ENFORCEMENT DECREE OF THE ASSETS REVALUATION ACT
Wholly Amended by Presidential Decree No. 5558, Mar. 12, 1971
Amended by Presidential Decree No. 5900, Dec. 30, 1971
Presidential Decree No. 6645, Apr. 24, 1973
Presidential Decree No. 6760, Jul. 11, 1973
Presidential Decree No. 7470, Dec. 31, 1974
Presidential Decree No. 7916, Dec. 31, 1975
Presidential Decree No. 8347, Dec. 31, 1976
Presidential Decree No. 11284, Dec. 29, 1983
Presidential Decree No. 14438, Dec. 23, 1994
Presidential Decree No. 14468, Dec. 31, 1994
Presidential Decree No. 15750, Apr. 1, 1998
Presidential Decree No. 15800, May 23, 1998
Presidential Decree No. 15970, Dec. 31, 1998
Presidential Decree No. 20720, Feb. 29, 2008
Presidential Decree No. 22395, Sep. 20, 2010
| Article 1 (Scope of Revaluated Assets) |
| (1) | The phrase “assets prescribed by Presidential Decree” in the proviso to Article 5 (1) of the Assets Revaluation Act (hereinafter referred to as the “Act”) means: <Amended by Presidential Decree No. 15800, May 23, 1998> |
| 1. | Assets owned by a person who operates a real estate buying and selling business (referring to the real estate allotment sale business and self-employed building construction business in the Korean Standard Industrial Classification issued by the Commissioner of the Statistics Korea); |
| 2. | Lands corresponding to inventory assets; |
| 3. | Assets located north of the Military Demarcation Line and assets requisitioned by the Requisition Act. |
| (2) | Deleted. <by Presidential Decree No. 15800, May 23, 1998> |
| (3) | With respect to the following assets, any partial revaluation shall not be allowed: <Amended by Presidential Decree No. 14468, Dec. 31, 1994; Presidential Decree No. 15800, May 23, 1998> |
| 1. | Furniture, apparatuses and tools for business use among fixed assets, and other assets similar thereto; |
| 2. | Intangible fixed assets. |
| (4) | Assets which can be revaluated under Article 5 (1) of the Act shall include idle assets, but exclude assets which are under construction: Provided, That part of those assets under construction which has been completed before the date of revaluation and is being used for the appropriate business, may be revaluated. <Amended by Presidential Decree No. 15800, May 23, 1998> |
| (5) | Deleted. <by Presidential Decree No. 15800, May 23, 1998> |
[This Article Wholly Amended by Presidential Decree No. 11284, Dec. 29, 1983]
| Article 1-2 (Special Case in Revaluation) |
The phrase “merger as prescribed by Presidential Decree” in Article 4 (2) of the Act and the proviso to Article 38 of the Act means merger as determined by a competent Minister in consultation with the Minister of Strategy and Finance. <Amended by Presidential Decree No. 14438, Dec. 23, 1994; Presidential Decree No. 15800, May 23, 1998; Presidential Decree No. 20720, Feb. 29, 2008> [This Article Wholly Amended by Presidential Decree No. 7470, Dec. 31, 1974]
| Article 2 (Rights Relating to Place of Business) |
| (1) | The phrase “right concerning business places” in subparagraph 6 of Article 6 of the Act means a right of business, an exclusive right to use sidelines, and other rights similar thereto. |
| (2) | Test and research cost, development cost, and right to repair shall be considered to be included in “assets other than those referred to in subparagraphs 1 through 6” as prescribed in subparagraph 7 of Article 6 of the Act. <Amended by Presidential Decree No. 15800, May 23, 1998> |
| Article 3 (Appraisal Corporation) |
An appraisal corporation which can make appraisal reports under Article 7 (3) of the Act shall be classified as in the followings: | 1. | Where the total amount of revaluation value of revaluated assets is 800 billion won or more: an appraisal corporation in which the number of certified public appraisers is not less than 150; and |
| 2. | Where the total amount of revaluation value of revaluated assets is less than 800 billion won: any appraisal corporations. |
[This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| Article 4 (Imported Machinery) |
Assets which are evaluated based on the average value of standard exchange rates or arbitrated exchange rates shall be the fixed assets imported from abroad such as aircraft, ships, vehicles, and machinery.
[This Article Newly Inserted by Presidential Decree No. 15800, May 23, 1998]
| Article 4-2 (Taxable Assets of Non-Taxable Juristic Person) |
The term “assets prescribed by the Presidential Decree” in the proviso to subparagraph 2 of Article 11 of the Act means assets of a juristic person established under Article 32 of the Civil Act and under one of the following subparagraphs: <Amended by Presidential Decree No. 15970, Dec. 31, 1998> | 3. | Assets for which a period of three years has not lapsed after the assets have been used for their original purposes. |
[This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| Article 5 (Calculation of Tax Base) |
In the calculation of tax base for assets as prescribed in each of the subparagraphs of Article 13 (1) of the Act, the amount of deficit brought forward which is deducted from the revaluation spread shall be calculated by the following calculation: (Amount of revaluation spread of the assets which fall under each of the subparagraphs of Article 13 (1) of the Act / the amount of revaluation spread of all revaluation assets) × the amount of deficit brought forward under Article 12 of the Act. [This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| Article 6 (Report on Revaluation) |
A report on revaluation prescribed in Article 15 (1) of the Act shall be based on the attached Form No. 2 (1), and in addition thereto, a list of assets of the said Form (2), a calculation statement of the said Form (3), an appraisal report, a balance sheet, copies of the minutes of a board of directors, general meeting of employees, or other decision-making institutions who gave an approval as prescribed in Article 25 of the Act, and other necessary documentary evidence shall be submitted to the chief of the regional tax office having jurisdiction over the place of tax payment. In this case, a balance sheet shall be the one which was made out based on the closing date of a tax term just before the tax term to which the date of revaluation belongs, or the closing date of business year just before the business year to which the date of revaluation belongs. <Newly Inserted by Presidential Decree No. 6645, Apr. 24, 1973; Presidential Decree No. 8347, Dec. 31, 1976; Presidential Decree No. 15800, May 23, 1998>
| Article 7 (Application for Approval of Extension of Reporting Period) |
| (1) | A person who desires to extend the revaluation reporting time limit under the proviso to Article 15 (1) of the Act shall submit an application form of the attached Form No. 3 to the head of a tax office having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 15800, May 23, 1998> |
| (2) | The term “unavoidable causes determined by the Presidential Decree” in the proviso to Article 15 (1) of the Act means the cases that fall under one of the following subparagraphs. <Newly Inserted by Presidential Decree No. 15800, May 23, 1998> |
| 2. | Cases in which an appraisal by an appraisal corporation under Article 3 is delayed. |
| (3) | Where the head of a tax office having jurisdiction over the place of tax payment approves the extension of the reporting period under paragraph (2), he shall not issue an approval that differs in the tax term or business year, and where he approves the extension of the reporting period under paragraph (2) 2, the period of extension shall not exceed 90 days. <Newly Inserted by Presidential Decree No. 15800, May 23, 1998> |
| Article 8 (Examples of Improper Revaluation Reports) |
| (1) | Improper revaluation report prescribed in Article 17 (4) of the Act includes the contents which fall under one of the following subparagraphs: |
| 1. | Cases in which the revaluated value of assets prescribed by Article 5 (1) 1 of the Act exceeds the acquisition prices of the assets; |
| 2. | Cases in which the revaluated value of assets, among the assets prescribed in Article 5 (1) 1 of the Act, of which the number of years in the standard content is passed, exceeds 25 percent of the acquisition price of the assets concerned. |
| (2) | In the application of paragraph (1), the revaluated value and acquisition value of the fixed assets imported under Article 4 shall be indicated by a foreign currency. |
[This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| Article 8-2 (Special Case in Effect of Decision of Revaluated Price) |
Where revaluated assets are transferred within one year after the date of revaluation under the proviso to Article 18 of the Act, those which are considered not to have been revaluated according to the provisions of the Act shall be limited to the transferred assets. [This Article Newly Inserted by Presidential Decree No. 5900, Dec. 30, 1971]
| Article 9 (Yearly Installments of Revaluation Tax) |
| (1) | Where the amount of revaluation tax exceeds ten million won, yearly installments as prescribed in the proviso to Article 19 (1) of the Act shall be as follows: <Amended by Presidential Decree No. 7470, Dec. 31, 1974; Presidential Decree No. 15800, May 23, 1998> |
| 1. | Where the amount of revaluation tax is less than twenty million won, ten million won or more shall be paid at the time when the report on revaluation is made, and the remainder shall be paid within 60 days from the date of revaluation in the following year; |
| 2. | Where the amount of revaluation tax exceeds twenty million won, half or more of it shall be paid at the time when the report on revaluation is made, and the remainder shall be paid within 60 days from the date of revaluation in the following year. |
| (2) | Where a revaluated juristic person is dissolved, notwithstanding the provisions of paragraph (1), the revaluation tax payable shall be paid in a lump sum within 30 days from the date of dissolution. <Amended by Presidential Decree No. 15800, May 23, 1998> |
| (3) | Where a revaluated individual person transfers half or more of revaluated assets, notwithstanding the provisions of paragraph (1), the revaluation tax payable shall be paid in a lump sum within 30 days from the date of transfer. |
| Article 10 (Payment by Self-Assessment of Revaluation Tax) |
[This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| Article 11 Deleted. <by Presidential Decree No. 15800, May 23, 1998> |
| Articles 12 and 13 Deleted. <by Presidential Decree No. 8347, Dec. 31, 1976> |
| Article 14 (Establishment and Composition of Revaluation Council) |
| (1) | A Revaluation Council prescribed in Article 17 (2) of the Act (hereinafter referred to as the “Council”) shall be established in each regional tax office. |
| (2) | The Council shall be composed of seven members including a chairperson. |
| (3) | The chairperson shall be appointed by the head of a National Tax Service Regional Office from among the director of the direct taxation bureau, the director of the property taxation bureau, and the director of indirect taxation bureau. |
| (4) | Members shall be appointed or commissioned by the head of a National Tax Service Regional Office from among public officials belonging to that regional office or persons of learning and experience in assets revaluation: Provided, That four of them shall be: |
| 1. | One person recommended by the Chamber of Commerce and Industry; |
| 2. | One certified public appraiser; |
| 3. | One certified public accountant; |
[This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| Article 15 (Duties of Chairperson) |
The chairperson shall supervise over the business of the Council and represent the Council.
[This Article Wholly Amended by Presidential Decree No. 15800, May 23, 1998]
| (1) | The chairperson shall convene a meeting of the Council and preside over it. |
| (2) | The quorum for a meeting of the Council shall be an attendance of the majority of all the members and a decision shall be made by an affirmative votes of a majority of the members present. <Amended by Presidential Decree No. 15800, May 23, 1998> |
| Article 17 (Report on Decided Matters) |
Matters decided in a meeting of the Council shall be reported by the chairperson to the head of a National Tax Service Regional Office.
| Article 18 (Statement of Opinion, etc.) |
The Council, if it is deemed necessary, may request the party concerned, a person interested, or an authority concerned to state opinion or submit documents.
An allowance may be paid to members who are not public officials attending a meeting of the Council, within the budget.
| Article 20 (Executive Secretary) |
| (1) | There shall be an executive secretary at the Council. |
| (2) | An executive secretary shall be appointed from among public officials belonging to a National Tax Service Regional Office by the head of that office. |
| (3) | An executive secretary shall manage the business of the Council under the orders of the chairperson. |
| Article 21 (Operational Rules) |
Except as otherwise prescribed in this Decree, necessary matters concerning the operation of the Council shall be determined by the chairperson, subject to deliberation and decision of the Council.
| Article 22 (Deficit Brought Forward) |
| (1) | The phrase “deficit brought forward on a balance sheet” in Articles 28 (1) and 30 (1) 2 of the Act means deficit which is brought forward to the next period, after setting off with earned surplus in the earned surplus reserve, facilitative reserve, etc. |
| (2) | The term “fraction” in the proviso of Article 28 (2) of the Act means the equivalent value of less than one share of a stock to be delivered to each stockholder by capital transfer. |
[This Article Wholly Amended by Presidential Decree No. 11284, Dec. 29, 1983]
| Article 23 (Amount of Money to be Capitalized) |
In capitalizing revaluated reserve, all or a part of the amount of money calculated under Article 30 (1) of the Act only shall be capitalized. [This Article Wholly Amended by Presidential Decree No. 7470, Dec. 31, 1974]
| Article 24 (Application for Delivery of Certificate) |
| (1) | A person who desires a certificate on the amount of capitalization to be delivered under Article 30 (3) of the Act shall submit an application form of the attached Form No. 7 to the head of a tax office having jurisdiction over the place of tax payment. <Amended by Presidential Decree No. 8347, Dec. 31, 1976; residential Decree No. 15800, May 23, 199> |
| (2) | The head of a tax office having jurisdiction over the place of tax payment, where he has received an application form of the paragraph (1), if there is no disparity in the content, shall without delay deliver a certificate of the attached Form No. 8. |
| (3) | Where a person who desires to be exempt from registration licence tax as prescribed in Article 37 (1) of the Act makes an registration of Article 30 (3) of the Act, he shall submit the certificate of paragraph (2) to a registry office within 30 days from the date on which he has received it. <Amended by Presidential Decree No. 8347, Dec. 31, 1976; Act No. 22395, Sep. 20, 2010> |
| (4) | A person who desires to transfer into capital under Article 30 (4) of the Act shall receive a certificate of the Form No. 8 issued by the head of a tax office having jurisdiction over the place of tax payment, transfer into capital, and without delay make registration thereon. In this case, the head of a tax office having jurisdiction over the place of tax payment shall deliver the appropriate certificate, specifying that the provisions of Article 37 (1) of the Act shall not apply. <Amended by Presidential Decree No. 7916, Dec. 31, 1975; Presidential Decree No. 15800, May 23, 1998> |
| Articles 24-2 and 25 Deleted. <by Presidential Decree No. 15800, May 23, 1998> |
ADDENDUM
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 5900, Dec. 30, 1971>
This Decree shall enter into force on the date of enforcement of the Amendments to the Assets Revaluation Act, Act No. 2317.
ADDENDA <Presidential Decree No. 6645, Apr. 24, 1973>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability) The provisions of Article 1-2 shall apply until September 30, 1973. |
ADDENDA <Presidential Decree No. 6760, Jul. 11, 1973>
| (1) | (Enforcement Date) This Decree shall enter into force on the date of its promulgation. |
| (2) | (Applicability) This Decree shall commence to apply to the revaluated assets on or after the date when they are transferred into capital for the first time after the enforcement of this Decree. |
| (3) | (Transitional Measures) A person who has received a certificate on an equivalent amount of transfer into capital according to the previous provisions before the enforcement of this Decree but who has not transferred th amount of money into capital at the time of the enforcement of this Decree shall receive a certificate on an equivalent amount of transfer into capital in a form prescribed in this Decree within 30 days from the date of the enforcement of this Decree, under the conditions as prescribed by the Commissioner of the National Tax Administration. |
ADDENDUM <Presidential Decree No. 7470, Dec. 31, 1974>
This Decree shall enter into force on the date of enforcement of the Amendments to the Assets Revaluation Act, Act No. 2683.
ADDENDUM <Presidential Decree No. 7916, Dec. 31, 1975>
This Decree shall enter into force on the date of its promulgation.
ADDENDUM <Presidential Decree No. 8347, Dec. 31, 1976>
This Decree shall enter into force on January 1, 1977: Provided, That it shall apply to the part of the assets for which the date of revaluation comes for the first time after the enforcement of this Decree.
ADDENDA <Presidential Decree No. 11284, Dec. 29, 1983>
| (1) | (Enforcement Date) This Decree shall enter into force on January 1, 1984. |
| (2) | (General Applicability) This Decree shall commence to apply to the assets on or after the date of revaluation therefor comes for the first time after the enforcement of this Decree. |
| (3) | (Applicability of Deduction of Deficit Brought Forward) The amended provisions of Article 22 (1) shall apply to the part of revaluated reserves which are deposited or transferred into capital for the first time after the enforcement of this Decree. |
| (4) | (Transitional Measures concerning Revaluated Assets) In case assets acquired before the enforcement of this Decree which were eligible for revaluation under the previous provisions of Article 1 (1), are considered not to fall under revaluated assets under the amended provisions of Article 1, such assets may be considered to fall under revaluated assets for once only after the enforcement of this Decree and may so be revaluated according to the previous provisions. |
ADDENDA <Presidential Decree No. 14438, Dec. 23, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation.
Articles 2 through 5 Omitted.
ADDENDA <Presidential Decree No. 14468, Dec. 31, 1994>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1995. (Proviso Omitted.)
Articles 2 through 12 Omitted.
ADDENDA <Presidential Decree No. 15750, Apr. 1, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on April 1, 1998.
Articles 2 through 4 Omitted.
ADDENDUM <Presidential Decree No. 15800, May 23, 1998>
This Decree shall enter into force on the date of its promulgation.
ADDENDA <Presidential Decree No. 15970, Dec. 31, 1998>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 1999. (Proviso Omitted.)
Articles 2 through 19 Omitted.
ADDENDA <Presidential Decree No. 20720, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Decree shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 8 Omitted.
ADDENDA <Presidential Decree No. 22395, Sep. 20, 2010>
Article 1 (Enforcement Date)
This Decree shall enter into force on January 1, 2011.
Articles 2 through 9 Omitted.