts appropriated shall be included in deductible expenses for
the purpose of calculating the amount of income for the relevant business year
up to the amount calculated, as prescribed by Presidential Decree. <Amended on
Dec. 30, 2010; Dec. 24, 2018>

(2) Paragraph (1) shall not apply to a claim referred to in the subparagraphs of
Article 19-2 (2). <Amended on Dec. 30, 2010; Dec. 24, 2018>

(3) Where a domestic corporation that has included the appropriation for bad
debts in deductible expenses under paragraph (1) has any bad debts incurred,
such bad debts shall be first offset by its appropriation for bad debts and the
balance of the appropriation for bad debts after offsetting such bad debts shall
be subsequently included in gross income when calculating the amount of income
for the following business year. <Amended on Dec. 30, 2010; Dec. 24, 2018>

(4) Where a domestic corporation which has included appropriation for bad debts
in the deductible expenses under paragraph (1) is merged or divided, the
appropriation for bad debts of the corporation as at the registration date of
the merger or division which is succeeded to the surviving corporation, etc.
(only applicable to where the claims equivalent to the relevant appropriation
for bad debts are succeeded together) shall be deemed the appropriation for bad
debts held by the surviving corporation, etc. as at the registration date of the
merger or division. <Amended on Dec. 30, 2010; Dec. 24, 2018>

(5) A domestic corporation which intends to apply paragraph (1) shall submit a
detailed statement on the appropriation for bad debts to the head of the tax
office having jurisdiction over the place of tax payment, as prescribed by
Presidential Decree. <Amended on Dec. 30, 2010; Dec. 24, 2018>

(6) Matters necessary for the scope of credit accounts, loans, and other claims
equivalent thereto and the disposal of appropriation of bad debts under
paragraph (1) and other matters shall be prescribed by Presidential Decree.
<Amended on Dec. 30, 2010; Dec. 24, 2018>

[Title Amended on Dec. 30, 2010]

법령 이단보기 Article 35 (Inclusion of Allowances to Redeem Claims for Indemnity in
Deductible Expenses)

(1) Where a corporation prescribed by Presidential Decree among domestic
corporations operating a credit guarantee business under Acts appropriates funds
for redemption of claims for indemnity as deductible expenses when the
settlement of account is fixed for each business year, such funds for redemption
of claims for indemnity appropriated shall be included in deductible expenses
for the purpose of calculating the amount of income for the relevant business
year up to the amount calculated, as prescribed by Presidential Decree. <Amended
on Dec. 24, 2018>

(2) In applying paragraph (1), where a corporation prescribed by Presidential
Decree among corporations applying the K-IFRS appropriates funds for redemption
of claims for indemnity in the tax settlement invoice referred to in Article 60
(2) 2 and accumulates such appropriation as reserves for appropriation for
redemption of claims for indemnity in disposing of the profits during the
relevant business year, it shall be deemed to have been appropriated in
deductible expenses when the settlement of account is fixed up to the amount
calculated, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

(3) Where bad debts prescribed by Presidential Decree have incurred in relation
to the claims for indemnity due to credit guarantee business, a domestic
corporation that has included appropriation for redemption claims for indemnity
under paragraph (1) in deductible expenses shall first offset the bad debts with
the appropriation for redemption of claims for indemnity and the remainder of
the appropriation for redemption of claims for indemnity after the offset shall
be included in gross income when calculating the amount of income for the
following business year.

(4) A domestic corporation which intends to apply paragraph (1) shall submit a
detailed statement on the appropriation for redemption of claims for indemnity
to the head of the tax office having jurisdiction over the place of tax payment,
as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

(5) Matters necessary for disposing of the appropriation for redemption of
claims for indemnity under paragraph (1) shall be prescribed by Presidential
Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 36 (Inclusion of Value of Business Assets Acquired with National
Subsidies in Deductible Expenses)

(1) Where a domestic corporation receives subsidies, etc. under the Subsidy
Management Act, the Local Finance Act and other statutes prescribed by
Presidential Decree (hereafter in this Article, referred to as "National
subsidies, etc.") and uses them to acquire or improve business assets prescribed
by Presidential Decree (hereafter in this Article, referred to as "business
assets"), by no later than the end date of the business year which includes the
date of the receipt of the subsidies, or first acquires or improves business
assets and receives the National subsidies, etc. afterwards, the amount,
including the value of the National subsidies, etc. used for the acquisition or
improvement of the business assets among the value of such business assets, may
be included in deductible expenses for the purpose of calculating the amount of
income for the relevant business year, as prescribed by Presidential Decree.
<Amended on Jul. 25, 2011; Dec. 24, 2018>

(2) Where a domestic corporation which has failed to acquire or improve the
business assets by the end date of the business year, during which it receives
the National subsidies, etc., intends to acquire or improve any business assets
within one year from the start date of the following business year, the amount
of the National subsidies, etc. to be used for acquisition or improvement may be
included in deductible expenses by applying mutatis mutandis paragraph (1). In
such cases, where the domestic corporation fails to use National subsidies, etc.
by the deadline due to grounds prescribed by Presidential Decree, such as delay
of permission or authorization, the end date of the business year during which
the relevant grounds cease shall be deemed the deadline.

(3) Where a domestic corporation which has included an amount equivalent to the
National subsidies, etc. in the deductible expenses under paragraph (2) fails to
use such amount for the acquisition or improvement of business assets by the
deadline, or discontinues its business or is dissolved before using it, the
amount unused shall be included in gross income for the purpose of calculating
the amount of income for the business year during which such grounds arise:
Provided, That the same shall not apply where such domestic corporation is
merged or divided and the surviving corporation, etc. succeeds to the amount. In
such cases, the amount shall be deemed to have been included in deductible
expenses by such surviving corporation, etc. under paragraph (2).

(4) In applying paragraph (1), where any domestic corporation receives the
National subsidies, etc. in any form of assets, other than money, and uses them
for its business, they shall be deemed to have been used for the acquisition or
improvement of business assets.

(5) A domestic corporation which intends to apply paragraphs (1) and (2) shall
submit a detailed statement on the National subsidies, etc., and on the business
assets acquired by the National subsidies, etc. (a plan to use the National
subsidies, etc. in cases falling under paragraph (2)) to the head of the tax
office having jurisdiction over the place of tax payment, as prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

(6) For purposes of paragraphs (1) through (3), matters necessary for
calculating the amount included in deductible expenses and the amount included
in the gross income, the method of calculation, and other matters shall be
prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 37 (Inclusion of Value of Business Assets Acquired with
Construction Charges in Deductible Expenses)

(1) Where a domestic corporation engaging in any of the following types of
business is provided with tangible and intangible assets (hereinafter referred
to as “business assets”) for facilities required for the business, such as land
and other assets provided by consumers or beneficiaries of such facilities or
where such domestic corporation receives money, etc. (hereafter in this Article,
referred to as "construction charges") and uses it to acquire business assets by
the end of the business year in which it receives the money or acquires business
assets and then receives construction charges therefor later, the value of the
relevant business assets (the amount equivalent to the construction charges used
to acquire such business assets, where the domestic corporation receives
construction charges) may be included in deductible expenses for the purpose of
calculating the amount of income for the relevant business year, as prescribed
by Presidential Decree: <Amended on Jan. 1, 2014; Dec. 24, 2018>

1. Electricity service business as prescribed in the Electric Utility Act;

2. Urban gas business as prescribed in the Urban Gas Business Act;

3. Liquefied petroleum gas-filling business, liquefied petroleum gas collective
supply business, and liquefied petroleum gas sales business as prescribed in the
Safety Control and Business of Liquefied Petroleum Gas Act;

4. Integrated energy supply business as defined in subparagraph 2 of Article 2
of the Integrated Energy Supply Act;

5. Business similar to those referred to in subparagraphs 1 through 4 and
prescribed by Presidential Decree.

(2) Article 36 (2) and (3) shall apply mutatis mutandis to the inclusion of the
value of business assets acquired with construction charges in the deductible
expenses and other matters. <Amended on Dec. 24, 2018>

(3) A domestic corporation which intends to apply paragraphs (1) and (2) shall
submit a detailed statement on the business assets and construction charges
received and the business assets acquired with construction charges (a plan to
use construction charges in cases falling under paragraph (2)) to the head of
the tax office having jurisdiction over the place of tax payment, as prescribed
by Presidential Decree. <Amended on Dec. 24, 2018>

(4) For purposes of paragraphs (1) and (2), matters necessary for calculating
the amount included in deductible expenses and the amount included in the gross
income, the method of calculation, and other matters shall be prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 38 (Inclusion of Value of Assets Acquired with Insurance
Marginal Profits in Deductible Expenses)

(1) Where a domestic corporation is paid insurance money due to the destruction
or damage of its tangible assets (hereinafter referred to as “assets subject to
insurance”) and acquire the same type of assets in place of the destroyed assets
subject to insurance or to improve the damaged assets subject to insurance
(including the improvement of the acquired assets) by the end date of the
business year which includes the date of the payment, an amount equivalent to
the insurance marginal profits used for the acquisition or improvement of the
relevant assets, among the value of such assets, may be included in deductible
expenses for the purpose of calculating the amount of income for the relevant
business year, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

(2) Article 36 (2) and (3) shall apply mutatis mutandis to the inclusion of the
value of assets acquired or improved by insurance marginal profits in deductible
expenses. In such cases, "one year" referred to in Article 36 (2) shall be
construed as "two years." <Amended on Dec. 24, 2018>

(3) A domestic corporation which intends to apply paragraphs (1) and (2) shall
submit a detailed statement on the insurance money paid and the assets acquired
or improved with the insurance money (a plan to use insurance marginal profits
in cases falling under paragraph (2)) to the head of the tax office having
jurisdiction over the place of tax payment, as prescribed by Presidential
Decree. <Amended on Dec. 24, 2018>

(4) For purposes of paragraphs (1) and (2), matters necessary for calculating
the amount included in deductible expenses and the amount included in the gross
income, the method of calculation, and other matters shall be prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 39 Deleted. <Dec. 31, 2001>

Subsection 5 Periods during which Gross Income and Deductible Expenses Accrue

법령 이단보기 Article 40 (Business Year in which Gross Income and Deductible Expenses
Accrue)

(1) The business year in which gross income and deductible expenses of a
domestic corporation accrue shall be the business year which includes the date
the relevant gross income and deductible expenses are settled.

(2) Matters necessary for the scope of the business year in which gross income
and deductible expenses accrue under paragraph (1) and other matters shall be
prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 41 (Acquisition Value of Assets)

(1) The acquisition value of assets acquired by a domestic corporation through
purchase, manufacture, exchange, and donation, or by other means shall be any of
the following amounts: <Amended on Dec. 24, 2018; Dec. 31, 2022>

1. For assets purchased from another person (excluding financial assets
prescribed by Presidential Decree): The amount of the purchase price plus any
incidental costs;

1-2. Stocks, etc. prescribed by Presidential Decree, as stocks, etc. acquired by
a domestic corporation by taking over a foreign subsidiary: An amount determined
by Presidential Decree in consideration of the amount of dividend income not
included in gross income pursuant to Article 18-4, retained earnings of the
foreign subsidiary at the time of acquisition;

2. For assets acquired through the corporation's own manufacture, production,
construction, or by other means corresponding thereto: The amount of the product
cost plus any incidental costs;

3. For assets, other than those referred to in subparagraphs 1 and 2, the amount
prescribed by Presidential Decree as at the time of acquisition.

(2) Matters necessary for calculating the acquisition value of assets, such as
the scope of purchase price and incidental costs under paragraph (1), shall be
prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 42 (Evaluation of Assets and Liabilities)

(1) Where the book value of assets and liabilities held by a domestic
corporation increases or decreases (excluding depreciation; hereafter in this
Article, referred to as "evaluation"), the book value of such assets and
liabilities when calculating the amount of income for the business year which
includes the date of evaluation and each subsequent business year shall be the
value before evaluation: Provided, That the same shall not apply to any of the
following cases: <Amended on Dec. 24, 2018>

1. Evaluation of tangible and intangible assets, etc. under the Insurance
Business Act and other statutes (limited to where the book value increases);

2. Evaluation of inventory assets and other assets and liabilities prescribed by
Presidential Decree.

(2) Assets and liabilities referred to in paragraph (1) 2 shall be separately
evaluated by the method prescribed by Presidential Decree.

(3) Notwithstanding paragraphs (1) and (2), the book value of any of the
following assets may be reduced by the method prescribed by Presidential Decree:
<Amended on Dec. 24, 2018>

1. Inventory assets which cannot be sold at the arm's length price due to
damage, decomposition, or on other grounds;

2. Tangible assets damaged or destroyed due to grounds prescribed by
Presidential Decree, such as a natural disaster or fire;

3. Stocks, etc. prescribed by Presidential Decree where the issuing corporation
of the relevant stocks, etc. falls any of the following cases:

(a) Where the stocks, etc. goes dishonored;

(b) Where the issuing corporation receives authorization for its rehabilitation
plan under the Debtor Rehabilitation and Bankruptcy Act;

(c) Where it reveals signs of insolvency under the Corporate Restructuring
Promotion Act;

(d) Where it goes bankrupt.

4. Deleted. <Dec. 24, 2018>

(4) A domestic corporation which evaluates its assets and liabilities under
paragraphs (2) and (3) shall submit a detailed statement on the evaluation of
such assets and liabilities to the head of the tax office having jurisdiction
over the place of tax payment, as prescribed by Presidential Decree. <Amended on
Dec. 24, 2018>

(5) Matters necessary for disposing of marginal profits or marginal losses
arising from the evaluation of assets and liabilities under paragraphs (2) and
(3), and other matters shall be prescribed by Presidential Decree. <Amended on
Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 42-2 (Non-Inclusion in Gross Income of Evaluation Marginal
Profits of Inventory Assets of Domestic Corporation that Applies K-IFRS)

(1) Where a domestic corporation reports to the head of the tax office having
jurisdiction over the place of tax payment the change of the evaluation method
of inventory assets from the last-in first-out method prescribed by Presidential
Decree to other evaluation methods of inventory assets prescribed by
Presidential Decree for the business year in which it first applies the K-IFRS,
the amount deducting the amount referred to in subparagraph 2 from the amount
referred to in subparagraph 1 (hereafter in this Article, referred to as
"evaluation marginal profits of inventory assets") need not be included in the
gross income for the purpose of calculating the amount of income for the
relevant business year. In such cases, the evaluation marginal profits of
inventory assets shall be equally divided and be included in the gross income
for five years from the start date of the business year following the business
year during which the K-IFRS are first applied: <Amended on Dec. 24, 2018>

1. Evaluated value of the inventory assets as at the beginning of the business
year in which the K-IFRS are first applied;

2. Evaluated value of the inventory assets as at the end of the immediately
preceding business year in which the K-IFRS are first applied.

(2) Where a domestic corporation that fails to include the evaluation marginal
profits in the gross income pursuant to the former part of paragraph (1)
excluding its subparagraphs is dissolved (excluding a dissolution due to a
qualified merger in Article 44 (2) and (3) or a qualified division in Article 46
(2)), any remainder after being included in the gross income under the latter
part of paragraph (1) excluding its subparagraphs shall be included in gross
income when calculating the amount of income for the business year in which the
registration date of the dissolution falls. <Amended on Dec. 24, 2018>

(3) Matters necessary for procedures for reporting the change of the evaluation
method for inventory assets, the application for non-inclusion in gross income,
the method of inclusion in gross income and the non-inclusion of the evaluation
marginal profits of inventory assets in the gross income shall be prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Newly Inserted on Dec. 31, 2011]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 42-3 (Special Cases concerning Calculation of Income for
Insurance Company applying Korean International Financial Reporting Standards)

(1) Where an insurance company first applies such accounting standards
prescribed by Presidential Decree as the Korean International Financial
Reporting Standards for the insurance business (hereafter in this Article
referred to as international financial reporting standards for insurance
contracts”), the amount calculated by applying the formula prescribed by
Presidential Decree to liability reserves (referring to liability reserves
prescribed in the Insurance Business Act; hereafter in this Article the same
shall apply) included in deductible expenses for the business year immediately
preceding the business year for which the international financial reporting
standards for insurance contracts are first applied (hereafter in this Article
referred to as "business year of first application”) shall be included in gross
income for the purpose of calculating the amount of income for the business year
of first application.

(2) An insurance company shall include an amount, which is calculated by
applying the formula prescribed by Presidential Decree to liability reserves
appropriated according to the accounting standards referred to in Article 120
(3) of the Insurance Business Act as of the start date of the business year of
first application, in deductible expenses for the purpose of calculating the
amount of income for the relevant business year.

(3) Notwithstanding paragraph (1), an insurance company may choose not to
include in gross income an amount (limited to where the amount is a positive
number; hereafter in this Article referred to as "converted profit") calculated
by applying the formula prescribed by Presidential Decree to the amount obtained
by subtracting the amount prescribed in paragraph (2) from the amount prescribed
in paragraph (1) for the purpose of calculating the amount of income for the
business year of first application and the subsequent three business years. In
such cases, the converted profits shall be equally divided over the three years
from the start date of the fourth business year following the business year of
first application and shall be included in gross income.

(4) Where an insurance company is dissolved (excluding dissolution due to a
qualified merger prescribed in Article 44 (2) and (3) or a qualified division
prescribed in Article 46 (2)) during the period prescribed in paragraph (3), any
converted profit not included in gross income shall be included in gross income
for the purpose of calculating the amount of income for the business year in
which the registration date of dissolution falls.

(5) Article 32 shall not apply to an insurance company to which paragraph (3)
applies, irrespective of the period referred to in the same paragraph.

(6) The application for non-inclusion of converted profits in gross income and
the inclusion of such profits in gross income in equal division, and other
necessary matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 31, 2022]

법령 이단보기 Article 43 (Application of Corporate Accounting Standards and Practices)

In calculating the amount of income of a domestic corporation for each business
year, where the corporation applies corporate accounting standards which are
generally acknowledged as fair and proper, or continuously applies the relevant
practices with respect to the business year during which gross income and
deductible expenses accrue, and to the acquisition and evaluation of assets and
liabilities, such corporate accounting standards or practices shall be followed,
except as otherwise provided in this Act and the Restriction of Special Taxation
Act. <Amended on Dec. 24, 2018>
[This Article Wholly Amended on Dec. 30, 2010]
Subsection 6 Special Cases concerning Mergers and Divisions

법령 이단보기 Article 44 (Taxation on Merged Corporation upon Merger)

(1) Where a merged corporation is dissolved in the course of a merger, the
assets of the merged corporation shall be deemed transferred to a surviving
corporation. In such cases, capital gains or losses accruing from the transfer
(referring to the amount calculated by deducting the value referred to in
subparagraph 2 from the value referred to in subparagraph 1; hereafter in this
Article and Article 44-3, the same shall apply) shall be included in the gross
income or deductible expenses when the merged corporation calculates the amount
of income for the business year in which the registration date of the merger
falls:

1. Transfer value that the merged corporation has received from the surviving
corporation;

2. Value calculated by deducting the total book value of liabilities from the
total book value of assets (hereafter in this Subsection, referred to as "net
book value of assets") as of the registration date of the merger of the merged
corporation.

(2) In applying paragraph (1), for a merger that meets each of the following
requirements (hereinafter referred to as “qualified merger”), capital gains or
losses on a transfer may be deemed nil, considering the value referred to in
paragraph (1) 1 as the net book value of assets as of the registration date of
the merger of the merged corporation: Provided, That capital gains or losses on
a transfer may be nil, as prescribed by Presidential Decree, deeming it as a
qualified merger, although the requirements prescribed in subparagraph 2, 3 or 4
are not met, in inevitable circumstances prescribed by Presidential Decree:
<Amended on Dec. 31, 2011; Dec. 19, 2017; Dec. 24, 2018; Dec. 21, 2021>

1. A merger should be conducted between domestic corporations which have
continued to operate their business for at least one year as on the registration
date of the merger: Provided, That a corporation prescribed by Presidential
Decree, the sole purpose of which is to merge with other corporations shall be
deemed to meet the requirements prescribed in the main clause;

2. Where the value of the stocks, etc., of a surviving corporation or the parent
corporation (referring to a domestic corporation holding the total number of
outstanding stocks or total investment amount of a surviving corporation as at
the registration date of the merger) of the surviving corporation is at least
80/100 of the total costs of the merger received by the stockholders, etc., of a
merged corporation in return for such merger; the stocks, etc., shall be
distributed, as prescribed by Presidential Decree; and the stockholders, etc.,
of the merged corporation prescribed by Presidential Decree hold such stocks,
etc., until the last day of the business year in which the registration date of
the merger falls;

3. The merging corporation shall continue the business succeeded from the merged
corporation until the end of the business year in which the merger is
registered; Provided, That a merged corporation prescribed by Presidential
Decree, the sole purpose of which is to merge with another corporation, shall be
deemed to meet the requirements prescribed in the main clause;

4. Where the ratio of employees transferred to the surviving corporation to the
employees specified by Presidential Decree, among employees of the merged
corporation as at one month before the date of registration of the merger, is at
least 80/100 and the ratio remains unchanged until the end of the business year
in which the merger is registered.

(3) In either of the following cases, capital gains or losses on a transfer may
be nil, deeming it as a qualified merger, notwithstanding paragraph (2):
<Amended on Dec. 31, 2011; Dec. 20, 2016; Dec. 24, 2018>

1. Where a domestic corporation merges with or is merged into another
corporation which holds the total number of outstanding stocks or the total
amount of investment;

2. Where corporations whose total number of outstanding stocks or total amount
of investment is held by the same domestic corporation are merged with each
other.

(4) Matters necessary for calculating the transfer value, the net book value of
assets, and the total costs of a merger; and criteria for determining the
continuance or discontinuance of the business succeeded under paragraphs 1
through 3 shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 44-2 (Taxation on Surviving Corporation upon Merger)

(1) Where a surviving corporation succeeds to the assets of a merged corporation
due to a merger, it shall be deemed to have succeeded to the assets from the
merged corporation at a market price as at the registration date of the merger
(referring to the market price provided in Article 52 (2); hereafter in this
Subsection, the same shall apply). In such cases, a surviving corporation may
only succeed to the amount included in or excluded from the gross income or
deductible expenses when calculating the amount of income and the tax base for
each business year of the merged corporation, and other assets, liabilities,
etc., prescribed by Presidential Decree.

(2) Where a surviving corporation is deemed to have succeeded to the assets of a
merged corporation at a market price under paragraph (1) and the transfer value
paid by the surviving corporation to the merged corporation is less than the
amount calculated by deducting the total liabilities from the total assets as at
the registration date of the merger of the merged corporation (hereafter in this
Subsection, referred to as "net market price of assets"), the surviving
corporation shall appropriate such difference in the tax settlement invoice
referred to in Article 60 (2) 2 and include it in gross income in equal
installments for five years from the registration date of the merger.

(3) Where a surviving corporation is deemed to have succeeded to the assets of a
merged corporation at a market price under paragraph (1) and the transfer value
paid by the surviving corporation to the merged corporation exceeds the net
market price of assets as at the registration date of the merger in
circumstances prescribed by Presidential Decree, the surviving corporation shall
appropriate the difference in the tax settlement invoice referred to in Article
60 (2) 2 and include it in deductible expenses in equal installments for five
years from the registration date of the merger.

(4) Matters necessary for calculating the amounts included in gross income or
deductible expenses and the method of calculation under paragraphs (1) through
(3) and other matters shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 44-3 (Special Provisions concerning Taxation on Surviving
Corporation upon Qualified Merger)

(1) A surviving corporation that qualifiedly merges shall be deemed to have
succeeded to the assets of a merged corporation at the book value,
notwithstanding Article 44-2. In such cases, the surviving corporation shall
appropriate the difference between the book value and the market price referred
to in Article 44-2 (1) per asset, as prescribed by Presidential Decree. <Amended
on Dec. 24, 2018>

(2) A surviving corporation that qualifiedly merges shall succeed to the losses
referred to in Article 13 (1) 1 as at the registration date of the merger of the
merged corporation and the amount included in or excluded from the gross income
or deductible expenses when the merged corporation calculates the amount of
income and the tax base for each business year, other assets, liabilities,
reductions, tax credits, etc. referred to in Article 59, as prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

(3) Where any of the following occurs during the period prescribed by
Presidential Decree not exceeding three years, a surviving corporation that
qualifiedly merges (excluding the cases deemed as a qualified merger pursuant to
Article 44 (3)) shall include, as prescribed by Presidential Decree, in gross
income the difference between the book value of the succeeded assets and the
market price referred to in Article 44-2 (1) (limited to only where the market
price exceeds the book value; hereafter the same shall apply in paragraph (4)),
the amount deducted from the succeeded losses when calculating the amount of
income for the business year which includes the date the grounds arise, etc. and
shall not apply reductions or tax credits starting from the relevant business
year after paying the amount of reductions, tax credits, etc. deducted upon
succession from the merged corporation under paragraph (2) in addition to the
corporate tax for the relevant business year, as prescribed by Presidential
Decree: Provided, That the same shall not apply where inevitable circumstances
prescribed by Presidential Decree exist: <Amended on Dec. 19, 2017; Dec. 24,
2018>

1. Where a surviving corporation discontinues the business succeeded to from a
merged corporation;

2. Where stockholders, etc. of a merged corporation prescribed by Presidential
Decree dispose of the stocks, etc. received from a surviving corporation;

3. Where the number of the employees specified by Presidential Decree (hereafter
in this subparagraph, referred to as "employees") as employees of the surviving
corporation as at the end of each business falls below 80/100 of the sum of
employees of the merged corporation and the surviving corporation as at one
month before the date of registration of the merger.

(4) A surviving corporation which includes in gross income the difference, etc.
between the book value of the transferred assets pursuant to paragraph (3) and
the market price referred to in Article 44-2 (1), it shall include, as
prescribed by Presidential Decree, in gross income or deductible expenses the
difference between the transfer value paid by the surviving corporation to the
merged corporation and the net market price of assets as at the registration
date of the merger of the merged corporation until the date five years pass
after the registration date of the merger from the date any of the grounds
referred to in paragraph (3) arises. <Amended on Dec. 24, 2018>

(5) A surviving corporation, to which paragraph (1) applies, shall file a
detailed statement on the succeeded assets due to division to the head of the
tax office having jurisdiction over the place of tax payment, as prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

(6) Matters necessary for criteria for determining the continuance or
discontinuance of the succeeded business, for calculating the amounts included
in gross income and deductible expenses, the method for inclusion referred to in
paragraphs (1) through (5), and other matters shall be prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 45 (Restriction on Deduction of Losses Carried Forward upon
Merger)

(1) Losses referred to in Article 13 (1) 1 as on the registration date of the
merger of a surviving corporation, excluding the amount of losses that a
surviving corporation succeeds to pursuant to Article 44-3 (2), shall not be
deducted to the extent of income (referring to an amount calculated by
proportionally dividing the amount of income by the rate of value of asset
prescribed by Presidential Decree where no separate accounting has been kept as
the corporation fell under the proviso to Article 113 (3); hereafter in this
Article, the same shall apply) accruing from the business that has been
succeeded to from the merged corporation when calculating the tax base for each
business year of the surviving corporation. <Amended on Dec. 24, 2018; Dec. 22,
2020>

(2) Losses of a merged corporation succeeded to by a surviving corporation under
Article 44-3 (2) shall be deducted to the extent of income accruing from the
business succeeded to from the merged corporation when calculating the tax base
for each business year of the surviving corporation.

(3) A surviving corporation that qualifiedly merges shall include, in deductible
expenses, losses on disposition of the assets (limited to the difference only
where the market value of the relevant assets under Article 52 (2) as of the
registration date of the merger is lower than book value and to the losses
incurred during the business years ending within five years after the
registration date of the merger) held by the surviving corporation and the
merged corporation prior to the merger to the extent of income (referring to the
amount of income before the relevant losses on disposition are deducted)
accruing from business of the relevant corporation prior to the merger in
calculating the amount of income of the relevant business year. In such cases,
paragraphs (1) and (2) shall apply accordingly, deeming that losses on
disposition excluded from deductible expenses were incurred from the business of
the relevant corporation prior to the merger at the time of disposition of the
assets. <Amended on Dec. 31, 2011; Dec. 20, 2016>

(4) Reductions or tax credits of a merged corporation that a surviving
corporation has succeeded to under Article 44-3 (2) shall apply to the extent of
income accruing from the business that has been succeeded to from the merged
corporation or the amount of corporate tax equivalent thereto, as prescribed by
Presidential Decree.

(5) Notwithstanding the clues other than each subparagraph of Article 13 (1),
deductions for losses as of the merger registration date of the merged
corporation pursuant to paragraphs (1) and (2) and the losses of the merged
corporation succeeded by the merged corporation shall be 80/100 of the income
amount under each of the following subparagraphs (100/100 in the case of a
corporation prescribed by Presidential Decree, such as a small and medium-sized
enterprise and a company implementing a rehabilitation plan): <Newly Inserted on
Dec. 31, 2019; Dec. 31, 2022>

1. In cases of losses as of the registration date of the merger of the merged
corporation: Amount calculated by subtracting the amount of income accruing from
the business succeeded to from the merged corporation from the amount of income
of the merging corporation;

2. Where losses of a merged corporation succeeded to by a surviving corporation:
The amount of income accruing from the business succeeded to from the merged
corporation.

(6) As of the merger registration date of a surviving corporation, out of an
amount not included in deductible expenses when calculating the amount of income
for each subsequent business year (hereafter in this Article referred (6) As of
the merger registration date of a surviving corporation, out of an amount not
included in deductible expenses when calculating the amount of income for each
subsequent business year (hereafter in this Article referred to as “amount
exceeding the ceiling on donations”) as an amount carried forward under Article
24 (5) out of the donations referred to in paragraph (2) 1 and (3) 1 of the same
Article, the amount excluding an amount exceeding the ceiling on donations that
a surviving corporation succeeds to under Article 44-3 (2) 2 shall be included
in deductible expenses to the extent of the respective ceilings on donations
includible in deductible expenses prescribed in Article 24 (2) 2 and (3) 2 on
the basis of the amount of income accruing from the merging corporation's
business before the merger for the purpose of calculating the income amount for
each business year of the surviving corporation. <Newly Inserted on Dec. 22,
2020>

(7) An amount that a surviving corporation succeeds to under Article 44-3 (2),
as an amount exceeding the ceilings on donations as of the merger registration
date of the merged corporation, shall be included in deductible expenses to the
extent of the respective ceilings on donations includible in deductible expenses
referred to in Article 24 (2) 2 and (3) 2 on the basis of the amount of income
accruing from the business succeeded from the merged corporation, for the
purpose of calculating the amount of income for each business year of the
surviving corporation. <Newly Inserted on Dec. 22, 2020>(8) Matters necessary
for the calculation of losses to be deducted when calculating the tax base for
each fiscal year, the inclusion of the losses on disposition of the succeeded
assets in deductible expenses, the inclusion of donations exceeding a ceiling in
deductible expenses, the calculation of the amount of corporate tax constituting
the amount of income accruing from the business that has been succeeded under
paragraphs (1) through (7), and other matters, shall be prescribed by
Presidential Decree. <Amended on Dec. 31, 2019; Dec. 22, 2020>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 46 (Taxation on Divided Corporations upon Division)

(1) Where a domestic corporation is dissolved in the course of a division
(excluding a spin-off: hereafter in this Article and Articles 46-2 through 46-4,
the same shall apply), the assets of the domestic corporation shall be deemed
transferred to a corporation established through division or a counterpart
corporation to a division and merger (hereinafter referred to as "corporation
established through division, etc."). In such cases, capital gains or losses on
a transfer (referring to the amount calculated by subtracting the value referred
to in subparagraph 2 from the value referred to in subparagraph 1; hereafter in
this Article and Article 46-3, the same shall apply) shall be included in the
gross income or deductible expenses when a divided corporation or a disappearing
counterpart corporation to the merger and division (hereinafter referred to as
"divided corporation, etc.") calculates the amount of income for the business
year in which the registration date of the division falls: <Amended on Dec. 31,
2011>

1. Transfer value received by the divided corporation, etc., from a corporation
established through division, etc.;

2. Net book value of assets as on the registration date of the division of a
divided corporation, etc.

(2) In applying paragraph (1), with respect to a division which meets each of
the following requirements (hereinafter referred to as “qualified division),
capital gains or losses on a transfer may be deemed nil, deeming the value
referred to in paragraph (1) 1 to be the net book value of assets as of the
registration date of the division of a divided corporation, etc.: Provided, That
capital gains or losses on a transfer may be deemed nil, as prescribed by
Presidential Decree, although the requirements prescribed in subparagraph 2, 3
or 4 are not met, deeming it as a qualified division, in inevitable
circumstances prescribed by Presidential Decree: <Amended on Dec. 31, 2011; Dec.
20, 2016; Dec. 19, 2017; Dec. 24, 2018>

1. Where a domestic corporation which has continuously operated business for at
least five years as on the registration date of the division is divided upon
meeting the following requirements (in cases of a division and merger, a
disappearing counterpart corporation to a division and merger or a counterpart
corporation to a division and merger shall be a domestic corporation which has
continuously operated business for at least one year as on the registration date
of the division):

(a) That it divides an independent business division which can be operated after
division;

(b) That the assets and liabilities of a divided business division shall be
comprehensively succeeded: Provided, That those prescribed by Presidential
Decree, such as assets and liabilities that are indivisible, including the
assets jointly used and the liabilities, the debtor of which cannot be changed,
shall be excluded;

(c) That it shall be divided upon investment only by a divided corporation,
etc.;

2. Where the total costs of a division received from a corporation established
through division, etc., by the stockholders of a divided corporation, etc. (in
cases of a division and merger, referring to where at least 80/100 of the costs
of the division is in stocks of the corporation established through division,
etc. or where at least 80/100 of the costs of the division is in stocks of the
domestic corporation that holds the total number of outstanding stocks or the
total amount of investment of the counterpart corporation to the division and
merger) are in stocks, and such stocks are allocated in proportion to the stocks
held by each stockholder of the divided corporation, etc. (in cases of a
division and merger, referring to the stocks allocated, as prescribed by
Presidential Decree) and the stockholders of the divided corporation, etc.,
prescribed by Presidential Decree hold such stocks until the last day of the
business year in which the division is registered;

3. Where a corporation established through division, etc., continues to operate
the business succeeded to from the divided corporation, etc., until the last day
of the business year in which the registration date of the division falls;

4. Where the ratio of the employees transferred to the corporation established
through division, etc. to the employees specified by Presidential Decree as
employees of the divided business division as at one month before the date of
registration of the division is at least 80/100 and the ratio remains unchanged
until the last day of the business year in which the division is registered.

(3) Notwithstanding paragraph (2), where a business division prescribed by
Presidential Decree, such as a business division mainly engaged in the real
estate rental business, is divided, it shall not be deemed a qualified division.
<Newly Inserted on Dec. 22, 2020>

(4) Matters necessary for the calculation of the transfer value and the net book
value of assets, the criteria for determining whether a business division is
independent and able to operate its business separately, the calculation of the
cost of a division, and the criteria for determining whether the business
acquired by succession continues under paragraphs (1) or (2), and other matters,
shall be prescribed by Presidential Decree. <Amended on Jan. 1, 2014; Dec. 22,
2020>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 46-2 (Taxation on Corporations Established through Division upon
Unqualified Division)

(1) Where a corporation established through division, etc. has succeeded to the
assets from a divided corporation, etc. due to the division, it shall be deemed
succeeded to the assets of the divided corporation, etc. at the market price as
at the registration date of the division. In such cases, the corporation
established through division, etc. may succeed to only the amount included in or
excluded from gross income or deductible expenses when it calculates the amount
of income and the tax base for each business year of the divided corporation,
etc. and other assets, liabilities, etc. prescribed by Presidential Decree.

(2) A corporation and the transfer value paid by the corporation established
through division, etc. to the divided corporation, etc. is less than the net
market price of assets as at the registration date of the division of the
divided corporation, etc., the corporation established through division, etc.
shall appropriate such difference in the tax settlement invoice referred to in
Article 60 (2) 2 and include it in gross income in equal installments for five
years from the registration date of the division.

(3) Where a corporation established through division, etc. is deemed to succeed
to the assets of a divided corporation, etc. at the market price pursuant to
paragraph (1) and the transfer value paid by the corporation established through
division, etc. to the divided corporation, etc. exceeds the net market price of
assets as at the registration date of the division in circumstances prescribed
by Presidential Decree, the corporation, etc. established through division shall
appropriate such difference in the tax settlement invoice referred to in Article
60 (2) 2 and include it in deductible expenses in equal installments for five
years from the registration date of the division.

(4) Matters necessary for calculating the amounts included in gross income or
deductible expenses and the method of calculation under paragraphs (1) through
(3) and other matters shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 46-3 (Special Provisions concerning Taxation on Corporation
Established through Division upon Qualified Division)

(1) A corporation established through division, etc. that qualifiedly divides
shall be deemed to have succeeded to the assets of a divided corporation, etc.
at the book value, notwithstanding Article 46-2. In such cases, the corporation,
etc. established through division shall appropriate the difference between the
book value and the market price referred to in Article 46-2 (1) per asset, as
prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

(2) A corporation established through division, etc. that qualifiedly divides
has succeeded to the assets of a divided corporation, etc. at the book value
pursuant to paragraph (1), it shall succeed to the losses referred to in Article
13 (1) 1 as on the registration date of the division of the divided corporation,
etc. and the amount included in or excluded from gross income or deductible
expenses when the divided corporation, etc. calculates the amount of income and
the tax base for each business year, other assets, liabilities, reductions, tax
credits, etc. under Article 59, as prescribed by Presidential Decree. <Amended
on Dec. 24, 2018>

(3) Where any of the following occurs during the period prescribed by
Presidential Decree not exceeding three years, a corporation established through
division, etc. that qualifiedly divides shall include, as prescribed by
Presidential Decree, in the gross income the difference between the book value
of the succeeded assets and the market price referred to in Article 46-2 (1)
(limited to where the market price exceeds the book value; hereafter the same
shall apply in paragraph (4)) and the amount deducted from the succeeded losses
when calculating the amount of income for the business year which includes the
date the relevant grounds arise, and shall not apply reductions or tax credits
starting from the relevant business year after paying the amount of reductions,
tax credits, etc. deducted by succession from the divided corporation, etc.
under paragraph (2) in addition to the corporate tax for the relevant business
year, as prescribed by Presidential Decree: Provided, That the same shall not
apply where inevitable circumstances prescribed by Presidential Decree exist:
<Amended on Dec. 19, 2017; Dec. 24, 2018>

1. Where a corporation established through division, etc. discontinues the
business succeeded to from a divided corporation, etc.;

2. Where stockholders, etc. of a divided corporation, etc. prescribed by
Presidential Decree dispose of the stocks, etc. received from a corporation
established through division, etc.;

3. Where the number of the employees specified by Presidential Decree (hereafter
in this subparagraph, referred to as "employees") as employees of the
corporation established through division as on the last day of each business
falls below 80/100 of the number of employees of the divided business division
as at one month before the date of registration of the merger: Provided, That in
cases of a division and merger, it means either of the following cases:

(a) Where the number of employees of the counterpart corporation to the division
and merger as at the end of each business year falls below 80/100 of the sum of
employees of the divided business division and the counterpart corporation to
the division and merger as at one month before the date of registration of the
division;

(b) Where the number of employees of the corporation established through
division as at the end of each business year falls below 80/100 of the sum of
employees of the divided business division and the disappearing counterpart
corporation to the division and merger as at one month before the date of
registration of the division.

(4) Where a corporation established through division, etc. includes in gross
income the difference between the book value of the succeeded assets under
paragraph (3) and the market price referred to in Article 46-2 (1), etc., it
shall include, as prescribed in Presidential Decree, in gross income or
deductible expenses, the difference between the transfer value paid by the
corporation established through division, etc. to the divided corporation, etc.
and the net market price of assets as on the registration date of the division
of the divided corporation, etc. until the date five years pass after the
registration date of the division from the date any of the grounds referred to
in paragraph (3) arises.

(5) A corporation established through division, etc. to which paragraph (1)
applies shall file a detailed statement on the succeeded assets due to division
to the head of the tax office having jurisdiction over the place of tax payment,
as prescribed by Presidential Decree.

(6) Matters necessary for criteria for determining the continuance or
discontinuance of the succeeded businesses, calculation of the amounts included
in gross income or deductible expenses, the method of the calculation under
paragraphs (1) through (4), and other matters shall be prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 46-4 (Restriction on Deduction of Losses Carried Forward upon
Division)

(1) Losses referred to in Article 13 (1) 1 as on the registration date of the
division of a counterpart corporation in a division and merger, excluding the
amount of losses that a corporation established through division, etc. succeeds
to pursuant to Article 46-3 (2), shall not be deducted to the extent of income
(referring to an amount calculated by proportionally dividing the amount of
income by the rate of value of asset prescribed by Presidential Decree where no
separate accounting has not been kept as the corporation fell under the proviso
to Article 113 (4); hereafter in this Article, the same shall apply) accruing
from the business that has been succeeded to from a divided corporation when
calculating the tax base for each business year of the counterpart corporation
in the division and merger. <Amended on Dec. 24, 2018; Dec. 22, 2020>

(2) Losses of a divided corporation, etc., succeeded to by a corporation
established through division, etc., under Article 46-3 (2), shall be deducted to
the extent of income accruing from the business succeeded to from a divided
corporation, etc., when calculating the tax base of the corporation established
through division, etc., for each business year.

(3) A corporation established through division, etc., that merges and divides
with no capital gain on the transfer deemed under Article 46 (2) (hereinafter
referred to as "qualified merger and division") shall include, in deductible
expenses, losses on disposition of the assets (limited to the difference only
where the market value of the relevant assets under Article 52 (2) as on the
registration date of the merger is lower than book value and to the losses
incurred during the business years ending within five years after the
registration date of the merger) held by the divided corporation and the
counterpart corporation to a merger and division prior to the merger and
division to the extent of income (referring to the amount of income before the
relevant losses on disposition are deducted) accruing from the business of the
relevant corporation prior to the division and merger in calculating the amount
of income of the relevant business year. In such cases, paragraphs (1) and (2)
shall apply accordingly, deeming that losses on disposition excluded in
deductible expenses were incurred from the business of the relevant corporation
prior to the division and merger. <Amended on Dec. 31, 2011; Dec. 20, 2016>

(4) Reductions or tax credits of the divided corporation, etc., that a
corporation established through division, etc., has succeeded to under Article
46-3 (2) shall apply to the extent of income accruing from the business that has
been succeeded to from the divided corporation, etc., or the amount of corporate
tax equivalent to such income, as prescribed by Presidential Decree.

(5) Notwithstanding the proviso to Article 13 (1), as of the registration date
of division of the other corporation of the divisional merger pursuant to
paragraphs (1) and (2), deductions for deficits of divisional corporations, etc.
succeeded by divisional corporations, etc., shall be 80/100 of the income amount
under each of the following subparagraphs (100/100 in the case of a corporation
prescribed by Presidential Decree, such as a small and medium enterprise and a
company implementing a rehabilitation plan): <Newly Inserted on Dec. 31, 2019;
Dec. 31, 2022>

1. In cases of losses as of the registration date of the division of the
counterpart corporation to a division and merger: An amount calculated by
subtracting the amount of income accruing from the business succeeded to from
the divided corporation from the amount of income of the counterpart corporation
to a division and merger;

2. In cases of losses of a divided corporation, etc., succeeded to by a
corporation established through division, etc.: The amount of income accruing
from the business succeeded to from a divided corporation, etc.

(6) As of the division registration date of a counterpart corporation in a
division and merger, out of an amount not included in deductible expenses when
calculating the amount of income for each subsequent business year (hereafter in
this Article referred to as “amount exceeding the ceiling on donations”) as an
amount carried forward under Article 24 (5) out of the donations referred to in
paragraphs (2) 1 and (3) 1 of the same Article, the amount excluding an amount
excluding the ceiling on donations that a corporation established through
division, etc. succeeds to under Article 46-3 (2) be included in deductible
expenses to the extent of the respective ceilings on donations includible in
deductible expenses prescribed in Article 24 (2) 2 and (3) 2 on the basis of the
amount of income accruing from the business of a counterpart corporation in a
division and merger before the division and merger for the purpose of
calculating the income amount for each business year of the a corporation
established through division, etc. <Newly Inserted on Dec. 22, 2020>

(7) An amount that a corporation established through division, etc. succeeds to
under Article 46-3 (2), as an amount exceeding a ceiling on donations as of the
division registration date of a divided corporation, etc., shall be included in
deductible expenses to the extent of the respective ceilings on donations
includible in deductible expenses referred to in Article 24 (2) 2 and (3) 2 on
the basis of the amount of income accruing from the business succeeded from the
divided corporation, etc. for the purpose of calculating the amount of income
for each business year of the corporation established through division, etc.
<Newly Inserted on Dec. 22, 2020>

(8) Matters necessary for the calculation of losses to be deducted when
calculating the tax base for each fiscal year, the inclusion of the losses on
disposition of the succeeded assets in deductible expenses, the inclusion of the
amount exceeding a ceiling on donations succeeded, the calculation of the amount
of corporate tax constituting the amount of income accruing from the business
that has been succeeded under paragraphs (1) through (7), and other matters,
shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2019; Dec. 22,
2020> [This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 46-5 (Special Provisions concerning Taxation on Divided
Corporations Surviving Division)

(1) Where a domestic corporation survives a division (excluding a spin-off),
gains or losses accruing from the transfer of the assets of the divided business
category to a corporation established through division, etc. (referring to the
amount calculated by deducting the value under subparagraph 2 from the value
under subparagraph 1; hereafter the same shall apply in this Article) shall be
included in gross income or deductible expenses when the divided corporation
calculates the amount of income for the business year which includes the
registration date of the division:

1. Transfer value received by a divided corporation from a corporation
established through division, etc.;

2. Net book value of assets as at the registration date of the division of the
business category divided by a divided corporation.

(2) Article 46 (2) through (4) shall apply mutatis mutandis to the calculation
of transfer gains or losses under paragraph (1). <Amended on Dec. 22, 2020>

(3) Articles 46-2, 46-3 and 46-4 shall apply mutatis mutandis to the taxation on
a corporation established through division, etc.: Provided, That the losses of a
divided corporation shall not be succeeded.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 47 (Special Provisions concerning Taxation on Divided
Corporation upon Spin-off)

(1) Where a divided corporation acquires stocks, etc., of a corporation
established through division through a spin-off and meets the requirements for a
qualified division provided for in Article 46 (2) and (3) (in cases falling
under sparagraph (2) 2 of the same Article, limited to where the full
consideration of a division is in stocks, etc.), an amount equivalent to capital
gains on the transfer of assets generated by the spin-off among the value of
such stocks, etc., may be included in deductible expenses when calculating the
amount of income for the business year which includes the registration date of
the spin-off, as prescribed by Presidential Decree: Provided, That an amount
equivalent to capital gains on the transfer of assets may be included in
deductible expenses, as prescribed by Presidential Decree, although the
requirements prescribed in Article 46 (2) 2, 3 or 4 are not met, in extenuating
circumstances prescribed by Presidential Decree. <Amended on Dec. 31, 2011; Dec.
19, 2017; Dec. 31, 2022>

(2) An amount equivalent to capital gains on a transfer that a divided
corporation has included in deductible expenses under paragraph (1), shall be
included in the gross income as much as the amount prescribed by Presidential
Decree in consideration of the ratio of disposition of the relevant stocks,
etc., and assets in the business year in which any of the following grounds
arises: Provided, That the foregoing shall not apply where a corporation
established through division becomes subject to a qualified merger or qualified
division or where such corporation is in other extenuating circumstances
prescribed by Presidential Decree: <Amended on Dec. 31, 2011; Jan. 1, 2013>

1. Where a divided corporation disposes of the stocks, etc., received from the
corporation established through division;

2. Where the corporation established through division disposes of the assets
prescribed by Presidential Decree and succeeded to from a divided corporation.
In such cases, the corporation established through division shall inform the
divided corporation of the disposition of such assets within one month from the
date of the disposition.

(3) Where either of the following events occurs during the period prescribed by
Presidential Decree, which shall not exceed three years from the registration
date of a division, the divided corporation that has included an amount
equivalent to capital gains on a transfer in deductible expenses under paragraph
(1) shall include, in gross income, any remainder after including an amount in
gross income under paragraph (2), among the amount included in deductible losses
under paragraph (1), when calculating the amount of income for the business year
in which the relevant event occurs: Provided, That the same shall not apply in
extenuating circumstances prescribed by Presidential Decree: <Amended on Dec.
31, 2011; Jan. 1, 2014; Dec. 20, 2016; Dec. 19, 2017>

1. Where a corporation established through division discontinues the business
succeeded to from the divided corporation;

2. Where the divided corporation holds less than 50/100 of the total number of
outstanding stocks or the total investment amount of a corporation established
through division;

3. Where the number of the employees specified by Presidential Decree (hereafter
in this subparagraph, referred to as "employees") as employees of the
corporation established through division as at the end of each business falls
below 80/100 of the sum of employees of the divided business division as at one
month before the date of registration of the merger.

(4) Where a divided corporation includes an amount equivalent to capital gains
on a transfer in deductible expenses under paragraph (1), the corporation
established through division shall succeed to any amount included in or excluded
from gross income or deductible expenses by the divided corporation in
calculating the amount of income and the tax base for each business year, other
assets and liabilities and tax exemptions, tax reductions and tax credits under
Article 59, etc., as prescribed by Presidential Decree. <Newly Inserted on Dec.
31, 2011; Dec. 19, 2017>

(5) Tax exemptions, tax reductions and tax credits to which a corporation
established through division succeeds from the divided corporation shall apply
within the amount of income accruing from the business transferred from the
divided corporation or within the amount of corporate tax on such income, as
prescribed by Presidential Decree. <Newly Inserted on Dec. 19, 2017>

(6) A divided corporation that intends to apply paragraph (1) shall submit a
statement on capital gains on a transfer of assets generated by the division to
the head of the tax office having jurisdiction over the place of tax payment, as
prescribed by Presidential Decree. <Amended on Dec. 31, 2011; Dec. 19, 2017>

(7) Matters necessary for calculating capital gains on a transfer, criteria for
determining the continuation or discontinuation of the succeeded business,
calculation of the amounts included in gross income or deductible expenses, the
method of inclusion under paragraphs (1) and (5), and other matters, shall be
prescribed by Presidential Decree. <Amended on Dec. 31, 2011; Dec. 19, 2017>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 47-2 (Special Provisions concerning Taxation upon Investment in
Kind)

(1) Where a domestic corporation (hereafter in this Article, referred to as
"investing corporation") invests in kind, satisfying the following requirements,
an amount equivalent to capital gains on the transfer of asset accruing from the
investment in kind among the value of stocks of the domestic corporation
acquired through investment in kind (hereafter in this Article, referred to as
"invested corporation") may be included in deductible expenses for the purpose
of calculating the amount of income for the business year in which the date of
investment in kind falls, as prescribed by Presidential Decree: Provided, That
the domestic corporation may include an amount equivalent to capital gains on
the transfer of asset in deductible expenses, as prescribed by Presidential
Decree, in extenuating circumstances prescribed by Presidential Decree, although
it fails to satisfy the requirements prescribed in subparagraph 2 or 4: <Amended
on Dec. 31, 2011; Dec. 15, 2015; Dec. 19, 2017; Dec. 24, 2018>

1. The investing corporation that has operated business for at least five
consecutive years as on the date of investment in kind;

2. The invested corporation shall continuously operate the business that the
investing corporation operated with assets invested in kind, until the end of
the business year in which such investment in kind is made;

3. Where a person makes a joint investment with another Korean or foreigner, the
person shall not be a related party to the investing corporation;

4. The investing corporation and a person who makes a joint investment with the
investing corporation as prescribed in subparagraph 3 (hereafter in this
Article, referred to as "investing corporation, etc.") holds at least 80/100 of
the total number of issued stocks or the total investment amount of the invested
corporation as on the date following the date of investment in kind and hold
such stocks, etc., until the end of the business year in which the date of
investment in kind falls;

5. Deleted. <Dec. 19, 2017>

(2) An amount equivalent to capital gains on a transfer that an investing
corporation has included in deductible expenses pursuant to paragraph (1) shall
be included in gross income as much as the amount prescribed by Presidential
Decree, in consideration of the ratio of disposition of the relevant stocks,
etc., and assets for the business year in which any of the following events
occurs: Provided, That the foregoing shall not apply where an invested
corporation becomes subject to a qualified merger or qualified division, or
where such corporation is in other extenuating circumstances prescribed by
Presidential Decree: <Amended on Dec. 31, 2011; Jan. 1, 2013>

1. Where an investing corporation disposes of stocks, etc., received from an
invested corporation;

2. Where an invested corporation disposes of assets prescribed by Presidential
Decree and succeeded to from an investing corporation, etc. In such cases, the
invested corporation shall inform the investing corporation of the disposition
of such assets within one month from the date of the disposition.

(3) Where either of the following events occurs, the investing corporation that
has included an amount equivalent to capital gains on a transfer in deductible
expenses pursuant to paragraph (1) shall include any remainder after including
an amount in gross income pursuant to paragraph (2), among the amount included
in deductible expenses pursuant to paragraph (1), in gross income within the
period prescribed by Presidential Decree, which shall not exceed three years,
when calculating the amount of income for the business year in which the
relevant event occurs: Provided, That the same shall not apply in extenuating
circumstances prescribed by Presidential Decree: <Amended on Dec. 31, 2011; Dec.
20, 2016; Dec. 19, 2017>

1. Where an invested corporation discontinues the business that the investing
corporation has operated with assets invested in kind;

2. Where an investing corporation, etc., holds less than 50/100 of the total
number of outstanding stocks or the total investment amount of an invested
corporation.

(4) The calculation of capital gains on a transfer to be included in deductible
expenses, the criteria for determining the continuation or discontinuation of
the business that an investing corporation has operated with assets invested in
kind, the method for calculating the amount to be included in gross income and
the method for including such amount and the submission of statements of
investment in kind under paragraphs (1) through (3), and other necessary matters
shall be prescribed by Presidential Decree. <Amended on Dec. 15, 2015; Dec. 19,
2017>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 48 Deleted. <Dec. 31, 2009>

법령 이단보기 Article 48-2 Deleted. <Dec. 31, 2009>

법령 이단보기 Article 49 Deleted. <Dec. 31, 2009>

법령 이단보기 Article 50 (Inclusion of Amount Equivalent to Transfer Marginal Profits
of Assets due to Exchange in Deductible Expenses)

(1) Where a domestic corporation which engages in business prescribed by
Presidential Decree exchanges assets prescribed by Presidential Decree
(hereafter in this Article, referred to as "business assets") used directly for
such business for at least two years for the same type of business assets
(hereafter in this Article, referred to as "assets acquired by exchange")
directly used for the relevant business for at least two years by another
domestic corporation, other than a related party provided in Article 52 (1)
(including an exchange among several corporations prescribed by Presidential
Decree), an amount equivalent to transfer marginal profits of the business
assets accrued by the exchange from the value of assets acquired by the exchange
may be included in deductible expenses for the purpose of calculating the amount
of income for the relevant business year, as prescribed by Presidential Decree.
<Amended on Dec. 31, 2011; Dec. 24, 2018>

(2) Paragraph (1) shall only apply where a domestic corporation uses assets
acquired by exchange for its business until the end date of the business year in
which the date of the exchange falls.

(3) A domestic corporation which intends to apply paragraph (1) shall submit a
detailed statement on the exchange of assets to the head of the tax office
having jurisdiction over the place of tax payment, as prescribed by Presidential
Decree.

(4) In applying paragraph (1), matters necessary for the amount included in
deductible expenses and the method of inclusion of such amount in gross income
shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 50-2 (Restriction on Deduction of Losses Carried over in Case of
Business Acquisition)

Where a domestic corporation acquires a business of another domestic
corporation, as prescribed by Presidential Decree, the amount of losses referred
to in Article 13 (1) 1 as of the date of acquisition of the business shall not
be deducted to the extent of the amount of income accruing from the acquired
business sector (where the accounting is not recorded separately under the
proviso of Article 113 (7), it shall be the amount gained by dividing the amount
of income by the percentage of the value of assets prescribed by Presidential
Decree) for the purpose of calculating the tax base for each business year of
the domestic corporation that has acquired the business.
[This Article Newly Inserted on Dec. 21, 2021] Subsection 7 Tax Exemptions and
Income Deductions

법령 이단보기 Article 51 (Non-Taxable Income)

No corporate tax shall be imposed on income accruing from any trust property of
a public trust under the Public Trust Act among the income of a domestic
corporation for each business year. <Amended on Mar. 18, 2014>
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 51-2 (Income Deductions for Special Purpose Companies)

(1) Any of the following domestic corporations that distributes at least 90/100
of distributable profits (hereafter in this Article referred to as
“distributable profits”) prescribed by Presidential Decree, shall deduct the
amount equivalent to such distribution (hereafter in this Article referred to as
“distribution amount”) from the amount of income for the business year subject
to disposal of surplus from which distribution is resolved:

: <Amended on Jan. 1, 2014; Jul. 24, 2015; Aug. 28, 2015; Dec. 22, 2020; Dec.
21, 2021; Dec. 31, 2022>

1. A special-purpose company established under the Asset-Backed Securitization
Act;

2. An investment company, special purpose company, investment limited liability
company, investment association (excluding an institutional private equity fund,
as defined in Article 9 (19) 1 of the Financial Investment Services and Capital
Markets Act), or investment limited liability company established under the
aforesaid Act;

3. A corporate restructuring investment company established under the Corporate
Restructuring Investment Companies Act;

4. A real estate investment company for corporate restructuring or real estate
investment company for entrusted management, established under the Real Estate
Investment Company Act;

5. A ship investment company established under the Ship Investment Company Act;

6. A special purpose corporation, etc., prescribed by Presidential Decree and
established under the Special Act on Private Rental Housing or the Special Act
on Public Housing;

7. A company specializing in cultural industries established under the Framework
Act on the Promotion of Cultural Industries;

8. An overseas resources development company established under the Overseas
Resources Development Business Act;

9. Deleted. <Dec. 22, 2020>

(2) Paragraph (1) shall not apply to any of the following circumstances:

1. Where no income tax or corporate tax is imposed on dividends paid to
stockholders, etc., under this Act and the Restriction of Special Taxation Act:
Provided, That the same shall not apply where stockholders, etc., who receive
the dividends are partnership firms subject to special taxation for partnership
firms pursuant to Article 100-15 (1) of the Restriction of Special Taxation Act
and income tax or corporate tax is imposed on dividends paid to such partnership
firms pursuant to Article 100-18 (1) of the same Act;

2. Where any domestic corporation that pays dividends is a corporation meeting
the standards prescribed by Presidential Decree, giving due consideration to the
number of its stockholders, etc.

(3) Each person who intends to seek the benefit of paragraph (1), shall file an
application for income deductions, as prescribed by Presidential Decree.

(4) For the purposes of paragraph (1), where the amount of dividends exceeds the
amount of income for the relevant business year, the excess amount (hereafter in
this Article referred to as "excess dividend amount") may be carried over to
each business year that ends within five years from the start date of the
business year following the relevant business year, and deducted from the amount
of income for the business year to which it is carried over: Provided, That
where a domestic corporation does not distribute at least 90/100 of the profits
available for dividends in the business year to which the carry-over is made,
the excess dividend amount shall not be deducted. <Newly Inserted by Dec. 31,
2022>

(5) Where the excess dividend amount carried over under the main clause of
paragraph (4) is deducted from the amount of income for the relevant business
year, the deduction shall be made according to the following methods: <Newly
Inserted on Dec. 31, 2022>

1. The excess dividend amount carried over shall be deducted prior to the
dividend amount for the relevant business year.

2. Where two or more excess dividends are carried over, deductions shall be made
in the order of their occurrence.

[This Article Wholly Amended on Dec. 30, 2010]
Subsection 8 Special Cases concerning Calculation of Amounts of Income

법령 이단보기 Article 52 (Disaffirmation of Calculation by Wrongful Acts)

(1) Where the head of the tax office having jurisdiction over the place of tax
payment or the commissioner of the competent regional tax office deems that the
tax burden of a domestic corporation has been unjustly reduced through the
wrongful calculation of the amount of income of the domestic corporation in
transactions with a related party, he/she shall calculate the amount of income
for each business year of the domestic corporation regardless of the wrongful
calculation of the amount of income of such domestic corporation (hereinafter
referred to as "wrongful calculation"). <Amended on Dec. 31, 2011; Dec. 24,
2018>

(2) In applying paragraph (1), the standards for determination shall be sound
social norms, generally-accepted trade practices, and the prices applied or
acknowledged to be applied to arm's length transactions between persons, other
than related parties (including premium rates, interest rates, rents, exchange
rates, and other corresponding rates; hereinafter referred to as "market
price"). <Amended on Dec. 31, 2011; Dec. 24, 2018>

(3) A domestic corporation shall submit a detailed statement on the particulars
of transactions with each related party for each business year to the head of
the tax office having jurisdiction over the place of tax payment, as prescribed
by Presidential Decree. <Amended on Dec. 31, 2011; Dec. 24, 2018>

(4) In applying paragraphs (1) through (3), matters necessary for the types of
wrongful calculation, the assessment of market prices, and other matters shall
be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 53 (Special Cases concerning Calculation of Amount of Income
from Transactions with Foreign Corporations, etc.)

(1) Where the competent authorities of the Republic of Korea and the other
country agree on the amount of transactions between a domestic corporation and
its overseas branch, a non-resident, or any other foreign corporation, in
accordance with the relevant mutual agreement under the tax treaties concluded
between the Republic of Korea and the other contracting party to prevent double
taxation (hereinafter referred to as "tax treaty"), the head of the tax office
having jurisdiction over the place of tax payment or the commissioner of the
competent regional tax office may adjust the corporation's amount of income for
each business year according to such mutual agreement.

(2) In applying paragraph (1), matters necessary for filing an application for
adjustment of the amount of income of a domestic corporation, the procedures
therefor, and other matters shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 53-2 (Special Cases concerning Calculation of Tax Bases for
Corporations Adopting Functional Currencies)

(1) The tax base for a domestic corporation that prepares the financial
statements by adopting a currency, other than Korean Won, as a functional
currency according to the corporate accounting standards shall be calculated in
the method reported to the head of the tax office having jurisdiction over the
place of tax payment, among the following methods (hereafter in this Article,
referred to as "calculation method of tax bases"): Provided, That the tax base
of income for the business year before the calculation method of tax bases
prescribed in subparagraph 2 or 3 is first reported and applied shall be
calculated upon applying the calculation method of tax bases prescribed in
subparagraph 1, and consolidated corporations that belong to the same
consolidated group shall report and apply the same calculation method of tax
bases:

1. Method of calculating tax bases based on the financial statements to be
otherwise prepared, when no currency, other than Korean Won, is adopted as a
functional currency;

2. Method of calculating tax bases based on the financial statements denominated
in a functional currency and subsequently converting it into Korean Won;

3. Method of calculating tax bases based on the financial statements converted
into Korean Won by applying the exchange rates as at the end date of the
business year in the case of the items on the statement of financial position,
and the exchange rates as at the relevant trading day (referring to the average
exchange rate for the relevant business year in the case of the items prescribed
by Presidential Decree) in the case of the items on the consolidated income
statement (referring to a profit and loss statement where no consolidated income
statement is available; hereinafter the same shall apply).

(2) A corporation that has reported and applies the calculation method of tax
bases prescribed in paragraph (1) 2 or 3 may not change the calculation method
of tax bases unless there arise circumstances prescribed by Presidential Decree,
such as change of the reported functional currency and a merger between
corporations using a different calculation method of tax bases.

(3) Where a corporation that applies the calculation method of tax bases
prescribed in paragraph (1) 2 or 3 changes its functional currency, it shall
include, in gross income, the amount calculated by subtracting the amount under
subparagraph 2 from the amount under subparagraph 1 per asset or liability when
calculating the amount of income for the business year during which it changes
its functional currency and includes an amount equivalent thereto in deductible
expenses by appropriating it as lump-sum depreciation reserve funds or
compressed accounts reserve funds, as prescribed by Presidential Decree:

1. The book value of the relevant asset or liability as at the commencement date
of the relevant business year denominated in the functional currency after
change;

2. The amount denominated in the functional currency after changing the currency
by applying the exchange rate as at the date on which the relevant asset is
acquired or liability arises to the book value of the asset or liability as at
the end date of the immediately preceding the business year in which the amount
is denominated in the functional currency before change.

(4) Paragraph (3) shall apply mutatis mutandis where a corporation first applies
the calculation method of tax bases prescribed in paragraph (1) 2 or 3. In such
cases, the functional currency before change shall be deemed Korean Won.

(5) For purposes of paragraphs (1) through (4), matters necessary for the
application of exchange rates, the report and change of the calculation method
of tax bases, the disposition of amounts included in deductible expenses, the
report of tax bases of a corporation that selects each calculation method of tax
bases, the application of calculation method of tax bases, and other matters
shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 30, 2010]

법령 이단보기 Article 53-3 (Special Cases concerning Calculation of Tax Bases for
Overseas Place of Business)

(1) The tax base for an overseas place of business of a domestic corporation
shall be calculated in accordance with the method reported to the head of the
tax office having jurisdiction over the place of tax payment, among the
following methods (hereafter referred to as "calculation method of tax bases" in
this Article): Provided, That the tax base of the income for the business year
before the calculation method of tax bases prescribed in subparagraph 2 or 3 is
first reported and applied shall be calculated by applying the calculation
method of tax bases prescribed in subparagraph 1:

1. Method of re-preparing the financial statements where the financial
statements of an overseas place of business are not prepared in any functional
currency, other than Korean Won, combining them with the financial statements of
the headquarters and calculating the tax base based on such combined financial
statements;

2. Method of calculating the tax base based on the financial statements of an
overseas place of business denominated in the functional currency of the
overseas place of business, converting such tax base into Korean Won and
aggregating it with the tax base of the headquarters;

3. Method of converting, into Korean Won, the items on the statement of
financial position at the exchange rate as at the end date of the business year
and the items on the consolidated income statement at the exchange rate
prescribed by Presidential Decree in the case of the financial statements of an
overseas place of business, combining them with the financial statements of the
headquarters and calculating the tax base based on the combined financial
statements.

(2) A corporation that has reported and applies the calculation method of tax
bases prescribed in paragraph (1) 2 or 3 shall not change the calculation method
of tax bases unless there arise circumstances prescribed by Presidential Decree,
such as a merger between corporations using a different calculation method of
tax bases.

(3) For purposes of paragraphs (1) and (2), matters necessary for the
application of exchange rates, the report and change of the calculation method
of tax bases, the report of tax bases of a corporation that selects each
calculation method of tax bases, the application of calculation method of tax
bases, and other matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 30, 2010]

법령 이단보기 Article 54 (Detailed Regulations for Calculation of Amount of Income)

Except as otherwise expressly provided in this Act, matters necessary for the
calculation of the amount of income for each business year of a domestic
corporation shall be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 30, 2010]
SECTION 2 Calculation of Tax

법령 이단보기 Article 55 (Tax Rate)

(1) The amount of corporate tax on the income of a domestic corporation for each
business year shall be determined with the amount calculated by applying the
relevant tax rate in the following table to the tax base referred to in Article
13 (where there is an amount of corporate tax on capital gains on the transfer
of land, etc., under Article 55-2 and an amount of corporate tax computed by
applying special tax provisions for promoting investment and collaborative
cooperation under Article 100-32 of the Restriction of Special Taxation Act,
such amounts shall be aggregated; hereinafter referred to as "calculated tax
amount"): <Amended on Dec. 19, 2017; Dec. 24, 2018; Dec. 31, 2022>

Tax BaseTax Rate Not exceeding 200 million won 9/100 of tax baseExceeding 200
million won but not exceeding 20 billion won18 million won ＋ (19/100 of the
amount exceeding 200 million won) Exceeding 20 billion won but not exceeding 300
billion won 3.78 billion won ＋ (21/100 of the amount exceeding 20 billion won)
Exceeding 300 billion won62.58 billion won ＋ (24/100 of the amount exceeding 300
billion won)

(2) With regard to corporate tax on income for each business year of a domestic
corporation with a business year of less than 12 months, an amount computed by
dividing the amount computed for the business year by applying Article 13 by the
number of months of the business year and multiplying the resulting amount by 12
shall be the tax base for the business year, and the amount of tax computed by
multiplying the amount of tax computed under paragraph (1) by the number of
months of the business year divided by 12 shall be the amount of tax. In such
cases, the number of months shall be calculated by the method prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 55-2 (Special Provisions concerning Taxation on Capital Gains on
Transfer of Land)

(1) Where a domestic corporation transfers any of the following parcels of land
or buildings (including facilities and structures appurtenant to such
buildings), association members' right to residency under subparagraph 9 of
Article 88 of the Income Tax Act, and purchase rights under subparagraph 10 of
the same Article as a right to acquire houses (hereafter in this Article and
Article 95-2 referred to as "land, etc."), it shall pay the amount of tax
calculated pursuant to the relevant subparagraph as corporate tax on capital
gains on the transfer of land, etc., in addition to the corporate tax calculated
by applying the tax rate prescribed in Article 55 to the tax base prescribed in
Article 13. In such cases, the greatest tax amount shall apply to an asset where
at least two of the following subparagraphs are applicable to that asset:
<Amended on Jan. 1, 2014; Dec. 23, 2014; Aug. 18, 2020>

1. Where the domestic corporation transfers any of the following real estate by
no later than December 31, 2012, the amount of tax calculated by multiplying the
capital gains by 10/100:

(a) A house referred to in subparagraph 2 (including the land appurtenant
thereto; hereafter in this paragraph, the same shall apply), which is real
estate located within any designated area under Article 104-2 (2) of the Income
Tax Act;

(b) Idle land referred to in subparagraph 3, which is real estate located within
the designated area under Article 104-2 (2) of the Income Tax Act;

(c) Other real estate prescribed by Presidential Decree as necessary for
stabilizing the prices of real estate, because the prices of such real estate
has risen or are likely to rise sharply;

2. Where a residential house specified by Presidential Decree (including the
land appurtenant thereto) or a residential building, which is not used at
ordinary times for residence but used only for recreation, summer vacations,
entertainment, or any similar purpose (hereafter in this Article, referred to as
"vacation house") is transferred, the amount of tax calculated by multiplying
capital gains on the transfer of land, etc., by 20/100 (or 40/100 in cases of
capital gains on the transfer of unregistered land, etc.): Provided, That the
foregoing shall not apply to any residential house (including the land
appurtenant thereto) at a rural village in an Eup/Myeon specified in Article 3
(3) or (4) of the Local Autonomy Act, where such residential house meets the
scope and criteria prescribed by Presidential Decree;

3. Where any idle land is transferred, the amount of tax calculated by
multiplying capital gains on transfer of land, etc., by 10/100 (40/100 for gains
from the transfer of unregistered land, etc.).

4. Where association members' right to residency under subparagraph 9 of Article
88 of the Income Tax Act, and purchase rights under subparagraph 10 of the same
Article as a right to acquire houses is transferred, the amount of tax
calculated by multiplying capital gains on land, etc. by 20/100.

(2) "Idle land" referred to in paragraph (1) 3 means the land used for any of
the following purposes during the period specified by Presidential Decree while
a person owns the land: <Amended on Jan. 1, 2013; Dec. 23, 2014; Jul. 24, 2015>

1. A dry field, paddy field, or an orchard (hereafter in this Article, referred
to as "farmland"), which is either of:

(a) Land owned by a corporation that does not run farming as its main business:
Provided, That excluded herefrom is any farmland prescribed by Presidential
Decree permitted to be owned by a corporation under the Farmland Act and other
statutes;

(b) Farmland in an urban area (excluding an area designated by Presidential
Decree; hereafter in this item, the same shall apply) as defined in subparagraph
1 of Article 6 of the National Land Planning and Utilization Act, among areas in
the Special Metropolitan City, a Metropolitan City (excluding a Gun area in a
Metropolitan City; hereafter in this paragraph, the same shall apply), a
Metropolitan Autonomous City (excluding an Eup/Myeon area in a Metropolitan
Autonomous; hereafter in this paragraph, the same shall apply), a Special
Self-Governing Province (excluding an Eup/Myeon area in an administrative city
established under Article 10 (2) of the Special Act on the Establishment of Jeju
Special Self-Governing Province and the Development of Free International City;
the same shall apply hereafter in this paragraph), or a Si (excluding an
Eup/Myeon area in a Si in the combined form of urban and rural communities
prescribed in Article 3 (4) of the Local Autonomy Act; the same shall apply
hereafter in this paragraph): Provided, That excluded herefrom is any farmland
for which the period set by Presidential Decree has not lapsed from the date
such farmland is included in any urban area in the Special Metropolitan City, a
Metropolitan City, a Metropolitan Autonomous City, a Special Self-Governing
Province, or a Si;

2. Forest land: Provided, That excluded herefrom are:

(a) A seed-gathering forest or an experimental forest designated under the
Creation and Management of Forest Resources Act, a forest protection zone
designated under Article 7 of the Forest Protection Act, and other forest land
prescribed by Presidential Decree as necessary for protecting and nurturing
forests or for the public interest;

(b) A forest land prescribed by Presidential Decree, which is owned by any
corporation that runs the forestry as its main business or by a corporate forest
manager as provided for in the Creation and Management of Forest Resources Act;

(c) A forest land prescribed by Presidential Decree, which has reasonable
grounds to believe that such forest land is directly related to the business of
any corporation, in consideration of its owner, location, utilization status,
holding period, area, and other factors;

3. Any of the following ranch areas: Provided, That excluded herefrom is a ranch
area prescribed by Presidential Decree, which has reasonable grounds to believe
that such ranch area is directly related to the business of any corporation, in
consideration of its owner, location, utilization status, holding period, area
and other factors:

(a) A ranch area owned by any corporation that runs the livestock business as
its main business, the scale of which exceeds the standard size of the livestock
area prescribed by Presidential Decree, or which is located in an urban area
(excluding any urban area prescribed by Presidential Decree; the same shall
apply hereafter in this item) of the Special Metropolitan City, a Metropolitan
City, a Metropolitan Autonomous City, a Special Self-Governing Province, or a Si
(excluding where the period set by Presidential Decree has not lapsed from the
date the ranch area is included in the urban area);

(b) A ranch area owned by any corporation that does not run the livestock
business as its main business;

4. Land, other than farmland, forest land, or ranch areas, except for any of the
following land:

(a) Land exempt from property tax under the Local Tax Act or any relevant Act;

(b) Land subject to the aggregate taxation of property tax or the separate
taxation under Article 106 (1) 2 and 3 of the Local Tax Act;

(c) Land prescribed by Presidential Decree which has reasonable grounds to
believe that such land is directly related to the business of a corporation, in
consideration of its utilization status, fulfillment of duties imposed by any
relevant Act, the revenue amount, and other factors;

5. Land, the area of which exceeds an area computed by multiplying the multiple
rate set by Presidential Decree by the area of land on which a house is built,
among land appurtenant to such house as referred to in Article 106 (2) of the
Local Tax Act;

6. Land appurtenant to a vacation house: Provided, That, where the boundary of
the land appurtenant to a vacation house are not definite, the area of land
equivalent to 10 times the floor area of the building shall be deemed the land
appurtenant thereto;

7. Land similar to the land provided for in subparagraphs 1 through 6,
prescribed by Presidential Decree, which has reasonable grounds to believe that
such land is not directly related to the business of a corporation.

(3) In applying paragraph (1) 3, where any parcel of land becomes idle as its
use is prohibited under any statute or due to exceptional circumstances
prescribed by Presidential Decree after its acquisition, such land may not be
deemed idle, as prescribed by Presidential Decree.

(4) Paragraph (1) shall not apply to any capital gains on transfer of any of the
following land, etc.: Provided, That the same shall not apply to any capital
gains on transfer of unregistered land, etc.:

1. Income accruing from the disposal of land, etc. made by the adjudication of
bankruptcy;

2. Income accruing from the exchange, sub-division, or consolidation of farmland
directly cultivated by a corporation in circumstances prescribed by Presidential
Decree;

3. Income accruing on the grounds prescribed by Presidential Decree, including a
disposition of replotting under the Act on the Improvement of Urban Areas and
Residential Environments or other statutes.

(5) "Unregistered land, etc." referred to in paragraphs (1) and (4) means the
land, etc., transferred by a corporation without registering the acquisition
thereof: Provided, That excluded herefrom is any parcel of land, etc., acquired
on a long-term installment plan, the contract terms of which make it impossible
to register its acquisition as at the time it is acquired, and other land, etc.,
prescribed by Presidential Decree.

(6) Capital gains on the transfer of land, etc., shall be an amount computed by
subtracting the book value thereof as at the time of transfer from the transfer
value of land, etc.: Provided, That the capital gain on the transfer of land,
etc., that a nonprofit domestic corporation acquired on or before December 31,
1990 may be determined by subtracting the greatest amount, among the book value
and the values appraised under Articles 60 and 61 (1) of the Inheritance Tax and
Gift Tax Act as at January 1, 1991 from the transfer amount. <Amended on Dec.
23, 2014>

(7) In applying paragraphs (1) through (6), the scope of farmland, forest land,
or ranch areas, the criteria for determining the main business, the method for
calculating capital gains on transfer of land, etc., where any loss incurred
from the transfer of such land, etc., during the relevant business year, the
business year in which any profit or loss generated from the transfer of land,
etc., falls, and other necessary matters shall be prescribed by Presidential
Decree.

(8) Paragraph (1) 2 and 3 shall not apply to any gain accruing from the transfer
of land, etc., by no later than December 31, 2012.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 56 Deleted. <Dec. 24, 2018>

법령 이단보기 Article 57 (Foreign Tax Credits)

(1) Where the tax base on the income of a domestic corporation for each business
year includes any foreign source income, and the amount of foreign corporate tax
prescribed by Presidential Decree on such foreign source income (hereafter in
this Article and Article 73, referred to as "amount of foreign corporate tax")
has been paid or is payable, the amount of foreign corporate tax may be deducted
by up to the amount (hereafter in this Article, referred to as "deduction limit
amount") computed by the following formula from the amount of corporate tax for
the relevant business year: <Amended on Dec. 22, 2020; Dec. 21, 2021; Dec. 31,
2022>

Deduction limit amount = A ? B/C
A: Calculated tax amount for the relevant business year (excluding corporate tax
on capital gains on the transfer of land, etc. under Article 55-2 and corporate
tax calculated by applying special tax provisions for promoting investment and
collaborative cooperation under Article 100-32 of the Restriction of Special
Taxation Act
B: Foreign source income (excluding the amount calculated by multiplying the
ratio of tax exemption or reduction on tax-exempted foreign source income, where
a tax exemption or reduction is granted under the Restriction of Special
Taxation Act or any other statute.
C: Tax base on income for the relevant business year.

1. Deleted. <Dec. 31, 2022>

2. Deleted. <Dec. 31, 2022>

3. Deleted. <Dec. 31, 2022>

(2) In applying paragraph (1), where the amount of foreign corporate tax exceeds
the deduction limit paid or payable to a foreign government for the relevant
business year, such excess may be carried forward to each business year ending
within 10 years from the start date of the business year following the relevant
business year (hereafter in this Article referred to as “carry-over deduction
period”), and may be deducted up to the deduction limit amount for each business
year in which it is carried forward: Provided, That Provided, That where a
foreign corporate tax paid or payable to a foreign government is not deducted
within a carry-over deduction period, the amount of the foreign corporate tax
that has not been deducted may be included in deductible expenses for the
purpose of calculating the amount of income for the business year in which the
day following the end of the carry-over deduction period of falls,
notwithstanding subparagraph 1 of Article 21. <Amended on Dec. 24, 2018; Dec.
31, 2019; Dec. 22, 2020>

(3) An amount equivalent to the amount of the corporate tax reduction or
exemption granted to a domestic corporation having foreign source income in a
country which is a party to a tax treaty shall be deemed the amount of foreign
corporate tax for which the domestic corporation is entitled to a tax credit
under paragraph (1), within the limits stipulated by the relevant tax treaty.
<Amended on Dec. 22, 2020>

(4) Where the amount of income of a domestic corporation for each business year
includes dividends or distribution of surpluses from a foreign subsidiary
(hereafter in this Article, referred to as "dividend income"), the amount of
foreign corporate tax imposed on the amount, computed as prescribed by
Presidential Decree, that is equivalent to the dividend income, among the amount
of foreign corporate tax on the foreign subsidiary's income, shall be deemed the
amount of foreign corporate tax for which the domestic corporation is entitled
to a tax credit under paragraph (1). <Amended on Dec. 31, 2011; Dec. 22, 2020>

(5) "Foreign subsidiary" referred to in paragraph (4) means a foreign
corporation that meets the requirements prescribed by Presidential Decree, in
which a domestic corporation invests at least 10/100 (or 5/100 in cases of a
foreign corporation that engages in the business of developing overseas
resources under Article 22 of the Restriction of Special Taxation Act) of its
total number of outstanding voting stocks or total amount of investment.
<Amended on Dec. 23, 2014; Dec. 31, 2022>

(6) Where the amount of income of a domestic corporation for each business year
includes the dividend income from a foreign corporation and the investor
domestic corporation, not the relevant foreign corporation, has a direct tax
liability for the income of the foreign corporation or otherwise meets the
requirements prescribed by Presidential Decree, the amount computed, as
prescribed by Presidential Decree, which is equivalent to the dividend income
out of the amount of foreign corporate tax imposed on the investor domestic
corporation shall be deemed the amount of foreign corporate tax for which the
domestic corporation is entitled to a tax credit under paragraph (1). <Amended
on Dec. 22, 2020>

(7) Paragraphs (1) through (6) shall not apply to income dividend subject to
exclusion from gross income pursuant to Article 18-4. <Newly Inserted on Dec.
22, 2022> (8) The method for calculating foreign source income, tax credits, or
inclusion of foreign source income in deductible expenses under paragraphs (1)
through (6) and other necessary matters shall be prescribed by Presidential
Decree. <Amended on Jan. 1, 2013; Dec. 31, 2022>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2025] Article 57 (1)

법령 이단보기 Article 58 (Tax Credits for Losses from Disasters)

(1) Where a domestic corporation loses at least 20/100 of the total amount of
its assets prescribed by Presidential Decree for each business year (hereafter
referred to as "total amount of assets" in this Article) due to any natural
disaster or other accident (hereinafter referred to as "disaster") and it is
deemed impractical for the domestic corporation to pay tax, the amount
calculated by multiplying any of the following amounts of corporate tax by the
ratio of the value of the lost assets to the total amount of assets prior to the
loss (limited to the value of lost assets) shall be deducted from the amount of
tax. In such cases, the value of land shall not be included in the value of the
assets: <Amended on Dec. 22, 2020>

1. Corporate tax which is not imposed, or unpaid after imposition as at the date
of the occurrence of the disaster;

2. Corporate tax on income for the business year which includes the date of the
occurrence of the disaster.

(2) A domestic corporation that intends to obtain a tax credit under paragraph
(1) shall file an application with the head of the tax office having
jurisdiction over the place of tax payment, as prescribed by Presidential
Decree.

(3) Upon receipt of an application for a corporate tax credit referred to in
paragraph (1) 1 (excluding corporate tax, the filing deadline of which has not
passed) filed pursuant to paragraph (2), the head of the tax office having
jurisdiction over the place of tax payment shall determine the amount of the tax
credit and notify the relevant corporation thereof.

(4) In applying paragraphs (1) through (3), the calculation of the percentage of
assets lost, granting tax credits for disasters, and other necessary matters,
shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 58-2 Deleted. <Jan. 1, 2010>

법령 이단보기 Article 58-3 (Tax Credits upon Correction of Wrongful Accounting)

(1) Where a domestic corporation has its tax base or tax amount corrected upon
filing an application pursuant to Article 45-2 of the Framework Act on National
Taxes on the ground that the tax base and tax amount were overstated because of
its wrongful accounting, which meet each of the following criteria, the overpaid
tax shall not be refunded but shall be deducted from the corporate tax for the
business year in which the tax amount is corrected and subsequent business
years. In such cases, the deductible amount for each business year shall not
exceed 20/100 of the overpaid tax, and the overpaid tax that remains after
deduction shall be carried over to subsequent business years for deduction:
<Amended on Dec. 20, 2016; Oct. 31, 2017>

1. Profits or assets were overstated or deductible expenses or liabilities were
understated on a business report submitted pursuant to Article 159 of the
Financial Investment Services and Capital Markets Act or an audit report
submitted pursuant to Article 23 of the Act on External Audit of Stock
Companies;

2. The domestic corporation, its auditor or certified public accountant has been
subject to any of the sanctions prescribed by Presidential Decree, such as a
warning or caution.

(2) In applying paragraph (1), where a domestic corporation has any tax payable
according to a revised return filed pursuant to Article 45 of the Framework Act
on National Taxes during any business year before the business year in which a
correction is made, in connection with wrongful accounting, the overpaid tax
under paragraph (1) shall be first deducted from the tax payable by up to 20/100
of the overpaid tax. <Amended on Dec. 20, 2016>

(3) Where a domestic corporation that has an overpaid tax deducted under
paragraphs (1) and (2) has any remainder of the overpaid tax, such remainder
shall be disposed of as follows: <Newly Inserted on Dec. 20, 2016>

1. Where the domestic corporation is dissolved after a merger or division: The
surviving corporation or the corporation established through the division
(including the counterpart corporation to a division and merger) shall succeed
to the remainder of the overpaid tax and shall have the tax deducted in
accordance with paragraph (1);

2. Where the domestic corporation is dissolved by any method other than those
referred to in subparagraph 1: The head of the tax office having jurisdiction
over its place of tax payment or the commissioner of the competent regional tax
office shall immediately refund the remainder after deducting the corporate tax
payable on liquidation income under Article 77 from the overpaid tax to such
domestic corporation.

(4) Detailed methods and procedures relating to tax credits under paragraphs (1)
and (3), methods for carryover and deduction of any remainder of an overpaid tax
after deduction, and other related matters, shall be prescribed by Presidential
Decree. <Amended on Dec. 20, 2016>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 59 (Calculation of Amount of Tax Reductions/Exemptions or Tax
Credits)

(1) Where provisions regarding corporate tax reductions or exemptions and
provisions regarding tax credits are concurrently applicable where this Act or
any other statute applies, the priority of applicability is as follows, except
as otherwise provided for in this Act. In such cases, where the aggregate of the
amounts referred to in subparagraphs 1 and 2 exceeds the amount of corporate tax
payable by a corporation (excluding corporate tax on capital gains on the
transfer of land, etc. under Article 55-2, corporate tax computed by applying
special tax provisions for promoting investment and collaborative cooperation
under Article 100-32 of the Restriction of Special Taxation Act, and penalty
tax), the excess shall be deemed nil: <Amended on Dec. 23, 2014; Dec. 19, 2017;
Dec. 24, 2018>

1. Tax reductions and exemptions (including exemptions) of the amount of tax on
income for each business year;

2. Tax credits which are not entitled to be carried forward;

3. Tax credits which are entitled to be carried forward. In such cases, where
both a tax credit granted during the relevant business year and a tax credit
carried forward exist, the tax credit carried forward shall be deducted first;

4. Tax credits referred to in Article 58-3. In such cases, when both a tax
credit and a tax credit carried forward exist, the tax credit carried forward
shall be deducted first.

(2) The amount of a tax reduction or exemption referred to in paragraph (1) 1
shall be the amount computed by multiplying the calculated amount (in cases of a
tax reduction, the amount computed by multiplying the calculated amount by the
relevant reduction rate) of tax (excluding the amount of corporate tax on
capital gains on the transfer of land, etc., under Article 55-2, the amount of
corporate tax on unappropriated earnings under Article 56 and the amount of
corporate tax computed by applying special tax provisions for promoting
investment and collaborative cooperation under Article 100-32 of the Restriction
of Special Taxation Act) by the ratio (100/100, where the ratio exceeds 100/100)
of the amount of income partially or fully exempted to the tax base, except as
otherwise provided in this Act. <Amended on Dec. 23, 2014; Dec. 19, 2017; Dec.
24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
SECTION 3 Tax Return and Payment

법령 이단보기 Article 60 (Filing Reports on Tax Bases)

(1) A domestic corporation liable to pay tax shall file a report on the
corporate tax base and the tax payable on income for the relevant business year
within three months (four months where a domestic corporation submits a
certificate of confirmation of compliant filing pursuant to the main sentence of
Article 60-2 (1)) from the end date of the month in which the end date of each
business year falls, to the head of the tax office having jurisdiction over the
place of tax payment, as prescribed by Presidential Decree. <Amended on Dec. 24,
2018>

(2) A report filed under paragraph (1) shall be accompanied by the following
documents:

1. A statement of financial position, statement of comprehensive income,
statement of appropriation of retained earning (or statement of disposition of
deficit) of an individual Korean corporation prepared by applying financial
accounting standards mutatis mutandis;

2. A tax settlement invoice prepared, as prescribed by Presidential Decree
(hereinafter referred to as "tax settlement invoice");

3. Other documents specified by Presidential Decree.

(3) Paragraph (1) shall also apply to a domestic corporation with no income or
with losses incurred for each business year.

(4) Where a domestic corporation is dissolved due to a merger or division and
files a report pursuant to paragraph (1), the report shall be accompanied by the
following documents:

1. A statement of financial position of a merged corporation, divided
corporation, or a disappearing counterpart corporation to a merger and division
as at the registration date of the merger or the registration date of the
division, and a detailed statement on the assets and liabilities succeeded to by
a surviving corporation, etc., due to the merger or division;

2. Other documents specified by Presidential Decree.

(5) Where the documents referred to in paragraph (2) 1 and 2 are not submitted
along with a report filed under paragraph (1), the report shall not be construed
as a report filed under this Act: Provided, That the same shall not apply to a
non-profit domestic corporation which does not run profit-making business
referred to in Article 4 (3) 1 or 7. <Amended on Dec. 24, 2018>

(6) Where any error or omission is found in the report and other documents filed
under paragraph (1) or (2), the head of the tax office having jurisdiction over
the place of tax payment and the commissioner of the competent regional tax
office may request the correction of such error or omission.

(7) Notwithstanding paragraph (1), where a domestic corporation subject to audit
by an auditor pursuant to Article 4 of the Act on External Audit of Stock
Companies applies for an extension of the filing deadline, as prescribed by
Presidential Decree, on the grounds that the settlement of accounts is not
finalized because the audit of the relevant business year is not complete, the
filing deadline may be extended by up to one month. <Amended on Oct. 31, 2017>

(8) Each domestic corporation granted an extension of its filing deadline under
paragraph (7) must pay the tax and the amount calculated by applying the
interest rate prescribed by Presidential Decree, in consideration of the
interest rates charged by a financial company, etc., to the number of days of
the extension. In such cases, the number of days of the extension means the
number of days from the following day of the filing deadline prescribed in
paragraph (1) to the day a report is filed and payment is made (limited to where
such report is filed and payment is made by the extended deadline) or to the
extended day.

(9) In cases of a domestic corporation specified by Presidential Decree as
deemed necessary to ensure correct settlement between corporate accounting and
tax accounting or honest tax payment, a tax settlement invoice shall be prepared
by any of the following persons who belong to the settlement team prescribed by
Presidential Decree: <Newly Inserted on Dec. 15, 2015; Nov. 23, 2021>

1. A certified tax accountant registered in the register of certified tax
accountants under the Certified Tax Accountant Act;

2. A certified public accountant registered in the register of certified tax
accountants or the register of tax agent services for certified public
accountants under the Certified Tax Accountant Act;

3. An attorney-at-law registered in the register of certified tax accountants or
the register of tax agent services for attorney-at-laws under the Certified Tax
Accountant Act.

[This Article Wholly Amended on Dec. 30, 2010]
[Amending paragraph (9) 3 of this Article determined to be inconsistent with the
Constitution by the Constitutional Court on April 26, 2018 by Act No. 18521;
Nov. 23, 2021]

법령 이단보기 Article 60-2 (Submission of Certificate of Confirmation of Compliant
Filing)

(1) When either of the following domestic corporations files a return on the tax
base and amount of corporate tax in accordance with Article 60 for compliant tax
payment, such corporation shall submit a certificate of confirmation issued by
any of the persons specified by Presidential Decree, such as a certified public
tax accountant, to the effect that the person confirms the reasonableness of the
tax base amount computed according to the books of accounts and evidentiary
documents kept and recorded in accordance with Articles 112 and 116 (hereinafter
referred to as "certificate of confirmation of compliant filing"), as prescribed
by Presidential Decree, in addition to the documents specified in Article 60
(2): Provided, That a domestic corporation audited by an auditor in accordance
with Article 4 of the Act on External Audit of Stock Companies need not submit
such certificate of confirmation: <Amended on Dec. 24, 2018; Dec. 21, 2021>

1. A domestic corporation whose main business is real estate lease business and
who meets the criteria prescribed by Presidential Decree;

2. A domestic corporation, where a business operator subject to confirmation of
compliant filing under Article 70-2 (1) of the Income Tax Act has converted
his/her business into a domestic corporation by any of the methods prescribed by
Presidential Decree, such as in-kind investment of business assets (limited to a
domestic corporation in which case three years have not passed yet since it was
converted into a corporation as at the end of the pertinent business year);

3. A domestic corporation that has acquired the business operated by another
domestic corporation converted pursuant to subparagraph 2 in the manner
prescribed in the same subparagraph (limited to cases where it is within three
years from the date of conversion prescribed in the same subparagraph, and the
domestic corporation is still operating the acquired business as of the end of
its business year).

(2) Where the head of the tax office having jurisdiction over the place of tax
payment finds any defect or error in a certificate of confirmation of compliant
filing submitted in accordance with paragraph (1), he/she may request to amend
such certificate. <Amended on Dec. 24, 2018>

(3) Except as otherwise provided in paragraphs (1) and (2), matters necessary
for the submission of a certificate of confirmation of compliant filing, etc.
shall be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Newly Inserted on Dec. 19, 2017]

법령 이단보기 Article 61 (Special Cases concerning Inclusion of Reserve Funds in
Deductible Expenses)

(1) Where a domestic corporation appropriates a reserve fund referred to in the
Restriction of Special Taxation Act in the tax settlement invoice and disposes
of the amount as the profits accruing during the relevant business year, such
amount shall be included in deductible expenses for the relevant business year,
deeming that the amount is appropriated as deductible expenses when the
settlement of account is fixed. <Amended on Dec. 24, 2018>

(2) Matters necessary for including a reserve fund in deductible expenses and
disposing of the amount of the reserve fund under paragraph (1) shall be
prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 62 (Special Cases concerning Filing Interest Income of
Non-Profit Domestic Corporations)

(1) A non-profit domestic corporation may elect not to file a report on the tax
base on interest income in Article 4 (3) 2 (excluding profits from non-business
loans referred to in Article 16 (1) 11 of the Income Tax Act, and including
investment trust proceeds; hereafter in this Article, referred to as "interest
income"), which is withheld under Articles 73 and 73-2, notwithstanding Article
60 (1). In such cases, the interest income, the tax base of which is not
reported shall be disregarded for the purpose of calculating the amount of
income for each business year. <Amended on Dec. 24, 2018>

(2) Matters necessary for filing a corporate tax base on the interest income of
a non-profit domestic corporation and the collection thereof under paragraph (1)
shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 62-2 (Special Provisions concerning Filing Capital Gains on
Transfer of Assets by Non-Profit Domestic Corporations)

(1) Where a non-profit domestic corporation (excluding any non-profit domestic
corporation that runs profit-making business referred to in Article 4 (3) 1;
hereafter in this Article, the same shall apply) earns income accruing from the
transfer of any of the following assets (hereafter in this Article, referred to
as "capital gains on transfer of assets"), being the revenue provided for in
Article 4 (3) 4 through 6, it may choose not to file a tax base, notwithstanding
Article 60 (1). In such cases, capital gains on transfer of assets, the tax base
of which is not filed, shall be disregarded for the purpose of calculating the
amount of income for each business year: <Amended on Dec. 24, 2018>

1. Deleted. <Dec. 21, 2021>

2. Land or buildings (including facilities or structures appurtenant to such
buildings);

3. Assets referred to in Article 94 (1) 2 or 4 of the Income Tax Act.

(2) An amount calculated by applying rates prescribed in each subparagraph of
Article 104 (1) of the Income Tax Act to the tax base calculated by applying
mutatis mutandis Article 92 of the same Act shall be paid as corporate tax on
capital gains on transfer of assets, the tax base of which is not filed under
paragraph (1). In such cases, Article 55-2 shall not apply where tax rates
weighted under Article 104 (4) of the Income Tax Act apply.

(3) In applying paragraph (2), the tax base calculated by applying mutatis
mutandis Article 92 of the Income Tax Act shall be the amount calculated by
first deducting incurred expenses from the total income accruing from the
transfer of assets (hereafter in this Article, referred to as "transfer value")
and re-deducting the amounts provided for in Articles 95 (2) and 103 of the
Income Tax Act from the amount deducted (hereinafter referred to as "transfer
marginal profits").

(4) Articles 96 through 98 and 100 of the Income Tax Act shall apply mutatis
mutandis to the calculation of the transfer value, expenses incurred and
transfer marginal profits referred to in paragraph (3): Provided, That where any
non-profit corporation that has received the contribution of any asset which is
not included in the taxable value of the inheritance tax or the taxable value of
the gift tax under the Inheritance Tax and Gift Tax Act, transfers any asset
prescribed by Presidential Decree, the acquisition value of the relevant assets
by the contributor thereof shall be the acquisition value of the relevant
corporation, and in the case of an organization deemed a corporation under
Article 13 (2) of the Framework Act on National Taxes, the acquisition value
prior to obtaining approval therefor under the same paragraph shall be deemed
the acquisition value.

(5) Articles 101 and 102 of the Income Tax Act shall apply mutatis mutandis to
the calculation of the tax base on capital gains on transfer of assets, and
Article 93 of the same Act shall apply mutatis mutandis to the calculation of
the amount of tax on income accruing from the transfer of assets.

(6) The provisions governing the filing of a tax base, payment, determination,
correction, and collection of corporate tax on income for each business year, in
which the date of transfer of assets falls, shall apply mutatis mutandis to the
filing of a tax base, payment, determination, correction, and collection of
corporate tax referred to in paragraph (2), and such corporate tax shall be
filed, paid, determined, corrected, and collected being added to other corporate
tax. In such cases, Article 75-3 shall apply mutatis mutandis. <Amended on Dec.
24, 2018>

(7) Corporate tax calculated under paragraph (2) shall be voluntarily paid upon
filing a preliminary return on the tax base of capital gains by applying mutatis
mutandis Articles 105 through 107 of the Income Tax Act. Article 112 of the
Income Tax Act shall apply mutatis mutandis to such cases. <Amended on Dec. 15,
2015>

(8) Where any non-profit domestic corporation files a preliminary return on the
tax base of capital gains under paragraph (7), it shall be deemed to have filed
a tax base pursuant to paragraph (6): Provided, That, where any non-profit
domestic corporation falls under the proviso to Article 110 (4) of the Income
Tax Act, it shall file a tax base pursuant to paragraph (6).

(9) The methods for applying special cases concerning capital gains on transfer
of assets pursuant to paragraphs (1) through (8), and other necessary matters,
shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]
[Enforcement Date: Jan. 1, 2025] Article 62-2 (1) 1

법령 이단보기 Article 63 (Obligation of Interim Prepayment)

(1) A domestic corporation whose business years exceed six months is liable to
pay corporate tax (hereinafter referred to as “interim tax”) on an interim
prepayment period among each business year (excluding the first business year
after the incorporation of a corporation, where newly incorporated without a
merger or division): Provided, That any of the following corporations are not
liable to pay interim tax: <Amended on Dec. 22, 2020; Dec. 31, 2022>

1. Any of the following corporations:

(a) An educational foundation that operates a private school defined in Article
3 of the Higher Education Act;

(b) Seoul National University established under the Act on Establishing and
Administrating Seoul National University;

(c) Incheon National University established under the Act on Establishing and
Administering Incheon National University;

(d) An industry-academia cooperation group under the Industrial Education
Enhancement and Industry-Academia-Research Cooperation Promotion Act;

(e) School foundations operating private schools referred to in subparagraph 3
of Article 3 of the Elementary and Secondary Education Act;

2. A domestic corporation, which is a small and medium enterprise in the
business year immediately preceding the relevant business year, with the amount
calculated by formula in Article 63-2 (1) 1 is less than 300,000 won.

(2) The interim prepayment period in paragraph (1) shall be the period from the
beginning of the relevant business year to the day six months pass.

(3) A domestic corporation shall pay interim tax, within two months after the
expiration of the interim prepayment period, to the tax office having
jurisdiction over the place of tax payment, the Bank of Korea (including any of
its agents), or a post office (hereinafter referred to as "tax office, etc.
having jurisdiction over the place of tax payment") as prescribed by
Presidential Decree,

(4) Where the amount of tax payable by a domestic corporation exceeds ten
million won, it may be paid in installments by applying mutatis mutandis Article
64 (2).

[This Article Wholly Amended on Dec. 24, 2018]

법령 이단보기 Article 63-2 (Calculation of Interim Tax)

(1) The interim tax shall be calculated by any of the following methods:
<Amended on Dec. 31, 2019>

1. Having the computed amount of tax for the immediately preceding business year
as a base:

Interim tax = (A ? B ? C ? D) ? 6/E
A: The amount of tax determined as corporate tax for the business year
immediately preceding the relevant business year (including penalty tax, but
excluding corporate tax on capital gains on the transfer of land, etc. under
Article 55-2 and corporate tax computed by applying special tax provisions for
promoting investment and collaborative cooperation under Article 100-32 of the
Restriction of Special Taxation Act).
B: The amount of corporate tax reductions or exemptions granted in the business
year immediately preceding the relevant business year (excluding the amount
deducted from income).
C: The amount of withholding tax paid as corporate tax in the business year
immediately preceding the relevant business year.
D: The amount of occasionally imposed corporate tax paid in the business year
immediately preceding the relevant business year.
E: The number of months for the relevant business year. In such cases, the
number of months shall be calculated by calendar, and the number of days less
than one month shall be deemed one month.

2. Having corporate tax during the relevant interim prepayment period as a base:

Interim tax = (A ? B ? C ? D)
A: Regard the relevant interim prepayment period as one business year, and the
amount of corporate tax calculated by applying Article 55 to the tax base
calculated under Chapter II Section 1
B: The amount of tax reductions or exemptions corresponding to the relevant
interim prepayment period (excluding the amount deducted from income);
C: The amount of withholding tax paid as corporate tax during the relevant
interim prepayment period;
D: The amount of occasionally imposed corporate tax during the relevant interim
prepayment period.

(2) Notwithstanding paragraph (1), in any of the following cases, the amount of
interim tax shall be calculated by any of the following classifications:
<Amended on Dec. 31, 2019; Dec. 22, 2020>

1. Where the amount of interim tax is not paid by the deadline for interim
prepayment in Article 63 (3) (excluding cases in any item of subparagraph 2):
The method in paragraph (1) 1;

2. In any of the following cases: The method in paragraph (1) 2:

(a) Where a corporation has no calculated amount of tax finally assessed as
corporate tax for the immediately preceding business year (excluding a
corporation in any subparagraph of Article 51-2 (1) or Article 104-31 (1) of the
Act on Restriction on Special Cases concerning Taxation);

(b) Where the amount of corporate tax for the immediately preceding business
year has not been finally assessed by the end of the relevant interim prepayment
period;

(c) Where the relevant business year is the first business year after the
relevant corporation is newly incorporated through a division or its
counter-party corporation to a division is merged through a division.

(3) Where a corporation surviving a merger pays interim tax computed under
paragraph (1) for the first business year after the merger, any of the following
business years shall be all construed as the immediately preceding business year
in paragraph (1) 1:

1. The immediately preceding business year of a corporation surviving a merger;

2. The business year immediately preceding the business year which includes the
registration date of the merger of each merged corporation.

(4) Where a corporation which becomes ineligible for the consolidated tax return
system under Articles 76-9, 76-10 and 76-12 pays interim tax computed under
paragraph (1) in the first business year in which it becomes ineligible for the
consolidated tax return system, the computed tax for the immediately preceding
consolidated business year by consolidated corporation as prescribed in Article
76-15 (4) shall be construed as the computed amount of tax which has been
determined as corporate tax for the immediately preceding business year referred
to in paragraph (1).

(5) The head of the tax office having jurisdiction over the place of tax payment
shall not collect corporate tax on the relevant interim prepayment period from a
corporation which does not have any amount of income due to the suspension of
its business during the interim prepayment period, where such fact is verified.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 64 (Payment)

(1) A domestic corporation shall deduct the following amounts of corporate tax
(excluding additional tax) from the calculated amount of corporate tax on income
for each business year and pay it as corporate tax on income for each business
year by the filing deadline prescribed in Article 60 to the tax office, etc.
having jurisdiction over the place of tax payment: <Amended on Dec. 24, 2018>

1. The amount of tax reduced or exempted and tax credits for the relevant
business year;

2. The interim tax for the relevant business year under Article 63-2;

3. The amount of occasionally imposed tax for the relevant business year under
Article 69;

4. The amount of withheld tax for the relevant business year under Articles 73
and 73-2.

(2) Where the amount of tax payable by a domestic corporation under paragraph
(1) exceeds 10,000,000 won, some of the tax payable may be paid in installments
within one month (two months for small and medium enterprises) after expiration
of the payment deadline, as prescribed by Presidential Decree. <Amended on Dec.
24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 65 Deleted. <Dec. 15, 2015>

SECTION 4 Determination, Correction, and Collection
Subsection 1 Determination and Correction of Tax Bases

법령 이단보기 Article 66 (Determination and Correction)

(1) Where a domestic corporation fails to file a report under Article 60, the
head of the tax office having jurisdiction over the place of tax payment or the
commissioner of the competent regional tax office shall determine the tax base
and amount of corporate tax on the income of the domestic corporation for each
business year.

(2) Where a domestic corporation that has filed a report under Article 60 falls
under any of the following cases, the head of the tax office having jurisdiction
over the place of tax payment or the commissioner of the competent regional tax
office shall correct the tax base and amount of corporate tax on the income of
the relevant corporation for each business year: <Amended on Jun. 7, 2013>

1. Where it makes any error or omission in the details of the report;

2. Where it fails to submit all or some payment statements referred to in
Article 120 or 120-2, or aggregate invoices for each supplier or purchaser
referred to in Article 121;

3. Where it is determined that the details of the report are unconscientious,
taking into account the scope of facilities or the business conditions in any of
the followings cases:

(a) Where a corporation meeting the membership eligibility for a credit card
merchant referred to in Article 117 (1) fails to become a credit card merchant
defined in the Specialized Credit Finance Business Act (limited to a
corporation; hereinafter referred to as "credit card merchant"), without good
cause;

(b) Where a credit card merchant refuses a transaction by credit card or issues
a false credit card sales slip without good cause, in violation of Article 117
(2);

(c) Where a corporation obligated to become a Cash Receipt merchant under
Article 117-2 (1) or a corporation designated to become a Cash Receipt merchant
under Article 46 (4) of the Value-Added Tax Act fails to become a Cash Receipt
merchant under Article 126-3 of the Restriction of Special Taxation Act
(hereinafter referred to as "Cash Receipt merchant"), without good cause;

(d) Where a Cash Receipt merchant refuses to issue a Cash Receipt without good
cause or issues a false Cash Receipt;

4. Deleted. <Dec. 20, 2016>

(3) The head of the tax office having jurisdiction over the place of tax payment
or the commissioner of the competent regional tax office shall determine or
correct the tax base and amount of corporate tax under paragraphs (1) and (2)
based on the account books or other evidentiary documents: Provided, That he/she
may estimate such base and amount of corporate tax, as prescribed by
Presidential Decree, where the amount of income cannot be calculated based on
the account books or other evidentiary documents on the grounds prescribed by
Presidential Decree.

(4) Where any error or omission is found after the head of the tax office having
jurisdiction over the place of tax payment or the commissioner of the competent
regional tax office has determined or corrected the tax base and amount of
corporate tax, he/she shall re-correct them immediately.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 67 (Disposal of Income)

In filing a report on determining or correcting the following corporate tax
bases, the amount included in the calculation of gross income or not included in
deductible expenses shall be disposed of as a bonus, dividends, or other
outflows from or reserves held by the relevant company to the persons to whom it
reverts, as prescribed by Presidential Decree:

1. Reporting under Article 60;

2. Determining or correcting in Article 66 or 69;

3. A revised return filed pursuant to Article 45 of the Framework Act on
National Taxes.

[This Article Wholly Amended on Dec. 24, 2018]

법령 이단보기 Article 68 (Special Cases concerning Calculation of Tax Bases and Amount
by Estimation)

Article 13 (1) 1 and Article 57 shall not apply where the tax base and amount of
corporate tax is estimated under the proviso to Article 66 (3): Provided, That
this shall not apply where such tax base and amount are estimated, as prescribed
by Presidential Decree, since the account books or other evidentiary documents
are destroyed by a natural disaster or on other grounds. <Amended on Dec. 24,
2018>
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 69 (Determination of Occasional Imposition)

(1) Where the head of the tax office having jurisdiction over the place of tax
payment or the commissioner of the competent regional tax office deems that a
domestic corporation is likely to evade corporate tax in the business year due
to the grounds prescribed by Presidential Decree (hereafter in this Article,
referred to as "grounds for occasional imposition"), he/she may occasionally
impose corporate tax on the domestic corporation (hereinafter referred to as
"occasional imposition"). In such cases, the corporation shall also file a
report on income for each business year under Article 60.

(2) For purposes of paragraph (1), the period from the start date of the
business year to the date on which the grounds for occasional imposition arise,
shall be the period for occasional imposition: Provided, That the grounds for
occasional imposition have arisen before the deadline for filing a report on the
tax base, etc. under Article 60 for the immediately previous business year
(excluding where a report on the tax base for the immediately previous year is
filed), the period for occasional imposition shall be the period from the start
date of the immediately previous business year until the day the grounds for
occasional imposition have arisen.

(3) Matters necessary for occasional imposition under paragraph (1) shall be
prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 70 (Notification of Tax Base and Tax Amount)

Where the head of the tax office having jurisdiction over the place of tax
payment or the commissioner of the competent regional tax office determines or
corrects the tax base and amount of corporate tax on income for each business
year of a domestic corporation under Article 53 or 66, he/she shall notify the
relevant domestic corporation thereof, as prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 30, 2010]
Subsection 2 Collection, Refund, etc. of Tax

법령 이단보기 Article 71 (Collection and Refund)

(1) Where a domestic corporation fails to pay all or part of tax payable as
corporate tax on income for each business year under Article 64, the head of the
tax office having jurisdiction over the place of tax payment shall collect the
unpaid corporate tax in accordance with the National Tax Collection Act.
<Amended on Jan. 1, 2013>

(2) Where a domestic corporation fails to pay all or part of interim tax payable
under Articles 63 and 63-2, the head of the tax office having jurisdiction over
the place of tax payment shall collect the unpaid interim tax in accordance with
the National Tax Collection Act: Provided, That where the corporation which
fails to pay interim tax falls under Article 63-2 (2) 2, the head of the tax
office shall determine and collect the interim tax in accordance with the
National Tax Collection Act. <Amended on Jan. 1, 2013; Dec. 24, 2018>

(3) Where a person liable for withholding referred to in Articles 73 and 73-2
fails to withhold tax or to pay withheld tax by the payment deadline, the head
of the tax office having jurisdiction over the place of tax payment shall,
without delay, collect the sum of the amount of tax to be withheld and paid by a
person liable for withholding and additional tax added under Article 47-5 (1) of
the Framework Act on National Taxes from the person liable for withholding as
corporate tax: Provided, That where the person liable for withholding has failed
to withhold tax and the relevant tax obligor has paid corporate tax, the head of
such tax office shall only collect additional tax from the person liable for
withholding. <Amended on Dec. 31, 2011; Dec. 24, 2018>

(4) Where the amount of corporate tax collected as interim payment, occasionally
imposed, or withheld under Article 63, 63-2, 69, 73, or 73-2 exceeds the amount
of corporate tax on income for each business year (including additional tax),
the head of the tax office having jurisdiction over the place of tax payment
shall refund the excess or appropriate it for national taxes and forced
collection charge under Article 51 of the Framework Act on National Taxes.
<Amended on Dec. 24, 2018; Dec. 22, 2020>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 72 (Refund by Retroactive Deduction of Losses for Small and
Medium Enterprises)

(1) Where a small and medium enterprise under Article 25 (1) 1 has losses
incurred for each business year as prescribed in Article 14 (2), it may apply
for a refund of the amount calculated, as prescribed by Presidential Decree, up
to the limit of corporate tax (referring to the amount of corporate tax
prescribed by Presidential Decree) imposed on income during the business year
immediately preceding the business year in which such losses incurred. In such
cases, such losses shall be construed as the deducted amount in applying
subparagraph 1 of Article 13: <Amended on Dec. 24, 2018>

1. The computed amount of corporate tax for the immediately preceding business
year (excluding corporate tax on capital gains on the transfer of land, etc.
under Article 55-2);

2. The amount calculated by applying the relevant tax rate in Article 55 (1) for
the immediately preceding business year to the amount computed by subtracting a
loss for the relevant business year that intends to be deducted retroactively
from the tax base for the immediately preceding business year.

(2) A domestic corporation which intends to obtain a refund of corporate tax
under paragraph (1) shall file an application to the head of the tax office
having jurisdiction over the place of tax payment until the filing deadline
specified in Article 60, as prescribed by Presidential Decree.

(3) Upon receipt of an application under paragraph (2), the head of the tax
office having jurisdiction over the place of tax payment shall determine the
amount of tax to be refunded and refund it under Articles 51 and 52 of the
Framework Act on National Taxes, without delay.

(4) Paragraphs (1) through (3) shall apply only when a domestic corporation
files a report on the tax base and amount of the corporate tax on income for the
business year in which the losses incur and for the immediately preceding
business year by the filing deadline specified in Article 60.

(5) In any of the following cases, the head of the tax office having
jurisdiction over the place of tax payment shall collect an amount computed by
adding an amount equivalent to the interest calculated, as prescribed by
Presidential Decree, to the amount of tax to be refunded (the amount equivalent
to the tax amount over-refunded in cases of subparagraphs 1 and 2) as corporate
tax for the business year in which the relevant losses have been incurred:
<Amended on Jan. 1, 2013; Dec. 24, 2018>

1. Where losses have decreased after correcting the tax base and the amount of
corporate tax pursuant to Article 66 for the business year in which the losses
incurred after corporate tax was refunded, as prescribed in paragraph (3);

2. Where the amount of tax to be refunded has decreased as a result of the
rectification of the tax base and tax amount for corporate tax pursuant to
Article 66 for the business year immediately before the business year in which
the losses were incurred;

3. Where a domestic corporation, other than small and medium enterprises has
received a refund of corporate tax.

(6) Where there is any change to the amount of corporate tax or tax base for the
immediately preceding business year which becomes a basis for calculating the
original amount of tax to be refunded (hereafter in this paragraph, referred to
as "original amount of tax to be refunded"), after the head of the tax office
having jurisdiction over the place of tax payment determines the amount of tax
to be refunded pursuant to paragraph (3), he/she shall immediately correct the
original amount of tax to be refunded and then refund it additionally or collect
the amount equivalent to the tax amount over-refunded. <Newly Inserted on Dec.
24, 2018>

(7) In applying paragraphs (1) through (6), matters concerning the calculation
of the amount of tax to be refunded by retroactive deduction of losses shall be
prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 72-2 Deleted. <Dec. 20, 2016>

법령 이단보기 Article 73 (Withholding on the Amount of Interest Income of Domestic
Corporations)

(1) When a person (hereafter in this Article, referred to as "person liable for
withholding") who pays any of the following amounts to a domestic corporation
(excluding income prescribed by Presidential Decree, such as a financial company
prescribed by Presidential Decree), he/she shall withhold corporate tax (only
applicable to the amount exceeding 1,000 won) equivalent to the amount
calculated by applying the tax rate of 14/100 to the amount payable and shall
pay it at the tax office having jurisdiction over the place of tax payment, etc.
by no later than the tenth day of the month following the month in which the
date of collection falls: Provided, That the tax rate of 25/100 shall apply to
the profits made from non-business loans referred to in Article 16 (1) 11 of the
Income Tax Act; and the tax rate of 14/100 shall apply to the interest income
paid through an online investment-linked financial business entity registered
with the Financial Services Commission pursuant to the Act on Online
Investment-Linked Financial Business and Protection of Users: <Amended on Dec.
24, 2018; Dec. 31, 2019; Dec. 21, 2021; Dec. 31, 2022>

1. The amount of interest income referred to in Article 16 (1) of the Income Tax
Act (including revenues of a corporation that operates the financial insurance
business);

2. The amount of investment trust proceeds (hereinafter referred to as
"investment trust proceeds") of the Financial Investment Services and Capital
Markets Act among the profits from collective investment schemes referred to in
Article 17 (1) 5 of the Income Tax Act.

(2) For the purpose of paragraph (1), where a foreign corporate tax payable by
an indirect investment company is paid on investment trust profits, the amount
calculated by subtracting the amount prescribed in subparagraph 2 from the
amount prescribed in subparagraph 1 shall be withheld to the extent of the
amount prescribed in subparagraph 1: <Newly Inserted on Dec. 31, 2022>

1. Withholding tax on profits of an investment trust (referring to the amount
calculated on the basis of an after-tax base price);

2. An amount calculated as prescribed by Presidential Decree, taking into
account the after-tax base price of the foreign corporate tax payable by an
indirect investment company.

(3) For the purpose of paragraph (2), where an amount prescribed in paragraph
(2) 2 exceeds an amount prescribed in subparagraph 1 of the same paragraph, a
deduction may be allowed to the extent of the withholding tax on profits of an
investment trust when the investment trust profits are received during the
period from the date on which the relevant foreign corporate tax of the indirect
investment company is paid to December 31 of the year in which the date that is
ten years after such tax payment date falls. <Newly Inserted on Dec. 31, 2022>

(4) Notwithstanding paragraph (1) or (2), corporate tax on the income prescribed
by Presidential Decree, such as the income on which corporate tax is not imposed
or exempt, shall not be withheld. <Newly Inserted on Dec. 24, 2018; Dec. 31,
2022>

(5) The amount of income referred to in the subparagraphs of paragraph (1) shall
not be withheld, deeming that the relevant amount of income is not paid at the
time such amount of income reverts to any piece of investment trust property
under the Financial Investment Services and Capital Markets Act in applying
paragraph (1) or (2). <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>

(6) In applying paragraph (1) or (2), any acts done by a person representing, or
commissioned by, a person liable for withholding shall be deemed the acts done
by the principal or a commissioning person within the scope of the delegation or
commission. <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>

(7) In applying paragraph (1) or (2), where a financial company, etc. prescribed
by Presidential Decree assumes or trades bills or debt certificates issued by a
domestic corporation (including a resident; hereafter in this paragraph, the
same shall apply) or brokers or makes such transactions on behalf of the
corporation pursuant to paragraph (1), the financial company, etc. shall be
deemed to have the agency or commission relationship with the domestic
corporation. <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>

(8) In applying paragraph (1) or (2), where a foreign corporation pays a
domestic corporation income specified in each subparagraph of paragraph (1) from
bonds or securities issued by the foreign corporation, a person who acts as an
agent of the foreign corporation for such payment or a person to whom the
authority for such payment is delegated or entrusted in the Republic of Korea
shall withhold the corporate tax on the income. <Newly Inserted on Jan. 1, 2013;
Dec. 24, 2018; Dec. 31, 2022>

(9) Any person liable for withholding prescribed by Presidential Decree, in
consideration of the number of regular employees and categories of business, may
pay the withheld corporate tax by the tenth day of the month following the last
month of the semiannual period which includes the withholding date, as
prescribed by Presidential Decree, notwithstanding paragraphs (1) and (2).
<Amended on Dec. 30, 2010; Dec. 31, 2022>

(10) In applying paragraphs (1) through (9), the timing for payment of interest
income, scope and calculation of the amount of income subject to withholding
corporate tax, calculation and payment of withholding tax, scope of persons
liable for withholding, etc. shall be prescribed by Presidential Decree.
<Amended on Dec. 30, 2010; Jan. 1, 2013; Dec. 24, 2018; Dec. 31, 2022>

[Title Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]
[Enforcement Date: Jan. 1, 2025] Article 73 (1) through (10)

법령 이단보기 Article 73-2 (Withholding on the Amount of Interest on Interest Accruing
during the Holding Period of the Bonds)

(1) Where a domestic corporation sells (including brokering, arranging, or other
cases prescribed by Presidential Decree, but excluding trading of repurchase
bonds, etc. or other cases prescribed by Presidential Decree; hereafter in this
Article and Articles 74 and 75-18, the same shall apply) bonds, etc. under
Article 46 (1) of the Income Tax Act or beneficiary certificates of an
investment trust (hereinafter referred to as "bonds, etc. subject to withholding
tax") to a third party, the domestic corporation shall withhold corporate tax
(only applicable to the amount exceeding 1,000 won) equivalent to the amount
calculated by applying the tax rate of 14/100 to the amount of interest and
discounts accrued or generated from such bonds, etc. and the investment trust
proceeds (hereafter in this Article and Article 98-3, referred to as "interest,
etc.") accruing during the period holding the bonds, etc. subject to withholding
tax, as prescribed by Presidential Decree, and shall pay it to the tax office
having jurisdiction over the place of tax payment, etc. by no later than the
tenth day of the month following the month in which the date of collection
falls. In such cases, this Act shall apply to such domestic corporation, deeming
it a person liable for withholding. <Amended on Dec 22, 2020; Dec. 21, 2021>

(2) Notwithstanding paragraph (1), corporate tax shall not be collected from the
income prescribed by Presidential Decree, such as the income on which corporate
tax is not imposed or exempt.

(3) In applying paragraph (1), where a domestic corporation sells bonds, etc.
subject to withholding tax to any of the following corporations, any acts done
by a person representing, or commissioned by, a person liable for withholding
shall be deemed the acts done by the principal or a commissioning person within
the scope of the delegation or commission, where there is an agreement between
the relevant parties:

1. Financial companies, etc. prescribed by Presidential Decree;

2. Collective investment business entities under the Financial Investment
Services and Capital Markets Act.

(4) In applying paragraph (1), where a domestic corporation sells bonds, etc.
subject to withholding tax belonging to the investment trust property under the
Financial Investment Services and Capital Markets Act, it shall be deemed to
have the agency or commission relationship between a trust company under the
same Act and a person according to the following classification: <Amended on
Dec. 22, 2020>

1. Trust property referred to in Article 5 (1): Beneficiary of the relevant
trust property;

2. Trust property referred to in Article 5 (3): trustor of the relevant trust
property.(5) Article 73 (4) through (7) shall apply mutatis mutandis to
commission, representation, and payment of obligation of withholding.

(6) In applying paragraphs (1) through (4), matters necessary for calculating
the period holding bonds, etc., subject to withholding tax shall be prescribed
by Presidential Decree.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 74 (Issuance of Withholding Receipts)

(1) Where a person liable for withholding withholds corporate tax from a tax
obligor under Articles 73 and 73-2, the person liable for withholding shall
issue a withholding receipt to the tax obligor, as prescribed by Presidential
Decree. <Amended on Dec. 24, 2018>

(2) In applying paragraph (1), the relevant corporation shall be deemed a tax
obligor when a person liable for withholding has paid the corporate tax on the
amount equivalent to the interest accruing from the sale of bonds, etc. subject
to withholding tax pursuant to Article 73-2 in the capacity of the tax obligor.
<Amended on Dec. 24, 2018>

(3) Matters necessary for issuing withholding receipts under paragraph (1) shall
be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]>

법령 이단보기 Article 74-2 (Penalty Tax on Negligence in Submitting Detailed Statement
of Expenses Related to Passenger Vehicles for Business Use)

(1) Where a domestic corporation that has included expenses, etc. related to
passenger vehicles for business use in deductible expenses pursuant to Article
27-2 (1) through (5) fails to submit a detailed statement of expenses, etc.
related to passenger vehicles for business use referred to in paragraph (6) of
the same Article (hereafter referred to as “detailed statement” in this
paragraph) or submits a false detailed statement, a penalty tax calculated
according to the following classification shall be paid in addition to the
corporate tax for the relevant business year:

1. Where it fails to submit a detailed statement: 1/100 of the amount included
in deductible expenses for expenses, etc. related to passenger vehicles for
business use when the relevant domestic corporation files a report pursuant to
Article 60;

2. Where it submits a false detailed statement: 1/100 of the amount stated
differently from the actual facts in the relevant detailed statement out of the
amount included in deductible expenses for expenses, etc. related to passenger
vehicles for business use when the relevant domestic corporation files a report
pursuant to Article 60.

(2) The penalty tax prescribed in paragraph (1) shall be collected even if the
calculated amount of tax is nil.

[This Article Newly Inserted on Dec. 21, 2021]

법령 이단보기 Article 75 (Penalty Tax on Negligence in Submitting Certificate of
Confirmation on Compliant Filing)

(1) Where a domestic corporation subject to confirmation of compliant filing
under Article 60-2 (1) fails to submit a certificate of confirmation of
compliant filing to the head of the tax office having jurisdiction over the
place of tax payment, within four months from the end of the month in which the
pertinent business year ends, the greater of the following amounts shall be paid
as a penalty tax in addition to the amount of corporate tax for the relevant
business year: <Amended on Dec. 21, 2021>

1. 5/100 of the calculated amount of corporate tax (excluding corporate tax on
capital gains on the transfer of land, etc. under Article 55-2 and corporate tax
computed by applying special tax provisions for promoting investment and
collaborative cooperation under Article 100-32 of the Restriction of Special
Taxation Act: hereafter in this Article and Article 75-2 through 75-9, the same
shall apply);

2. 2/10,000 of the amount of income. (2) In applying paragraph (1), where the
calculated amount of corporate tax corrected under Article 66 become greater
than zero, a penalty tax shall be computed according to the calculated amount of
corporate tax corrected.

(3) The penalty tax prescribed in paragraph (1) shall be collected even if the
calculated amount of tax is nil. <Newly Inserted on Dec. 21, 2021>

[This Article Wholly Amended on Dec. 24, 2018]

법령 이단보기 Article 75-2 (Penalty Tax on Negligence in Submitting Detailed Statement
of Shareholders)

(1) In any of the following circumstances, a domestic corporation obliged to
submit a detailed statement on shareholders, etc., (hereafter in this paragraph,
referred to as "detailed statement") pursuant to Article 109 (1) or the latter
part of Article 111 (1) shall pay an amount equivalent to 5/1,000 of the par
value of the stocks, etc., (referring to an amount calculated by dividing the
capital of a corporation that issues non-par value stocks by the total number of
issued stocks in cases of the non-par value stocks: hereafter in this Article,
the same shall apply) held by the relevant shareholders, etc., or the investment
value, in addition to the corporate tax for the business year in which the date
of establishment falls:

1. Where it fails to submit the detailed statement;

2. Where it submits the detailed statement which fully or partially omits the
details of the shareholders, etc.;

3. Where the detailed statement submitted is found unclear with regard to the
descriptions prescribed by Presidential Decree.

(2) Where a domestic corporation obliged to submit a detailed statement of
changes in stocks, etc., pursuant to Article 119 (hereafter in this paragraph,
referred to as "detailed statement") falls under any of the following cases, it
shall pay an amount equivalent to 1/100 of the par value or investment value of
the stocks, etc, in addition to the corporate tax:

1. Where it fails to submit the detailed statement;

2. Where it submits a statement which omits the status of changes in stocks,
etc.;

3. Where the detailed statement submitted is found unclear with regard to the
descriptions prescribed by Presidential Decree.

(3) The penalty tax in paragraphs (1) and (2) shall be collected although the
calculated amount of tax is nil.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 75-3 (Penalty Tax on Negligence in Recording and Keeping Account
Books)

(1) Where a domestic corporation (excluding a non-profit domestic corporation
and a corporation with the income on which corporate tax is not imposed or fully
exempt under this Act or other statutes) fails to fulfill the obligation to keep
books of accounts and to make entries in the books pursuant to Article 112, it
shall pay any of the following penalty taxes, whichever is larger, in addition
to the corporate tax for the relevant business year:

1. 20/100 of the calculated amount of tax;

2. 7/10,000 of the amount of income.

(2) The penalty tax in paragraph (1) shall be collected although the calculated
amount of tax is nil.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 75-4 (Penalty Tax on Negligence in Issuing, Preparing and
Keeping Donation Receipts)

(1) Where a domestic corporation that issues a donation receipt falls under any
of the following circumstances, it shall pay any of the following penalty taxes,
in addition to the corporate tax for the relevant business year: <Amended on
Dec. 31, 2019>

1. Where the donated amount stated on a receipt is false (including where a
receipt is issued without any essential description, such as the donated amount
or the donor’s personal information):

(a) Where the donated amount stated on a receipt is false: 5/100 of the
difference [referring to the difference between the amount actually stated on
the receipt (the amount of donation that the person to whom such donation
receipt was issued includes as a deductible expense or a necessary expense or
receives a tax credit on the donation, where the receipt has no amount) and the
amount that should have been stated on the receipt];

(b) In cases other than those falling under item (a), such as where personal
information, etc. of the donor is stated falsely on receipt: 5/100 of the amount
stated in the receipt;

2. Where a detailed statement of donation receipts by donator is not prepared
and kept in Article 112-2 (1): 2/1,000 of the amount not prepared and kept in a
statement.

(2) A “donation receipt” in paragraph (1) and Article 112-2 means any of the
following receipts, Including donation receipts issued electronically as
prescribed by Presidential Decree (hereinafter referred to as “electronic
donation receipts”): <Amended on Dec. 22, 2020>

1. A receipt necessary for including a donation in deductible expenses pursuant
to Article 24;

2. A receipt necessary for including a donation in an incurred expense or
receiving a tax credit on the donation pursuant to Articles 34 and 59-4 (4) of
the Income Tax Act.

(3) A penalty tax in subparagraph 2 of paragraph (1) shall not apply where the
penalty tax is imposed on the ground that a person fails to fulfill its
obligation to submit a report under Article 78 (3) of the Inheritance Tax and
Gift Tax Act or fails to fulfill its obligation to prepare and keep the books of
accounting about donated assets under paragraph (5) of the same Article.

(4) The penalty tax in paragraph (1) shall be collected although the calculated
amount of tax is nil.

[This Article Newly Inserted by Dec. 24, 2018]

법령 이단보기 Article 75-5 (Penalty Tax on Negligence in Receiving Evidentiary
Documents)

(1) Where a domestic corporation (excluding any corporation prescribed by
Presidential Decree) is provided with goods or services in connection with its
business from a business operator prescribed by Presidential Decree and fails to
receive an evidentiary document referred to in any subparagraph of Article 116
(2) or receives a false evidentiary document, it shall pay a penalty tax
equivalent to 2/100 of the amount for which it fails to receive an evidentiary
documents or the amount received differently from the facts recognized as being
included in deductible expenses (referring to the difference between the issued
amount and the actually transacted amount), in addition to the corporate tax.
<Amended on Dec. 31, 2019>

(2) In any of the following cases, a penalty tax prescribed in paragraph (1)
shall not be imposed: <Amended on Dec. 31, 2022>

1. Where business promotion expenses are not included in deductible expenses
pursuant to Article 25 (2);

2. Where it falls under the proviso, with the exception of the subparagraphs, of
Article 116 (2).

(3) The penalty tax in paragraph (1) shall be collected although the calculated
amount of tax is nil.

[This Article Newly Inserted on Dec. 24, 2018]
[Enforcement Date: Jan. 1, 2024] Article 75-5 (2) 1

법령 이단보기 Article 75-6 (Penalty Tax on Negligence in Issuing Credit Cards and Cash
Receipts)

(1) Where a domestic corporation which has become a credit card merchant
pursuant to Article 117 refuses a transaction by credit card or issues a false
credit card sales slip, and then notified by the head of the competent tax
office pursuant to Article 117 (4), it shall pay a penalty tax equivalent to
5/100 of the amount (it shall be five thousands won where the amount is less
than five thousand won), the payment of which by credit card is refused for each
transaction, or of the amount (referring to the difference between the issued
amount and the actually transacted amount) with relation to which a false credit
card sales slip is issued, in addition to the corporate tax.

(2) Where a domestic corporation falls under any of the following cases, it
shall pay a penalty tax equivalent to any of the following amounts, in addition
to the corporate tax: <Amended on Dec. 21, 2021>

1. Where it fails to become a cash receipt merchant, in violation of Article
117-2 (1) or becomes a cash receipt merchant after the period for filing to
become a cash receipt merchant passes: An amount calculated by multiplying an
amount equivalent to 1/100 of the revenue generated in the business year, for
which it has failed to become such merchant (only limited to the revenue
generated from the type of business prescribed by Presidential Decree where the
corporation runs at least two types of business, and excluding the revenue
prescribed by Presidential Decree such as the amount on which tax invoice is
issued) by the ratio calculated, as prescribed by Presidential Decree, in
consideration of the period in which it was not such a merchant;

2. Where it is notified by the head of the competent tax office pursuant to the
latter part of Article 117-2 (6) as it refuses to issue a cash receipt or issues
a false cash receipt, in violation of Article 117-2 (3) (only applicable to
cases where the amount subject to issuance of a cash receipt exceeds 5,000 won
per case and excluding the cases falling under subparagraph 3): 5/100 (it shall
be five thousand won where the amount is less than five thousand won) of each
amount for which the issuance of the cash receipt is refused, or of each amount
for which a false cash receipt is issued (referring to the difference between
the issued amount and the actually transacted amount);

3. Where it fails to issue a cash receipt, in violation of Article 117-2 (4)
(excluding cases prescribed by Presidential Decree, such as those subject to
insurance benefits under the National Health Insurance Act): 20/100 of the
amount for which a cash receipt is not issued (10/100 where it voluntarily
reports to the tax office having jurisdiction over the place of tax payment or
voluntarily issues a cash receipt within 10 days from the date it receives the
transaction costs by mistake or due to omission).

(3) The penalty tax in paragraphs (1) and (2) shall be collected although the
calculated amount of tax is nil.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 75-7 (Penalty Tax on Negligence in Submitting Payment
Statements, etc.)

(1) Where a person obliged to submit a payment statement referred to in Article
120, 120-2 of this Act and Article 164, 164-2 of the Income Tax Act (hereafter
in this Article referred to as “payment statement”), or a simple payment
statement (hereafter in this Article referred to as “simple payment statement”)
referred to in Article 164-3 of the same Act falls under any of the following
cases, it shall pay a penalty tax equivalent to any of the following amounts, in
addition to corporate tax: <Amended on Dec. 22, 2020; Mar. 16, 2021; Dec. 31,
2022>

1. Where it fails to submit a payment statement or simple payment statement
(hereafter in this Article referred to as “payment statement, etc.”) by
deadline: An amount according to the following classification:

(a) In cases of payment statements: 1/100 of the payment for which the statement
has not been submitted (or 5/1,000 of the payment, where the statement is
submitted within three month after the deadline): Provided, That in cases of a
payment statement on wage and salary income of a daily employed worker referred
to in the proviso, with the exception of the subparagraphs, of Article 164 (1)
of the Income Tax Act (hereafter in this Article referred to as “daily wage or
salary income”), 25/10,000 of the payment for which the statement has not been
submitted (or 125/100,000 of the payment, where the statement is submitted
within one month after the deadline);

(b) In cases of simple payment statements: 25/10,000 of the payment for which
the statement has not been submitted (125/100,000 of the payment where the
statement is submitted within one month after the deadline).

2. Where the payment statement, etc. submitted is found unclear with regard to
the descriptions prescribed by Presidential Decree or where the amount stated on
the payment statement, etc. submitted is untrue: An amount according to the
following classification:

(a) In cases of payment statements: 1/100 of the payment stated on the unclear
or untrue statement: Provided, That in cases of a payment statement on daily
wage or salary income, it shall be 25/10,000 of the payment stated on the
unclear or false statement;

(b) In cases of simple payment statements: 25/10,000 of the payment stated on
the unclear or false statement.

(2) Notwithstanding paragraph (1) 1, where a withholding agent who pays
withholding taxes semiannually pursuant to Article 128 (2) of the Income Tax Act
falls under any of the following as the agent pays daily wage or salary income
or income referred to in Article 164-3 (1) 2 of the same Act between July 1,
2021 and June 30, 2022, a penalty tax prescribed in paragraph (1) 1 shall not be
imposed: <Newly Inserted on Mar. 16, 2021>

1. Where the withholding agent submits a payment statement on daily wage or
salary income by the end of the month following the last month of the quarter in
which the payment date (in cases of income governed by Article 135 of the Income
Tax Act, referring to the end of the taxable period for the relevant income)
falls (when a business is suspended, closed, or dissolved, referring to the end
of the month following the last month of the quarter in which the date of the
suspension, closure or dissolution of the business falls);

2. Where the withholding agent submits a simple payment statement on income
referred to in Article 164-3 (1) 2 of the Income Tax Act by the end of the month
following the last month of the half year in which the payment date of such
income (in cases of income governed by Article 144-5 of the Income Tax Act,
referring to the end of the taxable period for the relevant income) falls (when
a business is suspended, closed, or dissolved, referring to the end of the month
following the last month of the quarter in which the date of the suspension,
closure or dissolution of the business falls).

(3) Notwithstanding paragraph (1) 1 (b), a penalty tax prescribed in paragraph
(1) 1 (b) shall not be imposed in any of the following cases: <Newly Inserted on
Dec. 31, 2022>

1. In cases of a withholding agent who pays income referred to in Article 164-3
(1) 1 of the Income Tax Act between January 1, 2024 and December 31, 2024 (it
shall be by December 31 2025 in cases of a withholding agent who pays
withholding taxes semi-annually pursuant to Article 128 (2) of the Income Tax
Act), where the agent submits a simple payment statement on such income by the
end of the month following the last month of the half year in which the payment
date of such income (in cases of income governed by Article 135 of the Income
Tax Act, referring to the end of the taxable period for the relevant income)
falls (when a business is suspended, closed, or dissolved, referring to the end
of the month following the last month of the half year in which the date of the
suspension, closure or dissolution of the business falls);

2. In cases of a withholding agent who pays income referred to in Article 164-3
(1) 3 of the Income Tax Act between January 1, 2024 and December 31, 2024, where
the withholding agent submits a payment statement on such income by the end of
February of the year following the tax year in which the payment date of such
income falls (when a business is suspended, closed, or dissolved, referring to
the end of the month that is two months after the month in which the date of the
suspension, closure or dissolution of the business falls).

(4) Notwithstanding paragraph (1) 2, where a payment statement, etc. submitted
for daily wage or salary income or income prescribed in any subparagraph of
Article 164-3 (1) of the Income Tax Act falls under the part other than the
items of paragraph (1) 2, if the ratio of the payment amount under the part
other than the items of paragraph (1) 2 to the respective total amount of
payment stated in the payment statement, etc. does not exceed the ratio
prescribed by Presidential Decree, the penalty tax prescribed in paragraph (1) 2
shall not be imposed. <Newly Inserted on Mar. 16, 2021; Dec. 31, 2022>

(5) For the purpose of paragraph (1), with respect to a person obligated to
submit a payment statement, etc. for income prescribed in Article 164-3 (1) 2 of
the Income Tax Act (excluding business income prescribed by Presidential Decree
pursuant to Article 73 (1) 4 of the same Act) or income prescribed in
subparagraph 3 of the same paragraph, the penalty tax prescribed in paragraph
(1) 1 (b) shall not be imposed on the amount subject to the penalty tax under
item (a) of the same subparagraph; the penalty tax prescribed in paragraph (1) 2
(b) shall not be imposed on the amount subject to the penalty tax under item (a)
of the same subparagraph. <Newly Inserted on Dec. 31, 2022>

(6) The penalty tax prescribed in paragraph (1) shall be collected even when the
calculated amount of tax is nil. <Amended on Mar. 16, 2021; Dec. 31, 2022>

(7) In applying paragraph (1), where a corporation is merged, divided, or
dissolved, matters necessary for the amount of payment shall be prescribed by
Presidential decree. <Amended on Mar. 16, 2021; Dec. 31, 2022>

[This Article Newly Inserted on Dec. 24, 2018]
[Title Amended on Mar. 16, 2021]
[Enforcement Date: Jan. 1, 2014] The part amending “income prescribed in
subparagraph 3” in the amended provisions of Article 75-7 (5)
[Enforcement Date: Jan. 1, 2024] Article 75-7 (1), (3), and (4)

법령 이단보기 Article 75-8 (Penalty Tax on Negligence in Submitting Invoice)

(1) Where a domestic corporation (excluding a corporation prescribed by
Presidential Decree) falls under any of the following cases, it shall pay a
penalty tax equivalent to any of the following amounts, in addition to corporate
tax: <Amended on Dec. 31, 2019>

1. Where it fails to submit aggregate invoices for each supplier or purchaser in
Article 120-3 (1) by the deadline in the same Article or all or some matters to
be stated, as prescribed by Presidential Decree, on the aggregate invoices for
each supplier or purchaser issued under Article 121 (1) or (2) are not stated
thereon, or are falsely stated (excluding the portions to which subparagraph 4
shall apply): 5/1,000 of the supply value;

2. Where all or some matters to be stated, as prescribed by Presidential Decree,
on the invoice issued under Article 121 (1) or (2) are not stated thereon, or
are falsely stated (excluding the portions to which subparagraph 3 shall apply):
1/100 of the supply value;

3. Where an aggregate tax invoice for each supplier referred to in Article 121
(5) is not submitted by the deadline specified by the same Article or where all
or some matters to be stated, as prescribed by Presidential Decree, are not
stated or are falsely stated on such aggregate tax invoice for each supplier
(excluding the purchase price for the portion to which subparagraph 4 shall
apply): 5/1,000 of the supply value;

4. In any of the following cases: 2/100 of the supply value (applicable rate
shall be 1/100, where any invoice other than an electronic invoice has been
issued, although no electronic invoice was issued pursuant to the latter part of
Article 121 (1), and where an invoice has been issued pursuant to Article 121
(1) or (2) by the 25th day of the month immediately following the end of the
business year in which the relevant goods or services were supplied, after the
deadline for issuing an invoice under Article 121 (8)):

(a) Where a person who has supplied goods or services fails to issue an invoice
under 121 (1) or (2) by the deadline for issuing the invoice under Article 121
(8);

(b) Where a person who has supplied goods or services fails to issue a credit
card sales slip in Article 116 (2) 1, cash receipt in Article 116 (2) 2 and
invoice in 121 (1) or (2) (hereafter in this subparagraph, referred to as
"invoice, etc.");

(c) Where a person receives an invoice or other similar document issued for
goods or services that have not been supplied;

(d) Where a corporation that has actually provided goods or services issues an
invoice, etc., under the name of a corporation that has not provided goods or
services;

(e) Where an invoice or other similar document is issued for goods or services
received in the name of a person, other than the supplier of goods or services;

5. Where a detailed statement of electronic invoices issued is transmitted to
the Commissioner of the National Tax Service by the 25 day of the month
immediately after the end of the business year in which goods or services were
supplied after the deadline specified in Article 121 (7) (excluding the portion
to which subparagraph 4 shall apply): 3/1000 of the supply value (1/1000 shall
apply to the goods or services supplied on or before December 31, 2016);

6. Where a detailed statement of electronic invoices issued is not transmitted
to the Commissioner of the National Tax Service by the 25th day of the month
immediately after the end of the business year in which goods or services were
supplied after the lapse of the deadline specified in Article 121 (7) (excluding
the portion to which subparagraph 4 shall apply): 5/100 of the supply value
(Provided, That 3/1000 shall apply to the goods or services supplied on or
before December 31, 2016).

(2) The penalty tax in any subparagraph of paragraph (1) shall not apply to the
portion to which a penalty tax in Article 75-5 or Article 60 (2), (3), and (5)
through (7) of the Value-Added Tax Act applies.

(3) The penalty tax in paragraph (1) shall be collected although the calculated
amount of tax is nil.

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 75-9 (Penalty Tax on Negligence in Submitting Statement of
Retained Earnings of Specific Foreign Corporation)

(1) Where a domestic corporation obliged to submit a statement of retained
earnings of a specific foreign corporation under subparagraph 3 of Article 34 of
the Adjustment of International Taxes Act (hereafter in this paragraph, referred
to as “statement”) falls under any of the following cases, it shall submit a
penalty tax equivalent to 5/1,000 of the retained earnings, distributable by the
specific foreign corporation, in addition to corporate tax: <Amended on Dec. 22,
2020>

1. Where it fails to submit the statement by the deadline for submission;

2. Where the descriptions of a statement submitted are wholly or partially
omitted or a statement submitted is found unclear with regard to the
descriptions specified by Presidential Decree.

(2) The penalty tax in paragraph (1) shall be collected although the calculated
amount of tax is nil.

[This Article Newly Inserted on Dec. 24, 2018]
CHAPTER II-2 SPECIAL CASES CONCERNING CORPORATE TAXES ON INCOME FOR EACH
BUSINESS YEAR OF COPORATE TAXABLE TRUST PROPERTY
SECTION 1 General Provisions

법령 이단보기 Article 75-10 (Application Relationship)

With respect to the trustee of a trust (hereinafter referred to as “trustee
subject to corporate tax”) who pays a corporate tax on trust property deemed to
be a domestic corporation pursuant to Article 5 (2) (hereinafter referred to as
“corporate taxable trust property”) and the income attributable thereto, the
provisions of this Chapter shall prevail over the provisions of Chapters 1 and
2.
[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 75-11 (Application of Corporate Taxation Method to Trust
Property)

(1) A trustee subject to corporate tax shall pay a corporate tax on income that
reverts to corporate taxable trust property, separately from other income.

(2) Where a trustee subject to corporate tax, due to the disposition of
property, etc., is unable to pay a corporate tax or forced collection charge
imposed on or payable by the corporate taxable trust property in full with the
property of the corporate taxable trust property, the beneficiary of such trust
(Including persons to whom trust property reverts when the trust is terminated
pursuant to Article 101 of the Trust Act) shall have the secondary payment
obligation with respect to such deficiency to the extent of the value of
property and profits distributed to him or her.

(3) Where corporate taxable trust property distributes its profits to
beneficiaries, such profits shall be deemed dividends.

(4) Where corporate taxable trust property does not constitute a trust
prescribed in Article 5 (2) any more due to an amendment to its trust contract,
etc., Article 5 (2) shall not apply starting from the business year in which the
date on which the cause therefor occurs falls.

(5) Matters necessary for applying the corporate taxation method to trust
property, etc. pursuant to paragraphs (1) through (4) shall be prescribed by
Presidential Decree.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 75-12 (Establishment, Dissolution, etc. of Corporate Taxable
Trust Property)

(1) A corporate taxable trust property shall be deemed to have been established
on the date of its establishment under Article 3 of the Trust Act.

(2) A corporate taxable trust property shall be deemed to have been dissolved on
the date of its termination under Articles 98 through 100 of the Trust Act
(where the date of its termination is unclear, referring to the date of its
business closure pursuant to Article 5 (3) of the Value-Added Tax Act).

(3) A trustee subject to corporate taxation shall separately determine the
business year for the corporate taxable trust property and report the business
year to the head of the tax office having jurisdiction over the place of tax
payment, along with a report on the establishment of a corporation under Article
109 or the registration of a business operator under Article 111. In such cases,
the period of a business year shall not exceed one year.

(4) The place of tax payment of any corporate taxable trust property shall be
the place of tax payment of the relevant trustee subject to corporate tax.

(5) For the purpose of paragraphs (1) through (4), the start date of the first
business year of corporate taxable trust property, designation of tax payment
place, and other necessary matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 75-13 (Application to Corporate Taxable Trust Property with
Co-trustees)

(1) Where there are two or more trustees under Article 50 of the Trust Act in
one corporate taxable trust property, a person reported as a trustee who mainly
handles trust affairs (hereinafter referred to as "representative trustee")
among the trustees under Article 109 or 109-2 shall pay corporate tax on the
income that reverts to the corporate taxable trust property.

(2) Trustees other than the representative trustee prescribed in paragraph (1)
shall jointly pay corporate taxes related to the corporate taxable trust
property.

[This Article Newly Inserted on Dec. 22, 2020]
SECTION 2 Tax base and Calculation Thereof

법령 이단보기 Article 75-14 (Income Deduction for Corporate Taxable Trust Property)

(1) Where dividends are paid to beneficiaries of any corporate taxable trust
property, the amount of such dividends shall be deducted from the amount of
income for the business year in which the distribution is subject to the surplus
disposal.

(2) Paragraph (1) shall not apply to the beneficiary of any corporate tax trust
property who has received dividends if the dividends are exempt from income tax
or corporate tax under this Act or the Act on Restriction on Special Cases
concerning Taxation: Provided, That where the beneficiary who has received the
dividends is a partnership firm eligible for special taxation for partnership
firms prescribed in Article 100-15 (1) of the Act on Restriction on Special
Cases concerning Taxation, paragraph (1) shall apply to such partners if the
income tax or corporate tax is fully levied on the income corresponding to the
dividends distributed pursuant to Article 100-18 (1) of the same Act.

(3) The trustee of any corporate taxable trust property who wishes to be
governed by paragraph (1) shall apply for income deduction as prescribed by
Presidential Decree.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 75-15 (Merger and Division of Trusts)

(1) A merger of trusts under Article 90 of the Trust Act with respect to any
corporate taxable trust property shall be deemed a merger of corporations, and
shall be governed by this Act. In such cases, the corporate taxable trust
property before the merger of trusts shall be deemed a merged corporation; the
corporate taxable trust property after the merger of trusts shall be deemed a
merging corporation.

(2) The division of a trust (including a division and merger) under Article 94
of the Trust Act with respect to any corporate taxable trust property shall be
deemed the division of a corporation, and be governed by this Act. In such
cases, the corporate taxable trust property transferred to a new trust following
the division of the trust shall be deemed a divided corporation, etc.; the
corporate taxable trust property to which the relevant corporate taxable trust
property is transferred following the division shall be deemed a corporation
established through division, etc.

(3) Necessary matters for the merger or division of trusts provided for in
paragraphs (1) and (2) shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 75-16 (Calculation of Income of Corporate Taxable Trust
Property)

(1) Where the trustee of any corporate taxable trust property transfers the
assets and liabilities of the corporate taxable trust property to a new trustee
following a change of trustee, the transfer value of the assets and liabilities
shall be deemed the book value as of the date of the change of trustee, and no
profit or loss shall be deemed to exist as a result of such transfer.

(2) Where there is a change of trustee pursuant to paragraph (1), matters
necessary for calculating the amount of income of a new trustee for each
business year shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 22, 2020]
SECTION 3 Reporting, Payment and Collection

법령 이단보기 Article 75-17 (Reporting and Payment of Corporate Taxable Trust
Property)

Articles 60-2 and 63 shall not apply to corporate taxable trust property.
[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 75-18 (Withholding Taxes on Corporate Taxable Trust Property)

(1) Notwithstanding Article 73 (1), where corporate taxable trust property
receives income prescribed by Presidential Decree, and the trustee of the
corporate taxable trust property is a financial company, etc. prescribed by the
Presidential Decree, withholding taxes shall not be imposed.

(2) For the purpose of Article 73-2 (1), where bonds subject to withholding tax,
etc. belonging to corporate tax trust property are sold, the trustee subject to
corporate tax shall be deemed to be a withholding agent.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 76 Deleted. <Dec. 24, 2018>

법령 이단보기 Article 76-2 Deleted. <Dec. 30, 2010>

법령 이단보기 Article 76-3 Deleted. <Dec. 30, 2010>

법령 이단보기 Article 76-4 Deleted. <Dec. 30, 2010>

법령 이단보기 Article 76-5 Deleted. <Dec. 30, 2010>

법령 이단보기 Article 76-6 Deleted. <Dec. 30, 2010>

법령 이단보기 Article 76-7 Deleted. <Dec. 30, 2010>

CHAPTER II-3 CORPORATE TAX ON INCOME OF EACH CONSOLIDATED BUSINESS YEAR
SECTION 1 Common Provisions

법령 이단보기 Article 76-8 (Application of Consolidated Tax Return System)

(1) A domestic corporation that consolidates and controls another domestic
corporation (excluding a corporation prescribed by Presidential Decree, such as
a non-profit corporation; hereafter in this paragraph, referred to as
"wholly-owning parent corporation") and the other domestic corporation
(excluding a corporation prescribed by Presidential Decree, such as a
corporation in the process of liquidation; hereafter in this Chapter, referred
to as "wholly controlled subsidiary") may apply the consolidated tax return
system with approval of the commissioner of the competent regional tax office
having jurisdiction over the place of tax payment of the wholly-owning parent
corporation, as prescribed by Presidential Decree. In such cases, where
wholly-controlled subsidiaries are two or more, all relevant corporations shall
apply the consolidated tax return system. <Amended on Jan. 1, 2013; Dec. 31,
2022>

(2) The business year of each consolidated corporation to which the consolidated
tax return system applies under paragraph (1) shall coincide with the
consolidated business year. In such cases, the period of a consolidated business
year shall not exceed one year, and Article 7 shall apply mutatis mutandis to
changes of a consolidated business year.

(3) In applying paragraph (2), where a domestic corporation that meets the
requirements prescribed by Presidential Decree as a wholly controlled subsidiary
that cannot make its business year coincide with the consolidated business year
because the business year (hereafter referred to as "original business year" in
Articles 76-9 and 76-10) is prescribed in statutes, etc, it may apply the
consolidated tax return system, deeming the consolidated business year to be the
business year of such domestic corporation. <Amended on Dec. 31, 2022>

(4) Notwithstanding Article 9 (1), the place of tax payment of a consolidated
corporation shall be the place of tax payment of the consolidated parent
corporation.

(5) Deleted. <Dec. 31, 2022>

(6) Where any of the following mergers, divisions, or comprehensive exchanges or
transfers of stocks occurs, the consolidated tax payment system may be applied
only to the consolidated business year in which the date of merger, division, or
exchange or transfer falls, notwithstanding paragraph (2), Articles 76-11 (1)
and 76-12 (1): <Amended on Dec. 31, 2011>

1. A qualified merger between consolidated parent corporations to which the
consolidated tax payment system applies under paragraph (1);

2. Comprehensive exchange or transfer of stocks between consolidated parent
corporations to which the consolidated tax payment system applies under
paragraph (1) (limited to where the tax deferment is granted under Article 38 of
the Restriction of Special Taxation Act);

3. A qualified division of a consolidated parent corporation to which the
consolidated tax payment system applies under paragraph (1).

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Article 76-8

법령 이단보기 Article 76-9 (Revocation of Approval for Applying Consolidated Tax
Return System)

(1) In any of the following cases, the commissioner of the competent regional
tax office having jurisdiction over the place of tax payment of a consolidated
parent corporation may revoke approval for applying the consolidated tax return
system, as prescribed by Presidential Decree: <Amended on Jan. 1, 2013; Dec. 15,
2015; Dec. 31, 2022>

1. Where the business year of a consolidated corporation does not coincide with
the consolidated business year;

2. Where the consolidated parent corporation applies the consolidated tax return
system to a domestic corporation which it does not consolidate and control;

3. Where the consolidated tax return system is not applied to a wholly
controlled subsidiary of the consolidated parent corporation;

4. Where it is impracticable to calculate the amount of income of a consolidated
corporation based on accounting records or other evidentiary documents on the
grounds referred to in the proviso to Article 66 (3);

5. Where there are grounds to occasionally impose corporate tax on a
consolidated corporation as prescribed in Article 69 (1);

6. Where the consolidated parent corporation is consolidated and controlled by
another domestic corporation (excluding nonprofit domestic corporations).

(2) Where approval for applying the consolidated tax return system is revoked
under paragraph (1) during the period between the consolidated business year for
which the application of the consolidated tax return system was approved and the
consolidated business year that ends within four years from the start date of
the following consolidated business year, each consolidated corporation for
which the application of the consolidated tax return system was approved shall
include the amount of income or losses in the gross income or deductible
expenses for the business year in which the approval for applying the
consolidated tax return system is revoked as follows: Provided, That the
foregoing shall not apply in extenuating circumstances specified by Presidential
Decree: <Newly Inserted on Dec. 15, 2015>

1. The amount of income of the relevant corporation, which has been aggregated
with losses of other consolidated corporations during the consolidated business
years pursuant to Article 76-14 (1): To be included in gross income;

2. The amount of losses of the relevant corporation, which has been aggregated
with income of other consolidated corporations during the consolidated business
years under pursuant to Article 76-14 (1): To be included in deductible
expenses.

(3) The consolidated tax return system shall not apply to any consolidated
corporation for which approval for applying the consolidated tax return system
is revoked under paragraph (1) in the business year in which the date of
revocation falls and to the business year that ends within four years from the
start date of the following business year, deeming the same corporation as at
the time of application of the consolidated tax return system to be the
consolidated parent corporation. <Amended on Dec. 15, 2015>

(4) Where approval for applying the consolidated tax return system is revoked
under paragraph (1), an amount prescribed by Presidential Decree that reverts to
each consolidated corporation among the amounts referred to in Article 76-13 (1)
1 shall be deemed losses in Article 13 (1) 1 of the relevant consolidated
corporation. <Amended on Dec. 15, 2015; Dec. 24, 2018>

(5) Where approval for applying the consolidated tax return system is revoked
under paragraph (1), the interim tax for each consolidated corporation referred
to in Article 76-18 (4) among the consolidated interim tax paid under the same
Article shall be deemed the interim tax referred to in Article 64 (1) 2 for
purposes of Article 61 (1). <Amended on Dec. 15, 2015>

(6) Where approval for a consolidated corporation to which consolidated tax
return system applies under Article 76-8 (3) to apply the consolidated tax
return system is revoked under paragraph (1), the period from the start date of
the consolidated business year in which the date of revocation falls to the end
date of the consolidated business year, and the period from the day following
the end date of the consolidated business year in which the date of revocation
falls, to date preceding the start date of the original business year shall be
deemed one business year, respectively. <Amended on Dec. 15, 2015>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Article 76-9

법령 이단보기 Article 76-10 (Abandonment of Consolidated Tax Return System)

(1) Each consolidated corporation which intends to abandon the application of
the consolidated tax return system shall file a report to the commissioner of
the competent regional tax office having jurisdiction over the place of tax
payment of the consolidated parent corporation three months prior to the
beginning of the business year to which it intends to stop applying the
consolidated tax return system, as prescribed by Presidential Decree: Provided,
That a consolidated corporation shall not abandon the application of the
consolidated tax return system during a period from the consolidated business
year to which the consolidated tax return system is first applied and to the
consolidated business year that ends within four years from the first date of
the consolidated business year immediately following the first consolidated
business year. <Amended on Jan. 1, 2013>

(2) Article 76-9 (3) and (4) shall apply mutatis mutandis where the application
of the consolidated tax return system is abandoned under paragraph (1). In such
cases, "the business year in which the date of revocation falls" in Article 76-9
(3) shall be construed as "the first business year to which the consolidated tax
return system does not apply." <Amended on Dec. 15, 2015>

(3) Where a consolidated corporation to which the consolidated tax return system
applies under Article 76-8 (3) abandons the application of the consolidated tax
return system under paragraph (1), the period from the day following the end
date of a consolidated business year in which the filing date of report to the
commissioner of the competent regional tax office having jurisdiction over the
place of tax payment of the consolidated parent corporation under paragraph (1)
falls to the date preceding the start date of the original business year shall
be deemed one business year. <Amended on Jan. 1, 2013>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 76-11 (Addition of Consolidated Subsidiary Corporations)

(1) Where a consolidated parent corporation starts to consolidate and control
another domestic corporation, the domestic corporation shall apply the
consolidated tax return system from the consolidated business year following the
consolidated business year in which the consolidated parent corporation starts
to consolidate and control the domestic corporation. <Amended on Dec. 31, 2022>

(2) Notwithstanding paragraph (1), a domestic corporation consolidated and
controlled by a consolidated parent corporation from the registration date of
its establishment shall apply the consolidated tax return system from the
business year in which the registration date of establishment falls. <Amended on
Dec. 31, 2022>

(3) Where any change occurs to a consolidated subsidiary corporation as referred
to in paragraphs (1) and (2), the consolidated parent corporation shall file a
report thereon with the commissioner of the competent regional tax office having
jurisdiction over the place of tax payment within one month from the end date of
the period for interim prepayment or the end date of the relevant business year,
whichever comes earlier, after the date of change, as prescribed by Presidential
Decree. <Amended on Jan. 1, 2013; Jan. 1, 2014>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Article 76-11

법령 이단보기 Article 76-12 (Exclusion of Consolidated Subsidiary Corporations)

(1) A consolidated subsidiary corporation which ceases to be consolidated and
controlled by a consolidated parent corporation or is dissolved shall not apply
the consolidated tax return system from the start date of the consolidated
business year in which the relevant cause occurs: Provided, That where a
consolidated subsidiary corporation is dissolved upon being merged by absorption
into another consolidated corporation, it may apply the consolidated tax return
system for the business year in which the registration date of the dissolution
falls. <Amended on Dec. 31, 2011; Dec. 31, 2022>

(2) Where the application of the consolidated tax return system ceases to be
applied under the main sentence of paragraph (1) during the period between the
consolidated business year for which the application of the consolidated tax
return system was approved and the consolidated business year that ends within
four years from the start date of the following consolidated business year, the
amount of income or loss shall be included in gross income or deductible
expenses for the business year in which the relevant cause occurs as follows:
Provided, That the foregoing shall not apply in extenuating circumstances
specified by Presidential Decree: <Amended on Dec. 15, 2015>

1. The amount of income of a corporation excluded from consolidation (referring
to an individual corporation that ceases to apply the consolidated tax return
system under the main sentence of paragraph (1); the same shall apply hereafter
in this Article), which has been aggregated with the losses of other
consolidated corporations under Article 76-14 (1) during consolidated business
years: To be included in gross income of the corporation excluded from
consolidation;

2. The amount of losses of a corporation excluded from consolidation, which has
been aggregated with the income of other consolidated corporations under Article
76-14 (1) during consolidated business years: To be included in deductible
expenses of the corporation excluded from consolidation;

3. The amount of income of a corporation, which has been aggregated with the
losses of a corporation excluded from consolidation under Article 76-14 (1)
during consolidated business years: To be included in gross income of the
relevant corporation;

4. The amount of losses of a corporation, which has been aggregated with the
income of a corporation excluded from consolidation under Article 76-14 (1)
during consolidated business years: To be included in deductible expenses of the
relevant corporation.

(3) Articles 76-9 (3) through (6) shall apply mutatis mutandis where the
consolidated tax return system is not applied under the main sentence of
paragraph (1). <Newly Inserted on Dec. 15, 2015>

(4) Where there occurs any changes in consolidated subsidiary corporations as
prescribed in paragraph (1), Article 76-11 (3) shall apply mutatis mutandis to
filing a report on such change. <Newly Inserted on Dec. 31, 2011>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Article 76-12
SECTION 2 Tax Base and Calculation Thereof

법령 이단보기 Article 76-13 (Consolidated Tax Base)

(1) The tax base of income for each consolidated business year shall be an
amount computed by subtracting the following amounts in sequential order from
the income for each consolidated business year: Provided, That the amount
deductible from the amount referred to in subparagraph 1 shall not exceed 80/100
(100/100 in cases of small and medium enterprises and consolidated corporations
specified by Presidential Decree, such as corporations that implement a
rehabilitation plan) of the individually reverted amount of consolidated income
under paragraph (3) 1: <Amended on Dec. 30, 2010; Dec. 15, 2015; Dec. 24, 2018;
Dec. 22, 2020; Dec. 31, 2022>

1. Losses (including losses incurred before the application of the consolidated
tax return system by a consolidated corporation) incurred in a consolidated
business year that began within 15 years prior to the start date of each
consolidated business year, which was not deducted when the tax base for each
consolidated business year (including a business year) was calculated
thereafter;

2. The sum of all non-taxable income of each consolidated corporation under this
Act and the Restriction of Special Taxation Act;

3. The sum of income deductions of each consolidated corporation under this Act
and the Restriction of Special Taxation Act.

(2) "Losses incurred in a consolidated business year" referred to in paragraph
(1) 1 means the relevant amount where the income for each consolidated business
year under Article 76-14 (1) is less than zero, which are losses included in the
tax base reported under Article 60, determined and corrected under Article 66 or
reported for revision under Article 45 of the Framework Act on National Taxes,
and losses on disposition excluded in deductible expenses when calculating the
amount of income of the relevant consolidated business year under the latter
part of Article 76-14 (2). <Amended on Dec. 30, 2010>

(3) Where losses are deducted under paragraph (1) 1, the following losses shall
be deducted up to the amount specified in the relevant subparagraph: <Amended on
Dec. 30, 2010; Dec. 31, 2011; Dec. 24, 2018>

1. Losses incurred before the application of the consolidated tax return system
by a consolidated corporation: The amount of income prescribed by Presidential
Decree (hereafter in this Article, referred to as "individually reverted amount
of consolidated income") that reverts to the consolidated corporation among
income for each consolidated business year;

2. Where a consolidated parent corporation acquires assets of a merged
corporation following a qualified merger, losses referred to in Article 13 (1) 1
of the merged corporation (limited to a corporation, other than a consolidated
corporation as at the registration date of the merger) as at the registration
date of the merger: Income accruing from the business succeeded to from the
merged corporation among the individually reverted amount of consolidated income
of the consolidated parent corporation;

3. Where a consolidated parent corporation acquires assets of a disappearing
divided corporation following a qualified division and merger, the amount that
reverts to the business succeeded to by the consolidated parent corporation
among the losses referred to in Article 13 (1) 1 of the disappearing divided
corporation as at the registration date of the division: Income accruing from
the business succeeded to from the disappearing divided corporation among the
individually reverted amount of consolidated income of the consolidated parent
corporation.

(4) Matters necessary in relation to losses, non-taxable income, and deduction
of income deductions referred to in paragraph (1), and other matters, shall be
prescribed by Presidential Decree. <Amended on Dec. 30, 2010; Dec. 24, 2018>

[This Article Newly Inserted on Dec. 26, 2008]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 76-14 (Income for Each Consolidated Business Year)

(1) The income of each consolidated corporation for each consolidated business
year shall be the aggregate of income or losses calculated in the following
order: <Amended on Dec. 31, 2011; Dec. 24, 2018; Dec. 13, 2022>

1. Calculation of income for each business year by consolidated corporation:
Calculation of income or losses for each business year of each consolidated
corporation pursuant to Article 14;

2. Exclusion of consolidation adjustment items by any of the following
consolidated corporations:

(a) Adjustment of non-inclusion of received dividends in gross income: An amount
equivalent to the dividend income of each consolidated corporation that has been
excluded from gross income pursuant to Article 18-2 shall be included in gross
income;

(b) Adjustment of non-inclusion of donations and business promotion expenses in
deductible expenses: An amount equivalent to the donations and business
promotion expenses that have been excluded from deductible expenses pursuant to
Articles 24 and 25 shall be included in deductible expenses;

3. Adjustment of profits and losses from transactions between any of the
following consolidated corporations:

(a) Adjustment of received dividends in gross income: An amount equivalent to
the dividend amount received from another consolidated corporation shall not be
included in gross income;

(b) Adjustment of business promotion expenses: An amount equivalent to business
promotion expenses paid to another consolidated corporation shall not be
included in deductible expenses;

(c) Adjustment of appropriation for bad debts: An amount equivalent to
appropriation for bad debts pursuant to Article 34 established in relation to
claims to another consolidated corporation shall not be included in deductible
expenses;

(d) Adjustment of transfer marginal profits or losses of assets: Profits or
losses from the transfer of assets prescribed by Presidential Decree, such as
tangible or intangible assets, shall be excluded from gross income or deductible
expenses, as prescribed by Presidential Decree;

4. Allocation of consolidation adjustment items to each consolidated
corporation: An amount excluded from gross income or deductible expenses shall
be first calculated by applying mutatis mutandis Articles 18-2, 24, and 25,
deeming a consolidated group to be one domestic corporation and the amount
calculated, as prescribed by Presidential Decree, among the calculated amount
shall be excluded from gross income or deductible expenses by consolidated
corporation.

(2) Any of the following losses on the disposal of assets shall be included in
deductible expenses up to the amounts in the relevant subparagraphs when the
amount of income of the relevant consolidated business year is calculated. In
such cases, losses on disposal excluded from deductible expenses, exceeding the
limit, shall be construed as losses referred to in Article 76-13 (1) 1 and shall
be deducted from the tax base for the following consolidated business year up to
the amounts in the relevant subparagraphs: <Amended on Dec. 31, 2011; Dec. 15,
2015; Dec. 24, 2018; Dec. 31, 2022>

1. Where the consolidated tax return system is applied to a domestic corporation
after it has become a wholly controlled subsidiary of another domestic
corporation (excluding where it became a wholly controlled subsidiary on the
registration date of establishment), the loss from the disposal of the assets
(limited to assets acquired before the consolidated tax return system is
applied) accrued during the period between the business year in which the
consolidated tax return system is applied and the consolidated business year
that ends within four years from the start date of the business year following
the business year in which the consolidated tax return system is applied: The
amount specified in either of the following items (referring to the individually
reverted amount prior to the deduction of the relevant loss from disposal, but
the foregoing shall not apply to the cases to which the latter part of paragraph
(2) applies):

(a) The individually reverted amount of consolidated income of the consolidated
parent corporation, in cases of the loss of the consolidated parent corporation
from the disposal of assets;

(b) The individually reverted amount of consolidated income of the consolidated
subsidiary, in cases of the loss of the consolidated subsidiary from the
disposal of assets;

2. Where a consolidated parent corporation qualifiedly merges (including a
qualified division and merger of a consolidated parent corporation as a
counterpart corporation to the division and merger) with another domestic
corporation (limited to a corporation, other than a consolidated corporation as
at the registration date of the merger), losses (limited to the difference only
where the market value of the relevant assets as of the registration date of the
merger is lower than book value) incurred in the consolidated business year that
ends within five years from the registration date of the merger from the
disposal of the assets owned by the consolidated parent corporation, the
consolidated subsidiary (hereafter in this paragraph, referred to as "existing
consolidated corporation"), and the merged corporation (including the divided
corporation; hereafter in this Article, the same shall apply) before the merger:
The amount specified in either of the following items (referring to the amount
of income prior to the deduction of the relevant loss on disposal, but the
foregoing shall not apply to cases to which the latter part of paragraph (2)
applies):

(a) The amount of income of the existing consolidated corporation, in cases of
the loss of the existing consolidated corporation from the disposal of assets
(referring to the amount of income accrued from the business of the consolidated
parent corporation and the individually reverted amount of consolidated income
of the consolidated subsidiary before the merger among the individually reverted
amount of consolidated income of a consolidated parent corporation);

(b) The amount of income accrued from business transferred by the merged
corporation, among the individually reverted amount of consolidated income of
the consolidated parent corporation, in cases of the loss incurred from the
disposal of assets owned by the merged corporation before the merger.

(3) Matters necessary for calculating the amount allocated to each consolidated
corporation among losses for each consolidated business year pursuant to
paragraph (1), the amount excluded from gross income or deductible expenses by
applying mutatis mutandis Articles 18-2 and 25, deeming a consolidated group to
be one domestic corporation, and for including losses on disposal in deductible
expenses under paragraph (2) shall be prescribed by Presidential Decree.
<Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Article 76-14
SECTION 3 Calculation of Tax

법령 이단보기 Article 76-15 (Calculated Consolidation Tax Amount)

(1) Corporate tax on income for each consolidated business year shall be
computed by applying tax rates prescribed in Article 55 (1) to the tax base
prescribed in Article 76-13 (hereafter in this Chapter, referred to as "amount
of calculated consolidation tax").

(2) Where a consolidated corporation transfers land, etc., pursuant to Article
55-2 (including where Article 76-14 (1) 3 applies where another consolidated
corporation acquires such land, etc. transferred) or where unappropriated
earnings referred to in Article 100-32 of the Restriction of Special Taxation
Act (referring to the amount specified by Presidential Decree as the earnings
calculated without adjusting profits and losses on transactions between
consolidated corporations pursuant to Article 76-14), the amount of calculated
consolidated tax shall be determined by adding the amount of corporate tax on
capital gains on the transfer of land, etc. under Article 55-2 and the amount of
corporate tax computed by applying special tax provisions for promoting
investment and collaborative cooperation under Article 100-32 of the Restriction
of Special Taxation Act to the amount computed under paragraph (1). <Amended on
Dec. 23, 2014; Dec. 19, 2017; Dec. 24, 2018>

(3) Article 55 (2) shall apply mutatis mutandis to the calculation of corporate
tax on the income for each consolidated business year.

(4) Methods for calculating an amount that reverts to each consolidated
corporation among the amounts of calculated consolidation tax (hereafter in this
Chapter, referred to as "calculated amount of tax of each consolidated
corporation") shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 76-16 (Tax Reductions or Exemptions and Tax Credits of
Consolidated Corporations)

(1) The amount of tax reductions or exemptions and tax credits for consolidated
corporations deducted from the amount of calculated consolidation tax shall be
the sum of the amount of tax reductions calculated by each consolidated
corporation and the amount of tax credits. <Amended on Dec. 24, 2018>

(2) In applying paragraph (1), the amount of tax reductions or exemptions and
the amount of tax credits for each consolidated corporation shall be calculated
by applying tax reductions or exemptions and tax credits under this Act and the
Restriction of Special Taxation Act, deeming the calculated amount of tax of
each consolidated corporation to be the calculated amount of tax under Article
55, and Article 132 (1) of the Restriction of Special Taxation Act shall apply
to each consolidated corporation, deeming the consolidated group to be one
domestic corporation. <Amended on Dec. 15, 2015; Dec. 24, 2018>

(3) Article 59 (1) shall apply mutatis mutandis to the procedures for applying
tax reductions or exemptions and tax credits, and Articles 44-3 (2), 46-3 (2)
and 59 (1) shall apply mutatis mutandis to the succession of tax reductions or
exemptions and tax credits following qualified merger or division of
consolidated corporations. <Newly Inserted on Dec. 24, 2018>

(4) Where tax is reduced or exempted when calculating tax reductions or
exemptions for each consolidated corporation, matters necessary for calculating
the amount of tax to be reduced or exempted, etc. shall be prescribed by
Presidential Decree. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]
SECTION 4 Tax Return and Payment

법령 이단보기 Article 76-17 (Filing Reports on Consolidated Tax Base)

(1) A consolidated parent corporation shall report the tax base and amount of
corporate tax on the income for the relevant consolidated business year to the
head of the tax office having jurisdiction over the place of tax payment, as
prescribed by Presidential Decree, within four months from the last day of the
month in which the end date of each consolidated business year falls: Provided,
That where a consolidated parent corporation or consolidated subsidiary
corporation subject to audit by an auditor pursuant to Article 4 of the Act on
External Audit of Stock Companies applies for an extension of the filing
deadline, as prescribed by Presidential Decree, on the grounds that the
settlement of accounts are not finalized because the audit of the relevant
business year has not been completed, the filing deadline may be extended by up
to one month. <Amended on Oct. 31, 2017>

(2) A report filed under paragraph (1) shall be accompanied by the following
documents:

1. An adjustment statement on the amount of consolidated income prepared, as
prescribed by Presidential Decree;

2. Documents referred to in Article 60 (2) 1 through 3 of each consolidated
corporation;

3. Documents prescribed by Presidential Decree, such as the investment and
details of transactions between consolidated corporations.

(3) No report filed under paragraph (1) without the accompanying documents
referred to in paragraph (2) 1 and 2 shall be deemed a report filed under this
Act.

(4) Article 60 (3), (6), (8), and (9) shall apply mutatis mutandis to the filing
of a report on the tax base, etc., of a consolidated parent corporation.
<Amended on Dec. 15, 2015>

(5) Notwithstanding Article 119 (1), a consolidated parent corporation may
submit the detailed statement of changes in stocks, etc., (including changes in
stocks, etc., of a consolidated subsidiary corporation) referred to in Article
119 (1) by the filing deadline specified in paragraph (1).

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 76-18 (Consolidated Interim Prepayment)

(1) A consolidated parent corporation which has consolidated business years
exceeding six months shall pay an amount (hereafter in this Chapter, referred to
as "consolidated interim tax") computed by any of the following methods, within
two months from the expiration of the consolidated interim prepayment period, to
the tax office having jurisdiction over the place of tax payment, etc.: <Amended
on Dec. 24, 2018>

1. By the standard of the calculated tax for the immediately preceding
consolidated business year:

Consolidated interim tax = (A ? B ? C) ? 6/D
A: The amount of calculated consolidation tax determined as corporate tax
(including penalty tax, but excluding corporate tax on capital gains on the
transfer of land, etc. under Article 55-2 and corporate tax computed by applying
special tax provisions for promoting investment and collaborative cooperation
under Article 100-32 of the Restriction of Special Taxation Act) for the
consolidated business year immediately preceding the relevant consolidated
business year.
B: The amount of corporate tax reductions or exemptions (excluding the amount
deducted from income) granted in the consolidated business year immediately
preceding the relevant consolidated business year.
C: The total amount of withholding tax paid as corporate tax by each
consolidated corporation in the consolidated business year immediately preceding
the relevant consolidated business year.
D: The number of months for the relevant business year (the number of months
shall be calculated by calendar, and the number of days less than one month
shall be deemed one month.)

2. Having corporate tax during the relevant interim prepayment period as a base:

Consolidated interim tax = (A ? B ? C)
A: The amount of corporate tax calculated by applying Article 76-15, deeming the
relevant interim prepayment period to be one business year.
B: The amount of tax reduced or exempted during the relevant interim tax
prepayment period (excluding the amount deducted from income).
C: The total amount of withholding tax paid as corporate tax by each
consolidated corporation in the relevant interim prepayment period.

(2) Notwithstanding paragraph (1), where there is no amount of calculated
consolidation tax determined for the immediately preceding consolidated business
year, or the amount of calculated consolidation tax for the immediately
preceding business year has not been determined by the last day of the relevant
interim prepayment period, the interim tax shall be calculated under paragraph
(1) 2. <Newly Inserted on Dec. 24, 2018>

(3) In applying paragraphs (1) and (2), where the consolidated tax return system
is first applied, the total amount of interim tax calculated under Article 63-2
of each consolidated corporation shall be the consolidated interim tax, and
where a consolidated corporation is added under Article 76-11 (1), the total
amount of the consolidated interim tax calculated under paragraphs (1) and (2)
and the interim tax calculated under Article 63-2 of the added consolidated
corporation shall be the consolidated interim tax. <Amended on Dec. 24, 2018>

(4) In applying paragraphs (1) and (2), where a consolidated corporation ceases
to be a wholly controlled subsidiary or is dissolved (excluding where the
consolidated tax payment system is applied under the proviso to Article 76-12
(1)) before the interim prepayment period expires, the relevant consolidated
parent corporation may pay tax after subtracting an amount prescribed by
Presidential Decree (hereafter in this Chapter, referred to as "interim tax by
consolidated corporation"), which reverts to the interim tax of the consolidated
corporation. <Amended on Dec. 31, 2011; Dec. 24, 2018 Dec. 31, 2022>

(5) Articles 63-2 (5) and 64 (2) shall apply mutatis mutandis to the payment of
consolidated interim tax. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2024] Article 76-18

법령 이단보기 Article 76-19 (Payment of Consolidated Corporate Tax)

(1) A consolidated parent corporation shall pay an amount computed by
subtracting the following amounts of corporate tax (excluding penalty tax) from
the amount of calculated consolidation tax, as corporate tax on income for each
consolidated business year, to the tax office having jurisdiction over the place
of tax payment, etc., by the filing deadline specified in Article 76-17 (1):
<Amended on Dec. 24, 2018>

1. The amount of tax reductions or exemptions and the amount of tax credits
granted for the relevant consolidated business year;

2. The consolidated interim tax for the relevant consolidated business year
computed under Article 76-18;

3. The total amount of tax withheld from each consolidated corporation for the
relevant consolidated business year pursuant to Articles 73 and 73-2.

(2) A consolidated subsidiary corporation shall pay to its consolidated parent
corporation an amount computed by adding an amount computed by applying mutatis
mutandis Articles 75 and 75-2 through 75-9 to the amount computed by subtracting
the following amounts from the calculated amount of tax of each consolidated
corporation, by the filing deadline referred to in paragraph (1): <Amended on
Dec. 24, 2018>

1. The amount of tax reductions or exemptions granted to the relevant
corporation for the relevant consolidated business year;

2. The interim tax by consolidated corporation for the relevant consolidated
business year;

3. The amount of tax withheld from the relevant corporation for the relevant
consolidated business year pursuant to Articles 73 and 73-2.

(3) Where the amount calculated pursuant to paragraph (2) is a negative figure,
the consolidated parent corporation shall pay the amount without a negative sign
to its consolidated subsidiary corporation by the deadline prescribed in
paragraph (1). <Newly Inserted on Dec. 31, 2022> (4) Article 64 (2) shall apply
mutatis mutandis where paragraph (1) shall apply. <Amended on Dec. 15, 2015;
Dec. 31, 2022>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 15, 2015]
[Enforcement Date: Jan. 1, 2024] Article 76-19
SECTION 5 Determination, Correction, and Collection

법령 이단보기 Article 76-20 (Determination, Correction, and Collection of Consolidated
Corporate Tax)

Articles 66 (excluding the proviso to paragraph (3)), 67, 70, 71, 73, 73-2 and
74 shall apply mutatis mutandis to determination, correction, collection, and
refund of corporate tax on income for each consolidated business year. <Amended
on Dec. 20, 2016; Dec. 24, 2018>
[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 76-21 (Additional Tax of Consolidated Corporations)

A consolidated parent corporation shall pay an amount computed by adding the
total amounts calculated by applying mutatis mutandis Articles 75, 75-2 through
75-9 to each consolidated corporation, in addition to the amount of corporate
tax on income for each consolidated business year. <Amended on Dec. 24, 2018>
[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 76-22 (Application of Provisions Governing Small and Medium
Enterprises to Consolidation Corporations)

In calculating the amount of corporate tax on income for each consolidated
business year, provisions governing small and medium enterprises under this Act
and the Restriction of Special Taxation Act shall apply only where a
consolidated group deemed one domestic corporation constitutes the small or
medium enterprises. In such cases, where a corporation that constitutes a small
or medium enterprise in the business year immediately preceding the consolidated
business year in which consolidated tax return system first applies ceases to be
eligible for the application of the provisions governing small and medium
enterprises as the consolidated tax return system applies to the corporation,
such provisions governing small and medium enterprises shall apply in the first
consolidated business year in which consolidated tax return system applies and
until the consolidated business year that ends within three years from the start
date of the following consolidated business year. <Amended on Dec. 24, 2018>
[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]
CHAPTER III CORPORATE TAX ON LIQUIDATION INCOME OF DOMESTIC CORPORATIONS
SECTION 1 Tax Base and Calculation Thereof

법령 이단보기 Article 77 (Tax Base)

The tax base of corporate tax on liquidation income of a domestic corporation
shall be the amount of liquidation income calculated under Article 79.
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 78 (Special Provisions on Taxation on Liquidation Income
Accruing from Restructuring of Corporation)

Where a domestic corporation falls under any of the following cases, no
corporate tax shall be imposed on its liquidation income:

1. Where a domestic corporation restructures as prescribed in the Commercial
Act;

2. Where a corporation established under any special Act restructures to a
company as defined in the Commercial Act upon the amendment or repeal of the
special Act;

3. Cases prescribed by Presidential Decree where a domestic corporation
restructures under any other statute.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 79 (Calculation of Liquidation Income Accruing from Dissolution)

(1) Where a domestic corporation is dissolved (excluding a dissolution by a
merger or division), the liquidation income (hereinafter referred to as
"liquidation income from dissolution") shall be calculated by deducting the sum
of the paid-in capital or investment funds and the surplus funds (hereinafter
referred to as "total amount of equity capital") as at the registration date of
the dissolution from the value of the residual assets upon dissolution of the
corporation.

(2) Where a domestic corporation in the process of liquidation due to a
dissolution continues to conduct its business pursuant to Article 229, 285,
287-40, 519, or 610 of the Commercial Act after having distributed some residual
assets upon dissolution to stockholders, etc., the liquidation income from
dissolution of the domestic corporation shall be calculated by deducting the
total amount of its equity capital as at the registration date of the
dissolution from the total amount of the residual assets distributed during the
period between the registration date of the dissolution and the registration
date of the continuation. <Amended on Dec. 15, 2015>

(3) In calculating liquidation income from dissolution of a domestic
corporation, the amount of corporate tax to be refunded under the Framework Act
on National Taxes during the period of liquidation shall be added to the total
amount of equity capital of the domestic corporation as at the registration date
of the dissolution.

(4) Where a domestic corporation has losses carried forward prescribed by
Presidential Decree as at the registration date of the dissolution for purposes
of calculating the liquidation income from dissolution of the domestic
corporation, an amount equivalent to the losses carried forward shall be offset
from the total amount of its equity capital as at the registration date of the
dissolution: Provided, That the amount of losses carried forward to be offset
shall not exceed the amount of surplus funds among the total amount of equity
capital, and where the losses carried forward exceed the surplus funds, such
excess losses may be deemed nil.

(5) Where any surplus funds have been transferred into the paid-in capital or
investment funds within two years prior to the registration date of the
dissolution in calculating the liquidation income pursuant to paragraph (4), the
relevant amount shall be deemed not have been transferred into the paid-in
capital or investment funds for purposes of the same paragraph. <Newly Inserted
on Dec. 31, 2011>

(6) In calculating the liquidation income from dissolution of a domestic
corporation, the income for each business year accrued during the period of
liquidation shall be included in the amount of income for each relevant business
year of the corporation.

(7) Articles 14 through 18, 18-2, 18-3, 19, 19-2, 20 through 31, 33 through 38,
40 through 42, 42-2, 43, 44, 44-2, 44-3, 45, 46, 46-2 through 46-5, 47, 47-2,
50, 51, 51-2, 52, 53, 53-2, 53-3, 54, and Article 104-31 of the Act on
Restriction on Special Cases concerning Taxation shall apply mutatis mutandis to
the calculation of the liquidation income referred to in paragraph (1) and the
amount of income for each business year during the period of liquidation
referred to in paragraph (6), except as otherwise expressly provided for in
paragraphs (1) through (6). <Amended on Dec. 31, 2011; Dec. 22, 2020; Dec. 31,
2022>

(8) The calculation of the value of residual assets for the purposes of
paragraphs (1) through (7) and other necessary matters shall be prescribed by
Presidential Decree. <Amended on Dec. 31, 2011>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 80 Deleted. <Dec. 31, 2009>

법령 이단보기 Article 81 Deleted. <Dec. 31, 2009>

법령 이단보기 Article 82 (Detailed Rules for Calculation of Amount of Liquidation
Income)

Except as otherwise expressly provided in this Act, matters necessary for the
calculation of the amount of liquidation income of a domestic corporation shall
be prescribed by Presidential Decree.
[This Article Wholly Amended on Dec. 30, 2010]
SECTION 2 Calculation of Tax

법령 이단보기 Article 83 (Tax Rate)

Corporate tax on liquidation income of a domestic corporation shall be the
amount of tax calculated by applying the tax rate stipulated in Article 55 (1)
to the tax base stipulated in Article 77.
[This Article Wholly Amended on Dec. 30, 2010]
SECTION 3 Tax Return and Payment

법령 이단보기 Article 84 (Final Reports)

(1) A domestic corporation liable to pay corporate tax on liquidation income
shall file a report on the corporate tax base and tax amount on liquidation
income with the head of the tax office having jurisdiction over the place of tax
payment by the following applicable deadlines, as prescribed by Presidential
Decree:

1. In cases falling under Article 79 (1): Within three months from the last day
of the month in which the date the value of the residual assets prescribed by
Presidential Decree is determined falls;

2. In cases falling under Article 79 (2): Within three months from the last day
of the month in which the registration date of continuation falls.

(2) A report filed under paragraph (1) shall be accompanied by the following
documents:

1. In cases falling under paragraph (1) 1 and 2, a statement of financial
position of a dissolved corporation as at the determination date of the value of
the residual assets or the registration date of continuation;

2. Other documents specified by Presidential Decree.

(3) Paragraphs (1) and (2) shall apply although the amount of liquidation amount
is nil.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 85 (Interim Reports)

(1) Where a domestic corporation (excluding a corporation referred to in each
subparagraph of Article 51-2 (1) or Article 104-31 (1) of the Act on Restriction
on Special Cases concerning Taxation) falls under any of the following cases, it
shall file a report thereon with the head of the tax office having jurisdiction
over the place of tax payment, as prescribed by Presidential Decree, within one
month from the last day of the month in which the date prescribed in the
applicable subparagraph falls: Provided, That subparagraph 2 shall not apply
where a corporation liquidates according to the liquidation process prescribed
in Article 80 of the State Property Act: <Amended on Dec. 31, 2011; Dec. 22,
2020>

1. Where some residual assets are distributed to stockholders, etc. prior to the
determination of the value of the residual assets from dissolution: The date of
the distribution;

2. Where the value of the residual assets is not determined by the first
anniversary of the registration of the dissolution: The first anniversary.

(2) A reported filed under paragraph (1) shall be accompanied by the statement
of financial position as at the registration date of the dissolution and the
date of distribution or as at the first anniversary of the registration date of
the dissolution, and other documents prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 86 (Payment)

(1) A domestic corporation referred to in Article 79 (1) or (2) which has filed
a final report under Article 84 shall pay the amount of tax computed by applying
Article 83 to the amount of liquidation income from dissolution, minus the total
amount of tax paid under paragraph (3) or (4), as corporate tax at the tax
office having jurisdiction over the place of tax payment, etc. by the filing
deadline. <Amended on Dec. 30, 2010>

(2) Deleted. <on Dec. 31, 2009>

(3) For a domestic corporation liable to file a report under Article 85 (1) 1,
where the value of the distributed residual assets (the total amount where
residual assets have been distributed previously) exceeds the total equity
capital as at the registration date of the dissolution, the domestic corporation
shall pay the amount of tax computed by applying Article 83 to the excess (where
corporate tax has previously been paid on some residual assets previously
distributed, the amount of tax after deducting the previously paid amount from
the total amount of tax) at the tax office having jurisdiction over the place of
tax payment, etc. by the filing deadline. <Amended on Dec. 30, 2010>

(4) For a domestic corporation liable to file a report under Article 85 (1) 2,
where the estimated value of the residual assets prescribed by Presidential
Decree as at the first anniversary of the registration date of the dissolution
exceeds the total equity capital as at the registration date of the dissolution,
the corporation shall pay the amount of tax calculated by applying Article 83 to
the excess at the tax office having jurisdiction over the place of tax payment,
etc. by the filing deadline. <Amended on Dec. 30, 2010>

[Title Amended on Dec. 30, 2010]
SECTION 4 Determination, Correction, and Collection

법령 이단보기 Article 87 (Determination and Correction)

(1) Where a domestic corporation fails to file a tax report under Articles 84
and 85, the head of the tax office having jurisdiction over the place of tax
payment or the commissioner of the competent regional tax office shall determine
the tax base and amount of corporate tax on liquidation income for the relevant
corporation.

(2) Where any error or omission is found in a report filed by a domestic
corporation under Articles 84 and 85, the head of the tax office having
jurisdiction over the place of tax payment or the commissioner of the competent
regional tax office shall correct the tax base and amount of corporate tax on
liquidation income for the relevant corporation.

(3) Where any error or omission is found in the determination or correction
after the head of the district of tax office having jurisdiction over the place
of tax payment or the commissioner of the competent regional tax office has
determined or corrected the tax base and amount of corporate tax on liquidation
income, he/she shall immediately re-correct such error or omission.

(4) Article 66 (3) shall apply mutatis mutandis to the determination and
correction made under paragraphs (1) and (2).

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 88 (Notification of Tax Base and Tax Amount)

Where the head of the tax office having jurisdiction over the place of tax
payment or the commissioner of the competent regional tax office determines or
corrects the tax base and amount of corporate tax on liquidation income of a
domestic corporation under Article 87, he/she shall notify the relevant
corporation or liquidator thereof: Provided, That he/she may give a public
notice instead where it is not possible to notify the relevant corporation or
liquidator thereof.
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 89 (Collection)

(1) Where a domestic corporation fails to fully or partially pay the amount of
tax payable as corporate tax on liquidation income under Article 86, the head of
the tax office having jurisdiction over the place of tax payment shall collect
the unpaid corporate tax in accordance with the National Tax Collection Act.
<Amended on Jan. 1, 2013>

(2) Where the amount of corporate tax paid under Article 86 or collected under
paragraph (1) is less than the amount of corporate tax determined or corrected
by the head of the tax office having jurisdiction over the place of tax payment
or the commissioner of the competent regional tax office under Article 87, the
head of the tax office having jurisdiction over the place of tax payment shall
collect the corporate tax equivalent to the deficiency.

[This Article Wholly Amended Dec. 30, 2010]

법령 이단보기 Article 90 (Exclusion from Application of Additional Taxes for Delayed
Payment?to Liquidation Income)

Article 47-4 (1) 1 (limited to the amount imposed from the day following the
payment deadline indicated on the payment notice) and 3 and (7) of the Framework
Act on National Taxes shall not apply to the collection of corporate tax on
liquidation income. <Amended on Dec. 31, 2011; Dec. 22, 2020>
[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 22, 2020]
CHAPTER IV CORPORATE TAX ON INCOME OF FOREIGN CORPORATIONS FOR EACH BUSINESS
YEAR
SECTION 1 Common Provisions on Taxation of Foreign Corporations

법령 이단보기 Article 91 (Tax Base)

(1) The corporate tax base on the income of a foreign corporation with a
domestic place of business or a foreign corporation that has domestic source
income accrued from transfer of real estate referred to in subparagraph 3 of
Article 93 for each business year shall be calculated by deducting, in
sequential order, the following amount from the total amount of domestic source
income (excluding the amount of domestic source income withheld under Article 98
(1), 98-3, 98-5, or 98-6): Provided, That the deduction from the amount referred
to in subparagraph 1 shall be 80/100 of the income for each business year:
<Amended on Dec. 31, 2011; Dec. 20, 2016; Dec. 24, 2018; Dec. 31, 2019; Dec. 31,
2022>

1. Losses (limited to losses incurred in the Republic of Korea) in Article 13
(1) 1;

2. Non-taxable income provided for in this Act and other statutes;

3. Income accrued from the international services of ships or aircraft:
Provided, That this shall only apply where the country in which the headquarters
or main office of the foreign corporation is located accords the same exemption
to ships and aircraft of Korean corporations.

(2) For a foreign corporation which does not fall under paragraph (1), the tax
base of corporate tax on its income for each business year shall be the amount
of domestic source income classified under each subparagraph of Article 93.

(3) The tax base of corporate tax on domestic source income of a foreign
corporation falling under paragraph (1), which is withheld under Article 98 (1),
98-3, 98-5, or 98-6, shall be the amount of domestic source income classified
under each subparagraph of Article 93. <Amended on Dec. 31, 2011>

(4) Paragraph (1) 3 shall also apply to any foreign corporation which has no
domestic place of business.

(5) In calculating the tax base in paragraph (1), losses carried forward in
paragraph (1) 1 shall be deducted in sequential order of business years, and
non-taxable income that is not deducted in the relevant business year shall not
be carried over for deduction to business years subsequent the relevant business
year. <Newly Inserted on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 92 (Calculation of Amount of Domestic Source Income)

(1) The total amount of domestic source income of a foreign corporation under
Article 91 (1) for each business year shall be the amount calculated by
subtracting the total amount of deductible expenses during the relevant business
year from the total amount of gross income during the relevant business year,
and with regards to the calculation of the amount of income for each business
year shall apply mutatis mutandis Articles 14 through 18, 18-2, 19, 19-2, 20
through 31, 33 through 38, 40 through 42, 42-2, 43, 44, 44-2, 44-3, 45, 46, 46-2
through 46-5, 47, 47-2, 50, 51, 52, 53, 53-2, and 54 of this Act and Article 138
of the Restriction of Special Taxation Act, as prescribed by Presidential
Decree: Provided, That it shall be deemed that a merging corporation or a
corporation newly incorporated upon division does not succeed to losses of the
merged corporation or divided corporation for the purpose of applying mutatis
mutandis Article 44-3, 45, 46-3, or 46-4. <Amended on Dec. 31, 2011; Jan. 1,
2013; Dec. 24, 2018; Dec. 31, 2019>

(2) The amount of domestic source income (excluding domestic source income
accrued from transfer of real estate, etc. in subparagraph 7 of Article 93) of a
foreign corporation falling under Article 91 (2) and (3) for each business year
shall be the amount under the following subparagraphs: <Amended on Dec. 31,
2011; Dec. 24, 2018; Dec. 22, 2020> 1. Domestic source income provided in
subparagraphs 1 through 6 and 8 through 10 of Article 93 shall be the revenue
amount by income provided in each subparagraph (excluding subparagraph 7) of the
same Article: Provided, That the domestic source income according to the
following classification may be calculated pursuant to the following:

(a) Income from transfer of domestic source securities prescribed in
subparagraph 9 of Article 93: An amount computed by deducting the acquisition
value and transfer expenses of the relevant securities verified, as prescribed
by Presidential Decree, from the revenue;

(b) Virtual asset income referred to in subparagraph 10 (k) of Article 93: An
amount calculated by deducting the acquisition price, etc. prescribed by
Presidential Decree from the amount of income [where a foreign corporation
withdraws virtual assets defined in subparagraph 3 of Article 2 of the Act on
Reporting and Using Specified Financial Transaction Information (hereinafter
referred to as “virtual assets”) kept and managed by a virtual asset service
provider or similar service provider prescribed in subparagraph 1 of Article 2
of the same Act (hereinafter referred to as “virtual asset service provider,
etc.”), referring to the amount prescribed by Presidential Decree as the market
price of the virtual assets at the time of withdrawal].

2. Where the domestic source income accrued from transfer of securities referred
to in subparagraph 9 of Article 93 of a foreign corporation with no domestic
place of business meets each of the following conditions, the arm's length price
prescribed by Presidential Decree (hereafter in this subparagraph, referred to
as "arm's length price") shall be the revenue of the foreign corporation,
notwithstanding subparagraph 1 (a):

(a) Income accruing from transactions between a foreign corporation with no
domestic place of business and a foreign corporation (including non-residents)
having a special relationship prescribed by Presidential Decree with the former
foreign corporation;

(b) Prices of transactions provided in item (a) fall short of the arm's length
price in circumstances prescribed by Presidential Decree.

(3) The amount of domestic source income accrued from transfer of real estate,
etc. referred to in subparagraph 7 of Article 93 that are the domestic source
income of a foreign corporation falling under Article 91 (2) for each business
year shall be the amount calculated by subtracting the following amounts from
the transfer value of income-generating assets (hereafter in this Article,
referred to as "land, etc."): <Amended on Dec. 24, 2018>

1. The acquisition value: Provided, That where a foreign corporation, to which
assets not included in the taxable value of the inheritance tax or gift tax
under the Inheritance Tax and Gift Tax Act are contributed, transfers the land,
etc. prescribed by Presidential Decree, the acquisition value of such land, etc.
by the donator shall be deemed the acquisition value of the foreign corporation;

2. Expenses directly expended to transfer the land, etc.

(4) In applying paragraph (3), the acquisition value and the transfer value
shall be based on the actual transaction value, and where the actual transaction
value is unclear, such value shall be computed by applying mutatis mutandis
Articles 99, 100, and 114 (7) of the Income Tax Act. <Amended on Dec. 24, 2018>

(5) In applying paragraph (3), Article 98 of the Income Tax Act shall apply
mutatis mutandis to the timing for transfer or acquisition of the relevant
assets.

(6) Article 101 of the Income Tax Act shall apply mutatis mutandis to any unfair
calculation of domestic source income accrued from transfer of real estate, etc.
specified in paragraph (3). In such cases, "a related party" shall be construed
as "a related party provided in subparagraph 12 of Article 2 of the Corporate
Tax Act." <Amended on Dec. 31, 2011; Dec. 24, 2018>

(7) In calculating the income of amount related to the domestic place of
business of a foreign corporation for each business year, matter necessary for
distributing deductible expenses to the headquarters or other branch offices in
foreign countries shall be prescribed by Presidential Decree. <Newly Inserted on
Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2025] Article 92 (2)

법령 이단보기 Article 93 (Domestic Source Income of Foreign Corporations)

Domestic source income of a nonresident shall be classified as follows: <Amended
on Dec. 31, 2011; Dec. 15, 2015; Dec. 20, 2016; Dec. 24, 2018; Dec. 31, 2019;
Dec. 22, 2020; Dec. 31, 2022>

1. The following income, which includes interest income referred to in Article
16 (1) of the Income Tax Act (excluding the income provided for in subparagraph
2-2 or 7 of the same paragraph), other interest on loans and profits from
trusts: Provided, That the same shall not apply to interest on any loan directly
obtained by an overseas place of business for the overseas place of business of
a resident or domestic corporation:

(a) Income received as a payment from the State, a local government, a domestic
place of business of a resident, domestic corporation or foreign corporation, or
a domestic place of business of a non-resident referred to in Article 120 of the
Income Tax Act;

(b) Income received as a payment from a foreign corporation or non-resident,
which is substantially related to the domestic place of business of the foreign
corporation or non-resident and is included in deductible expenses or incurred
expenses for the purpose of calculating the amount of income of such domestic
place of business;

2. Domestic source dividend income: Income prescribed in each of the following
paid by a domestic corporation, an organization deemed a corporation, or any
other person located in the Republic of Korea:

(a) Profits from derivative-linked bonds referred to in Article 16 (1) 2-2 of
the Income Tax Act;

(b) Dividend income provided for in Article 17 (1) of the Income Tax Act
(excluding the income provided for in subparagraph 6 of the same paragraph);

(c) Profits prescribed by Presidential Decree out of the profits accruing from
the repurchase, etc. of collective investment securities referred to in Article
87-6 (1) 4 of the Income Tax Act;

(d) Profits prescribed by Presidential Decree out of the profits derived from
derivative-linked securities referred to in Article 87-6 (1) 5 of the Income Tax
Act;

(e) The amount disposed of as a dividend under Articles 13 or 22 of the
Adjustment of International Taxes Act;

3. Income accrued from real estate in the Republic of Korea or real estate
rights and mining rights, mining concessions or rights to quarry earth, sand,
and rocks, each of which is acquired in the Republic of Korea, or the transfer
or lease of rights to use or develop underground water or other management of
underground water: Provided, That excluded herefrom shall be capital gains
referred to in subparagraph 7;

4. Income accrued from the rental of a ship, aircraft, registered motor
vehicles, construction machinery, industrial, commercial or scientific
machinery, facilities and equipment, and other tools prescribed by Presidential
Decree to a domestic place of business of a resident, domestic corporation or
foreign corporation, or a domestic place of business of a non-resident referred
to in Article 120 of the Income Tax Act;

5. Income prescribed by Presidential Decree and accrued from any business
operated by a foreign corporation (including income taxable as domestic source
business income under any tax treaty): Provided, That excluded herefrom shall be
income referred to in subparagraph 6;

6. Income accrued by rendering personal services prescribed by Presidential
Decree in the Republic of Korea (including the income deemed to have accrued in
the Republic of Korea according to a tax treaty by rendering personal services
prescribed by Presidential Decree, among personal services rendered abroad). In
such cases, where the person provided with the personal services bears expenses
prescribed by Presidential Decree, including airfares, in connection with the
provision of such personal services, such income means an amount excluding such
expenses;

7. Domestic source capital gains on real estate, etc.: Income generated by
transferring any assets or rights falling under any of the following
subparagraphs, which are located in the Republic of Korea: Provided, That this
shall only apply where assets or rights that generate such income are located in
the Republic of Korea:

(a) Assets or rights referred to in Article 94 (1) 1, 2, and 4 (a) and (b) of
the Income Tax Act;

(b) Stocks, etc. (hereafter in this Article, referred to as "real estate,
stocks, etc.") of a domestic corporation, where the aggregate of the following
values is at least 50/100 of total assets of that domestic corporation as at the
start date of the business year in which the relevant assets are transferred,
among stocks, etc. (including depository receipts or preemptive rights issued on
the basis of stocks, etc.; hereafter in this Chapter, the same shall apply) of
such domestic corporation, which have not been listed on any securities market
under the Financial Investment Services and Capital Markets Act; In such cases,
real estate stocks, etc. that are recognized as having taxation rights in Korea
according to mutual agreement with the counterpart of the tax treaty in relation
to the interpretation and application of the tax treaty shall also be included
in the real estate stocks, etc. in the preceding section:

(i) The value of assets referred to in Article 94 (1) 1 and 2 of the Income Tax
Act;

(ii) The value computed by multiplying the value of stocks owned by another
corporation excessively owning real estate which is held by the domestic
corporation, by the ratio of real estate owned by the other corporation. In such
cases, the methods for determining whether the other corporation excessively
owns real estate and for computing the ratio of real estate owned shall be
prescribed by Presidential Decree;

8. Domestic source royalty income: Income generated from the transfer of the
price and relevant rights, etc. where any of the following rights, assets or
information (hereafter referred to as "rights, etc." in this subparagraph) is
used in the Republic of Korea or the price thereof is paid in the Republic of
Korea. In such cases, where income accruing from leasing industrial, commercial,
or scientific machinery, facilities, or equipment, etc. prescribed in
subparagraph 4 is classified as royalty income under a tax treaty, the usage fee
shall be included:

(a) Copyrights, patent rights, trademark rights, designs, forms, and sketches of
academic or artistic works (including movie films) or secret formulae or
processes, film and tapes for radio and television broadcasts, and other similar
assets or rights;

(b) Information or know-how related to industrial, commercial, or scientific
knowledge and experience;

(c) Other similar property or rights included in the definition of royalties in
a tax treaty that stipulates whether domestic source income is applicable based
on the place of use (hereinafter referred to as the “tax treaty based on the
place of use” in this Article) [Patent rights, utility model rights, trademark
rights, design rights, etc. that require registration for the exercise
(hereinafter referred to as "patent rights" in this Article) have not been
registered in Korea, but the manufacturing method, technology, information, etc.
included therein It refers to what is actually implemented or used in Korea,
such as related to the manufacture and production of the product];

9. Income prescribed by Presidential Decree and accrued from the transfer of any
of the following stocks, etc. (including real estate stocks, etc., listed on any
securities market under the Financial Investment Services and Capital Markets
Act), or other securities (including securities defined in Article 4 of the
Financial Investment Services and Capital Markets Act; hereinafter the same
shall apply):

(a) Stocks, etc., and other securities issued by a domestic corporation;

(b) Stocks, etc., issued by a foreign corporation (limited to stocks, etc.,
listed on any securities market under the Financial Investment Services and
Capital Markets Act), and other securities issued by a domestic place of
business of a foreign corporation;

(c) Other securities issued by a domestic place of business of a foreign
corporation;

10. Other domestic source income: Any of the following, other than those
provided for in subparagraphs 1 through 9:

(a) Insurance money, indemnification, or compensation paid in connection with
any real property or other assets situated in the Republic of Korea, or business
run in the Republic of Korea;

(b) Income prescribed by Presidential Decree as penalties for breach of any
contract or compensation for damage paid in the Republic of Korea;

(c) Income accrued from the inheritance of domestic assets;

(d) Prize money, monetary rewards, compensation, and other similar income paid
in the Republic of Korea;

(e) Income accrued from buried property discovered in the Republic of Korea;

(f) Income accrued from the transfer of licenses, approval, or rights
established by other similar administrative dispositions under laws of the
Republic of Korea, and from the transfer of domestic assets, other than real
estate;

(g) Prize received based on lottery, gift tickets, or other drawing tickets, and
refunds paid to the purchasers of horse-race tickets, winner-betting tickets,
bullfighting tickets, or sports promotion tickets, all issued in the Republic of
Korea;

(h) Amounts disposed of as other income pursuant to Article 67;

(i) Income accruing from an increase in the value of the stocks, etc., of a
domestic corporation that are held by any related party prescribed by
Presidential Decree (referred to as "foreign related party" hereafter in Article
98) that arises from capital transactions prescribed by Presidential Decree;

(j) Compensation for damage, compensation, settlement money, daily gains, or
other similar income paid in the Republic of Korea for damage accrued by
infringement of patent rights, etc. registered in the Republic of Korea without
being registered in the Republic of Korea and registered in a foreign country,
which are owned by a corporation of a member country of a prearranged tax treaty
on the site. In such cases, the income paid in connection with the methods of
manufacturing, technologies, information, etc. included in the relevant patent
rights, etc., virtually conducted or used in the Republic of Korea, including
those related to manufacture or production in the Republic of Korea, shall be
limited to the income paid;.

(k) Virtual asset income referred to in Article 21 (1) 27 of the Income Tax Act
(where a foreign corporation withdraws virtual assets kept and managed by a
virtual asset service provider, etc., including an amount calculated as
prescribed by Presidential Decree, considering the time of withdrawal to be the
time of transfer);

(l) Income from any business operated in the Republic of Korea, from personal
services rendered in the Republic of Korea, or from economic benefits received
in relation to assets located in the Republic of Korea (excluding the
difference, if any, between the amount received for redemption of foreign
currency-denominated bonds issued by the State or financial companies, etc.,
established under any special Act and the issue prices of such bonds) or other
similar income prescribed by Presidential Decree, other than those referred to
in any of items (a) through (k).

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 15, 2015]
[Enforcement Date: Jan. 1, 2023] Subparagraph 2 (a), (c), and (d) of Article 93
[Enforcement Date: Jan. 1., 2025] Subparagraph 1 of Article 93; subparagraph 2
(a), (c), and (d) of Article 93; subparagraph 10 (k) and (l) of Article 93

법령 이단보기 Article 93-2 (Special Case concerning Real Beneficiary for Foreign
Investment Scheme)

(1) Where a foreign corporation is paid with the domestic source income in
Article 93 through a foreign investment scheme (referring to a scheme
established in a foreign country, which conducts the activities of investments
that acquire, dispose of, or operate by other means the assets subject to
investment which have property values by attracting money, etc. for investment
and distribute and revert the return to investors; hereinafter the same shall
apply), the a foreign corporation shall be construed as a real beneficiary
(referring to a person who actually holds ownership over the income, such as the
right to dispose of the domestic source income by taking legal or financial
risks; hereinafter the same shall apply): Provided, That where a foreign
investment scheme falls under any of the following cases (limited to cases
falling under subparagraphs 2 and 3 of this paragraph for a foreign investment
scheme that is an organization which is not a corporation, other than an
organization deemed a corporation in Article (2) 3 of the Income Tax Act), the
foreign investment scheme shall be construed as a real beneficiary of the
domestic source income: <Amended on Dec. 21, 2021>

1. Where the foreign investment vehicle meets all of the following requirements:

(a) It shall be liable for tax payment in the country in which it was
established under a tax treaty;

(b) With respect to domestic source income, it shall be eligible for
non-taxation, tax exemption or restrictive tax rates prescribed by a tax treaty
(referring to the highest tax rate that can be applied to residents or
corporations of a contracting party pursuant to a tax treaty; hereinafter the
same shall apply);

2. Where a foreign investment scheme not falling under subparagraph 1 is treated
under a tax treaty as the beneficial owner of domestic source income and meets
the requirements for non-taxation, tax exemption, or restrictive tax rates
prescribed in a tax treaty with respect to domestic income source;

3. Where the foreign investment scheme not falling under paragraphs (1) and (2)
fails to verify an investor who has invested in the foreign investment scheme
(where there are at least two investors, where it verifies a part of the
investors, it shall be limited to the part unverified).

(2) Where a foreign investment scheme is deemed as a real beneficiary of the
domestic source income as it falls under paragraph (1) 3, the non-taxation, tax
exemption, and restrictive tax rates under the applicable tax treaty shall not
apply to the foreign investment scheme. <Amended on Dec. 22, 2020; Dec. 21,
2021>

[This Article Newly Inserted on Dec. 24, 2018]

법령 이단보기 Article 93-3 (Special Cases concerning Taxation on Interest and Capital
Gains on State Bonds, etc. of Foreign Corporations)

(1) Notwithstanding Article 3 (1) 2, no corporate tax shall be imposed on the
income falling under any of the following, out of the income of a foreign
corporation subject to withholding tax under Article 98 (1):

1. Income accruing from State bonds issued pursuant to Article 5 (1) of the
State Bond Act, monetary stabilization bonds referred to in the Bank of Korea
Monetary Stabilization Bond Act, or bonds prescribed by Presidential Decree
(hereafter in this Article referred to as "State bonds, etc."), out of interest
income accruing from domestic sources prescribed in subparagraph 1 of Article
93;

2. Income accruing from the transfer of State bonds, etc. out of capital gains
from the transfer of domestic source securities referred to in subparagraphs 9
of Article 93.

(2) State bonds, etc. not subject to corporate tax under paragraph (1) include
State bonds, etc. acquired, held, or transferred through a foreign financial
company, etc. (hereinafter referred to as "qualified foreign financial company,
etc.") approved by the Commissioner of the National Tax Service by meeting the
requirements prescribed by Presidential Decree. In such cases, necessary matters
for compliance matters applicable to qualified foreign financial companies,
etc., and the standards, procedures, etc. for approval and revocation of
approval shall be prescribed by Presidential Decree.

(3) A foreign corporation or qualified foreign financial company, etc. that
wishes to be eligible for non-taxation under paragraph (1) shall file an
application for non-taxation with the head of the tax office having jurisdiction
over the place of tax payment, as prescribed by Presidential Decree.

(4) Where a domestic corporation is included among the investors who have
invested in any of the following foreign investment schemes, Articles 73 and
73-2 shall not apply to the income prescribed in the subparagraphs of paragraph
(1) of the domestic corporation, and the relevant domestic corporation shall
directly file a return and make payment, as prescribed by Presidential Decree:

1. A foreign investment scheme similar to a collective investment scheme
prescribed in the Financial Investment Services and Capital Markets Act,
recognized as a public investment scheme in accordance with the statutes, etc.
of the country of establishment;

2. A foreign investment scheme corresponding to subparagraph 1, meeting the
requirements prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 31, 2022]

법령 이단보기 Article 94 (Domestic Place of Business of Foreign Corporation)

(1) Where a foreign corporation has a fixed place for the operation of all or
part of its domestic business, the foreign corporation shall be deemed to have a
domestic place of business.

(2) A domestic place of business referred to in paragraph (1) includes any of
the following places:

1. Branches, offices, or business offices;

2. Shops and other fixed sales places;

3. Workshops, factories, or storages;

4. Places used for building, sites for construction, assembly or installation
works, or places used for performing supervisory activities related thereto, for
more than six months;

5. Any of the following places where employees provide services:

(a) A place where services are provided for at least six months in total during
a 12-month period in which such services continue to be provided;

(b) A place where services are provided for not more than six months in total
during a 12-month period in which such services continue to be provided, and
similar services are continuously and repeatedly provided for at least two
years;

6. Mines, quarries, or places for exploiting and gathering marine natural
resources and other natural resources (including what are in the sea floor or
under soil on the tidelands adjacent to the coast of the Republic of Korea
outside its territorial waters where the Republic of Korea exercises sovereignty
under international laws).

(3) Where a foreign corporation without any fixed places referred to in
paragraph (1) operates the business in the Republic of Korea through any of the
following persons or an equivalent person prescribed by Presidential Decree, the
location of the person's place of business (where he/she does not have any place
of business, it shall be his/her address, and where he/she does not have any
address, it shall be the location of his/her residence) shall be deemed the
domestic place of business of the foreign corporation: <Amended on Dec. 24,
2018>

1. A person who is authorized to conclude any of the following contracts on
behalf of the relevant domestic corporation and repeatedly exercises such
authority in the Republic of Korea:

(a) A contract concluded under the name of a foreign corporation;

(b) A contract to transfer ownership of assets owned by a foreign corporation to
grant permission to use the assets that the foreign corporation has ownership or
right to use;

(c) A contract to give service of the foreign corporation;

2. A person who repeatedly plays an important role (limited to cases where the
foreign corporation concludes a contract without changing any important matters
of the contract) in the process of concluding a contract, although the person
has not the right to conclude a contract, etc. under the name of the foreign
corporation for such foreign corporation in the Republic of Korea.

(4) Where any of the following places (hereafter in this Article, referred to as
“specific place of activities”) is used for performing preparatory and
supporting business activities of the foreign corporation, it shall not be
included in the domestic place of business in paragraph (1): <Amended on Dec.
24, 2018>

1. Fixed places used by a foreign corporation only for purchasing assets;

2. Fixed places used by a foreign corporation only for storing or keeping assets
not for sale;

3. Fixed places used by a foreign corporation for advertisement, publicity,
gathering and providing information, market research, or similar activities;

4. Fixed places used by other persons only for processing a foreign
corporation's own assets.

(5) Notwithstanding paragraph (4), where a place for specific activities falls
under any of the following, such place shall be included in the domestic places
of business under paragraph (1): <Newly Inserted on Dec. 31, 2018; Dec. 31,
2019>

1. Where a foreign corporation or a foreign corporation (including
non-residents; hereafter in this paragraph, referred to as “person having a
special relationship”) having a special relationship prescribed by Presidential
Decree does business in a place same as the specific place of activities or
other domestic place and satisfies each of the following items:

(a) The foreign corporation or a person having a special relationship shall have
its domestic place of business in a place same as the specific place of
activities or other domestic place;

(b) The activities conducted in the place for specific activities and those
conducted at the domestic place of business under item (a) shall be mutually
complementary;

2. Where a foreign corporation or a person having a special relationship
conducts complementary activities in a place same as the specific place of
activities or other domestic place and the comprehensive activities comprised of
each activities are not preparatory and supporting business activities in light
of the business activities of the foreign corporation or the person having a
special relationship.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 94-2 (Submission of Data on Liaison Offices of Foreign
Corporations)

(1) Where a foreign corporation has a domestic office which performs only
non-business functions prescribed by Presidential Decree, such as business
liaison, market research, etc., without engaging in business activities that
generate domestic profits (referring to an office that does not constitute a
domestic place of business referred to in Article 94; hereafter referred to as
"foreign corporation’s liaison office”), such foreign corporation shall submit
data on its current status prescribed by Presidential Decree to the head of the
tax office having jurisdiction over the place of its liaison office by February
10 of the following year, as prescribed by Presidential Decree. <Amended on Dec.
31, 2022>

(2) The liaison office of a foreign corporation shall submit an aggregate
invoice for each supplier issued under the main clause of Article 121 (5) to the
head of the tax office having jurisdiction over the place of the liaison office
of the foreign corporation. <Newly Inserted on Dec. 31, 2022>

(3) Article 121 (5), (6) and (8) shall apply mutatis mutandis to the submission
of an aggregate invoice for each supplier referred to in paragraph (2). <Newly
Inserted on Dec. 31, 2022>

[This Article Newly Inserted on Dec. 21, 2021]
[Title of This Article Amended on Dec. 31, 2022]
SECTION 2 Calculation of Tax

법령 이단보기 Article 95 (Tax Rate)

Corporate tax on income for each business year of a foreign corporation provided
in Article 91 (1) and a foreign corporation provided in paragraph (2) or (3) of
the same Article which have domestic source income accrued from transfer of real
estate, etc. in subparagraph 7 of Article 93 shall be the amount calculated by
applying Article 55 to the tax base prescribed in Article 91 (where there exist
corporate tax on capital gains on transfer of land, etc. under Article 95-2,
such corporate tax shall be added to the aforementioned corporate tax). <Amended
on Dec. 24, 2018>
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 95-2 (Special Cases concerning Taxation on Capital Gains on
Transfer of Land, etc. by Foreign Corporation)

Article 55-2 shall apply mutatis mutandis to the payment of corporate tax on
capital gains on transfer of land, etc. of a foreign corporation referred to in
Article 91 (1) and a foreign corporation referred to in (2) of the same Article.
In such cases, capital gains on transfer of land, etc. of a foreign corporation
under Article 91 (2) shall be the amount calculated by applying mutatis mutandis
Article 92 (3).
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 96 (Special Provisions on Taxation on Domestic Place of Business
of Foreign Corporation)

(1) Any domestic place of business of a foreign corporation (excluding
non-profit foreign corporations) shall add the amount calculated by applying the
tax rate provided in paragraph (3) to the taxable income provided in paragraph
(2) (where a remittance of profits are taxable under the tax treaty concluded
between the Republic of Korea and the foreign country where the foreign
corporation is located, the taxable income shall be the amount of remittance
prescribed by Presidential Decree) to the corporate tax calculated under Article
95 and pay it under the tax treaty concluded between the Republic of Korea and
the country where the headquarters or main office of such foreign business
corporation is located (hereafter in this Article, referred to as "country of
residence"): Provided, That the same shall not apply where the country of
residence of such foreign corporation does not impose the tax on the overseas
place of business of a corporation of the Republic of Korea located in such
country of residence.

(2) The amount of taxable income referred to in paragraph (1) shall be the
amount computed by subtracting each of the following amounts from the amount of
income from the relevant domestic place of business for each business year:
<Amended on Dec. 31, 2011; Jan. 1, 2014; Dec. 24, 2018; Dec. 22, 2020>

1. The amount of corporate tax calculated under Article 95 less the amount
referred to in item (a) but plus the amount referred to in item (b):

(a) Tax credits on tax paid overseas under Article 57 (1), tax credits for
losses from disasters granted under Article 58 that are applied mutatis mutandis
under Article 97 (1), and the amount of tax reductions or exemptions and the
amount of tax credits under other statutes;

(b) Additional tax provided in Articles 75, 75-2 through 75-9 and Articles 47-2
through 47-5 of the Framework Act on National Taxes or tax paid additionally
under this Act or the Restriction of Special Taxation Act;

2. Local corporate income tax;

3. The amount prescribed by Presidential Decree, such as an amount deemed
reinvested in business by the relevant domestic place of business;

4. The amount not included in deductible expenses under Article 22 of the
Adjustment of International Taxes Act.

(3) The tax rate applied under paragraph (1) shall be the tax rate provided in
Article 98 (1) 2, and where tax rates are separately stipulated by the tax
treaty concluded between the Republic of Korea and the country of residence of
the relevant foreign corporation, the treaty shall be complied with. <Amended on
Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]
SECTION 3 Reports, Payments, Settlements, Corrections, and Collection

법령 이단보기 Article 97 (Report, Payment, Determination, Correction, and Collection)

(1) Except as otherwise provided in this Section, any of the following
provisions shall apply mutatis mutandis to filing a report, payment,
determination, correction, and collection of corporate tax for each business
year of a foreign corporation referred to in Article 91 (1) and a foreign
corporation referred to in subparagraphs (2) and (3) of the same Article that
have domestic source income accrued from transfer of real estate, etc. in
subparagraph 7 of Article 93 (hereafter in this paragraph referred to as
“foreign corporation, etc.”). In such cases, where the corporate tax base on the
income of a foreign corporation for each business year includes the income
withheld under Article 98 (1) 5 or (8) in applying mutatis mutandis Article 64,
the relevant amount of withheld tax shall be deemed the amount of tax deducted
under Article 64 (1) 4: <Amended on Jan. 1, 2013; Dec. 20, 2016; Dec. 24, 2018;
Dec. 22, 2020>

1. In cases of tax reductions or exemptions: Articles 57 (1) and (2), 58, 58-3,
and 59;

2. In cases of report and payment: Articles 60 (excluding any earned surplus
settlement statement or deficits settlement statement referred to in paragraph
(2) 1 of the same Article), 62, and 64;

3. In cases of interim prepayment: Articles 63 and 63-2;

4. In cases of determination or correction of tax base: Articles 66 through 70;

5. In cases of collection and refund of tax: Article 71;

6. In cases of withholding: Articles 73, 73-2 and 74;

7. In cases of penalty tax: Articles 75 and 75-2 through 75-9.

(2) Where a foreign corporation obligated to file a report on the tax base of
corporate tax on the income for each business year under paragraph (1) cannot
file the report by the filing deadline on the grounds prescribed by Presidential
Decree, it may extend the filing deadline after obtaining approval from the head
of the tax office having jurisdiction over the place of tax payment or the
commissioner of the competent regional tax office, as prescribed by Presidential
Decree, notwithstanding paragraph (1).

(3) Where a foreign corporation that has obtained approval for extending a
deadline for filing a tax return pursuant to paragraph (2) pays the tax amount
it has reported, it shall pay the tax amount including the amount calculated by
applying an interest rate prescribed by Presidential Decree considering the
interest rates of financial companies, etc. to the number of days so extended.

(4) In calculating the amount to be added under paragraph (3), the number of
extended days shall be the number of days from the day following the filing
deadline specified under Article 60 until the approval day of extension:
Provided, That where a report is filed and payment is made by the extended
deadline, it shall be from the day following the filing deadline specified under
Article 60 until the day of such report and payment.

(5) Where the amount of the tax withheld under Article 98, 98-3, 98-5, or 98-6
is less than 1,000 won, such tax shall not be collected. <Newly Inserted on Jan.
1, 2013>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 98 (Special Cases concerning Withholding or Collection from
Foreign Corporations)

(1) Where any person pays a foreign corporation the amount of domestic source
income provided for in subparagraphs 1, 2, and 4 through 10 of Article 93
(excluding any resident or non-resident who pays the amount of domestic source
income accrued from transfer of real estate, etc. provided for in subparagraph 7
of Article 93) which is not substantially related to the domestic place of
business of the foreign corporation or does not revert to the domestic place of
business of the foreign corporation (including an amount paid to a foreign
corporation with no domestic place of business), he/she shall withhold, as the
corporate tax, the following amounts from the income of the relevant foreign
corporation for each business year, and pay it at the tax office having
jurisdiction over the place of tax payment, etc., as prescribed by Presidential
Decree, by the tenth day of the month following the month in which the date of
withholding falls, notwithstanding Article 97: Provided, That the same shall not
apply to income provided for in subparagraph 5 of Article 93, which is taxable
as domestic source business income under the applicable tax treaty: <Amended on
Jan. 1, 2013; Dec. 20, 2016; Dec. 24, 2018; Dec. 31, 2019; Dec. 22, 2020>

1. Domestic source interest income in subparagraph 1 of Article 93: Any of the
following amounts:

(a) Interest income accrued from the bonds issued by the State, a local
government, or a domestic corporation: 14/100 of the amount paid;

(b) Interest income other than those in item (a): 20/100 of the amount paid;

2. Domestic source dividend income in subparagraph 2 of Article 93: 20/100 of
the amount paid;

3. Domestic source income accrued from the rental of ships, etc. in subparagraph
4 of Article 93 and domestic source business income in subparagraph 5 of Article
93 (excluding income taxable as domestic source business income under any tax
treaty): 2/100 of the amount paid;

4. Domestic source income accrued by rendering personal services in subparagraph
6 of Article 93: 20/100 of the amount paid: Provided, That 3/100 of the amount
paid for the income deemed to have accrued in the Republic of Korea according to
a tax treaty by rendering personal services prescribed by Presidential Decree,
among personal services rendered abroad;

5. Domestic source income accrued from transfer of real estate, etc. in
subparagraph 7 of Article 93: 10/100 of the amount paid: Provided, That where
the acquisition value and transfer expenses of the amount paid are verified, an
amount equivalent to 10/100 of the amount paid or an amount equivalent to 20/100
of capital gains on a transfer of such assets, whichever is smaller;

6. Domestic source income accrued from usage in subparagraph 8 of Article 93:
20/100 of the amount paid;

7. Domestic source income accrued from transfer of securities in subparagraph 9
of Article 93: 10/100 of the amount paid (where it falls under Article 92 (2) 2,
referring to "arm's length price" in the same subparagraph; hereinafter the same
shall apply): Provided, That where the acquisition value and transfer expenses
of the relevant securities are verified under Article 92 (2) 1 (a), an amount
equivalent to 10/100 of the amount paid, etc., or an amount equivalent to 20/100
of the amount calculated under the proviso to the same subparagraph, whichever
is smaller;

8. Other domestic source income in subparagraph 10 of Article 93: An amount
according to the following classification:

(a) Income prescribed in subparagraph 10 (j) of Article 93: 15/100 of the amount
paid;

(b) Income prescribed in subparagraph 10 (k) of Article 93: Amount according to
the following classification: Provided, That when exchanging or withdrawing
virtual assets, it shall be an amount prescribed by Presidential Decree and
expressed in units of virtual assets, equivalent to the following:

(i) Where the acquisition value, etc. of virtual assets is verified under
Article 92 (2) 1 (b): the lesser of the amount equivalent to 10/100 of the paid
amount and the amount equivalent to 20/100 of the amount calculated under the
same item;

(ii) Where the acquisition value, etc. of virtual assets is not verified under
Article 92 (2) 1 (b): 10/100 of the paid amount;

(c) Income other than the income prescribed in items (a) and (b): 20/100 of the
paid amount (the amount prescribed by Presidential Decree, in the case of income
prescribed in subparagraph 10 (c) of Article 93).

(2) Deleted <Dec. 31, 2022>

(3) Deleted. <Dec. 31, 2011>

(4) Where a person liable for withholding fails to withhold corporate tax from
the income of a foreign corporation for each business year under paragraphs (1)
and (5) through (12) or fails to pay the withheld corporate tax by the payment
deadline specified under paragraph (1), the head of the tax office having
jurisdiction over the place of tax payment shall additionally collect, as
corporate tax, the amount referred to in Article 47-5 (1) of the Framework Act
on National Taxes from the person liable for withholding in the same manner as
national taxes are collected. <Amended on Dec. 31, 2011>

(5) Any person who pays domestic source income referred to in subparagraph 1, 5,
6, or 8 of Article 93 with foreign loan funds to a foreign corporation with no
domestic place of business shall withhold tax from the relevant income pursuant
to paragraph (1) each time he/she pays the relevant income to the foreign
corporation in accordance with the terms of payment stipulated in the contract,
although he/she does not directly pay the income in accordance with the terms of
payment stipulated in such contract.

(6) The local agency of a foreign corporation operating a ship or aircraft
providing international service which does not fall under Article 94 (3) shall
withhold tax from the amount of domestic source income of the foreign
corporation under paragraph (1) when it pays the foreign corporation the income
accruing from the ship or aircraft providing international service.

(7) Where securities referred to in subparagraph 9 of Article 93 are transferred
through an investment trader or investment broker registered under the Financial
Investment Services and Capital Markets Act, the investment trader or investment
broker shall withhold tax, as prescribed in paragraph (1): Provided, That where
outstanding stocks are transferred when stocks are listed as prescribed in the
Financial Investment Services and Capital Markets Act, the corporation which has
issued such stocks shall withhold the tax.

(8) Any person who pays a foreign corporation an amount of domestic source
income accruing from architectural works, construction, the installation or
assembly of machines, etc., other works, or the provision of any service for
supervision, control, etc. of such works, or any amount of domestic source
income earned by providing personal services as referred to in subparagraph 6 of
Article 93 (including where such income is classified as business income under a
tax treaty) shall withhold the tax, as prescribed in paragraph (1), although the
relevant income reverts to the domestic place of business: Provided, That the
same shall not apply where the relevant domestic place of business has
registered as a business operator under Article 111. <Amended on Jan. 1, 2014>

(9) Where domestic source income referred to in paragraph (1) is paid in a
foreign country and a person who pays the income has an address, residence,
headquarters, main office, or place of business (including the domestic place of
business referred to in Article 120 of the Income Tax Act) in the Republic of
Korea, paragraph (1) shall apply, deeming that the income payer has paid the
relevant domestic source income in the Republic of Korea.

(10) Where domestic source income referred to in Article 93 is paid to a foreign
corporation as a result of an auction under the Civil Execution Act or a public
sale under the National Tax Collection Act, the person who distributes proceeds
from such auction or public sale shall withhold the tax in accordance with
paragraph (1) from the amount actually paid to the foreign corporation. <Amended
on Jan. 1, 2014>

(11) The acts of a person representing or commissioned by a person liable for
withholding provided in paragraphs (1) and (5) through (10) shall be deemed the
acts of the principal or his/her delegate within the scope of the delegation or
commission, to which paragraphs (1) and (5) through (10) shall apply.

(12) Where a financial company, etc., acquires, trades or brokers bills or debt
certificates issued by a domestic corporation or makes such transactions on
behalf of the financial company, etc., paragraph (11) shall apply, deeming that
the financial company, etc., has the agency or commission relationship with the
relevant resident.

(13) When any person liable for withholding withholds corporate tax under
paragraphs (1), (5) through (12) and (16), he/she shall issue a withholding
receipt stating the amount of payment and other necessary matters to the person
who receives the income, as prescribed by Presidential Decree. <Amended on Dec.
22, 2020>

(14) A domestic corporation which has issued stocks, etc., shall collect the
withholding tax on the domestic source income referred to in subparagraph 10 (i)
of Article 93 from the foreign-related party who holds such stocks, etc., at the
time prescribed by Presidential Decree. <Amended on Dec. 31, 2011>

(15) Detailed methods for withholding under paragraph (14) shall be prescribed
by Presidential Decree.

(16) Notwithstanding paragraph (1), domestically sourced other income of a
foreign corporation referred to in subparagraph 10 (k) of Article 93 that is
generated through a virtual asset service provider, etc. shall be withheld by
the virtual asset service provider, etc. in the amount pursuant to paragraph (1)
8 (b), and the payment shall be made to the tax office having jurisdiction over
the place of tax payment, as prescribed by Presidential Decree, by the 10th of
the month following the month in which virtual assets or cash is withdrawn (if
not withdrawn from January 1 to December 31 of each year, it shall be by January
10 of the following year). <Newly Inserted on Dec. 22, 2020>

(17) In applying paragraph (16), the method by which a virtual asset service
provider, etc. verifies whether a person who transfers, lends, or withdraws
virtual assets is subject to withholding tax under paragraph (1) 8 (b) shall be
prescribed by Presidential Decree. <Newly Inserted on Dec. 22, 2020>

[This Article Wholly Amended on Dec. 30, 2010]
[Enforcement Date: Jan. 1, 2025] Article 98

법령 이단보기 Article 98-2 (Special Cases concerning Reports on, Payment of Capital
Gains on Transfer of Securities by Foreign Corporation)

(1) Where a foreign corporation with no domestic place of business satisfies the
taxation standards stipulated in the relevant tax treaty by transferring stocks
or investment certificates of the same domestic corporation on at least two
occasions within the same business year (referring to the business year of the
domestic corporation which issues the stocks or investment certificates;
hereafter in this Article, the same shall apply), such foreign corporation shall
report and pay an amount equivalent to the withholding tax on gains accruing
from the transfer (hereafter in this Article, referred to as "gains") that was
not withheld at the time of such transfers, to the head of the tax office having
jurisdiction over the place of tax payment, as prescribed by Presidential
Decree, within three months from the end date of the business year in which such
transfers are made.

(2) Paragraph (1) shall apply mutatis mutandis to the gains of a foreign
corporation with a domestic place of business that is not substantially related
to or does not revert to the domestic place of business.

(3) Where a foreign corporation with no domestic place of business transfers
stocks, investment certificates, or other securities (hereafter in this Article,
referred to as "stocks, etc.") to a non-resident or foreign corporation with no
domestic place of business in circumstances prescribed by Presidential Decree,
it shall report and pay an amount computed by multiplying gains accrued from the
transfer by the rate provided in Article 98 (1) 7 to the head of the tax office
having jurisdiction over the place of tax payment by no later than the tenth day
of the month that is two months after the month in which such gains are paid, as
prescribed by Presidential Decree: Provided, That the foregoing shall not apply
where the person who pays the amount of gains accrued from the transfer of
stocks, etc. withholds and pays the corporate tax on the domestic source income
from the transfer of the relevant stocks, etc. under Article 98. <Amended on
Dec. 24, 2018>

(4) Where a foreign corporation with no domestic place of business earns any
income referred to in subparagraph 10 (c) of Article 93 upon being donated with
domestic assets from a non-resident or foreign corporation with no domestic
place of business, it shall report and pay the amount computed under Article 98
(1) 8 to the head of the tax office having jurisdiction over the place of tax
payment within three months from the last day of the month in which the date it
has been donated with the amount referred to in Article 98 (1) 8 falls:
Provided, That the foregoing shall not apply where the person who has donated
domestic assets withholds and pays the corporate tax on the amount of domestic
source income under Article 98. <Newly Inserted on Dec. 31, 2011; Dec. 24, 2018>

(5) Where a foreign corporation fails to report and pay, as prescribed in
paragraphs (1) through (4), or underreports the tax base, or underpays tax, the
head of the tax office having jurisdiction over the place of tax payment shall
collect the payable amount by applying mutatis mutandis Article 66. <Amended on
Dec. 31, 2011>

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 31, 2011]

법령 이단보기 Article 98-3 (Special Cases concerning Withholding from Bonds, etc.
subject to Withholding Tax of Foreign Corporations)

(1) Any person who pays interest, etc. on bonds, etc. subject to withholding tax
to a foreign corporation (referring to a foreign corporation subject to Article
98 (1); hereafter the same shall apply in this Article), or purchases (including
brokering, arranging, or other cases prescribed by Presidential Decree, but
excluding trading of repurchase bonds, etc. or other cases prescribed by
Presidential Decree; hereafter the same shall apply in this Article) bonds, etc.
from a foreign corporation before receiving the interest, etc. on such bonds,
etc. shall withhold the tax in consideration of the holding period of such
bonds, etc., as prescribed by Presidential Decree. <Amended on Dec. 30, 2010>

(2) Deleted. <Dec. 31, 2004>

(3) Any act of the person who acts for a person liable for withholding under
paragraph (1) or is commissioned to act for the person liable for withholding
shall be deemed an act of the principal or his/her delegate within the scope of
the delegation or commission, and is subject to paragraph (1). <Amended on Dec.
30, 2010>

(4) Where a financial company, etc. assumes charge of, trades or brokers bonds,
etc. subject to withholding tax issued by a resident or foreign corporation or
makes such transactions as an agent, the financial company, etc. shall be deemed
to have the agency or commission relationship with the person liable for
withholding provided in paragraph (1) and a foreign corporation that sells
bonds, etc., subject to withholding tax for purposes of paragraph (3). <Amended
on Dec. 30, 2010>

(5) In applying paragraphs (1) through (4), Article 98 (1) through (3) shall
apply mutatis mutandis to the deadline for the payment of the withholding tax
and the payment and collection of the additional tax. <Amended on Dec. 30, 2010>

(6) In applying paragraph (1), matters necessary for the timing for payment of
interest income, calculation of the holding period of bonds, etc., subject to
withholding tax, calculation and payment of withholding tax, scope of persons
liable for withholding, issuance of withholding receipts, and other matters
shall be prescribed by Presidential Decree. <Amended on Dec. 30, 2010>

[This Article Newly Inserted on Dec. 29, 2000]
[Title Amended on Dec. 30, 2010]

법령 이단보기 Article 98-4 (Applying for Non-Taxation or Tax Exemption for Foreign
Corporations under Tax Treaties)

(1) Where a foreign corporation who is a real beneficiary of the domestic source
income referred to in Article 93 (excluding the domestic source business income
in subparagraph 5 and domestic source income accrued by rendering personal
services in subparagraph 6 of the same Article) intends to have such income
untaxed or exempted from taxes in accordance with the applicable tax treaty, it
shall present an application for non-taxation or tax exemption and a document
proving to be a real beneficiary of the domestic source income (hereafter in
this Article referred to as “application, etc.”) to the person who pays the
domestic source income (hereafter in this Article, referred to as “income
payer”), and the income payer shall file the application, etc. with the head of
the tax office having jurisdiction over the place of tax payment, as prescribed
by Presidential Decree. In such cases, where a foreign investment scheme deemed
a real beneficiary of the domestic source income as it falls under Article 93-2
(1) 1, it shall submit a report on the foreign investment scheme, including the
status of investors by country which have invested in the foreign investment
scheme. <Amended on Dec. 24, 2018; Dec. 31, 2022>

(2) Where the domestic source income is paid through a foreign investment scheme
for purposes of paragraph (1), the foreign investment scheme shall receive an
application, etc. from the real beneficiary and present to the income payer the
report prepared by the foreign investment scheme, including a statement thereof,
and the application, etc., and income payer shall file the report and
application, etc. with the head of the tax office having jurisdiction over the
place of tax payment, as prescribed by Presidential Decree. <Amended on Dec. 24,
2018; Dec. 31, 2022>

(3) An income payer who has received an application, etc. from a real
beneficiary or foreign investment scheme pursuant to paragraph (1) or (2) may
request supplementation if there are omissions or deficiencies in the submitted
application, etc.; if the income payer fails to receive an application, etc.
from a real beneficiary or foreign investment scheme or a report on a foreign
investment scheme or is unable to identify a real beneficiary with the documents
received, or where an income payer has any other ground specified by
Presidential Decree, the income payer shall withhold the amount specified in any
subparagraph of Article 98 (1) without applying for non-taxation or tax
exemption. <Amended on Dec. 31, 2022>

(4) The head of the tax office having jurisdiction over the place of tax payment
in receipt of an application, etc. pursuant to paragraph (1) or (2) shall
examine whether the requirements for non-taxation or tax exemption are met, and
as a result of such examination, if it is found that the requirements for
non-taxation or tax exemption are not satisfied or details of the application
are different from the facts, he or she shall collect the amount of tax
according to the same paragraph from the person paying the income pursuant to
Article 98 (4). In such cases, where it is not possible to determine whether the
requirements for non-taxation or tax exemption are met based solely on the
contents stated on the application, etc., the income payer may be requested to
supplement the relevant documents within a reasonable time limit. <Newly
inserted on Dec. 31, 2022>

(5) Where a real beneficiary to whom non-taxation or tax exemption has not been
applied under paragraph (3) intends to be eligible for non-taxation or tax
exemption, the real beneficiary or income payer may request the head of the tax
office having jurisdiction over the place of tax payment of the income payer to
make a correction within five years from the last day of the month during which
the tax is withheld under paragraph (3):. Provided, That if any ground falling
under any subparagraph of Article 45-2 (2) of the Framework Act on National
Taxes arises, a request for rectification may be filed within three months from
the date on which the relevant ground occurs, notwithstanding the main sentence.
<Amended on Dec. 20, 2016; Dec. 31, 2019; Dec. 31, 2022>

(6) Upon receipt of an application for correction under paragraph (5), the head
of a tax office shall correct the tax base and the tax amount or shall notify
the applicant that no ground exists for such correction, within six months from
the filing date of the application. <Amended on Dec. 31, 2022>

(7) Except as otherwise provided in paragraphs (1) through (6), the methods and
procedures for the submission of relevant documents, such as an application,
etc. and a report by a foreign investment scheme, the duty to preserve the
documents presented, the methods and procedures for filing a request for
correction, and other matters necessary for non-taxation or tax exemption shall
be prescribed by Presidential Decree. <Amended on Dec. 31, 2022>

[This Article Wholly Amended on Jan. 1, 2014]

법령 이단보기 Article 98-5 (Special Case concerning Withholding Procedures for Foreign
Corporations in Specific Places)

(1) Where a person liable for withholding referred to in Articles 98, 98-2
through 98-4, and 98-6 withholds corporate tax from income referred to in
subparagraph 1, 2, 7 (b), 8, or 9 of Article 93 for each business year among the
domestic source income of a foreign corporation located in any country and
region publicly announced by the Minister of Strategy and Finance, the person
liable for withholding shall withhold corporate tax from income by
preferentially applying the tax rate referred to in each subparagraph of Article
98 (1), notwithstanding the provisions on non-taxation, tax exemption and
restrictive tax rates stipulated in Article 98-4 and the applicable tax treaty:
Provided, That the same shall not apply where the Commissioner of the National
Tax Service grants prior approval to apply non-taxation, tax exemption and
restrictive tax rates under the applicable tax treaty, as prescribed by
Presidential Decree. <Amended on Dec. 31, 2011>

(2) Where a corporation (including its agent or a tax manager pursuant to
Article 82 of the Framework Act on National Taxes) that is substantially
attributable to domestic source income pursuant to paragraph (1) intends to
receive the non-taxation, exemption or limited tax rate pursuant to a tax treaty
on its income, it may apply a request for rectification to the head of the tax
office having jurisdiction over the place of tax payment of the withholding
agent within five years from the end of the month in which the tax withheld
under paragraph (1) belongs, as prescribed by Presidential Decree: Provided,
That if any ground falling under any subparagraph of Article 45-2 (2) of the
Framework Act on National Taxes arises, a request for rectification may be filed
within three months from the date on which the relevant ground occurs,
notwithstanding the main clause. <Amended on Dec. 20, 2016; Dec. 31, 2019>

(3) Upon receipt of a request for correction under paragraph (2), the head of
the tax office shall correct the tax base and amount, or notify the relevant
requester of the purport that no reasonable grounds exist to correct the tax
base and amount, within six months of the receipt of the request.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]

법령 이단보기 Article 98-6 (Special Cases concerning Withholding Procedures to Apply
Restrictive Tax Rates under Tax Treaties to Foreign Corporations)

(1) Where a foreign corporation who is a real beneficiary of the domestic source
income referred to in Article 93 intends to apply for the restrictive tax rates
stipulated under the tax treaties, it shall submit an application of restrictive
tax rates and a document proving to be a real beneficiary of domestic source
income (hereafter in this Article referred to as “application, etc.”) to a
person liable for withholding referred to in Article 98 (1) (hereafter in this
Article, referred to as "person liable for withholding"), as prescribed by
Presidential Decree. In such cases, where a foreign investment scheme deemed a
real beneficiary of the domestic source income as it falls under Article 93-2
(1) 1, it shall submit a report on the foreign investment scheme, including the
status of investors by country which have invested in the foreign investment
scheme. <Amended on Dec. 24, 2018; Dec. 22, 2020; Dec. 31, 2022>

(2) Upon applying paragraph (1), where the relevant domestic source income is
paid through an foreign investment vehicles, the relevant foreign investment
vehicle shall, as prescribed by Presidential Decree, receive an application,
etc. from the substantive owner and submit it to the withholding agent along
with a report on the foreign investment vehicle including details of the
application for reduced tax rate. <Amended on Dec. 24, 2018; Dec. 31, 2022>

(3) A withholding agent who has received an application, etc. from a real
beneficiary or foreign investment scheme pursuant to paragraph (1) or (2) may
request supplementation if there are omissions or deficiencies in the submitted
application, etc.; if the withholding agent fails to receive an application,
etc. from a real beneficiary or foreign investment scheme or a report on a
foreign investment scheme or is unable to identify a real beneficiary with the
document received, or in cases of any other ground specified by Presidential
Decree,, the withholding agent shall withhold the amount referred to in the
subparagraphs of Article 98 (1) without applying the restrictive tax rates.
<Amended on Dec. 31, 2022>

(4) Where there is an error in the limited tax rate applied pursuant to
paragraphs (1) and (2), or a real beneficiary who has not been applied with the
limited tax rate pursuant to paragraph (3) intends to apply the limited tax
rate, within five years from the end of the month in which the date on which the
tax amount was withheld falls under paragraph (3), the real beneficiary or the
person liable for withholding tax may request correction from the head of the
tax office having jurisdiction over the place of tax payment of the withholding
person, as prescribed by Presidential Decree: Provided, That if any ground
falling under any subparagraph of Article 45-2 (2) of the Framework Act on
National Taxes arises, a request for rectification may be filed within three
months from the date on which the relevant ground occurs, notwithstanding the
main clause. <Amended on Jan. 1, 2014; Dec. 20, 2016; Dec. 31, 2019>

(5) Upon receipt of an application for correction under paragraph (4), the head
of a tax office shall correct the tax base and the tax amount or shall notify
the applicant that no ground exists for such correction, within six months from
the filing date of the application.

(6) Except as otherwise provided in paragraphs (1) through (5), the methods and
procedures for the submission of relevant documents, such as an application,
etc. and a report on foreign investment schemes, the duty to preserve the
documents presented, the methods and procedures for filing a request for
correction, and other matters necessary for application of restrictive tax rates
shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2022>

[This Article Newly Inserted on Dec. 31, 2011]

법령 이단보기 Article 98-7 (Special Cases concerning Application of Tax Rates to
Interest, Dividends and Royalties)

(1) With respect to interest, dividend, or royalty income out of the domestic
source income of a foreign corporation under a tax treaty, the lower of a
restrictive tax rate and any of the following tax rates shall apply:

1. Where a local income tax is not included in the taxes subject to a tax
treaty: The tax rates prescribed in Article 98 (1) 1, 2, and 6;

2. Where a local income tax is included in the taxes subject to a tax treaty: A
tax rate calculated by reflecting 10/100 of the corporate tax withheld under
Article 103-52 (1) of the Local Tax Act at the tax rates prescribed in Article
98 (1) 1, 2 and 6.

(2) Notwithstanding paragraph (1), in cases falling under Article 98-5 (1),
withholding tax shall be collected pursuant to the same paragraph. In such
cases, where the tax base and tax amount are corrected pursuant to paragraph (3)
of the same Article, the lower of a restrictive tax rate and the tax rate
prescribed in any subparagraph of paragraph (1) shall apply.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 99 (Special Cases concerning Reports on and Payment of Corporate
Tax on Domestic Source Income of Foreign Corporation from Personal Services)

(1) A foreign corporation whose domestic source income accrued by rendering
personal services in subparagraph 6 of Article 93 is withheld at the tax rate
prescribed in Article 98 (1) 4 may file a report on and pay an amount (hereafter
in this Article, referred to as "tax base") computed by subtracting expenses
proved to be in relation to the domestic source income accrued by rendering
personal services in subparagraph 6 of Article 93 accrued during the supply
period of services in the Republic of Korea (referring to the period from the
date of arrival in the Republic of Korea to the date of departure therefrom,
where such period is unclear) from such income to the head of the tax office
having jurisdiction over the place of tax payment of the person liable for
withholding within three months from the last day of the supply period of
services, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>

(2) Where any income withheld under Article 98 (1) 4 is included in the tax base
in applying paragraph (1), the amount of the withheld tax shall be deducted as
the amount of tax paid. <Amended on Dec. 24, 2018>

(3) Where a report is filed and payment is made under paragraph (1), Articles 95
and 97 shall apply mutatis mutandis to the method of calculating the amount of
tax and tax rates and methods of filing reports, making payment, determinations,
corrections, and collection.

[This Article Wholly Amended on Dec. 30, 2010]
[Title Amended on Dec. 24, 2018]
CHAPTER V Deleted.
SECTION 1 Deleted.

법령 이단보기 Article 100 Deleted. <Dec. 31, 2001>

SECTION 2 Deleted.

법령 이단보기 Article 101 Deleted. <Dec. 31, 2001>

SECTION 3 Deleted.

법령 이단보기 Article 102 Deleted. <Dec. 31, 2001>

법령 이단보기 Article 103 Deleted. <Dec. 31, 2001>

법령 이단보기 Article 104 Deleted. <Dec. 31, 2001>

SECTION 4 Deleted.

법령 이단보기 Article 105 Deleted. <Dec. 31, 2001>

법령 이단보기 Article 106 Deleted. <Dec. 31, 2001>

법령 이단보기 Article 107 Deleted. <Dec. 31, 2001>

법령 이단보기 Article 108 Deleted. <Dec. 31, 2001>

CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS

법령 이단보기 Article 109 (Reports on Incorporation or Establishment of Corporation)

(1) A domestic corporation shall submit a report on incorporation stating the
following matters, along with the detailed statement on shareholders, etc. and
documents regarding business registration, etc. prescribed by Presidential
Decree, to the head of the tax office having jurisdiction over the place of tax
payment within two months from the date of registration for incorporation (where
the actual business management place is established, the date of establishment;
and in the case of corporate taxable trust property, the date of its
establishment). In such cases, when the domestic corporation has registered its
business under Article 111, it shall be deemed to have completed the
registration for incorporation: <Amended on Dec. 31, 2011; Jan. 1, 2013; Dec.
22, 2020>

1. The name of the corporation and its representative [in the case of corporate
taxable trust property, referring to the name of the trustee subject to
corporate tax (where there are two or more trustees, referring to the
representative trustee and all other trustees) and its representative];

2. The location of the head office, main office or the actual management place
of the business (in the case of corporate taxable trust property, referring to
the location of the head office or main office of the trustee subject to
corporate tax or the actual management place of the business);

3. The purpose of business;

4. The date of incorporation.

(2) When a foreign corporation has established a domestic place of business, it
shall submit a report on establishment of a domestic place of business, stating
the following matters within two months from the date of establishment, along
with the statement of financial position as at the date of establishment of the
domestic place and other documents prescribed by Presidential Decree, to the
head of the tax office having jurisdiction over the place of tax payment. In
such cases, a foreign corporation which has established a place of business
referred to in Article 94 (3), it may elect to submit a report on establishment
of a domestic place of business:

1. The name of the corporation and its representative;

2. The location of its headquarters or main office;

3. The name of a person responsible for operation or management of business run
in the Republic of Korea or domestic assets;

4. The purpose and type of domestic business, and types and locations of
domestic assets;

5. The start date of domestic business or acquisition date of domestic assets.

(3) Where any details of a report and other documents submitted by a domestic
corporation or foreign corporation under paragraphs (1) and (2) are revised, the
domestic corporation or foreign corporation shall report such revision to the
head of the tax office having jurisdiction over the place of tax payment within
15 days from the date of such revision.

(4) Paragraph (2) shall apply mutatis mutandis to a report filed by a foreign
corporation with domestic source income accrued from transfer of real estate,
etc. in subparagraph 3 of Article 93. <Amended on Dec. 24, 2018>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 109-2 (Report on Change of Trustee of Corporate Taxable Trust
Property)

(1) Where a new trustee is appointed to any corporate taxable trust property
(hereinafter referred to as “new trustee”), the new trustee shall file a report
stating each of the following matters with the head of the tax office having
jurisdiction over the place of tax payment, along with a document, etc.
evidencing his or her appointment as a new trustee, within two months after the
date of appointment:

1. The name of the new trustee and the name of the representative;

2. The name of the corporate taxable trust property;

3. The location of the head office or main office of the new trustee or the
actual management place of the business;

4. The name of the trustee (hereinafter referred to as “former trustee”) before
the appointment of the new trustee who succeeds to trust affairs;

5. The date of appointing the new trustee;

6. The reasons for appointing the new trustee.

(2) Where the duties of the former trustee with respect to corporate taxable
trust property are terminated, the new trustee who has succeeded to trust
affairs upon the termination of such duties shall file a report stating each of
the following matters with the head of the tax office having jurisdiction over
the place of tax payment, along with a document, etc. evidencing the termination
of the duties of the former trustee, within two months after the date of
succession:

1. The name of the former trustee and the name of the representative;

2. The name of the corporate taxable trust property;

3. The location of the head office or main office of the former trustee or the
actual management place of the business;

4. The name of the new trustee who has succeeded to trust affairs;

5. The date of succeeding to trust affairs;

6. The reasons for termination of the duties of the former trustee.

(3) Where the representative trustee of any corporate taxable trust property
with at least two trustees is changed, the representative trustee before the
change and the representative trustee after the change shall each file a report
stating each of the following matters, accompanied by a document, etc.
evidencing such change, with the head of the tax office having jurisdiction over
the place of tax payment within two months after such change:

1. The name of the representative trustee before or after the change, and the
name of the representative;

2. The name of the corporate taxable trust property;

3. The location of the head office or main office of the representative trustee
before or after the change, or the actual management place of the business;

4. The date of changing the representative trustee;

6. The reasons for changing the representative trustee.

[This Article Newly Inserted on Dec. 22, 2020]

법령 이단보기 Article 110 (Reports on Start of Profit-Making Business by Non-Profit
Corporation)

Where a non-profit domestic corporation or non-profit foreign corporation
(limited to a foreign corporation with a domestic place of business) starts new
profit-making business (limited to the profit-making business provided in
Article 4 (3) 1 and 7), it shall submit a report stating the following matters,
along with the statement of financial position of the profit-making business as
at the start date of such business and other documents prescribed by
Presidential Decree, to the head of the tax office having jurisdiction over the
place of tax payment within two months from the start date of the business:
<Amended on Dec. 24, 2018>

1. Title of the corporation;

2. The location of its headquarters, main office, or actual business management
place;

3. The names of the representative and the person responsible for management;

4. The proper purpose business;

5. The type of the profit-making business;

6. The start date of the profit-making business;

7. The place of business for the profit-making business.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 111 (Business Registrations)

(1) A corporation starting new business shall file for registration of such new
business with the head of the tax office having jurisdiction over the place of
tax payment, as prescribed by Presidential Decree. In such cases, when a
domestic corporation files for registration before it files a report on
incorporation pursuant to Article 109 (1), it shall submit the detailed
statement on shareholders, etc. under the same paragraph. <Amended on Jan. 1,
2013>

(2) A business operator who has registered his/her business under the
Value-Added Tax Act shall be deemed registered the relevant business under
paragraph (1).

(3) Where a business operator is registered as corporate taxable trust property
pursuant to the Value-Added Tax Act, the corporate taxable trust property shall
be deemed to have been registered pursuant to paragraph (1). <Newly Inserted on
Dec. 22, 2020>

(4) Article 8 of the Value-Added Tax Act shall apply mutatis mutandis to a
corporation that has registered its business under this Act. <Amended on Jun. 7,
2013; Dec. 22, 2020>

(5) Where a report on incorporation under Article 109 has been filed, an
application for business registration shall be deemed filed. <Amended on Dec.
22, 2020>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 112 (Keeping Account Books and Making an Entry in Books)

A corporation with tax liability shall make an entry in its account books by the
double entry bookkeeping system, and keep and preserve important evidentiary
documents related to the account books: Provided, That the foregoing shall apply
to a non-profit corporation only where the non-profit corporation engages in any
profit-making business specified in Article 4 (3) 1 and 7 (the foregoing shall
apply to a foreign non-profit corporation only where it earns domestic source
income from such profit-making business). <Amended on Jan. 1, 2013; Dec. 24,
2018>
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 112-2 (Obligation, etc. to Prepare and Keep Detailed Statements
of Donation Receipts Issued)

(1) A corporation that issues donation receipts shall prepare a detailed
statement of donation receipts issued to each donor in the form prescribed by
Presidential Decree and shall keep it for five years from the date on which each
donation receipt is issued; Provided, That this shall not apply where an
electronic donation receipt is issued. <Amended on Jan. 1, 2014; Dec. 22, 2020>

(2) A corporation that issues donation receipts shall submit a detailed
statement of donation receipts for each donor, which it keeps in accordance with
paragraph (1), to the Commissioner of the National Tax Service, the commissioner
of a regional tax office, or the head of the tax office having jurisdiction over
the place of tax payment, upon receipt of a request therefor; Provided, That
this shall not apply where an electronic donation receipt is issued. <Amended on
Jan. 1, 2014; Dec. 22, 2020>

(3) A corporation that issues donation receipts shall submit an aggregate table
of donation receipts, which states the total number of donation receipts issued,
the amount of each donation, etc. during the pertinent business year, in the
form stipulated by Ordinance of the Ministry of Strategy and Finance to the head
of the relevant tax office within six months from the end of the month in which
the relevant business year ends Provided, That this shall not apply where an
electronic donation receipt is issued. <Amended on Jan. 1, 2014; Dec. 22, 2020;
Dec. 21, 2021>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 113 (Separate Accounting)

(1) A non-profit corporation that operates any profit-making business shall keep
separate accounting of assets, liabilities, and profits and losses related to
such profit-making business from the accounting of those related to business,
other than such profit-making business.

(2) A corporation subject to the application of the Financial Investment
Services and Capital Markets Act shall keep separate accounting of the income
accruing from the trust estates and other income for the purpose of calculating
the amount of income for each business year.

(3) A corporation which merges with another domestic corporation shall keep
separate accounting of the assets, liabilities, and profits and losses related
to the business succeeded to from a merged corporation from those related to
other business for any of the following periods: Provided, That as for a merger
made between small and medium enterprises or between corporations engaged in the
same business, separate accounting need not be kept: <Amended on Dec. 31, 2011;
Jan. 1, 2013; Dec. 24, 2018>

1. Where a corporation has losses in Article 13 (1) 1 as at the registration
date of merger, or a corporation intends to deduct losses carried forward of the
merged corporation under Article 45 (2): The period during which such losses or
losses carried forward are deducted;

2. In other cases: Five years after the merger.

(4) In the case of a division and merger of a domestic corporation, a
corporation established through the division, etc. shall keep separate
accounting of the assets, liabilities, and profits and losses related to the
business succeeded to from the divided corporation, etc. and those related to
other business for any of the following periods: Provided, That as for a
division and merger made between small and medium enterprises or between
corporations engaged in the same business, separate accounting need not be kept:
<Amended on Dec. 31, 2011; Jan. 1, 2013; Dec. 24, 2018>

1. Where a corporation intends to deduct losses carried forward of a divided
corporation, etc. under Article 46-4 (2): The period during which such losses
carried forward are deducted;

2. In other cases: Five years after division.

(5) Where a consolidated parent corporation has merged (including a division and
merger in which the consolidated parent corporation is a counterpart corporation
to the division and merger) with another domestic corporation (limited to a
domestic corporation, other than a consolidated corporation as at the
registration date of a merger), it shall keep separate accounting of the assets,
liabilities, and profits and losses related to the business succeeded to from
the merged corporation (including the divided corporation) from those related to
other business for either of the following periods: <Amended on Dec. 31, 2011;
Jan. 1, 2013>

1. Where a corporation has losses referred to in Article 76-13 (1) 1 as at the
registration date of the merger, or intends to deduct losses carried forward of
a merged corporation under Article 76-13 (3) 2: The period eligible for the
deduction of such losses or carried-forward losses;

2. In other cases: Five years after the merger.

(6) The trustee subject to corporate tax shall record the income that reverts to
trust property in separate accounting for each corporate taxable trust property.
<Newly Inserted on Dec. 22, 2020>

(7) A domestic corporation that acquires a business of another domestic
corporation falling under Article 50-2 shall, if it has losses prescribed in
Article 13 (1) 1 as at the date of acquisition of the business, record the
assets, liabilities, and profits and losses that belong to the business acquired
from the transferor corporation and those that belong to other businesses in
separate accounting during the period for which such losses are deducted:
Provided, That where the acquisition of a business is made between small and
medium enterprises or between corporations engaged in the same business,
separate accounting may not be required. <Newly Inserted on Dec. 21, 2021>

(8) Matters necessary for the method of keeping separate accounting, and for
determining as to whether corporations are engaged in the same business under
paragraphs (1) through (7), and other matters shall be prescribed by
Presidential Decree. <Amended on Dec. 22, 2020; Dec. 21, 2021>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 114 Deleted. <Dec. 31, 2001>

법령 이단보기 Article 115 Deleted. <Dec. 26, 2008>

법령 이단보기 Article 116 (Receipt and Keeping of Evidentiary Documents of
Expenditures)

(1) A corporation shall prepare or receive evidentiary documents for all
business-related transactions for each business year and keep them for five
years from the filing deadline specified under Article 60 expires: Provided,
That a corporation that intends to deduct losses incurred in the business year
that began before the fifth anniversary of the commencement date of each
business year from the income for each business year as prescribed in Article 13
(1) 1 shall keep the evidentiary documents for the business year in which the
relevant losses incurred until one year lapses from the filing deadline
specified under Article 60 for the business year to which the deducted income
reverts. <Amended on Dec. 24, 2018>

(2) In cases falling under paragraph (1), where a corporation is supplied with
goods or services by a business operator prescribed by Presidential Decree and
pays for them, it shall receive and keep any of the following evidentiary
documents: Provided, That the same shall not apply to cases prescribed by
Presidential Decree: <Amended on Jun. 7, 2013>

1. Credit card sales slips issued under the Specialized Credit Finance Business
Act (in the case of transactions using things prescribed by Presidential Decree
similar to a credit card, it shall include the relevant evidentiary documents;
hereafter the same shall apply in Article 117);

2. Cash Receipts;

3. Tax invoices issued under Article 32 of the Value-Added Tax Act;

4. Invoices issued under Article 121 of this Act and Article 163 of the Income
Tax Act.

(3) In applying paragraph (2), where a corporation falls under any of the
following, the corporation shall be deemed to fulfill its obligation to receive
and keep evidentiary documents under paragraph (2): <Amended on Dec. 31, 2022>

1. Where a corporation issues and keeps a purchaser-issued tax invoice under
Article 34-2 (2) of the Value-Added Tax Act as it has failed to have a tax
invoice of paragraph (2) 3 issued;

2. Where a corporation issues and keeps a purchaser-issued invoice under Article
121-2 as it has failed to have a tax invoice of paragraph (2) 3 issued;(4) In
applying paragraphs (1) through (3), matters necessary for the receipt and
keeping of evidentiary documents shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 117 (Obligation to Become Credit Card Merchants and to Issue
Credit Card Sales Slips)

(1) Where the Commissioner of the National Tax Service deems it necessary for
tax management of a corporation that meets the requirements prescribed by
Presidential Decree in consideration of business types, etc., which supplies
goods or services mainly to consumers, other than business operators, he/she may
guide it to become a credit card merchant.

(2) No credit card merchant (referring to a merchant who has become such
merchant upon meeting the requirements referred to in paragraph (1); hereafter
in this Article, Articles 66 (2) 3 and 76-6, the same shall apply) shall issue
any false credit card sales slip after supplying goods and services in relation
to the business, on grounds that transactions are made by credit card: Provided,
That a business operator prescribed by Presidential Decree, such as a
superstore, issues a credit card sales slip after aggregating the sales of other
business operators by the method prescribed by Presidential Decree, such as
installing and operating the point-of-sale information system, it shall not be
deemed to have issued false credit card sales slips. <Amended on Dec. 24, 2018>

(3) Where a credit card merchant refuses a transaction by credit card or issues
a false credit card sales slip, the relevant consumer may report the details of
the relevant transaction to the Commissioner of the National Tax Service, the
Commissioner of the competent Regional Tax Office or the head of the competent
tax office.

(4) Any entity in receipt of a report filed under paragraph (3) shall give a
notice thereon to the head of the tax office having jurisdiction over the credit
card merchant's place of tax payment. In such cases, the head of the tax office
having jurisdiction over the place of tax payment shall notify the relevant
credit card merchant of the amount reported for the relevant business year.

(5) The Commissioner of the National Tax Service may order to any credit card
merchant who has refused a transaction by credit card or has issued a false
credit card sales slip with respect to matters necessary to correct it. <Amended
on Dec. 24, 2018>

(6) The administrative guidance for becoming credit card merchants, the method
of reporting and giving notices on a refusal of transactions by credit card and
issuance of a false credit card sales slip, and other necessary matters shall be
prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 117-2 (Obligation to Become Cash Receipt Merchants and to Issue
Cash Receipts)

(1) Every corporation that meets the requirements prescribed by Presidential
Decree giving due consideration to the type of business, etc., among
corporations that supply goods or services mainly to consumers, not to business
operators, shall become a Cash Receipt merchant within three months from the end
of the month in which the corporation meets the requirements. <Amended on Dec.
15, 2015>

(2) Every corporation which has become a Cash Receipt merchant pursuant to
paragraph (1) shall display a mark indicating that it is a Cash Receipt
merchant, as prescribed by the Commissioner of the National Tax Service.

(3) No Cash Receipt merchant shall refuse to issue a Cash Receipt or issue a
false Cash Receipt upon receipt of a request by a consumer to issue a Cash
Receipt for payment in cash after supplying any goods or services: Provided,
That it need not to issue a Cash Receipt where it is impractical to issue it in
circumstances prescribed by Presidential Decree, and where a business operator
prescribed by Presidential Decree, such as a superstore, issues a Cash Receipt
after aggregating the sales of other business operators by the method prescribed
by Presidential Decree, such as installing and operating the point-of-sale
information system, it shall not be deemed to have issued a false Cash Receipt.
<Amended on Dec. 31, 2011>

(4) Where a domestic corporation that engages in the type of business prescribed
by Presidential Decree supplies goods or services for the amount of at least
100,000 won for each transaction (including the value-added tax thereon) and is
paid in cash, notwithstanding paragraph (3), it shall issue the cash receipt, as
prescribed by Presidential Decree, although a consumer does not request the
issuance of a cash receipt: Provided, That the domestic corporation may choose
not to issue a cash receipt where it issues an invoice or tax invoice under
Article 121 of this Act, Article 163 of the Income Tax Act, or Article 32 of the
Value-Added Tax Act after having supplied goods or services to a person who has
registered his/her business pursuant to Article 111 of this Act, Article 168 of
the Income Tax Act, or Article 8 of the Value-Added Tax Act. <Amended on Jun. 7,
2013; Jan. 1, 2014>

(5) Where a cash receipt merchant or a domestic corporation obliged to issue a
cash receipt fails to issue a cash receipt, in violation of paragraph (3) or
(4), or issue a false cash receipt, the other party may report the details of
the relevant cash transaction to the Commissioner of the National Tax Service,
the commissioner of a regional tax office, or the head of a tax office. <Amended
on Dec. 24, 2018>

(6) Any person in receipt of a report filed under paragraph (5) shall give a
notice thereof to the head of the tax office having jurisdiction over the place
of tax payment of the relevant Cash Receipt merchant. In such cases, the head of
the tax office having jurisdiction over the place of tax payment shall notify
the relevant Cash Receipt merchant of the amount reported for the relevant
business year.

(7) A corporation that has become a Cash Receipt merchant may issue a Cash
Receipt, as prescribed by Presidential Decree, although a consumer supplied with
goods or services from it does not request the issuance of a Cash receipt.
<Newly Inserted on Dec. 31, 2011>

(8) The Commissioner of the National Tax Service may issue a necessary order to
a corporation that has become a Cash Receipt merchant, in relation to matters to
be observed by such corporation, such as how to issue Cash Receipts and display
a mark indicating that it is a Cash Receipt merchant. <Amended on Dec. 31, 2011>

(9) Becoming and withdrawing from a Cash Receipt merchant, the amount subject to
issuance of a Cash Receipt, the methods of reporting or giving notice of refusal
to issue a Cash Receipt or issuance of a false Cash Receipt, and other necessary
matters, shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2011>

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 118 (Preparation and Keeping of Stockholder Register)

A domestic corporation (excluding a non-profit domestic corporation) shall
prepare and keep a stockholder register or employee register stating the matters
prescribed by Presidential Decree, such as names, addresses, and resident
registration numbers (referring to the names, locations of the headquarters of
corporations, and the business registration numbers if such stockholders or
employees are corporations) of the stockholders or employees (referring to
employees of a limited liability company; hereafter the same shall apply in this
Article).
[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 119 (Submission of Detailed Statement of Changes in Stocks)

(1) A corporation (excluding a partnership corporation, etc. prescribed by
Presidential Decree) whose stocks, etc. changes during a business year shall
submit a detailed statement of changes in stocks, etc. to the head of the tax
office having jurisdiction over the place of tax payment by the filing deadline
specified in Article 60, as prescribed by Presidential Decree.

(2) Paragraph (1) shall not apply to any of the following stocks, etc.: <Amended
on Dec. 31, 2011>

1. A corporation prescribed by Presidential Decree among listed-stock
corporations: Stocks, etc. held by the stockholders, etc., other than a
controlling stockholder (including any related party thereof);

2. A corporation, other than those referred to in subparagraph 1: Stocks, etc.
held by a minority stockholder of the relevant corporation.

(3) The scope of a controlling stockholder and a minority stockholder referred
to in paragraph (2) and other necessary matters shall be prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 120 (Obligation to File Payment Statements)

(1) Any person who pays a domestic corporation the income provided in Article
127 (1) 1 or 2 of the Income Tax Act (including a person obliged to withhold tax
pursuant to any provision of Articles 73 (4) through (6) and 73-2) shall file
payment statements to the head of the tax office having jurisdiction over the
place of tax payment, as prescribed by Presidential Decree. In such cases, with
regard to income accruing from each piece of trust property of a corporation
subject to the Financial Investment Services and Capital Markets Act, as the
income shall be deemed paid to such corporation, any person who pays such income
shall submit such payment statements, notwithstanding Article 5 (4). <Amended on
Dec. 31, 2011; Jan. 1, 2013; Dec. 24, 2018; Dec. 22, 2020>

(2) Article 164 of the Income Tax Act shall apply mutatis mutandis to the
submission of payment statements under paragraph (1).

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 120-2 (Special Cases concerning Obligation to File Payment
Statements on Domestic Source Income, etc. of Foreign Corporations)

(1) Any person who pays domestic source income to any foreign corporation under
Article 93 (where stocks are listed pursuant to the Financial Investment
Services and Capital Markets Act, and if stocks issued before the listing are
transferred, referring to the corporation that has issued such stocks) shall
file a payment statement with the head of the tax office having jurisdiction
over the place of tax payment by the end of February of the year following the
year (in the case of suspension or closure of business, by the end of the second
month from the month in which such business is suspended or closed) in which
such payment is made: Provided, That the same shall not apply where income
prescribed by Presidential Decree is paid, including non-taxable or tax-exempted
income that is verified under Article 98-4. <Amended on Dec. 22, 2020>

(2) Article 164 of the Income Tax Act shall apply mutatis mutandis to the
submission of payment statements under paragraph (1).

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 120-3 (Submission of Aggregate Tax Invoices for Individual
Suppliers)

(1) Upon receipt of a tax invoice issued under Article 32 (1) or (7) or Article
35 (1) of the Value-Added Tax Act after being supplied with goods or services,
any corporation which operates a business exempt from the value-added tax under
the Value-Added Tax Act and the Restriction of Special Taxation Act shall submit
an aggregate tax invoice for individual suppliers (referring to an aggregate tax
invoice for individual suppliers provided in Article 54 of the Value-Added Tax
Act; hereinafter the same shall apply) to the head of the tax office having
jurisdiction over the place of tax payment by the deadline prescribed by
Presidential Decree: Provided, That the same shall not apply where such invoice
is submitted under Article 54 (5) of the Value-Added Tax Act. <Amended on Jun.
7, 2013>

(2) Matters necessary to submit an aggregate table of tax invoices by seller
shall be prescribed by Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 120-4 (Submission of Virtual Asset Transaction Details, etc.)

A virtual asset service provider whose report has been accepted under Article 7
of the Act on Reporting and Using Specified Financial Transaction Information
shall submit data necessary for imposing corporate tax, such as details of
trading of virtual assets, to the head of the tax office having jurisdiction
over the place of tax payment by the end of the month that is two months after
the end of the quarter in which the date of trading falls, as prescribed by
Presidential Decree.
[This Article Newly Inserted on Dec. 31, 2022]

법령 이단보기 Article 121 (Preparation, Issuance, etc. of Invoices)

(1) Every corporation that supplies goods or services, shall issue an invoice or
receipt (hereinafter referred to as "invoice, etc."), as prescribed by
Presidential Decree, to a person to whom the goods or services are supplied. In
such cases, any invoice issued shall be an invoice prepared in an electronic
format prescribed by Presidential Decree (hereinafter referred to as “electronic
invoice”). <Amended on Dec. 23, 2014>

(2) Where agricultural products, livestock products, fishery products, and
forest products exempt from the value-added tax pursuant to Article 26 (1) 1 of
the Value-Added Tax Act are sold on consignment or through an agent, the
consignee or agent shall be deemed to have supplied goods and shall issue an
invoice, etc., to a person supplied with the relevant goods: Provided, That the
same shall not apply where such invoice, etc., is issued, as prescribed by
Presidential Decree, pursuant to paragraph (1). <Amended on Jun. 7, 2013>

(3) For imported goods, the head of a customhouse shall issue an invoice to a
corporation that imports the relevant goods, as prescribed by Presidential
Decree.

(4) Paragraphs (1) through (3) shall not apply to cases prescribed by
Presidential Decree where it is deemed inappropriate to issue an invoice, etc.,
such as sale of real estate, etc.

(5) Every corporation shall submit a statement of invoices issued to, or
received from, each purchaser or supplier pursuant to paragraphs (1) through (3)
(hereinafter referred to as "an aggregate invoice for each supplier or
purchaser") to the head of the tax office having jurisdiction over the place of
tax payment by the deadline specified by Presidential Decree: Provided, That a
corporation does not need to submit an aggregate invoice in either of the
following cases: <Amended on Dec. 23, 2014>

1. An aggregate invoice for the invoices that the corporation received from a
supplier pursuant to paragraph (3);

2. Aggregate invoices for each purchaser and each supplier, where the
corporation has transmitted aggregate invoices to the Commissioner of the
National Tax Service pursuant to paragraph (7) for the electronic invoices
issued or received under the latter part of paragraph (1).

(6) Any portion in relation to which tax invoices or receipts are issued under
the Value-Added Tax Ac or aggregate tax invoices for individual suppliers or
purchasers are submitted shall be deemed a portion in relation to which
invoices, etc., issued or aggregate invoices for individual suppliers or
purchasers are submitted under paragraphs (1) through (3), and (5).

(7) Every corporation that issues electronic invoices pursuant to the latter
part of paragraph (1), shall transmit a detailed statement of such electronic
invoices in the form prescribed by Presidential Decree by the deadline specified
by Presidential Decree. <Newly Inserted on Dec. 23, 2014>

(8) Matters necessary for preparing and issuing invoices, etc., and submitting
aggregate invoices for each supplier or purchaser shall be prescribed by
Presidential Decree.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 121-2 (Purchaser-Issued Invoice)

(1) Notwithstanding Article 121 or Article 163 of the Income Tax Act, where a
corporation supplied with goods or services from any other corporation or a
business operator registered under Article 168 of the Income Tax Act (hereafter
referred to as a “business operator” in this paragraph) in connection with its
business fails to receive an invoice due to the bankruptcy or closure of the
corporation or business operator that has supplied the goods or services,
cancellation or modification of the supply contract, or any other reasons
prescribed by Presidential Decree, such corporation may issue an invoice
(hereinafter referred to as “purchaser-issued invoice) with approval of the head
of the tax office having jurisdiction over the place of tax payment.

(2) The cases and methods of issuing purchaser-issued invoices and other
necessary matters shall be prescribed by Presidential Decree.

[This Article Newly Inserted on Dec. 31, 2022]

법령 이단보기 Article 121-3 Deleted. <Dec. 24, 2018>

법령 이단보기 Article 121-4 Deleted. <Dec. 22, 2020>

법령 이단보기 Article 122 (Inquiry and Inspection)

Where it is necessary for a public official to perform corporate tax-related
affairs, the public official may question any of the following persons, or
investigate the relevant account books, documents, and other items or order the
submission thereof. In such cases, the authority shall not be abused for purpose
other than those necessary for performing duty: <Amended on Dec. 24, 2018>

1. Any person liable to pay tax or any person deemed liable to pay tax;

2. A withholding agent;

3. A person obligated to submit a payment statement and a person obligated to
submit an aggregate invoice for individual suppliers or purchasers;

4. A person responsible for operation and management under Article 109 (2) 3;

5. A person deemed to have engaged in a transaction with a person falling under
subparagraph 1;

6. A trade association organized by persons liable to pay tax and an
organization corresponding thereto;

7. A corporation which has issued donation receipts.

[This Article Wholly Amended on Dec. 30, 2010]

법령 이단보기 Article 122-2 (Request for Computerized Registration Data)

Where necessary for determining a related party and controlling stockholder,
etc. prescribed by Presidential Decree, the Commissioner of the National Tax
Service may request the Minister of the National Court Administration to provide
computerized registration data in Article 11 (4) of the Act on the Registration,
etc. of Family Relationships. In such cases, the Minister of the National Court
Administration, upon receipt of such request, shall comply therewith, except in
extenuating circumstances.
[This Article Newly Inserted on Dec. 24, 2018]
CHAPTER VII PENTALTY PROVISIONS

법령 이단보기 Article 123 Deleted. <Dec. 22, 2020>

법령 이단보기 Article 124 (Administrative Fines for Non-Compliance with Order)

The head of the tax office having jurisdiction over the place of tax payment
shall impose an administrative fine not exceeding 20 million won on a
corporation that fails to comply with any of the following orders:

1. Orders for credit card merchants in Article 117 (5);

2. Orders for cash receipt merchants in Article 117-2 (8).

[This Article Newly Inserted on Dec. 24, 2018]
ADDENDA <Act No. 5581, Dec. 28, 1998>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 1999: Provided, That the amended
provisions of Articles 8, 16, 17, 33, 34, 36, 46 through 49, 59, 63, 79, 81, 84,
86 and 99 (11) (limited to portions governing divisions) and the amended
provisions of Article 29 (1) shall enter into force on the date of its
promulgation, the amended provisions of Articles 28 (2) through (4) and 76 (5)
shall enter into force on January 1, 2000, and the amended provisions of
Articles 76 (9) 1 and 121 (2) shall enter into force on July 1, 1999.
Article 2 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force: Provided, That the amended provisions governing the corporate
tax on liquidation income shall apply from the first dissolution or merger which
occurs after this Act enters into force or from a division occurring in the
business year during which this Act enters into force, and the amended
provisions governing special penalty tax shall apply from the first transfer
that occurs after this Act enters into force.
Article 3 (Applicability to Special Cases concerning Mergers and Divisions)
The amended provisions of Article 8, subparagraphs 3 and 4 of Article 17, and
Articles 44 through 49, 59 (3), 99 (11) (limited to portions governing
divisions) and 113 (3) shall apply from the first merger after this Act enters
into force or from the division occurring in the business year in which this Act
enters into force.
Article 4 (Applicability to Report and Payment)

(1) The amended provisions of Articles 6, 7, 62, and 109 through 111 shall apply
from the first arriving deadline for filing or registration after this Act
enters into force.

(2) The amended provisions of Articles 60 and 63 through 65 shall apply from the
first report or payment of corporate tax for the business year which first
starts after this Act enters into force: Provided, That the amended provisions
of Article 63 (1) shall apply to the first interim prepaid portion after this
Act enters into force.

(3) The amended provisions of Articles 66 through 70 shall apply from the first
report, determination, or correction after this Act enters into force.

(4) The amended provisions of Articles 71 and 89 shall apply from the first
arriving deadline for payment of corporate tax after this Act enters into force.

(5) The amended provisions of Articles 73 through 75 shall apply from the first
payment made after this Act enters into force.

Article 5 (Applicability to Constructive Dividends or Distributions)
The amended provisions of Article 16 shall apply from the first retirement, etc.
of stocks, transfer into capital or dissolution after this Act enters into
force: Provided, That the amended provisions of Article 16 (1) 2 (a) (limited to
merger evaluation marginal profits and marginal profits upon merger evaluation)
shall apply from the first merger after this Act enters into force or transfer
into capital, etc. generated by a division during the business year in which
this Act enters into force, and the amended provisions of subparagraph 6 of the
same paragraph shall apply from a division occurring in the business year in
which this Act enters into force.
Article 6 (Applicability to Calculation of Deductible Expenses)

(1) The amended provisions of Article 28 (2) through (4) shall apply from the
first business year that starts on or after January 1, 2000.

(2) The amended provisions of Articles 29 (excluding paragraph (1)) through 34
(excluding paragraph (3)), 36 through 38, and 61 shall apply from inclusion in
deductible expenses in the first business year beginning after this Act enters
into force: Provided, That the amended provisions of Article 29 (1) shall apply
from inclusion in deductible expenses in the business year in which this Act
enters into force, the amended provisions of Articles 31 (4), 32 (4), 33 (3), 34
(6), and 36 (3) (including where the amended provisions of Articles 37 (2) and
38 (2) shall apply mutatis mutandis) shall apply from the first dissolution
after this Act enters into force or from a division occurring in the business
year in which this Act enters into force.

(3) The amended provisions of Article 34 (3) shall apply from the first
guarantee of debts (including guarantee of debts made before this Act enters
into force for time limit which the has been extended) or payment after this Act
enters into force: Provided, That for a corporation subject to the previous
provisions of Article 14 (1), the amended provisions of Article 34 (3) 1 shall
apply from the first guarantee of debts on or after January 1, 1998 (including
guarantee of debts made prior to December 31, 1997 for which the time limit has
been extended).

(4) The amended provisions of Article 52 shall apply to the first transaction
after this Act enters into force.

(5) The amended provisions of Articles 92 (2) 3 and 98 (1) 4 shall apply to the
first transfer after this Act enters into force.

Article 7 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (1) shall apply from the collection of
corporate tax in the first business year that starts after this Act enters into
force.

(2) The amended provisions of Articles 76 (4) and 115 shall apply from a
combined financial statements submitted in the first business year that starts
after this Act enters into force. In such cases, the deadline for submission for
the business year which starts between the date of the enforcement of this Act
and December 31, 1999 shall be seven months from the end of the relevant
business year, notwithstanding the amended provisions of Article 115.

(3) The amended provisions of Article 76 (5) shall apply from the first goods or
services provided on or after January 1, 2000, and the amended provisions of
Article 116 shall apply from the first goods or services provided after this Act
enters into force.

(4) The amended provisions of Article 76 (6) shall apply from a detailed
statement submitted in the first business year that starts after this Act enters
into force, and the amended provisions of Article 119 (1) (excluding the
provisions governing the filing deadline) shall apply from the first statement
submitted after this Act enters into force.

(5) The amended provisions of Article 76 (8) shall apply from the first arriving
deadline for submission after this Act enters into force.

(6) The amended provisions of Articles 76 (9) 1 and 121 (2) shall apply from
what is first provided on or after July 1, 1999.

(7) The amended provisions of Article 114 shall apply from the first arriving
deadline for public announcement after this Act enters into force.

Article 8 (Special Cases concerning Calculation of Income from Profit-Making
Business)

(1) In the application of the amended provisions of Article 3 (2) 4, the
acquisition value of stocks or investment shares acquired on or before December
31, 1988 may either of the book value or any of the following amounts, whichever
is larger:

1. For stocks or investment shares listed on a stock exchange, the higher amount
of the stock exchange final market value on December 31, 1988 (regardless of the
existence of any real transaction) or the average of the officially announced
stock exchange final market value for each day of December 1988;

2. For stocks or investment shares not listed on a stock exchange, the value as
at January 1, 1989 as evaluated under Article 60 of the Inheritance Tax and Gift
Tax Act and Article 63 (1) 1 (b) and (c) of the same Act.

(2) In the application of the amended provisions of Article 3 (2) 5, the
acquisition value of land and buildings acquired on or before December 31, 1990
(including attached facilities and structures) may be the larger amount of the
book value or the value as at January 1, 1991 as evaluated under Article 60 of
the Inheritance Tax and Gift Tax Act and Article 61 (1) through (3) of the same
Act.

Article 9 (Special Cases concerning Application of Non-Inclusion of
Entertainment Expenses in Deductible Expenses)

(1) In the application of the amended provisions of Article 25 (1) 2, for the
business year that starts between the date of the enforcement of this Act and
December 31, 1999, the rates applied shall be as in the following table,
notwithstanding the table under the amended provisions of the table under the
same subparagraph:

+--------------+-------------------------------------------------------------+
| Amount of Income | Rate |
+--------------+-------------------------------------------------------------+
| 10,000,000,000 won or less | 30/10,000 |
+--------------+-------------------------------------------------------------+
| More than 10,000,000,000 won and up to 50,000,000,000 won | |
| | 30,000,000 won ＋ 15/10,000 of the amount in excess of 10,000,000,000 won |
+--------------+-------------------------------------------------------------+
| More than 50,000,000,000 won | 90,000,000 won + 4/10,000 of the amount in
excess of 50,000,000,000 won |
+--------------+-------------------------------------------------------------+

(2) In the application of the amended provisions of Article 25 (2) and (4), for
the business year that starts between the date of the enforcement of this Act
and December 31, 1999, the amount of secret service funds under the previous
provisions of the proviso to Article 18-2 (3) within 10/100 of the sum of the
amounts under each subparagraph of Article 25 (1) appropriate amount shall be
deemed the business-related entertainment expenses paid, and the amended
provisions of Article 25 (2) shall not apply.

Article 10 (Special Cases concerning Timing for Acquisition of Land, etc.)
In the application of the amended provisions of Article 99, the land, etc.
acquired on or before December 31, 1984 shall be deemed land, etc. acquired on
January 1, 1985.
Article 11 (General Transitional Measures)
Corporate tax paid or payable under the previous provisions before this Act
enters into force shall be governed by the previous provisions.
Article 12 (Transitional Measures on Non-Taxation of Interest Income)
Corporate Tax shall not be imposed on income accrued from any of the following
bonds or savings:

1. National housing bonds issued under the Housing Construction Promotion Act by
the Korea Housing and Commercial Bank under the previous Korea Housing and
Commercial Bank Act before January 1, 1982;

2. Any of the following bonds issued before January 1, 1983:

(a) National bonds for industrial reconstruction issued by the State under the
previous Industrial Reconstruction Bonds Act;

(b) Bonds issued by the State as compensation for requisition under the Act on
Special Measures for Readjustment of Requisitioned Properties;

(c) Bonds issued by the State under the previous Act on Temporary Measures
concerning the Settlement of Communication Facilities;

(d) National housing bonds issued by the State under the Housing Construction
Promotion Act;

(e) Subway public bonds, roads public bonds, and waterworks public bonds issued
by local governments under the Local Finance Act;

(f) Land development bonds issued by the Korea Land Corporation under the Korea
Land Corporation Act;

3. Interest on savings in the National Savings Association generated before
December 31, 1990.

Article 13 (Transitional Measures concerning Inclusion of Reserve Funds, etc. in
Gross Income, etc.)

(1) For the inclusion of reserve funds, etc. in the calculation of deductible
expenses under the previous Article 12 (3) before this Act enters into force in
the calculation of gross income, the previous provisions shall govern.

(2) The timing for accrual of gross income and deductible expenses for
transactions, etc. under the application of the previous Article 17 as at the
time this Act enters into force shall be governed by the previous provisions.

(3) The withholding tax rate on interest income from bonds, etc. issued under
the previous Article 39 (6) before September 30, 1998 shall be 20%,
notwithstanding the amended provisions of Article 73 (1) 1.

Article 15 (Relationship with other Acts and Subordinate Statutes)
Where other Acts and subordinate statutes cite the previous Corporate Tax Act as
at the time this Act enters into force, and the corresponding provisions exist
herein, they shall be deemed to have cited the corresponding provisions of this
Act in lieu of the previous provisions.
ADDENDA <Act No. 6047, Dec. 28, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000.
Article 2 (Applicability)

(1) The amended provisions of Article 18-2 shall apply from the first dividend
to be distributed from a subsidiary after this Act enters into force.

(2) The amended provisions of Article 36 shall apply from the business assets
acquired and renovated using the first subsidy to be granted after this Act
enters into force.

(3) The amended provisions of Article 73 (1) and (5) shall apply from payment of
first accruing interest income after this Act enters into force.

ADDENDA <Act No. 6259, Feb. 3, 2000>

(1) (Enforcement Date) This Act shall enter into force on the date of its
promulgation.

(2) (General Applicability) This Act shall apply from the first report on tax
base on the special penalty tax or the first determination or correction thereof
after this Act enters into force.

(3) (Applicability to Litigation Cases on Special Penalty Tax) This Act shall
apply to a disposition made under Article 59-2 (1) (limited to appeals, requests
for review, requests for adjudication or administrative lawsuits that have
already been filed) under the previous Corporate Tax Act (referring to the Act
before amendment by Act No. 5581). <Newly Inserted on Dec. 29, 2000>

ADDENDA <Act No. 6293, Dec. 29, 2000>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2001: Provided, That the amended
provisions of Articles 25 (2) and 98-2 shall enter into force on the date of its
promulgation, the amended provisions of Articles 73 (1), (6), (8) and (9), 74
(2) and 98-3 shall enter into force on July 1, 2001, the amended provisions of
the main sentence of Article 28 (2) shall enter into force on January 1, 2002,
and the amended provisions of Articles 66 (2), 76 (7) and (8) and 120-2 shall
enter into force on July 1, 2002.
Article 2 (General Applicability)
This Act shall apply from the first business year that starts after this Act
enters into force.
Article 3 (Applicability to Non-Inclusion of Received Dividends in Gross Income)
The amended provisions of Articles 18-2 (1) and (3) and 18-3 shall apply from
the first dividend to be distributed after this Act enters into force.
Article 4 (Applicability to Non-Inclusion of Entertainment Expenses in
Deductible Expenses)
The amended provisions of Article 25 (2) shall apply from entertainment expenses
included in deductible expenses for the business year in which this Act is
promulgated.
Article 5 (Applicability to Non-Inclusion of Paid Interest on Deductible
Expenses)
The amended provisions of the main sentence of Article 28 (2) shall apply from
the first business year starts on or after January 1, 2002.
Article 6 (Applicability to Inclusion of Reserve Funds for Policyholder
Dividends in Deductible Expenses)
The amended provisions of Article 31 (4) shall apply from the first portion to
be included in deductible expenses for the business year in which this Act
enters into force.
Article 7 (Applicability to Securities Trading Reserve)
The amended provisions of Article 32 shall apply from the business year in which
this Act enters into force.
Article 8 (Applicability to Income Deduction for Mutual Funds, etc.)
The amended provisions of Article 51-2 (1) 2 and 3 shall apply from the first
distributed portion after this Act enters into force.
Article 9 (Applicability to Interim Prepayment)
The amended provisions of the proviso of Article 63 (1) shall apply from the
first interim prepayment to be made after this Act enters into force.
Article 10 (Applicability to Withholding)

(1) The amended provisions of Article 73 (1) shall apply from interest income
first accrued or earnings distributed from securities investment trust fund
first paid on or after July 1, 2001.

(2) The amended provisions of Articles 73 (6) and (8), 74 (2), and 98-3 shall
apply from first bonds, etc. to be sold or first interest, etc. to be paid on or
after July 1, 2001.

(3) The previous provisions of Articles 73 (6) and 74 (2) shall apply to bonds,
etc. issued before July 1, 2001 until the first payment date of interest, etc.
on bonds, etc. on or after July 1, 2001 where the interest computing period
spans over the periods before or on or after July 1, 2001.

Article 11 (Applicability to Domestic Source Income of Foreign Corporations)

(1) The amended provisions of Article 92 (2) 2 (proviso), subparagraphs 7 and 10
of Article 93, and Article 98 (1) 4 (proviso) shall apply from the first portion
to be transferred after this Act enters into force.

(2) The amended provisions of subparagraph 11 of Article 93 shall apply from the
first accrued income after this Act enters into force.

Article 12 (Applicability to Special Cases concerning Reports, etc. on Capital
Gains on Transfer of Securities by Foreign Corporations)
The amended provisions of Article 98-2 shall apply from the portion that first
meets the taxable criteria under the corresponding taxation treaty after the
promulgation of this Act.
Article 13 (Applicability to Submission of Written Payment Statements by Foreign
Corporations)
The amended provisions of Articles 66 (2) 2, 76 (7) and (8), and 120-2 shall
apply from the first payment made on or after July 1, 2002. <Amended on Dec. 31,
2001>
Article 14 (Applicability to Special Penalty Tax)
The amended provisions of Articles 99, 102, and 104 shall apply from the first
portion to be transferred after this Act enters into force.
Article 15 (Transitional Measures concerning Inclusion of Securities Trading
Reserves in Gross Income)
The previous provisions shall apply to inclusion, etc. of securities trading
reserves included in calculation of deductible expenses under the previous
provisions of Article 32 before the enforcement of this Act in gross income.
ADDENDA <Act No. 6558, Dec. 31, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2002: Provided, That the amended
provisions of Articles 45 (1), 61 (1), 76 (3) and (5), and 114 shall enter into
force on the date of its promulgation, and the amended provisions of Articles
98-4 and 120-2 (1) shall enter into force on July 1, 2002.
Article 2 (General Applicability)
This Act shall apply from the first business year that starts after this Act
enters into force.
Article 3 (Applicability to Constructive Dividends or Distributions)
The amended provisions of Article 16 (1) 2 shall apply from the first equity
stocks or investment shares to be retired after this Act enters into force.
Article 4 (Applicability to Non-Inclusion of Amount of Dividends in Gross
Income)
The amended provisions of Articles 18-2 (1) 4 and 18-3 (2) shall apply from the
first dividend to be distributed after this Act enters into force.
Article 5 (Applicability to Inclusion of Value of Business Assets Acquired Using
National Subsidies, etc. in Deductible Expenses)
The amended provisions of Article 36 (1) and (4) shall apply from the first
National subsidy granted after this Act enters into force.
Article 6 (Applicability to Succession of Losses Carried Forward at Time of
Merger)
The amended provisions of Article 45 (1) 1 shall apply from a merger that is
effected in the business year in which this Act is promulgated.
Article 7 (Applicability to Inclusion of Amount Equivalent to Transfer Marginal
Profit of Assets Generated from Spin-off in Deductible Expenses)
The amended provisions of Article 47 shall apply from the first division or
merger that is effected after this Act enters into force.
Article 8 (Applicability to Income Deduction for Corporate Restructuring Real
Estate Investment Companies)
The amended provisions of Article 51-2 (1) 4 shall apply from the first dividend
to be distributed after this Act enters into force.
Article 9 (Applicability to Special Cases concerning Taxation on Capital Gains
on Transfer of Land, etc.)
The amended provisions of Articles 2 (2), 55, 55-2, 57, 59, 63 (1), 76 (1) 1, 92
(2) through (6), 95 and 95-2 shall apply from the first portion to be
transferred after this Act enters into force.
Article 10 (Applicability to Special Cases concerning Appropriation of Reserve
Funds for Deductible Expenses)
The amended provisions of Article 61 (1) shall apply from the first portion that
is appropriated in the tax settlement invoice of the business year in which this
Act is promulgated.
Article 11 (Applicability to Special Cases concerning Taxation of Capital Gains
on Transfer of Assets by Non-Profit Domestic Corporations)
The amended provisions of Article 62-2 shall apply from the first portion to be
transferred after this Act enters into force.
Article 12 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (1) 3 shall apply from the first
arriving payment deadline after this Act enters into force.

(2) The amended provisions of Article 76 (5) will apply from goods and services
supplied in the business year in which this Act enters into force.

Article 13 (Applicability to Domestic Source Income by Foreign Corporation)
The amended provisions of subparagraphs 2 and 11 of Article 93 shall apply from
the disposed portion as a dividend or other income after this Act enters into
force.
Article 14 (Applicability to Tax Withholding of Bonds, etc. of Foreign
Corporations)
The amended provisions of Article 98-3 shall apply from the first interest, etc.
to be paid or first bonds, etc. to be sold after this Act enters into force.
Article 15 (Applicability to Application for Non-Taxation, etc. on Domestic
Source Income by Foreign Corporations)
The amended provisions of Article 98-4 shall apply from the first untaxed or
exempt portion on or after July 1, 2002.
Article 16 (Applicability to Obligation to Publish Balance Sheets)
The amended provisions of Articles 76 (3) and 114 shall apply from the business
year in which this Act is promulgated.
Article 17 (Applicability to Submission of Written Payment Statements on
Domestic Source Income by Foreign Corporation)
The amended provisions of Article 120-2 (1) shall apply from the first payment
made on or after July 1, 2002.
Article 18 (Applicability to Preparation, Issuance, etc. of Invoice)
The amended provisions of Article121 shall apply from the first goods or
services to be supplied or imported after this Act enters into force.
Article 19 (Transitional Measures concerning Non-Inclusion of Dividends by
Corporation Belonging to Large Business Group)
Notwithstanding the amended provisions of Article 18-3 (2), the non-inclusion of
the amount of dividend that any domestic corporation belonging to a large
business group earns from its affiliate in the gross income shall be governed by
the previous provisions.
Article 20 (Transitional Measures concerning Acquisition Tax on Non-Business
Land)
The acquisition tax on the non-business land of any corporation under Article
112 (2) of the previous Local Tax Act (referring to the Local Tax Act before
amendment by Act No. 6312) (limited to the amount exceeding the amount of tax
calculated under paragraph (1) of the same Article of the same previous Act) and
the non-inclusion of the refund amount in deductible expenses and gross income
shall be governed by the previous provisions of subparagraph 7 of Article 18 and
subparagraph 3 of Article 21.
Article 21 (Transitional Measures concerning Inclusion of Amount Equivalent to
Reappraisal Difference of Land in Deductible Expenses)
The amount that has been included in deductible expenses under the previous
provisions of Article 39 and is later included in gross income, etc. at the time
that this Act enters into force shall be governed by the previous provisions.
Article 22 (Transitional Measures concerning Corporate Tax on Income Exceeding
Proper Reserves)
The disposal of the Corporate Development Reserve Fund raised under the previous
provisions of Article 56 and the payment, etc. of the corporate tax that is
incurred by the disposal of such fund for other purposes as at the time that
this Act enters into force shall be governed by the previous provisions.
Article 23 (Transitional Measures concerning Repeal of Special Penalty Tax)
Any special penalty tax imposed or to be imposed under the previous provisions
as at the time that this Act enters into force shall be governed by the previous
provisions.
Article 25 (Transitional Measures following Amendments to other Acts)
Where the special penalty tax is imposed on the income accrued the transfer,
etc. of lands or business before this Act enters into force, the amount of such
special penalty tax recognized as development costs shall be governed by the
previous provisions, notwithstanding the amended provisions of Article 24 of
this Addenda.
ADDENDA <Act No. 6852, Dec. 30, 2002>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 7005, Dec. 30, 2003>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2004: Provided, That the amended
provisions of Articles 5 (2), 29 (1) 2, 51-2 (1) 2, 62 (1), 73 (1) through (3),
113 (2) shall enter into force on January 5, 2004, and the amended provisions of
Article 55 (1) shall enter into force on January 1, 2005.
Article 2 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force.
Article 3 (Applicability to Non-Inclusion of Holding Company's Received
Dividends in Gross Income)
The amended provisions of Article 18-2 (1) 4 shall apply from the first dividend
to be distributed from a subsidiary after this Act enters into force.
Article 4 (Applicability to Income Deduction of Dividends of Ship Investment
Companies)
The amended provisions of Article 51-2 (1) 5 shall apply from the first dividend
to be distributed after this Act enters into force.
Article 5 (Applicability to Special Cases concerning Taxation on Transfer of
Land)
The amended provisions of Article 55-2 (1) shall apply from the first transfer
after this Act enters into force.
Article 6 (Applicability to Correction, etc. of Corporate Tax Resulting from
Wrongful Accounting)
The amended provisions of Articles 58-3, 59 (1) 4, 66 (2) 4 and 72-2 shall apply
from the first disposition, such as warning and attention due to wrongful
accounting after this Act enters into force.
Article 7 (Applicability to Exemption from Collection of Withholding Tax in case
of Non-Execution of Withholding)
The amended provisions of proviso of Article 71 (3) shall apply from the first
payment after making a determination or correction after this Act enters into
force.
Article 8 (Applicability to Scope of Domestic Source Income)

(1) The amended provisions of subparagraph 4 of Article 93 shall apply from the
first lease after this Act enters into force.

(2) The amended provisions of subparagraph 6 of Article 93 shall apply from the
first supply of services after this Act enters into force.

(3) The amended provisions of subparagraph 11 (i) of Article 93, Article 98 (10)
and (11) shall apply from the first capital transaction to be made after this
Act enters into force.

Article 9 (Applicability to Reports, etc. on Corporate Tax by Foreign
Corporations)
The amended provisions of the former part of Article 97 (1) shall apply from the
first report on the tax base and amount after this Act enters into force.
Article 10 (Applicability to Withholding of Capital Gains)
The amended provisions of Article 98 (1) shall apply from the first transfer
after this Act enters into force.
Article 11 (Applicability to Special Cases concerning Obligation to Submit
Written Payment Statements on Domestic Source Income, etc. by Foreign
Corporation)
The amended provisions of main sentence of Article 120-2 (1) shall apply from
the first domestic source income to be paid after this Act enters into force.
Article 12 (Special Cases concerning Interim Prepayment)
In calculating the amount of interim tax for the interim prepayment period
starting after January 1, 2005, the calculated amount of tax as fixed for
corporate tax of the immediately preceding business year from the relevant
business year stipulated in Article 63 (1) shall be calculated by applying the
amended provisions of Article 55 (1) to the tax base of the immediately
preceding business year.
Article 13 (Applicability to Investment Assets, Investment Companies, etc.)
The provisions governing investment assets, investment companies, etc. to be
amended following the enforcement of the Indirect Investment Asset Management
Business Act shall apply from the first created or established portion after the
date of enforcement of the same Act, and for those created or established before
the enforcement of the same Act, the former provisions shall prevail.
Article 14 (Transitional Measures concerning Capital Gains on Transfer of House)
Where a corporation that has a house provided in Article 55-2 (1) 2 as at the
time this Act enters into force transfers the house on or before December 31,
2004, the amended provisions of Article 55-2 (1) 2 shall not apply: Provided,
That the corporation newly acquires another house on or after January 1, 2004,
this shall not apply.
Article 15 (Transitional Measures concerning Scope of Domestic Source Income in
Relation to Industrial/Commercial/Scientific Machinery, Facility, Equipment,
etc.)
Income generated from price and transfer in the case of use in the country of
the industrial/commercial/scientific machinery, facility, equipment or the price
being paid in the country shall, notwithstanding the amended provisions of
subparagraph 4 of Article 93, be deemed income generated from price and transfer
pursuant to the former provisions of subparagraph 9 (c) of Article 93.
ADDENDA <Act No. 7117, Jan. 29, 2004>

(1) (Enforcement Date) This Act shall enter into force on the date of its
promulgation: Provided, That the amended provisions of Article 29 (1) shall take
effect on January 1, 2005.

(2) (General Applicability) This Act shall apply from the first business year
that begins after this Act enters into force.

ADDENDA <Act No. 7289, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 7317, Dec. 31, 2004>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2005: Provided, That the amended
provisions of Articles 73 (8), 74 (2), 98-3 (1) through (3) and (6) shall enter
into force on July 1, 2005, and the amended provisions of Article 51-2 (1) 4
shall enter into force on April 23, 2005.
Article 2 (Applicability to Constructive Dividends or Distributions)
The amended provisions of Article 16 (1) 2 (a) shall apply from the first loan
to be converted into investment after this Act enters into force.
Article 3 (Applicability to Non-Inclusion of Received Dividends in Gross Income)
The amended provisions of Articles 18-2 (1) 3, and the proviso to 18-3 (1) 1 and
18-3 (1) 3 shall apply from the first dividend to be distributed after this Act
enters into force.
Article 4 (Applicability to Deduction of Income for Private Equity Funds, etc.
Participating in Management)
The amended provisions of Article 51-2 (1) 2 shall apply from the first dividend
to be paid after this Act enters into force.
[Title Amended on Jul. 24, 2015]
Article 5 (Applicability to Deduction of Income concerning Real Estate
Investment Companies for Consigned-Management)
The amended provisions of Article 51-2 (1) 4 shall apply from the first dividend
to be distributed after April 23, 2005.
Article 6 (Applicability to Tax Credits on Losses from Disasters)
The amended provisions of Article 58 (1) shall apply from the first loss of
asset after this Act enters into force.
Article 7 (Applicability to Determination and Correction)
The amended provisions of Article 66 (2) 3 shall apply from the first
determination or correction made after this Act enters into force.
Article 8 (Applicability to Withholding)
The amended provisions of Article 73 (1) 1 and 2 shall apply from the first
interest income and distribution of profits from investment trusts after this
Act enters into force, and the amended provisions of Articles 73 (8) and 74 (2)
shall apply from the first withheld portion on or after July 1, 2005.
Article 9 (Applicability to Penalty Tax on Negligence in Paying Withholding Tax)
The amended provisions of Article 76 (2) shall apply from the first interest
income and distribution of profits from investment trusts to be paid after this
Act enters into force.
Article 10 (Applicability to Domestic Source Income)
The amended provisions of subparagraph 10 of Article 93 shall apply from the
first portion to be transferred after this Act enters into force.
Article 11 (Applicability to Carried-Forward Deduction of Tax Paid Overseas)
The amended provisions of Article 97 (1) shall apply from the first portion to
be reported after this Act enters into force.
Article 12 (Applicability to Special Cases concerning Withholding on Bonds,
etc., of Foreign Corporations)
The amended provisions of Article 98-3 (1) through (3) and (6) shall apply from
the first portion to be withheld on or after July 1, 2005.
Article 13 (Applicability to Reporting on Establishment or Foundation for
Corporation)
The amended provisions of Article 109 (3) shall apply from the first revision to
the reported matters about establishment or foundation after this Act enters
into force.
Article 14 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force.
ADDENDA <Act No. 7838, Dec. 31, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2006: Provided, That the amended
provisions of Article 26 and Article 8 (2) of the Addenda to the Corporate Tax
Act amended by Act No. 5581 shall enter into force on the date of its
promulgation, the amended provisions of Article 98-5 shall enter into force on
July 1, 2006, and the amended provisions of Article 55-2 shall enter into force
on January 1, 2007.
Article 2 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force.
Article 3 (Applicability to Constructive Dividends or Distributions)
The amended provisions of Articles 16 (1) 2 (a), and the proviso to 17 (1) 1 and
17 (1) 1 (2) shall apply to the first loan to be converted as investment after
this Act enters into force.
Article 4 (Applicability to Non-Inclusion, etc. of Received Dividends of Holding
Companies in Gross Income, etc.)
The amended provisions of Articles 18-2 and 18-3 shall apply from the first
dividend to be paid after this Act enters into force.
Article 5 (Applicability and Special Applicability to Non-Inclusion of Donations
in Deductible Expenses)

(1) The amended provisions of Article 24 (2) and (3) shall apply from the
portion to be disbursed in the first business year after this Act enters into
force.

(2) In the application of the amended provisions of Article 24 (2), with respect
to the portion that is disbursed by the business year ending within three years
from the business year that first begins after this Act enters into force,
"50/100" in the proviso to the part other than each subparagraph of the same
paragraph shall be made "75/100", notwithstanding the amended provisions of the
proviso to the part other than each subparagraph of the same paragraph of the
same Article.

Article 6 (Applicability to Non-Inclusion of Entertainment Expenses in
Deductible Expenses)
The amended provisions of the proviso to the part other than each subparagraph
of Article 25 (2) shall apply from the first portion to be disbursed after this
Act enters into force.
Article 7 (Applicability to Non-Inclusion of Excess Expenses, etc. in Deductable
Expenses)
The amended provisions of Article 26 shall apply from the portion to be
disbursed in the business year in which this Act enters into force.
Article 8 (Applicability to Inclusion of Reserve Funds for Proper Purpose
Business in Deductible Expenses)
The amended provisions of Article 29 shall apply from the portion to be included
in deductible expenses in the business year that first starts after this Act
enters into force.
Article 9 (Applicability to Inclusion of Value of Fixed Assets Acquired with
Construction Charges in Deductible Expenses)
The amended provisions of Article 37 (2) shall apply from the first construction
charges to be granted after this Act enters into force.
Article 10 (Applicability to Appraisal of Assets and Liabilities)
The amended provisions of Article 42 (3) shall apply from the appraised portion
in the first business year after this Act enters into force.
Article 11 (Applicability to Succession of Losses Carried Forward at Time of
Merger and Division)
The amended provisions of Articles 45 and 48-2 shall apply from the first merge
or division after this Act enters into force.
Article 12 (Applicability to Inclusion of Amount Equivalent to Asset Transfer
Marginal Profits in Deductible Expenses due to Exchange)
The amended provisions of Article 50 shall apply from the first exchange of an
asset after this Act enters into force.
Article 13 (Applicability to Income Deduction for Special Purpose Companies,
etc.)
The amended provisions of Article 51-2 shall apply from the first dividend to be
distributed after this Act enters into force: Provided, That in the case of any
ship investment company as defined in the Ship Investment Company Act, the
amended provisions shall apply from the first dividend to be distributed after
January 1, 2009.
Article 14 (Applicability to Special Cases concerning Taxation of Capital Gains
on Transfer of Lands, etc.)
The amended provisions of Article 55-2 shall apply to the first portion to be
transferred after January 1, 2007.
Article 15 (Applicability to Special Cases concerning Tax Credits on Tax Paid
Overseas by Indirect Investment Companies, etc.)
The amended provisions of Article 57-2 shall apply to the first income to be
accrued after this Act enters into force.
Article 16 (Applicability to Interim Prepayment)
The amended provisions of Article 63 shall apply to the first interim prepayment
to be made after this Act enters into force.
Article 17 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (1) 3 shall apply from the first
corporate tax to be paid or collected after this Act enters into force.

(2) The amended provisions of Article 76 (6), (7) and (9) shall apply from the
first arriving deadline for submission after this Act enters into force.

(3) The amended provisions of Article 76 (10) shall apply from the
first-received donation after this Act enters into force.

Article 18 (Applicability to Domestic Source Income of Foreign Corporations)

(1) The amended provisions of subparagraph 2 of Article 93 shall apply from the
first portion disposes of as dividends after this Act enters into force.

(2) The amended provisions of subparagraph 6 of Article 93 shall apply from the
first income to be accrued after this Act enters into force.

Article 19 (Applicability to Special Cases concerning Procedures for Withholding
Tax for Foreign Corporations)
The amended provisions of Article 98-5 shall apply from the first withholding
made on or after July 1, 2006.
Article 20 (Applicability to Obligation, etc. to Prepare and Keep Detailed
Statement of Donation Receipts Issued)
The amended provisions of Article 112-2 shall apply from the first donation
received after this Act enters into force.
Article 21 (Applicability to Special Cases concerning Taxation in Calculation of
Income Generated from Profit-Making Business)
The amended provisions of Article 8 (2) of the Addenda to the Corporate Tax Act
amended by Act No. 5581 shall apply from the first portion to be transferred in
the business year in which this Act enters into force.
Article 22 (Transitional Measures concerning Determination, etc. to Grant
Authorization of Rehabilitation Plans under Debtor Rehabilitation and Bankruptcy
Act of Amended Provisions of Article 42 (3))

(1) A determination to grant authorization of a reorganization plan under the
previous Company Reorganization Act, a determination to grant authorization of a
composition plan under the previous Composition Act and a determination to grant
authorization of compulsory composition under the previous Bankruptcy Act shall
be deemed a determination to grant authorization of a rehabilitation plan under
the Debtor Rehabilitation and Bankruptcy Act according to the amended provisions
of Article 42 (3).

(2) A determination to grant authorization of a rehabilitation plan under the
Debtor Rehabilitation and Bankruptcy Act among the amended provisions of Article
42 (3) shall be deemed a determination to grant authorization of a
reorganization plan under the Company Reorganization Act, a determination to
grant authorization of composition under the Composition Act and a determination
to grant authorization of compulsory composition under the Bankruptcy Act,
respectively on or before March 31, 2006.

ADDENDA <Act No. 7908, Mar. 24, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 8141, Dec. 30, 2006>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2007: Provided, That the amended
provisions of Article 18-2 (1) 1 shall enter into force January 1, 2009, and the
amended provisions of Article 25 (2) 2, 66 (2) 3, 76 (11) and (12), 116 (3) and
(4), 117 and 117-2, on July 1, 2007.
Article 2 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force.
Article 3 (Applicability to Non-Inclusion of Holding Company's Received
Dividends in Gross Income)

(1) The amended provisions of Article 18-2 (1) 1 shall apply from the first
dividend to be distributed on or after January 1, 2009.

(2) The amended provisions of Article 18-2 (1) 2 shall apply the first dividend
to be distributed after this Act enters into force.

Article 4 (Applicability to Non-Inclusion of Received Dividends in Gross Income)
The amended provisions of Article 18-3 (2) shall apply from the first dividend
to be distributed after this Act enters into force.
Article 5 (Applicability to Non-Inclusion of Entertainment Expenses in
Deductible Expenses)
The amended provisions of Article 25 (2) 2 shall apply from what is first issued
in return for goods or services provided on or after July 1, 2007.
Article 6 (Applicability to Proceeds from Investment Trusts)
The amended provisions of Articles 29 (1) 1, 57-2 (3), 62 (1) and 73 (1) shall
apply from the first investment trust created after this Act enters into force.
Article 7 (Applicability to Tax Credits for Special Purpose Companies, etc.)
The amended provisions of Article 51-2 (1) 5-3, 5-4 and 6 shall apply from the
first dividend to be distributed after this Act enters into force.
Article 8 (Applicability to Tax Credits on Tax Paid Overseas)
The amended provisions of Article 57 (5) shall apply from the first dividend to
be distributed after this Act enters into force.
Article 9 (Applicability to Special Cases concerning Tax Credits on Tax Paid
Overseas by Indirect Investment Companies, etc.)
The amended provisions of Article 57-2 (1) shall apply from the first income to
be accrued after this Act enters into force.
Article 10 (Applicability to Correction and Determination)
The amended provisions of Article 66 (2) 3 shall apply from the first of
correction made based on the grounds arise on or after July 1, 2007.
Article 11 (Applicability to Penalty Tax, etc.)

(1) The amended provisions of Articles 76 (9) 3 and 120-3 shall apply from the
first tax invoice to be issued after this Act enters into force.

(2) The amended provisions of Article 76 (11) and (12) shall apply from the
first goods or services to be provided, or to a person obligated to become Cash
Receipt merchants, who fails to become such merchant, on or after July 1, 2007.

Article 12 (Applicability to Domestic Source Income)
The amended provisions of subparagraph 11 (g) of Article 93 shall apply from the
first income to be accrued after this Act enters into force.
Article 13 (Applicability to Special Cases concerning Withholding or Collection
for Foreign Corporations)

(1) The amended provisions of the first sentence of Article 98 (1) shall apply
from the first portion to be transferred after this Act enters into force.

(2) The amended provisions of the proviso to Article 98 (1) 3 shall apply from
the first interest income to be accrued after this Act enters into force.

Article 14 (Applicability to Receipt and Keeping of Evidentiary Documents of
Expenditures)
The amended provisions of Article 116 (3) and (4) shall apply from what is first
issued in return for goods or services provided on or after July 1, 2007.
Article 15 (Applicability to Obligation, etc. to Become Credit Card Merchant and
to Issue Credit Card Sales Slips)
The amended provisions of Article 117 shall apply from the first goods or
services to be supplied on or after July 1, 2007.
Article 16 (Applicability to Obligation, etc. to Become Cash Receipt Merchant
and to Issue Cash Receipts)
The amended provisions of Article 117-2 shall apply from the first goods or
services to be supplied on or after July 1, 2007.
Article 17 (Applicability to Becoming Cash Receipt Merchants)
Notwithstanding the amended provisions of Article 117-2 (1), a corporation which
meets the eligibility requirements to become a Cash Receipt merchant by no later
than March 31, 2007 after this Act enters into force may become a Cash Receipt
affiliate member by no later than June 30, 2007 after the enforcement date of
this Act.
Article 18 (Transitional Measures concerning Non-Inclusion of Evaluation
Marginal Profits, etc. in Gross Income)
Notwithstanding the amended provisions of subparagraph 6 of Article 18, the
dividend amount of income received before this Act enters into force shall be
governed by the previous provisions.
Article 19 (Transitional Measures concerning Penalty Tax)
Notwithstanding the amended provisions of Articles 76 (1) and 90 (1), the
penalty tax imposed or to be imposed under the previous provisions of Articles
76 (1) and 90 (1) before this Act enters into force shall be governed by the
previous provisions.
ADDENDA <Act No. 8519, Jul. 19, 2007>

(1) (Enforcement Date) This Act shall enter into force on January 1, 2008.

(2) (Applicability to Corporate Tax on Income for each Business Year of
Conscientious Small and Medium Corporations) The amended provisions of Chapter
II-2 shall apply from the business year in which this Act enters into force.

ADDENDA <Act No. 8631, Aug. 3, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 8831, Dec. 31, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2008: Provided, That the amended
provisions of Article 76 (12) shall enter into force on July 1, 2008.
Article 2 (General Applicability)
This Act shall apply from the business year that begins after this Act enters
into force.
Article 3 (Applicability to Non-Inclusion of Received Dividends in Gross Income)
The amended provisions of the portion other than subparagraphs of Article 18-3
(1) and subparagraph 4 of the same paragraph shall apply from the first dividend
to be distributed after this Act enters into force.
Article 4 (Applicability to Inclusion of Value of Business Assets Acquired with
National Subsidies in Deductible Expenses)
The amended provisions of Article 36-2 shall apply from the first National
subsidy to be granted after this Act enters into force.
Article 5 (Applicability to Tax Credits on Tax Paid Overseas)
The amended provisions of Article 57 (5) shall apply from the first dividends to
be distributed after this Act enters into force.
Article 6 (Applicability to Determination and Correction)
The amended provisions of Article 66 (2) 3 (a) shall apply from a determination
or correction to be made in connection with the first business year that begins
after this Act enters into force.
Article 7 (Applicability to Determination of Occasional Imposition)
The amended provisions of Article 69 (2) shall apply from the first grounds for
occasional imposition arises after this Act enters into force.
Article 8 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (10) shall apply from the first false
donation receipt to be issued or the detailed statement of issuance by donating
corporation is not prepared and kept after this Act enters into force.

(2) The amended provisions of Article 76 (12) shall apply from the first goods
or services to be supplied after this Act enters into force.

Article 9 (Applicability to Domestic Source Income)
The amended provisions of subparagraph 10 of Article 93 shall apply from the
first portion to be transferred after this Act enters into force.
Article 10 (Applicability to Special Cases concerning Report, Payment, etc. on
Capital Gains on Transfer of Securities by Foreign Corporations)
The amended provisions of Article 98-2 (3) and (4) shall apply from the first
portion to be transferred after this Act enters into force.
Article 11 (Applicability to Obligation to Prepare and Keep Detailed Statement
of Donation Receipts Issued)
The amended provisions of Article 112-2 (1) shall apply from the first donation
received after this Act enters into force.
Article 12 (Applicability to Obligation, etc. to Become Credit Card Merchants
and to Issue Credit Card Sales Slips)
The amended provisions of Article 117 (2) shall apply from the first goods or
services to be supplied after this Act enters into force.
Article 13 (Applicability to Submission of Detailed Statements of Changes in
Stocks, etc.)
The amended provisions of Article 119 (2) shall apply from the first detailed
statement to be submitted after this Act enters into force.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso
Omitted.)
ADDENDA <Act No. 9267, Dec. 26, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2009: Provided, That the amended
provisions of Articles 55 (1), 76 (4) and 115, and the proviso to Article 117
(2) shall enter into force on the date of its promulgation, the amended
provisions of Articles 5 (2), 18-2 (1) 1, 18-3 (1) 1, 51-2 (1) 2 (excluding
provisions concerning private equity funds participating in management), 57-2
(1) and (5), 66 (2) 4, 73 (1) 2, 98 (6), 113 (2) and 119 (2) shall enter into
force on February 4, 2009, and the amended provisions of subparagraphs 6 through
10 of Article 1, Articles 2 (4) and (5), 3 (2), and 8 (4) through (6),
subparagraph 9 of Article 18, provisions concerning Article 76-14 in the main
body of Article 18-2 (1), subparagraph 7 of Article 21, Article 63 (4), Chapter
II-3 (Articles 76-8 through 76-22) and Article 113 (5) shall enter into force on
January 1, 2010. <Amended on Jul. 24, 2015>
Article 2 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force.
Article 3 (Applicability to Deduction of Losses Carried Forward)
The amended provisions of subparagraph 1 of Article 13 and Article 91 (1) 1
shall apply from losses to be incurred in the first business year that begins
after this Act enters into force.
Article 4 (Applicability to Non-Inclusion of Received Dividends in Gross Income)
The amended provisions of Articles 18-2 (1) and 18-3 (1) shall apply from the
first dividend to be distributed after this Act enters into force.
Article 5 (Applicability to Succession to Losses Carried Forward following
Merger)
The amended provisions of Article 45 shall apply from the first merger to be
conducted after this Act enters into force.
Article 6 (Applicability to Inclusion of Amount Equivalent to Marginal Profits
on Transfer of Assets in Deductible Expenses following Investment in Kind)
The amended provisions of Article 47-2 shall apply from the first investment in
kind to be made after this Act enters into force.
Article 7 (Applicability to Tax Credits for Losses from Disasters)
The amended provisions of Article 58 (1) shall apply from the first application
for tax credits for losses from disasters to be filed after this Act enters into
force.
Article 8 (Applicability to Payment in Installments)
The amended provisions of Article 64 (2) shall apply from the first payment to
be made after this Act enters into force.
Article 9 (Applicability to Refund by Retroactive Deduction of Losses)
The amended provisions of Article 72 (5) shall apply from the first refund to be
made after this Act enters into force. <Amended on Dec. 23, 2014>
[Decision of simple unconstitutionality, 2015Hun-Ba105, Jul. 24. 2014: Article 9
of the Addenda to the Corporation Act (as amended by Act No. 9267 on Dec. 26,
2008) is in violation of the Constitution.]
Article 10 (Applicability to Obligation to Submit Combined Financial Statements)
The amended provisions of Articles 76 (4) and 115 shall apply from the business
year in which this Act enters into force.
Article 11 (Applicability to Domestic Source Income of Foreign Corporations)

(1) The amended provisions of subparagraphs 7 and 10 of Article 93 shall apply
from the first portion to be transferred after this Act enters into force.

(2) The amended provisions of subparagraph 9 of Article 93 shall apply from the
first income to be accrued after this Act enters into force.

Article 12 (Applicability to Withholding of Domestic Source Income of Foreign
Corporations)
The amended provisions of Article 98 (1) shall apply from the first payment to
be made after this Act enters into force.
Article 13 (Applicability to Special Cases concerning Reports and Payment of
Income of Foreign Corporation from Personal Services)
The amended provisions of Article 99 shall apply from the first personal
services to be supplied after this Act enters into force.
Article 14 (Applicability to Issuance of Credit Card Sales Slips)
The amended provisions of the proviso to Article 117 (2) shall apply from the
first goods and services to be supplied in the business year in which this Act
enters into force.
Article 15 (Special Cases concerning Tax Rates)
Notwithstanding the amended provisions of Article 55 (1), the tax rates for the
business year in which this Act enters into force shall be as stipulated in the
following Table:
┌──────┬─────────────────────────┐
│Tax Base │Tax Rate│
├──────┼─────────────────────────┤
│Not exceeding 200 million won │ 11/100 of tax base│
├──────┼─────────────────────────┤
│ Exceeding 200 million won │ 22,000,000 won ＋ 25/100 of the amount exceeding
200 million won│
└──────┴─────────────────────────┘
Article 16 (Special Cases concerning Interim Prepayment)

(1) The calculated amount of tax determined as corporate tax for the business
year immediately preceding the relevant business year prescribed in Article 63
(1) when interim tax is calculated for the interim prepayment period of the
business year that begins after January 1, 2009 shall be calculated by applying
the amended provisions of Article 55 (1) 1 to the tax base for the immediately
preceding business year.

(2) The calculated amount of tax determined as corporate tax for the business
year immediately preceding the relevant business year prescribed in Article 63
(1) when interim tax is calculated for the interim prepayment period of the
business year that begins after January 1, 2010 shall be calculated by applying
the amended provisions of Article 55 (1) 2 to the tax base for the immediately
preceding business year.

Article 17 (Special Cases concerning Tax Base of Consolidated Tax Return System)
Where the amended provisions of Article 76-13 (1) 1 is applied to the losses of
a consolidated corporation accrued in the business year that began before
January 1, 2009, ten years shall be deemed five years.
Article 18 (Special Cases concerning Enforcement Date of the Financial
Investment Services and Capital Markets Act)

(1) "Investment trust property under the Financial Investment Services and
Capital Markets Act" referred to in the amended provisions of Article 73 (2)
shall be construed as "investment trust property under the Indirect Investment
Asset Management Business Act" until February 3, 2009.

(2) "Securities market under the Financial Investment Services and Capital
Markets Act" referred to in the amended provisions of subparagraph 7 (b) of
Article 93, the main body of subparagraph 10 of the same Article, and item (b)
of the same subparagraph shall be construed as "securities market or KOSDAQ
market under the Securities and Exchange Act" until February 3, 2009.

Article 19 (General Transitional Measures)
The former provisions shall apply to the corporate tax (including penalty tax)
imposed or to be imposed under the former provisions as at the time this Act
enters into force.
Article 20 (Transitional Measures concerning Income Deduction for Private Equity
Funds, etc. Participating in Management)

(1) Where a private equity fund participating in management or specialized
overseas resources development company registered with the Financial Services
Commission as prescribed in Article 144-6 of the Indirect Investment Asset
Management Business Act before this Act enters into force fails to file a
request for the application of special taxation for partnership firms under
Article 100-17 of the Restriction of Special Taxation Act within one month from
the beginning of the first business year that begins after this Act enters into
force, the former provisions shall apply until the business year in which the
registration date of dissolution of the relevant corporation falls,
notwithstanding the amended provisions of Article 51-2 (1) 2 and 5. In such
cases, the relevant corporation is ineligible for the application of Section
10-3 of the Restriction of Special Taxation Act until the business year in which
the registration date of dissolution falls. <Amended on 24, 2015>

(2) Where a private equity fund participating in management or specialized
overseas resources development company registered at the Financial Services
Commission as prescribed in Article 144-6 of the Indirect Investment Management
Business Act before this Act enters into force files a request for the
application of special taxation for partnership firms under Article 100-17 of
the Restriction of Special Taxation Act within one month from the beginning of
the first business year that begins after this Act enters into force, the former
provisions shall apply to the dividend for the relevant business year for the
purposes of calculating the corporate tax on the income of the business year
that begins before this Act enters into force, notwithstanding the amended
provisions of Article 51-2. <Amended on Jul. 24, 2015>

[Title Amended on Jul. 24, 2015]
Article 21 (Transitional Measures concerning Repeal of Withholding of Income
Reverting to Trust Property)
Where trust property sells bonds, etc., acquired by no later than June 30, 2005,
or pays interest, etc., thereon (limited to where interest, etc., are not paid
between July, 1, 2005 and December 31, 2008) after January 1, 2009, the former
provisions shall apply, notwithstanding the amended provisions of Article 73.
ADDENDA <Act No. 9401, Jan. 30, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 9673, May 21, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Special Cases concerning Taxation on Capital Gain on
Transfer of Land, etc.)
The amended provisions of Article 55-2 shall apply from the first transfer on or
after March 16, 2009.
Article 3 (Applicability to Special Cases concerning Taxation on Interest or
Capital Gains of Foreign Corporations on Transfer of State Bonds, etc.)
The amended provisions of Article 93-2 shall apply from the first payment or
transfer after this Act enters into force.
Article 4 (Special Cases concerning Special Cases concerning Taxation on Capital
Gains on Transfer of Land)
Article 55-2 (1) 2 and 3 shall not apply to capital gains generated from the
transfer of assets which are acquired from March 16, 2009 to December 31, 2010.
ADDENDA <Act No. 9763, Jun. 9, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force nine months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 9898, Dec. 31, 2009>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2010: Provided, That the amended
provisions of Article 51-2 (2) shall enter into force on the date of its
promulgation, the amended provision of Article 117-2 (4) shall enter into force
on April 1, 2010 and the amended provisions of Articles 16 (1), 17 (1), 24 (1),
44, 44-2, 44-3, 45, 46, 46-2 through 46-5, 47, 47-2, 48, 48-2, 49, 60 (4), 77,
80, 81, 84, 86 (2) and 113 (3) and (4) shall enter into force on July 1, 2010.
Article 2 (General Applicability)
This Act shall apply from the business year that begins after this Act enters
into force.
Article 3 (Applicability to Scope of Taxable Income)
The amended provisions of Article 3 (3) shall apply from the transfer after this
Act enters into force.
Article 4 (Applicability to Tax Bases)
The amended provisions of Articles 13, 76-13 (2) and 91 (1) shall apply from the
first tax base to be reported or corrected or determined after this Act enters
into force: Provided, That the previous provision shall apply where the tax base
was reported, corrected or determined prior to December 31, 2009 for deduction
of losses not included in the tax base reported, corrected or determined.
Article 5 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Article 24 (3) shall apply from the first donation to
be made after this Act enters into force.
Article 6 (Applicability to Taxation upon Merger, Division, etc.)
The amended provisions of Articles 16 (1), 17 (1), 24 (1), 44, 44-2, 44-3, 45,
46, 46-2 through 46-5, 47, 48, 48-2, 49, 60 (4), 77, 80, 81, 84, 86 (2) and 113
(3) and (4) shall apply to the first merger, division or investment in kind to
be conducted or made after the same provisions enter into force under the
proviso to Article 1 of this Addenda.
Article 7 (Applicability to Tax Bases due to Consolidated Tax Return System)
The amended provisions of Article 76-13 shall apply to a portion to which the
consolidated tax return system applies on or after January 1, 2010.
Article 8 (Applicability to Special Cases concerning Taxation upon Investment in
Kind)
The amended provisions of Article 47-2 shall apply to the first investment in
kind to be made after the same provisions under the proviso to Article 1 of this
Addenda enters into force.
Article 9 (Applicability to Income Deduction for Special Purpose Companies,
etc.)
The amended provisions of Article 51-2 (2) shall apply from the business year in
which such same provisions enters into force under the proviso to Article 1 of
this Addenda.
Article 10 (Applicability to Deduction, etc. for Tax Credits, etc. for Amount of
Tax Paid Overseas)
The amended provisions of Article 57 (5) shall apply to the first dividends or
distributions granted after this Act enters into force.
Article 11 (Applicability to Withholding)
The amended provisions of Article 73 (1) shall apply the first income to be
accrued after this Act enters into force.
Article 12 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (5) shall apply from the first goods or
services to be supplied after this Act enters into force.

(2) The amended provisions of Article 76 (10) shall apply from the first
donation received after this Act enters into force.

Article 13 (Applicability to Special Cases concerning Taxation on Interest or
Capital Gains of Foreign Corporations on Transfer of State Bonds, etc.)
The amended provisions of Article 93-2 (4) shall apply from the first
withholding made after this Act enters into force.
Article 14 (Applicability to Special Cases concerning Withholding Tax from
Bonds, etc. of Foreign Corporations)
The amended provisions of Article 98-3 (1) shall apply from the first purchase
after this Act enters into force.
Article 15 (Applicability to Obligation to Issue Cash Receipts)
The amended provisions of Article 117-2 (4) shall apply from goods or services
to be supplied after the same provisions enter into force under the proviso to
Article 1 of this Addenda.
ADDENDA <Act No. 9924, Jan. 1, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2010.
ADDENDA <Act No. 10221, Mar, 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011.
ADDENDA <Act No. 10337, May 31, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 10361, Jun. 8, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 10423, Dec. 30, 2010>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2011: Provided, That the amended
provisions of Articles 23 (excluding paragraph (1)), 28 (2), 41 (1) 1, 53-2,
53-3, 60 (2) and (4), and the proviso to Article 96 (1) shall enter into force
on the date of their promulgation, the amended provision of Articles 73 (1) 2,
(8), (9), 74 (2), 98-3 (1), (4) and (6) shall enter into force on April 1, 2011,
the amended provisions of Articles 24 (2) and (3) and 112-2 (1) shall enter into
force on July 1, 2011, and the amended provision of subparagraph 2 of Article 21
shall enter into force January 1, 2019. <Amended by Jan. 1, 2013; Dec. 15, 2015>
Article 2 (General Applicability)
This Act shall apply from the first business year that begins after this Act
enters into force.
Article 3 (Applicability to Non-Inclusion of Depreciation Costs in Deductible
Expenses)
The amended provisions of Article 23 (excluding paragraph (1)) shall apply from
the business year in which the amended provisions of Article 23 (excluding
Article 23 (1)) enter into force under the proviso to Article 1 of the Addenda
belongs.
Article 4 (Applicability to Increase of Ceiling on Income Deduction of
Designated Donations)
The amended provisions of Article 24 (1) shall apply from the first donations to
be expended after this Act enters into force.
Article 5 (Applicability to Rearrangement of Objects of Statutory Donations)
The amended provisions of Articles 24 (2) and (3) and 112-2 (1) shall apply from
the first donations to be expended after the amended provisions of Articles 24
(2) and (3) and 112-2 (1) enter into force under the proviso to Article 1 of the
Addenda.
Article 6 (Applicability to Non-Inclusion of Interest Paid in Deductible
Expenses)
The amended provisions of Article 28 (2) shall apply from the business year in
which the amended provisions of Article 28 (2) enter into force under the
proviso to Article 1 of the Addenda.
Article 7 (Applicability to Reserve Funds for Proper Purpose Business)
The amended provisions of Article 29 (3), (4) and (8) shall apply from the first
registration of liquidation after this Act enters into force.
Article 8 (Applicability to National Subsidies, etc.)
The amended provision of Article 36 (1) shall apply from the assets to be
acquired or improved after this Act enters into force.
Article 9 (Applicability to Acquisition Value of Assets)
The amended provision of Article 41 (1) 1 shall apply from the business year in
which the amended provisions of Article 41 (1) 1 enter into force under the
proviso to Article 1 of the Addenda in cases of corporations which apply the
international accounting standards as at the time this Act enters into force and
from the business year that begins on or after January 1, 2011 in cases of other
corporations.
Article 10 (Applicability to Reduction of Requirements for Special Cases
concerning Taxation on Merger by Special Purpose Acquisition Companies)
The amended provision of the proviso to Article 44 (2) 1 shall apply from the
first merger after this Act enters into force.
Article 11 (Applicability to Special Cases concerning Calculation of Tax Base of
Corporation Adopting Functional Currency)
The amended provisions of Article 53-2 shall apply from the business year in
which the amended provisions of Article 53-2 enter into force under the proviso
to Article 1 of the Addenda.
Article 12 (Applicability to Special Cases concerning Calculation of Tax Bases
of Overseas Places of Business)
The amended provisions of Article 53-3 shall apply from the business year in
which the amended provisions of Article 53-3 enter into force under the proviso
to Article 1 of the Addenda in cases of corporations that apply the
international accounting standards as at the time this Act enters into force,
and from the business year which begins on or after January 1, 2011 in cases of
other corporations.
Article 13 (Applicability to Special Cases concerning Taxation on Capital Gains
on Transfer of Land, etc.)
The amended provisions of Article 55-2 (1) 1 and (8) shall apply from the first
transfer to be made after January 1, 2011.
Article 14 (Applicability to Reports on Tax Base, etc.)
The amended provisions of Article 60 (2) and (4) shall apply from the business
year in which the amended provisions of Article 60 (2) and (4) enter into force
under the proviso to Article 1 of the Addenda.
Article 15 (Applicability to Withholding upon Early Sale of Bonds, etc.)
The amended provisions of Articles 73 (1) 2, (8) and (9), 74 (2), 98-3 (1), (4)
and (6) shall apply from the first sale to be made after the amended provisions
of Articles 73 (1) 2, (8) and (9), 74 (2), 98-3 (1), (4) and (6) enters into
force under the proviso to Article 1 of the Addenda.
Article 16 (Applicability to other Documents to Accompany Reports on
Consolidated Tax Base)
The amended provision of Article 76-17 (2) shall apply from the first report to
be filed after this Act enters into force.
Article 17 (Applicability to Final Report and Interim Report on Liquidation
Income)
The amended provisions of Articles 84 (1) and 85 (1) shall apply from the first
registration of liquidation to be filed after this Act enters into force.
Article 18 (Applicability to Domestic Place of Business of Foreign Corporation)
The amended provision of Article 96 (1) shall apply from the business year in
which the amended provisions of Article 96 (1) enter into force under the
proviso to Article 1 of the Addenda.
Article 19 (Applicability to Special Cases concerning Withholding or Collection
from Foreign Corporation)
The amended provision of Article 98 (10) shall apply from the first assets to be
transferred after this Act enters into force.
Article 20 (Applicability to Special Cases concerning Taxation on Interest on
State Bonds, etc. and Capital Gains of Foreign Corporation and Transitional
Measures)

(1) The amended provisions of Articles 93-2 and 98 (2) shall apply from the
first income to be accrued after this Act enters into force.

(2) Notwithstanding the amended provisions of Article 93-2 and 98 (2), the
previous provisions shall apply to income accruing from the State bonds, etc.,
acquired on or before November 12, 2010.

Article 21 (Transitional Measures concerning Corporate Tax on Income for each
Business Year of Conscientious Small and Medium Corporations)
Any corporation approved as a conscientious small or medium corporation under
the former Article 76-2 (2) before this Act enters into force may calculate,
file and pay the tax base of corporate tax on income for each business year and
the amount of tax until the business year in which December 31, 2013 falls by a
conscientious tax payment method referred to in Articles 76-2 through 76-7.
ADDENDA <Act No. 10898, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 10907, Jul. 25, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 11128, Dec. 31, 2011>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2012: Provided, That the amended
provisions of Articles 42-2, 47 (2) though (4), 47-2 (2) and (3), 57 (4), 76-14
(1) 4 and 96 (2) 1 (b) shall enter into force on the date of its promulgation,
the amended provisions of Articles 16 (1) 5, 17 (1) 1, subparagraph 8 of Article
18, subparagraph 2 of Article 20, 44 (2) 2 and the amended part concerning
non-par value stocks under the amended provision of Article 76 (3) shall enter
into force on April 15, 2012, the amended provisions of Articles 9 (4), 75, the
main sentence other than each subparagraph of Article 91 (1), Article 91 (3),
the main sentence of Article 98-5 (1) (limited to the amended parts of Articles
98, 98-2 through 98-4 and 98-6) and Article 98-6 shall enter into force on July
1, 20102.
Article 2 (General Applicability)
This Act shall apply from the first business year which begins after this Act
enters into force.
Article 3 (Applicability to Costs of Merger)
The amended provisions of Articles 16 (1) 5 and 44 (2) 2 shall apply from the
first merger on or after April 15, 2012.
Article 4 (Applicability to Non-Inclusion of Gains from Capital Transactions in
Gross Income)
The amended provisions of Article 17 (1) 1 shall apply from the first non-par
value stocks to be issued on or after April 15, 2012.
Article 5 (Applicability to Non-Inclusion of Evaluation Marginal Profits in
Gross Income)
The amended provisions of subparagraph 8 of Article 18 shall apply from the
first dividends to be distributed upon reducing the capital reserve funds on or
after April 15, 2012.
Article 6 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Articles 24 (2) 4 (b) and (h) and (4) shall apply from
the first donations to be given on or after January 1, 2012.
Article 7 (Applicability to Non-Inclusion of Entertainment Expenses in
Deductible Expenses)
The amended provisions of the proviso to Article 25 (2) shall apply from the
first entertainment expenses to be expended on or after January 1, 2012.
Article 8 (Applicability to Non-Inclusion of Evaluation Marginal Profits of
Inventory Assets in Gross Income on Domestic Corporation Adopting International
Accounting Standards)
The amended provisions of Article 42-2 shall apply from the first business year
in which this Act is promulgated.
Article 9 (Applicability to Special Cases concerning Taxation upon Merger
between Parent Corporation and Subsidiary Corporation)
The amended provisions of Article 44 (3) shall apply from the first merger on or
after January 1, 2012.
Article 10 (Applicability to Restriction on Deduction of Losses on Disposition
of Assets upon Merger or Division and Merger)
The amended provisions of Articles 45 (3) and 46-4 (3) shall apply from the
first merger or the division and merger on or after January 1, 2012.
Article 11 (Applicability to Special Cases concerning Taxation upon Spin-Off)

(1) The amended provisions of Article 47 (2) through (4) shall apply from the
spin-off made under Article 47 (1) in the business year in which this Act is
promulgated.

(2) Where a corporation established through division files a report on the tax
base under Article 60 (1) after acquiring the assets of a divided corporation at
the book value pursuant to the previous Article 47 (2) prior to the date of the
promulgation of this Act, the divided corporation and the corporation
established through division may apply the amended provisions of Article 47 (2)
through (4) when filing a report on the tax base under Article 60 (1) after this
Act enters into force.

Article 12 (Applicability to Application of Special Cases concerning Taxation
upon Investment in Kind)

(1) The amended provisions of Article 47-(2) and (3) shall apply from the
investment in kind made under Article 47-2 (1) in the business year in which
this Act is promulgated.

(2) Where an invested corporation files a report on the tax base under Article
60 (1) after acquiring the assets of an investing corporation at the book value
pursuant to the previous Article 47-2 (2) prior to the date of the promulgation
of this Act, the investing corporation and the invested corporation may apply
the amended provisions of Article 47-2 (2) and (3) when filing a report on the
tax base under Article 60 (1) after this Act enters into force.

Article 13 (Applicability to Foreign Tax Credits, etc.)
The amended provisions of Article 57 (4) shall apply from the business year in
which this Act is promulgated.
Article 14 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (3) (excluding the amended part
concerning non-par value stocks) shall apply the first domestic corporation
which files a report on incorporation on or after January 1, 2012.

(2) The amended provisions of Article 76 (9) shall apply the first invoice not
issued or issued or to be issued on or after January 1, 2012.

Article 15 (Applicability to Non-Inclusion of Consolidated Subsidiary
Corporation and Consolidated Interim Prepayment)
The amended provisions of the proviso to Article 76-12 (1) and 76-18 (4) shall
apply from the first consolidated subsidiary corporation to be merged by
absorption on or after January 1, 2012.
Article 16 (Applicability to Calculation of Amount of Income for each
Consolidated Business Year)

(1) The amended provisions of Article 76-14 (1) 4 shall apply from a portion of
the business year in which this Act is promulgated.

(2) The amended provisions of Article 76-14 (2) 2 shall apply from the first
asset to be disposed of on or after January 1, 2012.

Article 17 (Applicability to Calculation of Amount of Liquidation Income due to
Dissolution)
The amended provisions of Article 79 (5) shall apply from the first corporation
to be dissolved on or after January 1, 2012.
Article 18 (Applicability to Interim Reports)
The amended provisions of the main sentence other than each subparagraph of
Article 85 (1) shall also apply to a corporation, with relation to which the
deadline for interim report has not expired by January 1, 2012.
Article 19 (Applicability to Calculation of Amount of Domestic Source Income)
The amended provisions of Article 92 (2) 2 (b) shall apply from the first
stocks, etc. or other securities to be transferred after January 1, 2012.
Article 20 (Applicability to Special Cases concerning Taxation on Domestic Place
of Business of Foreign Corporation)
The amended provisions of Article 96 (2) (b) shall apply from a portion of the
business year in which this Act is promulgated.
Article 21 (Applicability to Special Cases concerning Report, Payment, etc. on
Capital Gains, etc. on Transfer of Securities by Foreign Corporations)
The amended provisions of Article 98-2 (4) shall apply from the first asset to
be gifted on or after January 1, 2012.
Article 22 (Applicability to Special Cases concerning Withholding Procedures for
Foreign Corporations)
The amended provisions of the main sentence of Article 98-5 (1) (limited to the
amended provisions of subparagraphs 1 and 2 of Article 93 and subparagraphs 7
(b) and 8 of Article 93) shall apply from the first domestic source income to be
withheld on or after January 1, 2012.
Article 23 (Applicability to Special Cases concerning Withholding Procedures to
Apply Restrictive Tax Rates under Tax Treaties to Foreign Corporations)
The amended provisions of Article 98-6 shall apply from the first domestic
source income to be withheld on or after July 1, 2012.
Article 24 (Applicability to Submission of Detailed Statement of Shareholders,
etc.)
The amended provisions of Article 109 (1) shall apply from the first report on
incorporation to be filed on or after January 1, 2012.
Article 25 (Applicability to Submission of Payment Statements)
The amended provisions of Article 120 shall apply from the first income to be
paid on or after January 1, 2012.
Article 26 (Special Cases concerning Interim Prepayment due to Changes in
Corporate Tax Rate)
When interim tax is calculated for the interim prepayment period of the business
year which begins on or after January 1, 2012, the calculated amount of tax
determined as corporate tax for the immediately preceding business year under
Article 63 (1) shall be calculated by applying the amended provisions of Article
55 (1) to the tax base for the immediately preceding business year.
Article 27 (Transitional Measures concerning Dividends on Construction Interest)
Notwithstanding the amended provisions of subparagraph 2 of Article 20, the
previous provisions shall apply to the dividends on the construction interest to
be accrued on or before April 15, 2012.
Article 28 (Transitional Measures concerning Period of Inclusion of Carried
Forwarded Statutory Donations in Deductible Expenses)
Notwithstanding the amended provisions of Article 24 (4), the previous
provisions shall apply to the statutory donations paid on or before January 1,
2012.
Article 29 (Transitional Measures concerning Citation of other Statutes)
"Industrial-academia cooperation groups under the Industrial Education and
Industry-Academia-Research Cooperation Promotion Act" of the amended provisions
of the main sentence, other than each subparagraph of Article 63 (1), shall be
deemed the industry-academia cooperation groups under the Promotion of
Industrial Education and Industry-Academic Cooperation Act" by January 25, 2012.
Article 30 (Transitional Measures concerning Penalty Tax on Negligence in Paying
Withheld Tax)
Notwithstanding the amended provisions of Articles 71 (3), 76 (2), 98 (3) and
the main sentence of Article 98 (4), the previous provisions shall apply to
obligation to pay the corporate tax that arose on or before January 1, 2012.
ADDENDA <Act No. 11603, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
ADDENDA <Act No. 11607, Jan. 1, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2013.
Article 2 (General Applicability)
This Act shall apply to business years that begin on or after this Act enters
into force.
Article 3 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Article 24 (2) 4 (d) shall apply to expenses disbursed
on or after this Act enters into force.
Article 4 (Applicability of Special Provisions regarding Taxation on Divided
Corporations upon Spin-off)
The amended provisions of Article 47 (2) shall apply where a divided corporation
disposes stocks, etc. or a corporation established through division disposes of
assets on or after this Act enters into force.
Article 5 (Applicability of Special Provisions regarding Taxation on Investment
in Kind)
The amended provisions of Article 47-2 (2) shall apply where an investing
corporation disposes of stocks, etc. or an invested corporation disposes of
assets on or after this Act enters into force.
Article 6 (Applicability of Special Provisions regarding Taxation on Income from
Transfer of Land, etc.)
The amended provisions of Article 55-2 shall apply to the land, etc. transferred
on or after this Act enters into force.
Article 7 (Applicability to Withholding)
The amended provisions of Article 73 (6) shall apply to income paid on or after
this Act enters into force.
Article 8 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (3) shall apply where a report on
incorporation or an application for business registration is filed on or after
this Act enters into force.

(2) The amended provisions of Article 76 (9) shall apply where a tax base or tax
amount is reported, determined, or rectified on or after this Act enters into
force.

(3) The amended provisions of Article 76 (10) shall apply to donation receipts
issued on or after this Act enters into force.

Article 9 (Applicability to Application of Consolidated Tax Return System)
The amended provisions of Articles 76-8 through 76-11 shall apply where the
application of the consolidated tax return system is approved, revoked, or
abandoned or a change in a consolidated subsidiary is reported on or after this
Act enters into force.
The amended provisions of Article 98 (1) 3 shall apply to income paid on or
after this Act enters into force.
Article 11 (Applicability to Reporting on Incorporation and Business
Registration)
The amended provisions of Articles 109 (1) and 111 (1) shall apply to a report
on incorporation or an application for business registration filed on or after
this Act enters into force.
Article 12 (Applicability to Separate Accounting)
The amended provisions of Article 113 (3) through (5) shall apply where
corporations are merged or divided and merged on or after this Act enters into
force.
Article 13 (Applicability to Obligation to File Payment Statements)
The amended provisions of Article 120 (1) shall apply to income paid on or after
this Act enters into force.
Article 14 (Applicability to Application, etc. of Consolidated Tax Return
System)
If the application of the consolidated tax return system has been approved by
the Commissioner of the National Tax Service under the previous provisions of
Article 76-8 (1) before this Act enters into force, it shall be deemed that the
application of the consolidated tax return system is approved by the
Commissioner of the competent Regional Tax Office having jurisdiction over the
place of tax payment of the wholly-owning parent corporation under the amended
provisions of Article 76-8 (1).
ADDENDA <Act No. 11873, Jun. 7, 2013>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2013.
ADDENDA <Act No. 12153, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014. (Proviso Omitted.)
ADDENDA <Act No. 12166, Jan. 1, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2014: Provided, That the amended
provisions of Article 117-2 shall enter into force on July 1, 2014.
Article 2 (General Applicability)
This Act shall apply to taxation for business years that begin on or after this
Act enters into force.
Article 3 (Applicability to Addition of Incheon National University to
Organizations Eligible for Statutory Donations)
The amended provisions of Article 24 (2) 4 (h) shall apply to donations reported
on or after this Act enters into force.
Article 4 (Applicability to Extension of Period for Carrying Forward and
Deduction of Excess of Ceilings on Inclusion of Statutory Donations in
Deductible Expenses)
The amended provisions of Article 24 (4) shall apply to donations given during
the business years that begin on or after this Act enters into force.
Article 5 (Applicability to Inclusion of Construction Charges Received After
Acquisition of Fixed Assets in Deductible Expenses)
The amended provisions of Article 37 (1) shall apply to fixed assets acquired on
or after this Act enters into force.
Article 6 (Applicability to Criteria for Determination as to Independence of
Business Divisions)
The amended provisions of Article 46 (3) shall apply to corporations divided on
or after this Act enters into force.
Article 7 (Applicability to Requirements for Follow-Up Management of Disposal of
Stocks of Properly Divided Corporation upon Spin-Off)
The amended provisions of Article 47 (3) 2 shall apply to divisions after which
the stocks, etc. issued by the corporation established through division and held
by the divided corporation are reduced from at least 50/100 of the total number
of issued stocks of, or the total investment amount in, the corporation
established through division to less than 50/100.
Article 8 (Applicability to Special Provisions concerning Taxation on Capital
Gains on Transfer of Land, etc.)
The amended provisions of Article 55-2 shall apply to the property transferred
on or after this Act enters into force: Provided, That Article 55-2 (1) shall
not apply where a small or medium enterprise defined under Article 25 (1) 1
transfers a residential house or a parcel of land for non-business purposes
(excluding unregistered land) on or before December 31, 2015. <Amended on Dec.
23, 2014>
Article 9 (Applicability to Special Provisions regarding Deduction of Foreign
Corporate Taxes Paid by Indirect Investment Companies, etc.)
The amended provisions of Article 57-2 (1) shall apply to the income for the
business year in which this Act enters into force and afterward.
Article 10 (Applicability to Obligation to Prepare and Keep Detailed Statements
of Issuance of Donation Receipts and Penalty Tax thereon)
The amended provisions of Articles 76 (10) and 112-2 shall apply to donations
given on or after this Act enters into force.
Article 11 (Applicability to Adjustment of Deadline for Reporting on Addition,
etc. of Consolidated Subsidiary Corporations)
The amended provisions of Article 76-11 shall apply to changes that occurs to a
consolidated subsidiary corporation on or after this Act enters into force.
Article 12 (Applicability to Special Provisions concerning Withholding or
Collection from Foreign Corporations)

(1) The amended provisions of Article 98 (8) shall apply to the earnings paid on
or after this Act enters into force.

(2) The amended provisions of Article 98 (10) shall apply to the earnings
allocated or distributed on or after this Act enters into force.

Article 13 (Applicability to Non-Taxation or Tax Exemption on Foreign
Corporations under Tax Treaties)
The amended provisions of Article 98-4 shall apply to domestic source income
paid on or after this Act enters into force.
Article 14 (Applicability to Petition for Correction for Application of
Restrictive Tax Rates under Tax Treaties to Foreign Corporations)
The amended provisions of Article 98-6 (4) shall apply to requests filed for
corrections on or after this Act enters into force.
Article 15 (Applicability to Threshold Amount for Compulsory Issuance of Cash
Receipts)
The amended provisions of the main sentence of Article 117-2 (4) shall apply to
goods supplied or services provided on or after July 1, 2014.
Article 16 (Transitional Measure concerning Requirements for Follow-Up
Management of Disposal of Stocks of Properly Divided Corporation upon Spin-Off)
Notwithstanding the amended provisions of Article 47 (3) 2, the former
provisions shall apply where the stocks, etc. issued by the corporation
established through division and held by the divided corporation are less than
50/100 of the total number of issued stocks of, or the total investment amount
in, the corporation established through division as at the time this Act enters
into force.
Article 17 (Transitional Measure concerning Special Cases for Deduction of
Foreign Corporate Tax Paid by Indirect Investment Companies, etc.)
Notwithstanding the amended provisions of Article 57-2 (1), former provisions
shall apply where a privately placed fund participating in management, as
defined by Article 9 (19) 1 of the Financial Investment Services and Capital
Markets Act, fails to file an application for the special taxation for a
partnership firm under Article 100-17 of the Restriction of Special Taxation Act
pursuant to Article 20 (1) of the Addenda to the partial amendment (Act No.
9267) to the Corporate Tax Act, until the business year in which the dissolution
of the relevant corporation is registered. <Amended on Jul. 24, 2015>
[This Article Newly Inserted on Dec. 23, 2014]
ADDENDA <Act No. 12420, Mar. 18, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
ADDENDA <Act No. 12850, Dec. 23, 2014>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2015: Provided, That the amended
provisions of Article 121 (1), (5) and (7) shall enter into force on July 1,
2015 and the amended provisions of Article 76 (9) shall enter into force on
January 1, 2016.
Article 2 (General Applicability)
This Act shall apply to the business year that begins after this Act enters into
force and thereafter.
Article 3 (Applicability to Special Cases concerning Taxation on Capital Gains
on Land, etc.)
The amended provisions of Article 55-2 (1) 2, (2) 6, and (6) shall begin to
apply from the first real estate, etc. to be transferred after this Act enters
into force and thereafter.
Article 4 (Applicability to Penalty Tax)

(1) The amended provisions of Article 76 (7) shall begin to apply from the
deadline for submission of payment statements arriving after this Act enters
into force.

(2) The amended provisions of Article 76 (9) shall begin to apply from goods or
services to be supplied after this Act enters into force.

Article 5 (Applicability to Preparation, Issuance, etc. of Invoices)
The amended provisions of Article 121 (1), (5), and (7) shall begin to apply
from goods or services to be supplied after this Act enters into force.
ADDENDA <Act No. 13230, Mar. 27, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 13426, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 13448, Jul. 24, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force three months after the date of its promulgation.
(Proviso Omitted.)
ADDENDA <Act No. 13499, Aug. 28, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force four months after the date of its promulgation.
ADDENDA <Act No. 13550, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on December 31, 2015.
ADDENDA <Act No. 13555, Dec. 15, 2015>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2016.
Article 2 (General Applicability)
This Act shall begin to apply from the first business year that begins after
this Act enters into force.
Article 3 (Applicability to Special Cases concerning Non-Inclusion, etc. of
Expenses Incurred in Passenger Vehicles for Business Use in Deductible Expenses)

(1) The amended provisions of Article 27-2 (1) shall begin to apply from the
passenger vehicles acquired in the business year that begins after this Act
enters into force.

(2) The amended provisions of Article 27-2 (2) and (3) shall begin to apply from
expenses included in deductible expenses or expended in the business years that
begins after this Act enters into force.

(3) The amended provisions of Article 27-2 (4) shall begin to apply from the
amount accrued in the business years that begins after this Act enters into
force.

Article 4 (Applicability to Scope of Inclusion of Reserve Funds for Proper
Purpose Business in Deductible Expenses)
The amended provisions of Article 29 (1) shall begin to apply from the reserve
funds for proper purpose business included in deductible expenses for the
business years after this Act enters into force: Provided, That the amended
provisions shall begin to apply to the reserve funds for proper purpose business
included in deductible expenses for the business years after January 1, 2017, in
cases of a nonprofit domestic corporation incorporated pursuant to a Special Act
to engage in a mutual aid business.
Article 5 (Applicability to Special Cases concerning Taxation on Investments in
Kind)
The amended provisions of Article 47-2 shall begin to apply from the first
investment made in kind after this Act enters into force: Provided, That former
provisions shall apply where an investment is made in kind by a corporation
established pursuant to a Special Act, before this Act enters into force,
pursuant to provisions concerning the transfer of business (restructuring) in
the Act authorizing the establishment of the corporation. <Amended on Dec. 20,
2016>
Article 6 (Applicability to Submission of Tax Settlement Invoices)
The amended provisions of Articles 60 (9) and 76-17 (4) shall begin to apply
from the tax returns on the tax base or consolidated tax base filed after this
Act enters into force.
Article 7 (Applicability to Revocation of Approval for Applying Consolidated Tax
Return System)
The amended provisions of Article 76-9 (2) shall begin to apply from the first
case where approval for applying the consolidated tax return system is revoked
after this Act enters into force.
Article 8 (Applicability to Exclusion of Consolidated Subsidiaries)
The amended provisions of Article 76-12 (2) shall begin to apply from the first
case where the consolidated tax return system ceases to be applied after this
Act enters into force.
Article 9 (Applicability to Income for Each Consolidated Business Year)
The amended provisions of Article 76-14 (2) shall begin to apply from the first
case where an asset owned by the existing consolidated group before a merger is
disposed of after this Act enters into force or where an asset acquired before
the consolidated parent corporation applies the consolidated tax return system
is disposed of after this Act enters into force.
Article 10 (Applicability to Domestic Source Income)
The amended provisions of subparagraph 7 (b) of Article 93 shall begin to apply
from the first asset transferred after this Act enters into force.
Article 11 (Applicability to Timing for Becoming Cash Receipt Merchant)
The amended provisions of Article 117-2 shall being to apply from the first case
where a corporation meets the requirements for becoming a Cash Receipt merchant
before this Act enters into force and becomes a Cash Receipt merchant after this
Act enters into force.
Article 12 (Applicability to Obligation to Submit Data on Overseas Subsidiaries,
etc.)
The amended provisions of Article 121-2 (1) shall begin to apply from the
documents specified in the aforesaid paragraph submitted by a corporation for
the business year immediately before the business year in which the filing
deadline by a consolidated corporation comes due after this Act enters into
force.
Article 13 (Transitional Measure Following Repeal of Payment in Kind)
Notwithstanding the amended provisions of Articles 62-2 (7) and 65, the former
provisions shall apply the land, etc., transferred or expropriated before this
Act enters into force.
ADDENDA <Act No. 14386, Dec. 20, 2016>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2017: Provided, That the amended
provisions of Article 76 (6), (7), and (9) shall enter into force on January 1,
2018.
Article 2 (General Applicability)
This Act shall begin to apply from the business year that begins after this Act
enters into force and thereafter.
Article 3 (Applicability to Restriction on Deduction of Carried-Over Losses,
etc. upon Merger)
The amended provisions of Article 45 (3) shall apply to the tax bases on the tax
returns filed after this Act enters into force.
Article 4 (Applicability to Restriction on Deduction of Carried-Over Losses,
etc. upon Division)
The amended provisions of Article 46-4 (3) shall apply to the tax bases on the
tax returns filed after this Act enters into force.
Article 5 (Applicability to Tax Credit for Correction to Wrongful Accounting)
The amended provisions of Article 58-3 shall apply to the corrections made after
this Act enters into force.
Article 6 (Applicability to Penalty Tax)
The amended provisions of Article 76 (6), (7), and (9) shall apply where the
deadline for submitting a detailed statement of changes in stocks, a payment
statement, an aggregate invoice for each supplier or purchaser, or an aggregate
tax invoice for each supplier becomes due on or after January 1, 2018.
Article 7 (Applicability to Application for Non-Taxation or Tax Exemption on
Foreign Corporations under Tax Treaties)
The amended provisions of Articles Article 98-4 (4). 98-5 (2), and 98-6 (4)
shall apply where the period set previously for filing an application for
correction has not elapsed at the time this Act enters into force.
Article 8 (Transitional Measure concerning Constructive Dividends or
Distributions)
Notwithstanding the amended provisions of Article 16 (1) 6, former provisions
shall apply to domestic corporations divided and merged before this Act enters
into force.
Article 9 (Transitional Measure concerning Taxation, etc. on Merged Corporations
upon Merger)
Notwithstanding the amended provisions of Article 44 (3), former provisions
shall apply to domestic corporations merged before this Act enters into force.
Article 10 (Transitional Measure concerning Taxation, etc. on Divided
Corporations upon Division)
Notwithstanding the amended provisions of Article 46 (2) 2, former provisions
shall apply to domestic corporations divided and merged before this Act enters
into force.
Article 11 (Transitional Measure concerning Domestic Source Income Accrued from
Rendering Personal Services under Tax Treaties)
Notwithstanding the amended provisions of subparagraph 6 of Article 93 and the
proviso to Article 98 (1) 2, former provisions shall apply where personal
services have been rendered abroad before this Act enters into force.
ADDENDA <Act No. 15022, Oct. 31, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
ADDENDA <Act No. 15222, Dec. 19, 2017>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2018.
Article 2 (General Applicability)
This Act shall apply to the business years beginning after this Act enters into
force.
Article 3 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Article 24 (2) shall apply beginning with the first
donation made after this Act enters into force.
Article 4 (Applicability to Special Cases, Including Exclusion of Expenses
Incurred in Relation to Passenger Vehicles for Business Use from Deductible
Expenses)
The amended provisions of Article 27-2 (3) shall apply beginning with the
returns filed on a tax base after this Act enters into force.
Article 5 (Applicability to Addition of Requirements for Transfer of Employees
upon Merger or Division)
The amended provisions of Articles 44 (2), 44-3 (3) 3, 46 (2), 46-3 (3) 3 and 37
(1) and (3) 3 shall apply beginning with mergers and divisions taking place
after this Act enters into force.
Article 6 (Applicability to Succession to Tax Exemption, Reduction and Credits
upon Qualifying Spin-Off)
The amended provisions of Article shall apply beginning with the spin-offs
taking place after this Act enters into force.
Article 7 (Applicability to Abolition of Requirement Succeed to Independent
Business Division from Requirements for Qualifying Investments in Kind)
The amended provisions of Article 47-2 (1) 5 shall apply beginning with the
investments made in kind after this Act enters into force.
Article 8 (Applicability to Penalty Tax)
The amended provisions of Article shall apply beginning with the case where an
invoice is issued for goods or services supplied after this Act enters into
force.
Article 9 (Transitional Measures concerning Non-Inclusion of Donations in
Deductible Expenses)
Notwithstanding the amended provisions of Article 24 (2) 7 and (3), the
donations made to any of the institutions designated under former provisions
before this Act enters into force shall be deemed statutory donations until the
end of the period of designation under Article 24 (2) 7 or (3).
ADDENDA <Act No. 16008, Dec. 24, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019: Provided, That the amended
provisions of Article 93-2, latter part of Article 98-4 (1), Article 98-4 (2),
latter part of Article 98-6 (1), Articles 98-6 (2), 121-3 (2), (3) (limited to
the parts related to paragraph (2) of the same Act), and 123-2 shall enter into
force on January 1, 2020.
Article 2 (General Applicability)
This Act shall begin to apply from the business years that begin after this Act
enters into force.
Article 3 (Applicability to Special Cases Concerning Non-Inclusion of Holding
Companies' Dividend Income in Gross Income)
The amended provisions of Article 18-3 (1) shall begin to apply from the
dividend to be distributed after this Act enters into force.
Article 4 (Applicability to Non-Inclusion of Donations in Deductible Expenses)

(1) The amended provisions of Article 24 (2) and (3) 4 (e) shall begin to apply
from the tax base reported after this Act enters into force.

(2) The amended provisions of Article 24 (5) shall begin to apply from the tax
base reported after this Act enters into force and also apply to the donations
spent for the business years initiated after January 1, 2013.

Article 5 (Applicability to Penalty Tax on Negligence in Submitting Certificate
of Confirmation on Compliant Filing)
The amended provisions of Article 75 (1) shall begin to apply from the deadlines
for submitting certificates of confirmation on complaint filing after this Act
enters into force.
Article 6 (Applicability to Penalty Tax on Negligence in Issuing Cash Receipts)

(1) The amended provisions of Article 75-6 (2) 1 shall begin to apply from the
cases falling under Article 117-2 (1) after this Act enters into force.

(2) The amended provisions of Article 75-6 (2) 2 and 3 shall begin to apply from
the violation of issuing cash receipts after this Act enters into force.

Article 7 (Applicability to Penalty Tax on Negligence in Submitting Simple
Statements on Wage or Salary Payment)
The amended provisions of Article 75-7 (1) 1 (b) and 2 (b) shall begin to apply
from the portions on which a simple statement on wage or salary payment shall be
submitted or is submitted under Article 164-3 of the Income Tax Act after this
Act enters into force.
Article 8 (Applicability to Penalty Tax on Negligence in Submitting Invoice)

(1) The amended provisions of Article 75-8 (1) 2, 4 (a), 5 and 6 shall begin to
apply where goods or services are provided after this Act enters into force.

(2) The amended provisions of Article 75-8 (1) 4 (b) through (e) shall begin to
apply where credit card sales slips, cash receipts, or invoices are issued or
received after this Act enters into force.

Article 9 (Applicability to Deduction of Losses Carried Forward upon Merger and
Division of Consolidated Parent Corporations)
The amended provisions of Article 76-14 (2) 2 shall begin to apply from the tax
base reported after this Act enters into force.
Article 10 (Applicability to Obligation to Submit Data on Overseas Subsidiaries)

(1) The amended provisions of Article 121-2 (1) and (4) shall begin to apply
where a document on the business years initiated after January 1, 2019 is
submitted.

(2) The amended provisions of Article 121-4 shall begin to apply from the
negligence in submitting a document on the business years initiated after
January 1, 2019, where overseas real estate, etc. or stocks, of foreign
corporation that has received foreign direct investment are acquired.

(3) The amended provisions of Article 123 (1) and (3) shall begin to apply from
the negligence in submitting a document on the business years initiated after
January 1, 2019.

(4) The amended provisions of Article 123 (2) shall begin to apply from the
negligence in submitting a document on the business years initiated after
January 1, 2020.

Article 11 (Applicability to Penalty Tax on Negligence in Submitting Documents
on Overseas Real Estate)
Notwithstanding the amended provisions (limited to where the obligation to
submit documents is given to a domestic corporation whose disposition value by
each property of overseas real estate, etc. exceeds 200 million won) of Article
121-2 (1), a domestic corporation that disposes of overseas real estate, etc.
during the period from January 1, 2019 to December 31, 2019 shall not be subject
to an administrative fine in the amended provisions of Article 121-3 (2)
(referring to the part amended by Act No. 16008). <Amended on Dec. 31, 2019>
Article 12 (Transitional Measures concerning Corporate Tax on Unappropriated
Earnings of Corporations)
When accumulating the reserve for appropriation in the next term in the previous
Article 56 or calculating the unappropriated earnings or over-appropriated
amount, the previous Article 56 shall apply to a domestic corporation that
deduces the sum of investment in assets and disposes of the assets.
Article 13 (Transitional Measures concerning Penalty Tax on Negligence in
Issuing Cash Receipts)
Notwithstanding the amended provisions of Article 75-6 (2) 1, the previous
provisions shall apply to a domestic corporation which meets the criteria under
Article 117-2 (1) before this Act enters into force.
Article 14 (Transitional Measures concerning Obligation to Submit Documents on
Overseas Real Estate and Penalty Tax)
Notwithstanding the amended provisions of Article 121-2 (1) and 123 (2),
previous Articles 121-2 (1) and 121-3 (2) shall apply to overseas real estate,
etc. acquired in the business year preceding the business year (hereafter in
this Article, referred to as “preceding business year”) initiated after January
1, 2019. In such cases, the documents subject to be submitted under Article
121-2 (1) shall be the documents falling under the preceding business year.
ADDENDA <Act No. 16096, Dec. 31, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2019.
ADDENDA <Act No. 16833, Dec. 31, 2019>
Article 1 (Enforcement Date)
This Act shall enter into force on 1/1/2020.
Article 2 (General Applicability)
This Act shall apply to the business year that begins after this Act enters into
force and thereafter.
Article 3 (Applicability to Non-Inclusion of Received Dividends in Gross Income)
The amended provisions of Articles 18-2 (1) 1 and 18-3 (1) 1 shall apply from
the first dividend to be distributed after this Act enters into force.
Article 4 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Article 24 (2), (5) and (6) shall apply from those who
report the tax base after this Act enters into force, but also apply to
donations that can be deducted carried forward when reporting the tax base.
Article 5 (Applicability to Special Cases, Including Exclusion of Expenses
Incurred in Relation to Passenger Vehicles for Business Use from Deductible
Expenses)
The amended provisions of Article 27-2 (2) shall apply beginning with the
returns filed on a tax base after this Act enters into force.
Article 6 (Applicability to Penalty Tax on Negligence in Submitting Invoice)
The amended provisions of Article 75-8 (1) 5 and 6 shall supply goods or
services in the business year immediately preceding the business year in which
this Act enters into force (hereinafter referred to as "previous business year")
and shall transmit a list of issued electronic invoices to the Commissioner of
the National Tax Service in accordance with Article 121 (7), and for whom 11
days have not passed as of the month immediately following the business year as
at the enforcement date of this Act.
Article 7 (Applicability to Calculation of Amount of Domestic Source Income)
The amended provisions of Article 92 (1) shall apply to the tax bases on the tax
returns filed after this Act enters into force.
Article 8 (Applicability to Domestic Source Income of Foreign Corporations)
The amended provisions of subparagraph 8 of Article 93 and subparagraphs 10 (j)
and (k) of the same Article shall apply from the amount of income paid after
this Act enters into force.
Article 9 (Applicability to Special Cases concerning Withholding or Collection
from Foreign Corporation)
The amended provisions of Article 98 (1) 8 shall apply to income paid on or
after this Act enters into force.
Article 10 (Applicability to Request for Correction by Foreign Corporations
Subject to Withholding Tax)
The amended provisions of Articles 98-4 (4), 98-5 (2) and 98-6 (4) shall apply
from the amount of income paid after this Act enters into force.
Article 11 (Transitional Measures concerning Non-Inclusion of Evaluation
Marginal Profits in Gross Income)
Notwithstanding the amended provisions of subparagraph 6 of Article 18, the
previous provisions shall apply to losses incurred in the business year
commenced before January 1, 2010.
Article 12 (Transitional Measures concerning Penalty Tax on Negligence in
Issuance, Preparation, and Storage of Donation Receipts)
Notwithstanding the amended provisions of Article 75-4 (1) 1 (a) and (b), the
previous provisions shall apply to the donation receipts issued before this Act
enters into force.
Article 13 (Transitional Measures concerning Penalty Tax for Insufficient
Submission of Invoices)
Notwithstanding the amended provisions of Article 75-8 (1) 5 and 6, the previous
provisions shall apply where a list of issued electronic invoices is to be
transmitted to the Commissioner of the National Tax Service under Article 121
(7) by supplying goods or services before this Act enters into force (excluding
cases falling under Article 6 of the Addenda).
Article 14 (Transitional Measures concerning Domestic Source Income of Foreign
Corporation)
Notwithstanding the amended provisions of subparagraph 8 of Article 93 and
subparagraph 10 (j) and (k) of the same Article, the previous provisions shall
apply to forcethe amount of income paid before this Act enters into force.
ADDENDA <Act No. 17476, Aug. 18, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021.
Article 2 (Applicability to Special Provisions concerning Taxation on Capital
Gains on Transfer of Land)
The amended provisions of Article 55-2 (1) shall apply from the part transferred
after this Act enters into force.
ADDENDA <Act No. 17652, Dec. 22, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2021: Provided, That the amended
provisions of Articles 75-4 (2) and 112-2 shall enter into force on July 1,
2021; the amended provisions of Article 92 (2); subparagraphs 1, 2 (a), (c) and
(d), and 10 (k) and (l) of Article 93; and Article 98 shall enter into force on
January 1, 2025. <Amended on Dec. 21, 2021; Dec. 31, 2022>
Article 2 (General Applicability)
This Act shall begin to apply to the business year beginning after this Act
enters into force.
Article 3 (Applicability to Corporate Taxation on Income of Corporate Taxable
Trust Property)

(1) The amended provisions of Articles 5 (2) and (3), 18-2 (2) 5, 18-3 (2) 4,
57-2 (1), 73-2 (4), 75-10 through 75-14, 75-16 through 75-18, 109 (1), 109-2,
111 (3), (6), and (7) shall apply to trust agreements concluded after this Act
enters into force. (2) The amended provisions of Article 75-15 shall apply to
trusts merged or divided after this Act enters into force.

Article 4 (Applicability to Deduction of Losses Carried Forward)
The amended provisions of Articles 13 (1) 1 (a) and 76-13 (1) 1 shall begin to
apply to losses incurred in the business year beginning after January 1, 2020.
Article 5 (Applicability to Non-Inclusion of Bad Debts in Deductible Expenses)
The amended provisions of Article 19-2 (2) 2 shall apply to the lending after
this Act enters into force.
Article 6 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Article 24 (2) 2 and (3) 2 shall begin to apply to
donations expended in the business year beginning after this Act enters into
force.
Article 7 (Applicability to Restriction on Deduction of Losses Carried forward
upon Merger or Division)
The amended provisions of Articles 45 (6) through (8) and 46-4 (6) through (8)
shall apply to mergers or divisions conducted after this Act enters into force.
Article 8 (Applicability to Foreign Tax Credits)
The amended provisions of Article 57 (2) shall apply to the amount of foreign
corporate tax paid or payable to a foreign government in excess of a deduction
limit and therefore remaining without being deducted as of the end of the
business year immediately preceding the business year beginning after this Act
enters into force, for the purpose of calculating the tax base and the amount of
tax for the business year beginning after this Act enters into force.
Article 9 (Applicability to Obligation to Prepare and Keep Detailed Records of
Issuing Donation Receipts)
The amended provisions of Articles 75-4 (2) and 112-2 shall apply to electronic
donation receipts issued after July 1, 2021.
Article 10 (Applicability to Penalty Tax on Negligence in Submitting Payment
Statements)

(1) The amended provisions of Article 75-7 (1), with the exception of the
subparagraphs, shall apply when the obligation to submit a payment statement
arises after this Act enters into force.

(2) The amended provisions of Article 75-7 (1) 1 (b) and 2 (b) shall apply to
reports, determinations or corrections made after this Act enters into force.

Article 11 (Applicability to Domestic Source Income of Foreign Corporations)

(1) The amended provisions of Article 92 (2) 1 (b) and subparagraph 10 (k) of
Article 93 shall apply to virtual assets transferred, lent, or withdrawn after
January 1, 2025. <Amended on Dec. 21, 2021; Dec. 31, 2022>

(2) The amended provisions of subparagraphs 1 and 2 (a), (c), and (d) of Article
93 shall apply to income accruing after January 1, 2025. <Amended on Dec. 31,
2022>

Article 12 (Applicability to Special Cases concerning Application of Tax Rates
to Interest, Dividends and Royalties)
The amended provisions of the latter part of subparagraph 8, with the exception
of the items, of Article 93 and Article 98 (7) (limited to the part pertaining
to including the income accruing from leasing industrial, commercial, or
scientific machinery, facilities, or equipment, etc., which is classified as
royalty income under a tax treaty, in royalty income) shall apply to income paid
after January 1, 2013.
Article 13 (Applicability to Special Cases concerning Withholding Tax on
Domestic Source Income of Foreign Corporations)
The amended provisions of Article 98 (1) 8 (b) and (13), (16), and (17) shall
apply to virtual asset income accruing after January 1, 2025. <Amended on Dec.
21, 2021; Dec. 31, 2022>
Article 14 (Applicability to Obligation to Submit Payment Statements on Domestic
Source Income of Foreign Corporations)
The amended provisions of Article 120-2 (1) shall apply when transfer
consideration is paid after this Act enters into force.
Article 15 (Transitional Measures concerning Deduction of Losses Carried
Forward)
Notwithstanding the amended provisions of Articles 13 (1) 1 (a) and 76-13 (1) 1,
the former provisions shall apply to losses incurred in business years beginning
before January 1, 2020.
Article 16 (Transitional Measures concerning Non-Inclusion of Donations in
Deductible Expenses)
Notwithstanding the amended provisions of Article 24 (2) 2 and (3) 2, the former
provisions shall apply to donations expended in business years beginning before
this Act enters into force.
Article 17 (Transitional Measures concerning Restriction on Deduction of Losses
Carried Forward, etc. upon Merger or Division)
Notwithstanding the amended provisions of Articles 45 (6) through (8) and 46-4
(6) through (8), the former provisions shall apply to a merger or division
conducted before this Act enters into force.
Article 18 (Transitional Measures concerning Deduction of Income for Special
Purpose Companies)
Notwithstanding the amended provisions of Article 51-2 (1) 9, the former
provisions shall apply to the business year beginning before this Act enters
into force.
Article 19 (Transitional Measures concerning Foreign Tax Credits)
Notwithstanding the amended provisions (limited to the part deleting the method
for inclusion in deductible expenses) of Article 57, the former provisions shall
apply to business years beginning before this Act enters into force.
Article 20 (Transitional Measures concerning Tax Credits for Losses from
Disasters)
Notwithstanding the amended provisions of Articles 58 (1) 1 and 71 (4), the
former provisions shall apply when a tax liability was established before
January 1, 2020.
Article 21 (Transitional Measures concerning Administrative Fines for
Non-Performance of Duty to Submit Materials concerning Overseas Corporations,
etc.)
Notwithstanding the amended provisions of Article 123, the former provisions
shall apply when applying the provisions pertaining to administrative fines for
any violation of obligations committed before this Act enters into force.
ADDENDA <Act No. 17758, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on Jan. 1, 2021.
ADDENDA <Act No. 17799, Dec. 29, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force one year after the date of its promulgation.
(Proviso Omitted)
ADDENDA <Act No. 17924, Mar. 16, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on Jul. 1, 2021
Article 2 (Applicability to Penalty Taxes on Negligence in Submitting Payment
Statements)
The amended provisions of Article 75-7 (1) through (3) shall apply when a
payment statement or simple payment statement should be or is submitted with
respect to income paid after this Act enters into force pursuant to the proviso,
with the exception of the subparagraphs, of Article 164 (1) or Article 164-3 (1)
2 of the Income Tax Act.
Article 3 (Transitional Measures concerning Penalty Taxes on Negligence in
Submitting Payment Statements)
Notwithstanding the amended provisions of Article 75-7 (1), the former
provisions shall apply to penalty taxes imposed or to be imposed pursuant to the
former provisions of Article 75-7 (1) before this Act enters into force.
ADDENDA <Act No. 18425, Aug. 17, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 18521, Nov. 23, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso
Omitted)
ADDENDA <Act No. 18584, Dec. 21, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2022.
ADDENDA <Act No. 18590, Dec. 21, 2021>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2022: Provided, That the amended
provisions of Articles 57 (1), 57-2, 62-2 (1) 1, and 73 (1) shall enter into
force on January 1, 2025. <Amended on Dec. 31, 2022>
Article 2 (Applicability to Non-Inclusion of Donations in Deductible Expenses)
The amended provisions of Article 24 (2) 1 (d) (vii) shall also apply to
donations expended after May 2, 2021.
Article 3 (Applicability to Requirements for Qualified Merger)
The amended provisions of Article 44 (2) 3 shall apply to a merger conducted
after this Act enters into force.
Article 4 (Applicability to Restrictions on Deduction of Losses Carried Forward
upon Acquisition of Business)
The amended provisions of Articles 50-2 and 113 (7) shall apply to contracts for
business transfer or acquisition concluded after this Act enters into force.
Article 5 (Applicability to Institutional Private Equity Funds Excluded from
Deduction of Dividend Income)

(1) The amended provisions of Article 51-2 (1) 2 shall apply to reporting a tax
base after this Act enters into force.

(2) Notwithstanding the amended provisions of Article 51-2 (1) 2, the former
provisions shall apply to a private equity fund that continues to exist as at
the time this Act enters into force for being deemed to be an institutional
private equity fund, private equity fund for corporate financial stability, or
private equity fund specializing in start-up or venture business pursuant to
Article 8 (1) through (4) of the Financial Investment Services and Capital
Markets Act amended by Act No. 18128.

Article 6 (Applicability to Special Cases concerning Foreign Taxe Credits and
Refunds)

(1) The amended provisions of the latter part of Article 57 (1) and the latter
part, with the exception of the subparagraphs, of Article 73 (1) shall apply to
foreign tax credits or withholding on income accruing after January 1, 2025.
<Amended on Dec. 31, 2022>

(2) With respect to income accruing before January 1, 2025, notwithstanding the
amended provisions of Article 57-2, the former provisions shall apply to the
deduction or refund of foreign taxes when a tax base is reported for the
business year in which the relevant income accrues. <Amended on Dec. 31, 2022>

(3) Where the former provisions of Article 57-2 apply to the income accruing
during a period from October 21, 2021 to December 31, 2022 pursuant to paragraph
(2), a “private equity fund” referred to in paragraph (1) of the same Article
shall be deemed to be an “institutional private equity fund or a privately
placed fund that is deemed to be an institutional private equity fund, private
equity fund for corporate financial stability, or private equity fund
specializing in start-up or venture business pursuant to Article 8 (1) through
(4) of the Financial Investment Services and Capital Markets Act amended by Act
No. 18128.

Article 7 (Applicability to Submission of Certificate of Confirmation on
Compliant Filing)
The amended provisions of Article 60-2 (1) 3 shall apply to the acquisition of a
business conducted after this Act enters into force.
Article 8 (Applicability to Penalty Tax on Negligence in Submitting Detailed
Statement of Expenses Related to Passenger Vehicles for Business Use)
The amended provisions of Article 74-2 shall begin to apply where expenses
related to passenger vehicles for business use, etc. are included in deductible
expenses for the business year beginning after this Act enters into force.
Article 9 (Applicability to Submission of Status Data on Foreign Corporation
Liaison Offices)
The amended provisions of Article 94-2 shall begin to apply where status data
are submitted for the business year beginning after this Act enters into force.
Article 10 (Transitional Measures concerning Special Cases of Filing Capital
Gains on Transfer of Assets by Non-Profit Domestic Corporations)
Notwithstanding the amended provisions of Article 62-2 (1) 1, the former
provisions shall apply where stocks, etc. are transferred before January 1,
2025.
Article 11 (Transitional Measures concerning Penalty Tax on Negligence in
Submitting Certificate of Confirmation on Compliant Filing)
Notwithstanding the amended provisions of Article 75 (1) and (3), the former
provisions shall apply to a penalty tax on negligence in submitting a
certificate of confirmation on compliant filing to be paid after this Act enters
into force for a business year beginning before this Act enters into force.
Article 12 (Transitional Measures concerning Penalty Tax on Negligence in
Issuing Cash Receipts)
Notwithstanding the amended provisions of Article 75-6 (2) 3, the former
provisions shall apply where a domestic corporation voluntarily reports to a tax
office or voluntarily issues a cash receipt before this Act enters into force.
Article 13 (Transitional Measures concerning Change of Requirements for Foreign
Investment Scheme Deemed Real Beneficiary)
Notwithstanding the amended provisions of Article 93-2 (1) 1 and 2, the former
provisions shall apply when determining a real beneficiary of domestic source
income paid before this Act enters into force.
ADDENDA <Act No. 19193, Dec. 31, 2022>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2023: Provided, That the amended
provisions of the following subparagraphs shall enter into force on the date
specified in the relevant subparagraphs:

1. The amended provisions of subparagraphs 9, 10, and 10-2 of Article 2,
subparagraph 6 of Article 21, Article 25 (excluding the amended part pertaining
to “purchaser-issued invoice” in paragraph (2) 3 of the same Article), Article
75-5 (2) 1, and Article 75-7 (1), (3), and (4); the part amending “income
prescribed in subparagraph 3” in the amended provisions of paragraph (5) of the
same Article; the amended provisions of Articles 76-8, 76-9, 76-11, 76-12, 76-14
(excluding paragraph (1) 2 (a) and 4 of the same Article), 76-18, and 76-19:
January 1, 2024;

2. The amended provisions of subparagraph 2 (c) of Article 93 of the Corporate
Tax Act amended by Act No. 17652; the amended provisions of the latter part of
Article 57 (1) and subparagraphs 1 through 3 of the same paragraph, Article
57-2, the latter part, with the exception of the subparagraphs, of Article 73
(1), and Article 73 (2) through (10) of the Corporate Tax Act amended by No.
18590: Jan. 1, 2025;

3. The amended part pertaining to “purchaser-issued invoice” in the amended
provisions of Article 25 (2) 3; the amended provisions of Articles 116 (3) and
121-2: July 1, 2023.

Article 2 (General Applicability)
This Act shall begin to apply to the business year beginning after this Act
enters into force.
Article 3 (Applicability to Non-Inclusion of Dividends on Capital Reserves in
Gross Income)
The amended provisions of the main clause of subparagraph 8 of Article 18 shall
apply to dividends received after this Act enters into force.
Article 4 (General Applicability to Dividend Income of Foreign Subsidiaries)
The amended provisions of Article 18-4 (including cases applied mutatis mutandis
pursuant to the amended provisions of Article 79), subparagraph 1 of Article 21,
and Article 57 (5) and (7) shall apply to dividend income received from a
foreign subsidiary after this Act enters into force.
Article 5 (Applicability to Issuance of Purchaser-Issued Invoice)
The amended provisions of Article 25 (2) 3 (limited to the part pertaining to
purchaser-issued invoices) and Article 121-2 shall apply where goods or services
are supplied or received after July 1, 2023.
Article 6 (Special Cases concerning Timing of Applying Insurance Company
Taxation Provisions, such as Inclusion of Surrender Refund Reserve in Deductible
Expenses)
With respect to an insurance company that applies the international financial
reporting standards for insurance contracts referred to in Article 42-3 (1) and
reserves surrender value referred to in Article 32 in the business year in which
December 31, 2022 falls, the amended provisions of Articles 30 (1), 32 and 42-3
shall begin to apply to the portion reported after this Act enters into force.
Article 7 (Applicability to Acquisition Value of Assets)
The amended provisions of Article 41 (1) 1-2 shall apply where a foreign
subsidiary is acquired after this Act enters into force.
Article 8 (Applicability to Income Deductions for Special Purpose Companies,
etc.)
The amended provisions of Article 51-2 shall apply where dividends are resolved
after this Act enters into force.
Article 9 (Applicability to Special Cases concerning Foreign Tax Credits for
Indirect Investment Companies)

(1) The amended provisions of the latter part of Article 57 (1) and
subparagraphs 1 through 3 of the same paragraph; Article 57-2; the latter part,
with the exception of the subparagraphs, of Article 73, and paragraphs (2) and
(3) of the same Article of the Corporate Tax Act amended by Act No. 18590 shall
apply to foreign tax credits or withholding on income received after January 1,
2025.

(2) With respect to income accruing before January 1, 2025, the former
provisions (referring to the Corporate Tax Act prior to it being amended by Act
No. 18590) shall apply to the foreign tax credits and refunds where a tax base
is reported for the relevant business year, notwithstanding the amended
provisions of Article 57-2 of the Corporate Tax Act amended by Act No. 18590.

Article 10 (Applicability to Withholding Tax Rates on Interest Income)
The amended provisions of Article 73 (1) shall apply to interest income received
through an online investment-linked financial business entity after this Act
enters into force.
Article 11 (Applicability to Penalty Tax on Negligence in Submitting Payment
Statements)

(1) The amended provisions of Article 75-7 (1), (3), (4), (5) (limited to the
part pertaining to income prescribed in Article 164-3 (1) 3 of the Income Tax
Act) shall apply when a payment statement, etc. should be or is submitted with
respect to income paid after January 1, 2024.

(2) The amended provisions of Article 75-7 (5) (limited to the part pertaining
to income prescribed in Article 164-3 (1) 2 of the Income Tax Act) shall apply
when a payment statement, etc. should be or is submitted with respect to income
paid after January 1, 2023.

(3) Notwithstanding the amended provisions of Article 75-7 (1) 1 (b), the former
provisions shall apply to a penalty tax for delayed submission of a simple
payment statement on income prescribed in Article 164-3 (1) 1 of the Income Tax
Act, which is paid before January 1, 2024.

Article 12 (Applicability to Special Cases concerning Taxation on Interest and
Capital Gains on State Bonds, etc. of Foreign Corporations)
The amended provisions of Article 93-3 shall apply where interest is paid or
State bonds, etc. are transferred after this Act enters into force.
Article 13 (Applicability to Submission of Data on Liaison Offices of Foreign
Corporations)
The amended provisions of Article 94-2 (2) and (3) shall apply where goods or
services are provided after this Act enters into force.
Article 14 (Applicability to Application for Non-Taxation or Tax Exemption for
Domestic Source Income of Foreign Corporations)
The amended provisions of Articles 98-4 and 98-6 shall apply where an
application is filed for non-taxation, tax exemption, or restrictive tax rates
under a tax treaty after this Act enters into force.
Article 15 (Applicability to Obligation to Submit Virtual Asset Transaction
Details)
The amended provisions of Article 120-4 shall apply where virtual assets are
transferred or lent after January 1, 2023.
Article 16 (Transitional Measures concerning Non-Inclusion of Domestic
Corporations' Dividend Income in Gross Income)

(1) Where the business year of a domestic corporation begins before this Act
enters into force and ends after this Act enters into force, notwithstanding the
amended provisions of Articles 18-2 and 18-3, the former provisions shall apply
to the ratio of non-inclusion in gross income of the dividend income received
before this Act enters into force; the amended provisions of Article 18-2 shall
apply to the ratio of non-inclusion in gross income of the dividend income
received after this Act enters into force.

(2) With respect to dividend income received by a domestic corporation by
December 31, 2023, notwithstanding the amended provisions of Article 18-3, the
ratio of non-inclusion in gross income under the former provisions may apply.

Article 17 (Transitional Measures concerning Change of Reference to
Entertainment Expenses)
Entertainment expenses expended before January 1, 2024 shall be deemed to be
business promotion expenses prescribed in the amended provisions of Article 25.
Article 18 (Transitional Measures concerning Tax Rates)
Notwithstanding the amended provisions of Article 55 (1), the former provisions
shall apply to the corporate tax rates on the income for business years
beginning before this Act enters into force.
Article 19 (Transitional Measures concerning Foreign Tax Credits)
Notwithstanding the amended provisions of Article 57 (5) and (7), the former
provisions shall apply to credits for foreign corporate tax (including an amount
carried forward pursuant to Article 57 (2)) on the dividend income received from
a foreign subsidiary before this Act enters into force.
Article 20 (Transitional Measures concerning Special Cases of Withholding or
Collection of Taxes of Foreign Corporations)
Notwithstanding the amended provisions of Article 98 (2), the former provisions
shall apply where interest is paid or State bonds, etc. are transferred before
this Act enters into force.


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