Wholly Amended by Ordinance Of the Economy and Finance No. 76, Apr. 26, 1999
Amended by Ordinance Of the Economy and Finance No. 87, May 24, 1999
Ordinance Of the Economy and Finance No. 106, Sep. 30, 1999
Ordinance Of the Economy and Finance No. 132, Mar. 30, 2000
Ordinance Of the Economy and Finance No. 145, jun. 28, 2000
Ordinance Of the Economy and Finance No. 184, Mar. 28, 2001
Ordinance Of the Economy and Finance No. 224, Sep. 29, 2001
Ordinance Of the Economy and Finance No. 253, Mar. 30, 2002
Ordinance Of the Economy and Finance No. 263, May 17, 2002
Ordinance Of the Economy and Finance No. 306, Mar. 24, 2003
Ordinance Of the Economy and Finance No. 382, Dec. 15, 2003
Ordinance Of the Economy and Finance No. 358, Mar. 6, 2004
Ordinance Of the Economy and Finance No. 379, Apr. 24, 2004
Ordinance Of the Economy and Finance No. 396, Oct. 16, 2004
Ordinance Of the Economy and Finance No. 421, Mar. 11, 2005
Ordinance Of the Economy and Finance No. 305, Oct. 13, 2005
Ordinance Of the Economy and Finance No. 478, Dec. 31, 2005
Ordinance Of the Economy and Finance No. 504, Apr. 17, 2006
Ordinance Of the Economy and Finance No. 512, Jul. 5, 2006
Ordinance Of the Economy and Finance No. 548, Mar. 30, 2007
Ordinance Of the Economy and Finance No. 579, Oct. 29, 2007
Ordinance Of the Economy and Finance No. 584, Nov. 23, 2007
Ordinance Of the Economy and Finance No. 16, Apr. 29, 2008
Ordinance Of the Economy and Finance No. 21, Apr. 30, 2008
Ordinance Of the Economy and Finance No. 36, Oct. 15, 2008
Ordinance Of the Economy and Finance No. 48, Dec. 31, 2008
Ordinance Of the Economy and Finance No. 70, Apr. 7, 2009
Ordinance Of the Economy and Finance No. 96, Aug. 28, 2009
Ordinance Of the Economy and Finance No. 151, Apr. 20, 2010
Ordinance Of the Economy and Finance No. 157, jun. 8, 2010
Ordinance Of the Economy and Finance No. 160, jun. 30, 2010
Ordinance Of the Economy and Finance No. 374, jun. 30, 2010
Ordinance Of the Economy and Finance No. 182, Dec. 31, 2010
Ordinance Of the Economy and Finance No. 204, Apr. 7, 2011
Ordinance Of the Economy and Finance No. 225, Aug. 3, 2011
Ordinance Of the Economy and Finance No. 251, Dec. 30, 2011
Ordinance Of the Economy and Finance No. 264, Feb. 28, 2012
Ordinance Of the Economy and Finance No. 300, Oct. 15, 2012
Ordinance Of the Economy and Finance No. 309, Dec. 31, 2012
Ordinance Of the Economy and Finance No. 322, Feb. 23, 2013
Ordinance Of the Economy and Finance No. 342, Mar. 23, 2013
Ordinance Of the Economy and Finance No. 351, May 14, 2013
Ordinance Of the Economy and Finance No. 355, jun. 28, 2013
Ordinance Of the Economy and Finance No. 373, Oct. 21, 2013
Ordinance Of the Economy and Finance No. 387, Dec. 26, 2013
Ordinance Of the Economy and Finance No. 392, Dec. 30, 2013
Ordinance Of the Economy and Finance No. 402, Feb. 28, 2014
Ordinance Of the Economy and Finance No. 406, Mar. 14, 2014
Ordinance Of the Economy and Finance No. 424, May 26, 2014
Ordinance Of the Economy and Finance No. 428, Jul. 4, 2014
Ordinance Of the Economy and Finance No. 444, Nov. 19, 2014
Ordinance Of the Economy and Finance No. 460, Feb. 13, 2015
Ordinance Of the Economy and Finance No. 478, Mar. 13, 2015
Ordinance Of the Economy and Finance No. 506, Oct. 30, 2015
Ordinance Of the Economy and Finance No. 539, Feb. 25, 2016
Ordinance Of the Economy and Finance No. 555, Mar. 14, 2016
Ordinance Of the Economy and Finance No. 569, Aug. 9, 2016
Ordinance Of the Economy and Finance No. 606, Mar. 10, 2017
Ordinance Of the Economy and Finance No. 614, Mar. 17, 2017
Ordinance Of the Economy and Finance No. 649, Dec. 29, 2017
Ordinance Of the Economy and Finance No. 653, Jan. 9, 2018
Ordinance Of the Economy and Finance No. 669, Mar. 21, 2018
Ordinance Of the Economy and Finance No. 726, Mar. 20, 2019
Ordinance Of the Economy and Finance No. 776, Mar. 13, 2020
Ordinance Of the Economy and Finance No. 791, Apr. 21, 2020
Ordinance Of the Economy and Finance No. 795, jun. 15, 2020
Ordinance Of the Economy and Finance No. 831, Mar. 16, 2021
Ordinance Of the Economy and Finance No. 854, May 13, 2021
Ordinance Of the Economy and Finance No. 870, Nov. 9, 2021
Ordinance Of the Economy and Finance No. 904, Mar. 18, 2022
| Article 1 (Purpose) |
| Article 2 (Scope of Small and Medium Enterprises) |
| (1) | Deleted. <Mar. 17, 2017> |
| (2) | Deleted. <Mar. 13, 2015.> |
| (3) | Deleted. <Mar. 13, 2015.> |
| (4) | “Turnover” in Article 2 (1) 1 of the Enforcement Decree of the Restriction of Special Taxation Act (hereinafter referred to as the “Decree”) means the sales turnover on a profit and loss statement prepared in accordance with the Financial Accounting Standards at the end of the relevant taxable year: |
| (5) | “Total assets” in the proviso to the part other than each subparagraph of Article 2 (1) of the Decree means the total assets on the statement of financial position prepared in accordance with the Financial Accounting Standards at the end of the relevant taxable year. <Newly Inserted on Mar. 24, 2003; Feb. 28, 2012; Feb. 23, 2013; Mar. 13, 2015> |
| (6) | Deleted. <Mar. 13, 2015.> |
| (7) | Article 2 (3) of the Enforcement Decree of the Adjustment of International Taxes Act shall apply |
| (8) | Whether a business is a related company, as defined in Article 3 (1) 2 (c) of the Enforcement Decree of the Framework Act on Small and Medium Enterprises, shall be determined in accordance with Article 2 (4) of the Decree at the end of the relevant taxable year. <Newly Inserted on Mar. 14, 2014> |
| Article 3 Deleted. <Mar. 16, 2021> |
| Article 3-2 (Scope of Finance Lease) |
| 1. | Where it is agreed to transfer the ownership of the asset subject to the relevant lease (hereafter in this Article, referred to as “leased asset”) to the lessee, without consideration or at the amount set out in the previous agreement, upon or before expiration of the lease term [referring to a provision to which the condition that terminating the agreement is prohibited is additionally attached (including a provision to which it is deemed that the condition that terminating the agreement is prohibited can be implied, although no express condition prohibiting termination of the agreement exists) and including a provision stipulated by a renewed agreement, if it is agreed at the end of the agreed term by a renewed contract to additionally attach the condition prohibiting termination of the agreement; hereafter in this Article, the same shall apply]; |
| 2. | Where the right to purchase the leased asset at an amount not exceeding 10/100 of the acquisition price upon expiration of lease term vests to the lessee on the date of the commencement of the lease or where the right to renew the lease agreement under the condition that the principal of the renewed agreement shall be not more than 10/100 of the acquisition price vests to the lessee on the date of commencement of the lease; |
| 3. | Where the lease term is at least 75/100 of the standard useful years of the leased asset for each type of asset and business (the lessee's type of business shall apply) in attached Tables 5 and 6 of the Enforcement Rule of the Corporate Tax Act; |
| 4. | Where the present value of the minimum lease charge assessed on the date of commencement of lease under the Financial Accounting Standards is at least 90/100 of the book value of the leased asset; |
| 5. | Where the purpose of use of the leased asset is limited to the lessee's specific purpose and diverting the leased asset for any other purpose is impracticable because of an incurrence of excessive expenses. |
| Article 4 Deleted. <Mar. 16, 2021> |
| Article 4-2 (Scope of Manufacturing Businesses) |
| 1. | A business that conducts planning (referring to conception, designing, sample making, etc.) for the products to be manufactured; |
| 2. | A business that manufactures the relevant products in its own name; |
| 3. | A business that accepts the delivery of the relevant products and is responsible to sell the products. |
| Article 4-3 (Scope of Newly Growing Service Industries Eligible for Tax Reduction and Exemption for Newly Established Small or Medium Businesses) |
| 1. | The exhibition industry as defined in subparagraph 1 of Article 2 of the Act on the Development of Exhibition Industry; |
| 2. | Other industries for science and technology; |
| 3. | The market researching and public polling industry; |
| 4. | The advertising agency industry and the outdoor and display advertising industry, among advertising industries. |
| Article 5 (Turnover of Small Enterprises) |
| Article 5-2 (Scope of Assets for Ex Gratia Rental) |
| Article 6 Deleted. <Mar. 17, 2017> |
| Article 7 (Scope of Expenses for Research and Human Resources Development) |
| (1) | “Research institutes or specialized departments specified by Ordinance of the Ministry of Economy and Finance” in the main sentence of the part other than subparagraph 1 (a) 1) through 3) of attached Table 6 of the Decree means any of the following research institutes and specialized departments (hereinafter referred to as “specialized departments, etc.”); and “research and development service business” under the main sentence of the part other than subparagraph 1 (a) 1) through 3) of attached Table 6 means a research business engaged in by a professional research business entity defined in subparagraph 1 (a) of Article 2 of the Research Industry Promotion Act (hereafter in this Article, referred to as “research and development service business”). <Amended on Apr. 29, 2008; Apr. 7, 2009; Aug. 28, 2009; Apr. 20, 2010; Apr. 7, 2011; Feb. 28, 2012; Mar. 23, 2013; Mar. 14, 2014; Mar. 13, 2015; Mar. 17, 2017; Mar. 20, 2019; Mar. 18, 2022> |
| 1. | Business-affiliated research institutes or departments specialized in research and development, recognized by the Minister of Science and ICT under Article 14-2 (1) of the Basic Research Promotion and Technology Development Support Act; |
| 2. | Corporate-affiliated creative research institutes or specialized corporate creative departments referred to in Article 17-3 (1) of the Framework Act on the Promotion of Cultural Industries; |
| 3. | Specialized industrial design firm under Article 9 of the Industrial Design Promotion Act (hereafter in this Article, referred to as “specialized industrial design firm”) |
| (2) | “Research institutes or specialized departments provided for by Ordinance of the Ministry of Economy and Finance” in Article 9 (3) 1 (a) of the Decree means specialized departments, etc. and enterprises engaging in research and development service business that only performs research on and development of new growth engines and source technologies under attached Table 7 of the Decree (hereafter in this Article, referred to as “research on and development of new growth engines and source technologies”) such as specialized departments located in the Republic of Korea (hereafter in this Article, referred to as “departments specialized in research on and development of new growth engines and source technologies”): Provided, That, as for specialized departments performing general research and development or enterprises engaged in the research and development service business, the organizations classified under each of the following shall be deemed as departments specialized in research on and development of new growth engines and original technologies. <Newly Inserted on Apr. 20, 2010; Apr. 7, 2011; Feb. 28, 2012; Mar. 14, 2014; Mar. 17, 2017; Mar. 20, 2019; Mar. 13, 2020; Mar. 18, 2022> |
| 1. | Where a separate organization for research on and development of new growth engines and source technologies is classified and operated: its internal organizations; |
| 2. | In cases other than subparagraph 1: a company engaged in the research and development of service business such as specialized departments performing research on and development of new growth engines and source technologies and general research and development. |
| (3) | “Persons specified by Ordinance of the Ministry of Economy and Finance” in the main sentence of the part other than subparagraph 1 (a) 1) a) through c) of attached Table 6 mean researcher solely responsible for research under the Enforcement Decree of the Basic Research Promotion and Technology Development Support Act who are engaged in the research in the specialized departments, etc. (as for specialized industrial design firm, it refers to the specialized personnel under Article 9 (1) 1 of the Enforcement Rule of the Industrial Design Promotion Act who engage in the research; the same shall apply hereinafter to this Article), research assistants under the Enforcement Decree of the Basic Research Promotion and Technology Development Support Act, and professionals working for a research and development service business: |
| 1. | A person who owns more than 10/100 of the total number of outstanding stocks of the relevant corporation and exercises all his/her stock options; |
| 2. | A controlling stockholder referred to in Article 43 (7) of the Enforcement Decree of the Corporate Tax Act or a stockholder who owns more than 10/100 of the total number of outstanding stocks of the relevant corporation among stockholders of the relevant corporation; |
| 3. | A person in a special relationship with any of the persons specified in subparagraph 2 (including corporations), as defined as a related person in Article 98 (1) of the Enforcement Decree of the Income Tax Act or Article 2 (5) of the Enforcement Decree of the Corporate Tax Act. In such cases, if a person is an executive officer of the relevant corporation provided for by Article 2 (5) 7 of the Enforcement Decree of the Corporate Tax Act, such person shall be excluded. |
| (4) | “Persons provided for by Ordinance of the Ministry of Economy and Finance” in the proviso to Article 9 (3) 1 (a) of the Decree means the persons falling under any of the following subparagraphs: <Newly Inserted on Apr. 20, 2010; Mar. 17, 2017; Mar. 20, 2019; Mar. 13, 2020; Mar. 18, 2022> |
| 1. | An executive officer who is a stockholder and falls under any of the subparagraphs in paragraph (3); |
| 2. | In the case of subparagraph 2 of paragraph (2), a person who simultaneously performed research on and development of new growth engines and source technologies and general research and development. |
| (5) | “Fees specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 1 (d) of attached Table 6 of the Decree means technical consulting fees paid in return for consulting services provided by any of the following persons in industrial technologies <Amended on Apr. 29, 2008; Apr. 7, 2009; Apr. 20, 2010; Apr. 7, 2011; Feb. 28, 2012; Mar. 13, 2015; Mar. 20, 2019; Mar. 13, 2020; Mar. 18, 2022> |
| 1. | Researchers directly engaged in research in a national or public research institute, government-funded research institute, domestic or foreign nonprofit corporation (including affiliated research institutes), a domestic and overseas research institute established by a corporation such as a research institute specializing in manufacturing technology under Article 42 of the Industrial technology Innovation Promotion Act, specialized department, etc. or a research institute affiliated to an overseas company; |
| 2. | Professors (limited to assistant or higher professors) of science or technology, working for a university, college or junior college under Article 2 of the Higher Education Act (including teachers' colleges and colleges of education); |
| 3. | Foreign engineers who have been engaged in any of the following industries for at least five years or who have a bachelor's or higher degree and have been engaged in the relevant field for at least three years: |
| (a) | The industries specified in attached Table 4 of the Decree; |
| (b) | Mining industry; |
| (c) | Construction industry; |
| (d) | Engineering business defined in Article 5 (6) of the Decree; |
| (e) | Logistics industry defined in Article 5 (7) of the Decree; |
| (f) | Market survey and public opinion polling business; business management consulting business and public relations service business; service business for maintenance and management of business facilities; service business for consulting and evaluation for education; other service business for educational support (limited to the operation, etc. of exchange student programs), non-financial holding companies; business of technical testing, inspection and analysis; land survey business; drawing service business; business of geological survey and exploration (limited to activities of geological survey and exploration, excluding survey and exploration for the purpose of mining minerals); mapping business; specialized design business; other unclassified, specialized service of science and technology (limited to other unclassified, specialized services of science and technology, excluding mapping and activities for environmental purification and restoration); other service business for supporting the mining industry (limited to activities of exploration of minerals for the purpose of mining); business of soil purification and underground water (limited to activities of soil purification and underground water); and other business for environmental purification and restoration [limited to activities for environmental purification, other than soil and underground water (excluding collection and transportation of oil leaked from ships)]; |
| (g) | Research industry under subparagraph 1 (a) and (b) of Article 2 of the Research Industry Promotion Act; |
| (6) | “Institutions specified by Ordinance of the Ministry of Economy and Finance” in Article 9 (3) 2 and Article 9 (7) 2 of the Decree mean any of the following: |
| 1. | A university, college or junior college under Article 2 of the Higher Education Act; |
| 2. | A national or public research institute; |
| 3. | A government-funded research institute; |
| 4. | A nonprofit corporation (including a research institute affiliated to a nonprofit corporation); |
| 5. | A domestic and foreign research institute established by a company, such as a research institute specializing in manufacturing technology under Article 42 of the Industrial Technology Innovation Promotion Act; |
| 6. | A specialized department, etc. (limited to the part directly implemented in the specialized department, etc. that conducts research on and development of new growth engines and source technologies or research and development of national strategic technology) or a research institute affiliated to foreign company; |
| 7. | A company engaged in research industry under subparagraph 1 (a) and (b) of Article 2 of the Research Industry Promotion Act or a company located overseas that conducts research and development independently or under consignment for the purpose of profit-making; |
| 8. | A foreign corporation (including a research institute affiliated to a foreign corporation) in which Korean citizens directly own at least 50/100 of the total number of outstanding shares with voting rights, or directly or indirectly own at least 80/100. |
| (7) | Article 2 (3) of the Enforcement Decree of the Adjustment of International Taxes Act shall apply |
| (8) | “Expenses specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (a) 5) of attached Table 6 of the Decree means the following expenses spent for training by researcher solely responsible for research under subparagraph 7 of Article 2 of the Enforcement Decree of the Basic Research Promotion and Technology Development Support Act: <Amended on Apr. 29, 2008; Apr. 7, 2009; Feb. 28, 2012; Mar. 14, 2014; Mar. 16, 2021, Mar. 18, 2022> |
| 1. | Expenses incurred to delegate training to domestic and foreign enterprises (in cases of domestic enterprises, limited to the enterprises that have a specialized department, etc.); |
| 2. | Expenses incurred to entrust training to the Korea Productivity Center established pursuant to the Industrial Development Act. |
| (9) | “Expenses specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (b) of attached Table 6 of the Decree means the following expenses: <Amended on Apr. 29, 2008; Apr. 7, 2009; Feb. 28, 2012; Mar. 18, 2022> |
| 1. | Expenses incurred in procuring materials for practical exercise, where an employer conducts a training program for developing vocational skills in accordance with subparagraph 1 of Article 2 of the Act on the Development of Lifelong Vocational Skills of Citizens (hereinafter referred to as “training program for developing vocational skills”), jointly or separately with other employer(s) (limited to the cases in which such expenses do not constitute direct material cost from the manufacturing costs of the products produced or manufactured by the relevant enterprise); |
| 2. | Necessary expenses subsidizing examinations conducted for technical qualification under Article 20 (1) 2 of the Act on the Development of Lifelong Vocational Skills of Citizens; |
| 3. | Deleted. <Feb. 28, 2012> |
| 4. | Salaries for teachers for development and training of vocational skills under Article 33 (1) of the Act on the Development of Lifelong Vocational Skills of Citizens; |
| 5. | Training allowances, meal allowances, expenses for training and teaching materials and expenses for materials for training for developing vocational skills that are paid and provided to trainees who attend a training for developing vocational skills in the training program for developing vocational skills provided by an employer jointly or separately with other employer(s) and recognized by the Minister of Employment and Labor under Article 24 of the Act on the Development of Lifelong Vocational Skills of Citizens. |
| (10) | “Expenses specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (d) of attached Table 6 of the Decree means the following expenses: <Amended on Apr. 29, 2008; Apr. 7, 2009; Feb. 28, 2012; Mar. 14, 2014; Mar. 13, 2015; Mar. 17, 2017; Mar. 20, 2019; Mar. 18, 2022> |
| 1. | Personnel expenses for coaching staff members and expenses incurred in coaching; |
| 2. | Expenses for training and teaching materials and materials for practical exercise in a training program for development of vocational skills; |
| 3. | Expenses for renting facilities for development of and training for vocational skills; |
| 4. | Expenses disbursed by a small or medium enterprise to the Performance Compensation Fund for Core Personnel of Small and Medium Enterprises under the Special Act on Support for Human Resources of Small and Medium Enterprises: |
| (a) | Expenses disbursed for a person under any of the subparagraphs of Article 26-6 (2) of the Decree; |
| (b) | An amount refunded to a small or medium enterprise due to early termination within five years after joining the Performance Compensation Fund for Core Personnel of Small and Medium Enterprises (if any amount is not subtracted for the preceding taxable years for the refundable amount, such amount shall be included); |
| 5. | Where a Korean national transfers a patent or utility model right not used to a small or medium enterprise (limited to where the small or medium enterprise is not a related person referred to in subparagraph 12 of Article 2 of the Corporate Tax Act or Article 41 of the Income Tax Act) ex gratia, the book value of such patent or utility model right; |
| 6. | Expenses for training executive officers and employees related to sustainable management under Article 19 (1) of the Industrial Development Act and expenses incurred from the diagnosis and consulting of management levels. |
| (11) | “Expenses specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (d) of attached Table 6 of the Decree mean the following expenses: Provided, That, such expenses shall be limited to educational course that requires at least 24 hours of education and training: <Amended on Apr. 29, 2008; Apr. 7, 2009; Apr. 20, 2010; Feb. 28, 2012; Mar. 20, 2019; Mar. 13, 2020; Mar. 18, 2022> |
| 1. | Expenses incurred in internal educational programs provided within the company on quality management, production management, facility management, logistics management, software management, data management, and security management (hereafter in this paragraph, referred to as “quality management, etc.”) that are equivalent to the expenses in paragraph (13); |
| 2. | Expenses incurred in delegating training, where training for quality management, etc., is delegated to any of the following institutions: |
| (a) | The National Specialized Administration Training Institute (limited to the training courses conducted by the International Patent Training Department); |
| (b) | The Korean Standards Association established pursuant to Article 32 of the Industrial Standardization Act; |
| (c) | Deleted. <Apr. 20, 2010> |
| (d) | The Korea Institute of Design Promotion established pursuant to Article 32 of the Industrial Design Promotion Act; |
| (e) | The Korea Management Association established as an incorporated association under Article 32 of the Civil Act for the purpose of education and training for quality management, etc.; |
| (f) | The training center of the |
| 3. | Expenses incurred in delegating education to the Korea Creative Content Agency established pursuant to Article 31 of the Framework Act on the Promotion of Cultural Industries; |
| 4. | Expenses incurred in delegating education and training for periodic examination of pilots' operational qualification under the Aviation Safety Act; |
| 5. | Expenses incurred in delegating education and training for cooking in overseas hotels and overseas restaurants. |
| (12) | “In-house technical colleges (including graduate schools) and in-house colleges specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (e) of attached Table 6 of the Decree means the following colleges (hereafter in this Article, referred to as “in-house technical colleges, etc.”): <Amended on Apr. 29, 2008; Apr. 7, 2009; Feb. 28, 2012; Mar. 23, 2013; Mar. 20, 2019, Mar. 18, 2022> |
| 1. | In cases of in-house technical colleges (including graduate schools): In-house educational and training institutions meeting the standards that the Minister of Education determines in consultation with the Minister of Economy and Finance, among in-house educational and training institutions with educational facilities for exclusive use and curricula for education and training in the fields of science and technology; |
| 2. | In cases of in-house colleges: In-house colleges established pursuant to the Lifelong Education Act. |
| (13) | “Expenses specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (e) of attached Table 6 of the Decree means the following expenses: <Amended on Apr. 29, 2008; Apr. 7, 2009; Feb. 28, 2012; Mar. 17, 2017; Mar. 20, 2019, Mar. 18, 2022> |
| 1. | Expenses for teaching materials for education and training; expenses for testing and practical exercise; and expenses for supplies for education; |
| 2. | Tuition fees paid to lecturers; |
| 3. | Rentals for goods, materials, equipment or facilities directly used for testing and practical exercise for in-house technical colleges, etc.; |
| 4. | Education and training and meal stipends paid to trainees of in-house technical colleges, etc. during the period of education and training. |
| (14) | “Research institutes or specialized departments specified by Ordinance of the Ministry of Economy and Finance” in the main sentence of Article 9 (7) 1 (a) of the Decree specialized departments, etc. and enterprises engaging in research and development service business. <Newly Inserted on Mar. 18, 2022> |
| (15) | “Persons provided for by Ordinance of the Ministry of Economy and Finance” in the proviso to Article 9 (7) 1 (a) of the Decree means the persons falling under any of the following subparagraphs: <Newly Inserted on Mar. 18, 2022> |
| 1. | An executive officer who is a stockholder and falls under any of the subparagraphs in paragraph (3); |
| 2. | A person who simultaneously performed research and development of national strategic technology and research on and development of new growth engines and source technologies. |
| (16) | In cases where there are any expenses commonly incurred by the research and development expenses for new growth engines and source technologies, research and development expenses for national strategic technology, and general research and human resources development expenses (hereafter in this paragraph, referred to as “common expenses”) under Article 9 (12) of the Decree, Korean nationals shall calculate and keep them in separate accounts under the following classifications: <Newly Inserted on Mar. 20, 2019, Mar. 13, 2020; Mar. 18, 2022> |
| 1. | In cases of common expenses constituting personnel expenses and consigned/joint research and development expenses: The following classifications shall prevail. |
| (a) | Common expenses of the general research and human resource development expenses, research and development expenses for new growth engines and source technologies, or research and development expenses for national strategic technology: All general research and human resource development expenses |
| (b) | Common expenses of the research on and development expenses for new growth engines and source technologies and research and development expenses for national strategic technology: All research on and development expenses for new growth engines and source technologies |
| 2. | In cases of common expenses other than subparagraph 1: The following classifications shall prevail. |
| (a) | Research on and development expenses for new growth engines and source technologies: Expenses according to the following formula |
| (b) | Research and development expenses for national strategic technology: Expenses according to the following formula |
| (c) | General research and human resource development expenses: Expenses excluding the expenses under items (a) and (b) from the common expenses other than subparagraph 1 |
| (17) | A Korean citizen who intends to be subject to Article 10 (1) of the Act shall prepare a research and development plan, research and development report, and research note in accordance with attached Form 3-2 for each research and development project implemented during the relevant tax year (if Article 10 (1) 3 of the Act is applied, only the research and development plan and research and development report shall be prepared) and keep them for five years from the end date of the relevant tax year. < Newly Inserted on Mar. 20, 2019; Mar. 18, 2022> |
| (18) | “Preliminary employment contract, etc. specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (g) of attached Table 6 of the Decree means a contract falling under any of the following subparagraphs: < Newly Inserted on Mar. 13, 2020; Mar. 18, 2022> |
| 1. | A special agreement under subparagraph 5 (b) of Article 2 of the Vocational Education and Training Promotion Act entered into with the school for hiring students, such as a high school tailored to industrial demand, that satisfies all of the following requirements (hereafter in this Article, referred to as “vocational education and training contract tailored to industries”): |
| (a) | Vocational education and training courses tailored to industries as determined by the Minister of Education shall be launched in high schools tailored to industry demand, etc.; |
| (b) | Field training shall be provided for at least the period determined by the Minister of Education for students enrolled in a high school tailored to industrial demand at the production facility or place of work for the relevant Korean citizens; |
| (c) | Employment requirements for those who have undergone vocational education and training courses tailored to industries, etc. shall be included; |
| (d) | A vocational education and training contract tailored to industries shall be entered into according to the contract determined by the Ministry of Education, which includes the matters on the requirements between items (a) through (c); |
| 2. | A special agreement under subparagraph 5 (b) of Article 2 of the Vocational Education and Training Promotion Act entered into with the school and a vocational education and training institution under subparagraph 2 of Article 2 of the same Act which satisfies all of the following requirements (hereafter in this Article, referred to as the “vocational education and training contract for interns”): |
| (a) | Vocational education and training courses for interns determined by the Ministry of Education shall be launched in high schools tailored to industry demand or vocational education and training institutions; |
| (b) | Field training shall be provided for at least the period determined by the Minister of Education for students enrolled in a high school tailored to industrial demand at the production facility or place of work for the relevant Korean citizens; |
| (c) | Employment requirements for those who have completed vocational education and training courses for interns shall be included; |
| (d) | A vocational education and training contract for interns shall be entered into pursuant to the contract determined by the Minister of Education, which includes the matters on the requirements between items (a) and (c). |
| (19) | “Preliminary employment contract, etc. specified by Ordinance of the Ministry of Economy and Finance” in subparagraph 2 (h) of attached Table 6 of the Decree means an agreement, etc. that satisfies all of the following requirements: < Newly Inserted on Mar. 16, 2021; Mar. 18, 2022> |
| 1. | On-the-job training courses in compliance with the standardized operational criteria determined by the Minister of Education according to Article 11-3 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act shall be installed at universities, etc.; |
| 2. | On-the-job training for at least the period determined by the Minister of Education according to Article 11-3 of the Industrial Education Enhancement And Industry-Academia-Research Cooperation Promotion Act for students enrolled in universities at the production facilities of an on-the-job training industry or place of work; |
| 3. | Employment conditions for those who have completed on-the-job training in compliance with standardized operational criteria. |
| Article 7-2 (Scope of Investment in Kind) |
| Article 7-3 (Contributions, etc. Related to Research and Development) |
| Article 8 |
| Article 8-2 (Scope of Corporations, etc. Managing and Operating Funds) |
| Article 8-3 (Scope of Business Assets for Purpose of Reduction of or Exemption from Corporate Tax, etc. for Enterprises, etc. Moving into Special Research and Development Zones) |
| 1. | Tangible business assets located in the relevant special zone, etc. or used predominantly for the relevant business in the relevant special zone, etc.; |
| 2. | Assets located in the relevant special zone, etc. or under construction to be predominantly used for the relevant business in the relevant special zone, etc.; |
| 3. | Intangible assets under attached Table 3 of the Enforcement Rule of the Corporate Tax Act. |
| Article 8-4 (Requirements, etc. for Exclusive Accounts for Stock Options of Venture Businesses) |
| (1) | “Exclusive account for stock options in the form provided by Ordinance of the Ministry of Economy and Finance” in Article 14-4 (2) of the Decree means account meeting all the following requirements: <Amended on Mar. 21, 2018; Mar. 20, 2019> |
| 1. | Each of such account shall be opened in the name of an executive officer or employee of a venture business specified in the part other than each subparagraph of Article 16-4 (1) of the Act (hereafter in this Article, referred to as “executive officer or employee of a venture business”); |
| 2. | A financial investment business entity referred to in Article 8 (1) of the Financial Investment Services and Capital Markets Act shall open and manage an account under the title “exclusive account for stock options,” separate from other trading accounts of the relevant executive officer or employee of a venture business; |
| 3. | Only stocks acquired by exercising stock options shall be traded; |
| 4. | Agreement shall be concluded in advance to close the relevant account where no stock is deposited within one month upon opening the account. |
| (2) | “Inevitable causes specified by Ordinance of the Ministry of Economy and Finance, such as death or retirement at the retirement age” in Article 14-4 (5) 3 of the Decree means where an executive officer or employee of a venture business who received a stock option deceases, where the age of such executive officer or employee exceeds the retirement age or where such executive officer or employee retires or resigns due to any other cause for which he/she is not liable. <Amended on Mar. 20, 2019> |
| Article 8-5 (Scope, etc. of Innovative Small and Medium Enterprises) |
| (1) | “Certifications, etc. specified by Ordinance of the Ministry of Economy and Finance" in Articles 11-3 (1) 4 (g) and 11-4 (2) 4 (g) of the Decree means certifications, etc. determined and publicly notified by the Minister of Economy and Finance, among those similar to the certifications, etc. specified in Articles 11-3 (1) 4 (a) through (e) and 11-4 (2) 4 (a) through (f) of the Decree. <Amended on Mar. 17, 2017; Mar. 18, 2022> |
| (2) | “Technical knowhow or technology specified by Ordinance of the Ministry of Economy and Finance” in Article 11-3 (3) 1 of the Decree means any of the following technical expertise or technologies registered with and managed by the Korea Institute for Advancement of Technology established pursuant to Article 38 of the Industrial Technology Innovation Promotion Act: <Newly Inserted on Mar. 17, 2017> |
| 1. | Technical expertise developed by a merged or acquired corporation through its own activities conducted domestically for research and development in any area of science and technology (excluding industrial property rights and technical expertise related to engineering activities for overseas construction under the Overseas Construction Promotion Act or engineering activities under the Engineering Industry Promotion Act); |
| 2. | Technologies defined in subparagraph 1 of Article 2 of the Technology Transfer and Commercialization Promotion Act that have been developed by a merged or acquired corporation through its own activities conducted domestically for research and development. |
| Article 8-6 (Requirements for Exclusive Accounts for Stocks for Investment of Industrial Property Rights) |
| (1) | “Account provided by Ordinance of the Ministry of Economy and Finance” in Article 14-5 (3) of the Decree means an account meeting all the following requirements: <Amended on Mar. 17, 2017; Mar. 20, 2019; Mar. 18, 2022> |
| 1. | A person who holds a right specified in any subparagraph of Article 14-5 (1) of the Decree (hereafter in this Article, referred to as “industrial property right”) shall open such account in his/her name; |
| 2. | A financial investment business entity referred to in Article 8 (1) of the Financial Investment Services and Capital Markets Act shall open and manage the account under “exclusive account for stocks for investment of an industrial property right” separate from other trading accounts of the person holding the industrial property right; |
| 3. | Only the stocks of any of the venture businesses, etc. specified in Article 14 (3) of the Decree that have been acquired in consideration for the investment of an industrial property right in such venture business shall be traded; |
| 4. | Agreement shall be concluded in advance to close the relevant account where no stock is deposited within one month upon opening the account. |
| Article 8-7 (Scope, etc. of Technical Expertise) |
| 1. | The average sales turnover (sales turnover shall be calculated by the formula prescribed in Article 2 (4) of the Decree and the sales turnover for a taxable year of less than one year means sales turnover converted into that for one year; hereafter in this Article, the same shall apply) for the preceding five taxable years of the relevant enterprise or of the related corporation. If the relevant enterprise is a related corporation defined in subparagraph 3 of Article 2 of the Enforcement Decree of the Framework Act on Small and Medium Enterprises, the average sales turnover shall not exceed 50 billion won; |
| 2. | The average sales turnover that the relevant enterprise has achieved during the preceding five years by trading any of those specified in Article 11 (3) of the Decree shall not exceed seven billion won; |
| 3. | Deleted. <Mar. 18, 2022> |
| Article 8-8 (Scope of Materials, Parts, and Equipment) |
| Article 9 (Exemption, etc. of Foreign Engineers from Income Tax) |
| (1) | “Engineering technology license agreement provided for by Ordinance of the Ministry of Economy and Finance” in Article 16 (1) 1 means a license agreement entered into for engineering technology as defined in subparagraph 5 of Article 2 of the Engineering Industry Promotion Act (limited to license agreements for a contract amount of at least USD 300,000). <Amended on Mar. 11, 2005; Apr. 29, 2008; Feb. 28, 2012; Mar. 13, 2012; Mar. 20, 2019> |
| (2) | When Article 16 (1) 2 (a) of the Decree is applied, examples of natural sciences, science and engineering, and medicine fields are as indicated in attached Table 1-2. <Amended on Mar. 16, 2021> |
| (3) | “Overseas universities and research institutes, etc. specified by Ordinance of the Ministry of Economy and Finance” in Article 16 (1) 2 (b) of the Decree means overseas universities and their affiliated research institutes, national research institutes, and corporate-affiliated research institutes (hereafter in this Article, referred to as “overseas research institutes, etc.”). <Newly Inserted on Mar. 16, 2021> |
| (4) | When applying Article 16 (1) 2 (b) of the Decree, if the combined period of service as a researcher at overseas research institutes, etc. (excluding those in charge of administrative affairs only) matches or is greater than period provided in the same item (excluding the period in which he or she did not in fact serve as a researcher due to the period spent for acquiring a degree or leave of absence), he or she shall be deemed to have the experience in the research and development and technology development. <Newly Inserted on Mar. 16, 2021> |
| (5) | When submitting an application for tax reduction or exemption under Article 16 (3) of the Decree as the applicant satisfies the requirements in Article 16 (1) 2 of the Decree, he or she shall also submit a certificate containing each of the following subparagraphs: <Newly Inserted on Mar. 16, 2021> |
| 1. | Name of the person applying for the reduction or exemption; |
| 2. | Name and address of the overseas research institutes, etc.; |
| 3. | Confirmation of the length of service, department, research field, and person in charge of the relevant department at an overseas research institutes, etc. |
| Article 10 (Income Tax Reduction or Exemption for Return of Outstanding Korean Workforce to Korea) |
| (1) | When Article 16-3 (1) 1 of the Decree is applied, examples of natural sciences, science and engineering, and medical fields are as indicated in attached Table 1-2. |
| (2) | “Overseas universities and research institutes, etc. specified by Ordinance of the Ministry of Economy and Finance” in Article 16-3 (1) 3 of the Decree means overseas universities and their affiliated research institutes, national research institutes, and corporate-affiliated research institutes (hereafter in this Article, referred to as “overseas research institutes, etc.”). |
| (3) | When applying Article 16-3 (1) 3 of the Decree, if the combined period of service as a researcher at overseas research institutes (excluding those in charge of administrative affairs only) is five years or longer (excluding the period in which he or she did not in fact serve as an researcher due to absence of leave), he or she shall be deemed to have experience in research and development and technology development. |
| (4) | When submitting an application for tax reduction or exemption under Article 16-3 (3) of the Decree, he or she shall also submit a certificate containing each of the following subparagraphs: |
| 1. | Name of the person applying for the reduction or exemption; |
| 2. | Name and address of the overseas research institutes, etc.; |
| 3. | Confirmation of the length of service, department, research field, and person in charge of the relevant department at an overseas research institutes, etc. |
| Article 11 (Scope of Securities Denominated in Foreign Currency) |
| (1) | “Those provided for by Ordinance of the Ministry of Economy and Finance” in Article 18 (4) 1 of the Decree mean securities denominated in a foreign currency and issued in accordance with the standards determined by the Minister of Economy and Finance for foreign exchange transactions. <Amended on Mar. 30, 2000; Apr. 29, 2008; Apr. 20, 2010> |
| (2) | “Foreign securities markets provided for by Ordinance of the Ministry of Economy and Finance” in Article 18 (4) 2 of the Decree means foreign securities markets similar in function, to the securities markets and the KOSDAQ market established under the Financial Investment Services and Capital Markets Act. <Newly Inserted on Mar. 30, 2000; Mar. 30, 2002; Mar. 11, 2005; Apr. 29, 2008; Apr. 7, 2009> |
| Article 12 (Scope of Business Assets, etc.) |
| (1) | “Assets specified by Ordinance of the Ministry of Economy and Finance, such as buildings” in Article 21 (2) of the Decree mean tangible business assets such as buildings in attached Table 1. |
| (2) | “Assets specified by Ordinance of the Ministry of Economy and Finance as business assets” in Article 21 (3) 1 of the Decree mean the facilities under any of the following subparagraphs: |
| 1. | Research, testing, and vocational training facilities: Facilities under Article 13-10 (1) and (2); |
| 2. | Energy-saving facilities: Facilities under any of the following: |
| (a) | Investment in energy-saving facilities under Article 14 (1) of the Energy Use Rationalization Act (including cases where a company specialized in energy-saving has installed them under Article 25 of the same Act under the promise of transferring the ownership after the consideration is redeemed by installment) and energy-saving machines and materials; |
| (b) | Gray water system under subparagraph 4 of Article 2 of the Act on Promotion and Support of Water Reuse; |
| 3. | Environmental conservation facilities: Environment conservation facilities under attached Table 2; |
| 4. | Worker welfare promotion facilities: Facilities under any of the following: |
| (a) | National housing scale under the Housing Act for rent to non-home owning employees (excluding executive officers who are investors); |
| (b) | Dormitories for employees; |
| (c) | Facilities for promoting convenience for persons with disabilities, the elderly, pregnant women, etc., or facilities for employing persons with disabilities under attached Table 3; |
| (d) | Resting rooms for employees, fitness rooms, shower facilities, or bath facilities (including cases where the facility is acquired by changing the structure of the building, etc.); |
| (e) | Affiliated medical institutions established under Article 35 of the Medical Service Act for employees' health care; |
| (f) | Workplace child care centers under subparagraph 4 of Article 10 of the Child Care Act; |
| 5. | Safety facilities: Safety facilities under attached Table 4. |
| (3) | “Assets specified by Ordinance of the Ministry of Economy and Finance, such as vehicles and carriers directly used for business by a person who runs a transportation business” in Article 21 (3) 2 of the Decree mean the facilities directly used for business according to the classification of each of the following subparagraphs: |
| 1. | Small and medium enterprises whose main business is transportation (referring to small and medium enterprises under Article 2 (1) of the Decree; hereafter in this Article, referred to as “SMEs”): Vehicles and carriers (excluding private vehicles under Article 1 (2) 3 of the Individual Consumption Tax Act) and ships; |
| 2. | SMEs whose main business is fishing: Ships |
| 3. | Construction industry: Machinery and equipment under Article 3 of the Enforcement Rule of the Local Tax Act; |
| 4. | Wholesale, retail, and logistics industries: Facilities specified in attached Table 5 for rationalizing the distribution industry; |
| 5. | Tourist accommodation business and international conference planning business registered under the Tourism Promotion Act: Facilities under Article 6 of the Enforcement Decree of the Local Tax Act among buildings and facilities attached to the buildings; |
| 6. | Special recreation business or general recreation business registered under the Tourism Promotion Act: Lodging facilities, special recreation facilities (excluding golf course facilities) and facilities of the general amusement facility business under subparagraphs 3 (a) and 5 (a) of Article 2 (1) of the Enforcement Decree of the Tourism Promotion Act; |
| 7. | Software that SMEs use directly for their businesses in the relevant industry: Software excluding any of the following: |
| (a) | Software used for support work such as HR, wage, accounting, and finance; |
| (b) | Software used for general office work, such as creating documents, diagrams, and presentation materials; |
| (c) | Basic operating system (operating system) software for running computers, etc. |
| Article 12-2 (Scope of Facilities for Commercialization of New Growth Engines and Source Technologies, etc.) |
| (1) | “Facilities for commercializing new growth engines and source technologies specified by Ordinance of the Ministry of Economy and Finance” in Article 21 (4) 1 (a) of the Decree mean facilities specified in attached Table 6. |
| (2) | “Facilities for commercializing the national strategic technology as specified by Ordinance of the Ministry of Economy and Finance” in Article 21 (4) 2 of the Decree mean facilities specified in attached Table 6-2. |
| (3) | “Reasons specified by Ordinance of the Ministry of Economy and Finance” in the proviso to the part other than each subparagraph of Article 21 (10) of the Decree mean the cases where the applicable facilities are damaged by fire, etc., and therefore, inoperative, during the period from the date on which investment is completed for the applicable facilities until the end date of the three taxable years following the taxable year in which investment is completed. |
| (4) | Among new growth commercialization facilities under Article 21 (4) 1 (a) of the Decree (hereinafter referred to as “new growth engines commercialization facilities”) or national strategic technology commercialization facilities (hereinafter referred to as “national strategic technology commercialization facilities”) under subparagraph 2 of the same paragraph according to Article 21 (14) of the Decree, those who intend to benefit from the tax credit for the facilities used for the production of the products other than the products to be produced using the applicable technology under Article 24 (1) shall measure and record the amount of production as prescribed under each of the following subparagraphs and keep them for five years from the end of the measurement period in subparagraph 2: |
| 1. | Products or semi-finished products (excluding other products or semi-finished products produced using those products or semi-finished products) produced in a form that can be stored and sold through the relevant facility shall be measured; |
| 2. | Measurement shall take place from the date on which the investment is completed (April 1, 2022 if the date on which the investment is completed is before April 1, 2022) to the end date of the three taxable years following the taxable year in which the date falls; |
| 3. | Measurement shall take place for units under the following classifications: |
| (a) | Solids: Number of units; |
| (b) | Liquids and gases: Volume or the number of containers of the same volume containing the products. |
| Article 12-3 (Scope of Buildings or Structures Subject to Follow-Up Management) |
| 1. | Worker welfare promotion facilities under Article 12 (2) 4; |
| 2. | Storage facilities among the facilities for rationalizing the distribution industry under Article 12 (3) 4; |
| 3. | Lodging facilities, special recreation facilities (excluding golf course facilities) and facilities of the general amusement facility business under Article 12 (3) 6 |
| Article 13 Deleted. <Mar. 16, 2021> |
| Article 13-2 Deleted. <Mar. 16, 2021> |
| Article 13-3 Deleted. <Mar. 16, 2021> |
| Article 13-4 Deleted. <Mar. 16, 2021> |
| Article 13-5 Deleted. <Mar. 16, 2021> |
| Article 13-6 Deleted. <Mar. 16, 2021> |
| Article 13-7 Deleted. <Mar. 16, 2021> |
| Article 13-8 Deleted. <Mar. 16, 2021> |
| Article 13-9 (Tax Credit for Video Content Production Costs) |
| (1) | In Article 22-10 (1) of the Enforcement Decree, “a person who meets the requirements prescribed by Ordinance of the Ministry of Strategy and Finance” refers to a person who meets the qualifications in the following items: <Amendment Mar. 20, 2019> |
| 1. | In the case of a person who produces dramas, etc. pursuant to Article 22-10 (2) 1 of the Enforcement Decree: As a person in charge of the |
| (a) | The person is responsible for signing contracts with writers (referring to a person who writes a screenplay, script, etc.); |
| (b) | The person is responsible for signing contracts with major performers; |
| (c) | The person is responsible for signing contracts with the managers of the key staff of two or more fields (i.e. directing, filming, editing, |
| (d) | The person is responsible for all decision-making related to the execution and management of production expenses;2. In the case of a person who produces a film pursuant to Article 22-10 (2) 2 of the Enforcement Decree: As a film producer pursuant to subparagraph 9 (a) of Article 2 of the Promotion of the Motion Pictures and Video Products Act in charge of the actual production of video content, he/she shall satisfy at least three of the requirements in each item of Subparagraph 1. |
| (2) | Deleted. <Mar. 13, 2020> |
| (3) | Deleted. <Mar. 13, 2020> |
| (4) | “Video content that has been screened consecutively at a movie theater for at least a certain period of time as prescribed by Ordinance of the Ministry of Strategy and Finance” under Article 22-10 (2) 2 of the Enforcement Decree refers to those that have been consecutively screened at a movie theater for seven days or more. However, if the Korean Film Council under Article 4 of the Promotion of the Motion Pictures and Video Products Act recognizes a video content as an art film or independent film, it shall refer to those that have been screened for one day or longer. <Amended Mar. 20, 2019> |
| (5) | Confirmation of the screening period under paragraph (4) shall be made through an integrated computer network for movie theater admission tickets pursuant to Article 39 of the Promotion of Motion Pictures and Video Products Act. |
| (6) | “Expenses prescribed by Ordinance of the Ministry of Strategy and Finance” in the main sentence of Article 22-10 (3) of the Enforcement Decree of the Act excluding each subparagraph of the Act refers to the expenses for producing video content according to attached Table 8-9. <Amended Mar. 20, 2019> |
| (7) | Expenses prescribed by Ordinance of the Ministry of Strategy and Finance, such as advertising or public relations expenses in Article 22-10 (3) 2 of the Enforcement Decree of the Act refers to any of the following expenses: <Amended Mar. 20, 2019, Mar. 18, 2018> |
| 1. | Deleted <Mar. 18, 2022>; |
| 2. | Advertising and public relations expenses; |
| 3. | Entertainment expenses under Article 35 of the Income Tax Act and Article 25 of the Corporate Tax Act; |
| 4. | Labor expenses pertaining to any of the following items: |
| (a) | Amount equivalent to retirement income under Article 22 of the Income Tax Act; |
| (b) | Provision for retirement benefits under Article 29 of the Income Tax Act and Article 33 of the Corporate Tax Act; |
| (c) | Contributions paid to the retirement pension account under Article 40-2 (1) 2 of the Enforcement Decree of the Income Tax Act and contributions to retirement pensions, etc. under Article 44-2 (2) of the Enforcement Decree of the Corporate Tax Act; |
| 5. | If the total amount of the actor's performance fee of the top five actors based on their fees earned according to Table 8-9, subparagraph 2 (a) exceeds 30 percent of the total production cost (excluding the amount under subparagraphs 1 through 4), the excess amount in question. |
| (8) | A person who intends to receive a tax credit pursuant to Article 25-6 (1) of the Act, in the case of dramas, etc. under Article 22-10 (2) 1 of the Enforcement Decree are continuously broadcast for several taxable years, may apply for a tax credit against the entire production cost in the taxable year in which the last episode of the drama, etc. was broadcast, or apply for a tax credit for production costs incurred in each taxable year of broadcasting as stipulated in the following subparagraphs: <Amendment Mar. 13, 2020> |
| 1. | The taxable year in which the first episode of a drama, etc. was aired: Production costs incurred up to the taxable year in relation to dramas, etc.; |
| 2. | The taxable year following the taxable year in which the first episode of a drama, etc. was aired: An amount obtained by subtracting production costs incurred up to the immediately preceding taxable year from production costs incurred up to the relevant taxable year (production costs excluded from tax credit pursuant to paragraph (7) 5 shall not be subtracted). |
| Article 13-10 (Special Taxation for Including Depreciation Cost of Assets Invested in Plant and Equipment) |
| (1) | “Facilities specified by Ordinance of the Ministry of Economy and Finance” in Article 25-3 (3) 2 (a) of the Decree mean specialized departments, etc. and research and testing facilities to be directly used by a research and development service business entity who has filed a report to the Minister of Science and ICT pursuant to Article 18 of the Special Act on Support of Scientists and Engineers for Strengthening National Science and Technology Competitiveness and Article 17 of the Enforcement Decree of the same Act, and an industrial technology research association pursuant to the Industrial Technology Research Cooperatives Support Act, which fall under any of the following subparagraphs: Provided, That, those not in operations shall be excluded: |
| 1. | Tools, office equipment, telecommunications equipment, clocks, testing equipment, measuring equipment, optical equipment, photographing equipment; |
| 2. | Assets subject to application of the standard operating years and the range of operating years specified for each type of business in attached Table 6 of the Enforcement Rule of the Corporate Tax Act. |
| (2) | “Facilities specified by Ordinance of the Ministry of Economy and Finance” in Article 25-3 (3) 2 (b) of the Decree mean vocational skills development training facilities under Article 2 (3) of the Act on the Development of Vocational Skills of Workers (including vocational training facilities installed for small and medium enterprises by Korean nationals under Article 2 (1) of the Decree) that fall under any of the subparagraphs of paragraph (1): Provided, That, those not in operations shall be excluded: |
| (3) | “Facilities specified by Ordinance of the Ministry of Economy and Finance” under Article 25-3 (3) 3 (a) of the Decree mean energy-saving facilities as indicated in attached Table 7. |
| (4) | “Facilities specified by Ordinance of the Ministry of Economy and Finance” under Article 25-3 (3) 3 (d) of the Decree mean facilities that manufacture facilities for producing new and renewable energy in attached Table 7-2. |
| (5) | “Facilities specified by Ordinance of the Ministry of Economy and Finance” in Article 25-3 (3) 4 (a) and (b) of the Decree mean the process improvement, automation, informatization facilities, and high-tech facilities as indicated in attached Table 7-3, which are directly used for the relevant business. |
| Article 14 (Scope of Business Assets Eligible for Tax Credit for Job-Creating Investment) |
| 1. | The machines and equipment specified in Article 3 of the Enforcement Rule of the Local Tax Act among business assets used directly for the relevant business by a person engaging in a construction business; |
| 2. | The facilities specified in attached Table 3 for rationalizing the distribution industry among business assets used directly for the relevant business by a person engaging in a wholesale or retail business, the logistics industry or an air transportation business; |
| 3. | The buildings specified in Article 6 of the Enforcement Decree of the Local Tax Act among the buildings under the Building Act and structures attached to such buildings for business assets used directly for the relevant business by a person engaging in a tourist lodging business or international convention planning business registered pursuant to the Tourism Promotion Act or a person engaging in a business of operation of a facility for the welfare of older persons under the Welfare of Older Persons Act; |
| 4. | The wireless equipment under Articles 68 and 69 of the Enforcement Decree of the Radio Waves Act for business assets acquired by a person engaging in a telecommunications business to rent it to another person, to entrust the operation of such equipment to another person or to use such equipment jointly with another person; |
| 5. | The lodging facilities, special recreation facilities (excluding facilities of golf courses) or facilities of a general amusement facility business under Article 2 (1) 3 (a) or 5 (a) of the Enforcement Decree of the Tourism Promotion Act for business assets used directly for the relevant business by a person engaging in a special or general recreation business registered pursuant to the Tourism Promotion Act; |
| 6. | The facilities specified in Article 6 of the Enforcement Decree of the Local Tax Act for buildings under the Building Act and structures attached to such buildings for the following assets that a person engaging in a business referred to in any subparagraph of Article 23 (1) of the Decree has acquired or in which such person has invested: |
| (a) | A privately-funded public library registered pursuant to Article 31 of the Libraries Act; |
| (b) | A museum or gallery registered pursuant to Article 16 of the Museum and Art Gallery Support Act; |
| (c) | A theater registered pursuant to Article 9 of the Public Performance Act (excluding movie theaters referred to in Article 36 of the Promotion of the Motion Pictures and Video Products Act); |
| (d) | A science museum registered pursuant to Article 6 of the Act on Establishment, Operation and Promotion of Science Museums. |
| Article 14-2 (Tax Credit for Enterprises Increasing Earned Income) |
| (1) | “The largest stockholder or the largest investor of the relevant enterprise as provided for by Ordinance of the Ministry of Economy and Finance” in Article 26-4 (2) 3 of the Decree means either of the following persons: <Amended on Mar. 16, 2021> |
| 1. | If the person whose direct holding ratio [referring to the ratio calculated by dividing a corporation's stocks or equity shares held by the person (hereafter in this Article, referred to as “stocks, etc.”) by the total number of outstanding stocks of or the total amount of investments in the corporation (excluding treasury stocks and treasury equity shares); hereinafter the same shall apply] of the relevant corporation is the highest amount is an individual, it means such individual; |
| 2. | If the person whose direct holding ratio of the relevant corporation is the highest is a corporation, it means the individual whose ratio calculated by aggregating the direct holding ratio of the relevant corporation and the indirect holding ratio calculated by applying Article 2 (3) of the Enforcement Decree of the Adjustment of International Taxes Act. |
| (2) | Pursuant to 26-4 (8) of the Decree, if the average wage increase rate for the immediately preceding taxable year is a negative figure or is less than 30/100 of the average wage increase rate (only if the amount is positive) for the immediately preceding three taxable years, the average wage, the average wage increase rate, the average of the average wage increase rates for the immediately preceding three taxable years (hereafter in this Article, referred to as “the average of the average wage increase rates for the immediately preceding three years”), and the wage increase exceeding the average for the immediately preceding three years under Article 29-4 (2) of the Act (hereafter in this Article, referred to as “wage increase exceeding the average for the immediately preceding three years”) shall be calculated by the following formulas respectively: |
| 1. | Average wage: |
| 2. | Average wage increase rate: |
| 3. | The average of the average wage increase rates for the immediately preceding three taxable years (If the average wage increase rates for the immediately preceding two taxable years or the average wage increase rates for the immediately preceding three taxable years is a negative figure, it shall be deemed zero for the purpose of calculation): |
| 4. | Wage increase in excess of the average for the immediately preceding three years: |
| (3) | “Rate specified by Ordinance of the Ministry of Economy and Finance” in Article 26-4 (16) of the Decree means 30/1,000. <Newly Inserted on Mar. 17, 2017; Mar. 21, 2018; Mar. 13, 2020; Mar. 18, 2022> |
| Article 14-3 (Scope of Infertility Treatments) |
| Article 14-4 (Scope, etc. of Newly Growing Service Industries Eligible for Tax Credits for Social Insurance Premiums of Small or Medium Enterprises) |
| (1) | “Newly growing service industries specified by Ordinance of the Ministry of Economy and Finance” in Article 27-4 (5) 7 of the Decree mean the industries specified in any of the subparagraphs in Article 4-3. |
| (2) | The following formula shall apply to the computation of the tax base of income tax on business income under Article 27-4 (13) 2 of the Decree: <Amended on Mar. 18, 2022> |
| Article 14-5 (Extenuating Circumstances for Exemption from Additional Collection of Gift Tax) |
| Article 15 (Acquisition Price of Assets Eligible for Carried-Forward Taxation) |
| (1) | In applying the carried-forward taxation under Article 28 or 29 of the Decree, the acquisition price of the asset eligible for carried-forward taxation shall be the actual trading price of the relevant asset at the time of acquisition. <Amended on Mar. 30, 2002; Nov. 23, 2007; Apr. 7, 2009> |
| (2) | If the actual trading price under paragraph (1) at the time of acquisition is unclear, the amount calculated by applying the provisions under the following subparagraphs in the order specified below to the relevant asset as of the date of consolidation, the date of conversion into a corporation or the date of investment in kind shall be converted by applying |
| 1. | The value appraised by an appraiser under the Act on Appraisal and Certified Appraisers: |
| 2. | The value evaluated by applying |
| (3) | “Assets that satisfy the standards for determining real estate unrelated to the business of corporations specified by Ordinance of the Ministry of Economy and Finance” in Article 28 (2) of the Decree mean real estate unrelated to business under Article 49 (1) 1 of the Enforcement Decree of the Corporate Tax Act (hereafter in this paragraph, referred to as “real estate unrelated to business”). Whether an asset constitutes real estate unrelated to business shall be determined as of the date of transfer. <Newly Inserted on Mar. 30, 2002; Mar. 11, 2005; Apr. 29, 2008> |
| Article 16 (Assets Subject to Collective Investment Schemes for Specific Infrastructure) |
| (1) | “Infrastructure and real estate accepted as specified by Ordinance of the Ministry of Economy and Finance” in the part other than each subparagraph of Article 24 (2) of the Decree means infrastructure and real estate deemed associated with the industry in paragraph (2) 2 of the same Act via deliberation of the Committee under paragraph (13) of the same Act by the Minister of Economy and Finance. |
| (2) | “Assets specified by Ordinance of Ministry of Economy and Finance” in Article 24 (2) 1 (c) of Decree mean assets under any of the following subparagraphs: |
| 1. | Real estate that falls under subparagraph 1 of Article 2 of the Act on Public-Private Partnerships In Infrastructure (hereafter in this Article, referred to as “infrastructure real estate”); |
| 2. | Derivatives with infrastructure real estate as the underlying asset; |
| 3. | Assets acquired by investing in the infrastructure real estate and securities related to the infrastructure real estate (referring to securities under each subparagraph of paragraph (5) of the same Article) by the method specified in Article 240 (4) of the Enforcement Decree of Financial Investment Services and Capital Markets Act; |
| Article 17 Deleted. <Mar. 30, 2002> |
| Article 18 (Scope, etc. of Liabilities) |
| (1) | “Liabilities specified by Ordinance of the Ministry of Economy and Finance” in the former part of Article 34 (15) of the Decree mean the sum of loans procured from others out of the sum of liabilities in the statement of financial position as of the end of each business year: Provided, That, if the interest paid is added to the principal of the borrowings according to the decision to approve a rehabilitation plan under the Debtor Rehabilitation and Bankruptcy Act, the amount equivalent to the paid interest shall not be deemed as loans. <Amended on Mar. 30, 2000; Mar. 30, 2002; Mar. 11, 2005; Apr. 17, 2006; Apr. 29, 2008; Aug. 28, 2009; Feb. 23, 2013; Aug. 9, 2016> |
| (2) | For determining the debt ratio and the standard debt ratio under Article 34 (15) and (16) of the Decree, the stockholders' equity shall be calculated by deducting total liabilities (including various reserves and allowances but excluding accrued corporate tax) from total assets as at the end of each business year or the record date for calculation of the standard debt ratio under Article 34 (16) 1 of the Decree (hereafter in this Article, referred to as “record date for calculation of the standard debt ratio”). In such cases, for determining total assets, if assets owned by the relevant corporation have been revaluated in accordance with the Assets Revaluation Act before the end of each business year or the record date for calculation of the standard debt ratio, the difference accruing from the revaluation under the said Act (referring to the amount after deducting the revaluation tax) shall be deducted. <Amended on Mar. 30, 2000; Mar. 30, 2002; Mar. 11, 2005; Aug. 28, 2009; Aug. 9, 2016> |
| (3) | For determining the debt ratio and the standard debt ratio under Article 34 (15) and (16) of the Decree, the paid-in capital shall be based on the paid-in capital as at the end of each business year or the record date for calculation of the standard debt ratio, but if the relevant corporation reduced capital without consideration before the end of each business year the reduced amount shall be added to the paid-in capital. <Newly Inserted on Mar. 28, 2001; Mar. 30, 2002; Aug. 28, 2009; Aug. 9, 2016> |
| (4) | Notwithstanding the forepart of paragraph (2), if the stockholders' equity for each business year is reduced to be less than the stockholders' equity for the immediately preceding business year or as of the record date for calculation of the standard debt ratio due to deficits incurred within three years after paying debts owed to financial creditors, the calculation of the debt ratio shall be based on stockholders' equity for the immediately preceding business year and the stockholders' equity as of the record date for calculation of the standard debt ratio, whichever is greater. <Amended on Mar. 28, 2001; Aug. 28, 2009; Aug. 9, 2016; Mar. 21, 2018> |
| (5) | For determining the standard debt ratio where a merger has taken place before or after the due date for repayment to financial institutions, the calculation of the standard debt ratio of the merging corporation shall be based on the sum of the liabilities (referring to the liabilities under paragraph (1)) and the stockholders' equity on the statements of financial position of the merged corporation (referring to the corporation that has been dissolved or has been absorbed by the merger) and the merging corporation (referring to the corporation newly established or surviving upon the merger) as of the record date for calculation of the standard debt ratio. <Amended on Aug. 28, 2009; Feb. 23, 2013; Aug. 9, 2016; Mar. 21, 2018> |
| (6) | When assets and liabilities denominated in foreign currencies (hereinafter referred to as “assets, etc. in foreign currencies”) are valuated in Korean currency, the exchange rate specified in Article 76 (1) of the Enforcement Decree of the Corporate Tax Act as at any of the following reference dates shall apply: <Amended on Mar. 30, 2002; Mar. 11, 2005; Aug. 28, 2009; Aug. 9, 2016> |
| 1. | Where the debt ratio under Article 34 (15) of the Decree is calculated: The end of each business year: |
| (a) | Assets, etc. in foreign currencies within the extent of the amount of assets, etc. in each foreign currency as of the record date for calculation of the standard debt ratio shall be valuated at the exchange rate as of the record date for calculation of the standard debt ratio; whereas for the rest of assets, etc. in foreign currencies, the debt ratio shall be valuated at the exchange rate as of the end of each business year; |
| (b) | The debt ratio valuated all assets, etc. in foreign currencies at the exchange rate as of the end of each business year; |
| 2. | Where the standard debt ratio under Article 34 (16) of the Decree is calculated: The record date for calculation of the standard debt ratio (for repaid debts, the date of repayment). |
| (3) | Deleted. <Aug. 28, 2009.> |
| Article 19 (Documents Certifying Eligibility for Taxation Support for Exchange, etc. of Stocks, of Venture Businesses) |
| Article 19-2 (Scope, etc. of Logistics Expenses) |
| (2) | “Logistics expenses specified by Ordinance of the Ministry of Economy and Finance” in Article 43-4 (6) 2 of the Decree mean any of the following expenses: <Amended on Apr. 29, 2008> |
| 1. | Expenses incurred in logistics activities from storing manufactured or purchased goods (including containers, materials, etc. for packaging and transportation; hereafter in this paragraph, the same shall apply) in a store warehouse to delivery to consumers; |
| 2. | Expenses incurred in logistics activities until goods sold (including consigned sale; hereafter in this paragraph, the same shall apply) to consumers are returned by consumers to the seller due to cancellation of sale contracts; |
| 3. | Expenses incurred in logistics activities for collection of recyclable goods from consumers are processed for reuse; |
| 4. | Expenses incurred in logistics activities for damaged or obsolete goods collected from consumers are discarded. |
| Article 19-3 (Documents Certifying Eligibility for Taxation Support for Exchange, etc. of Unlisted Stocks for Strategic Partnership) |
| Article 19-4 (Documents Certifying Eligibility for Special Taxation for Re-Investment in Venture Businesses, etc. after Sale of Stocks) |
| 1. | A copy of the articles of incorporation or any other documents certifying that the person who intends to apply for tax deferment is the founder or an incorporator of the enterprise for sale under Article 43-8 (1) of the Decree (hereafter in this Article, referred to as the “enterprise for sale”); |
| 2. | A certificate of venture company confirmation issued under Article 25 (2) of the Act on Special Measures for the Promotion of Venture Businesses to the enterprise for sale; |
| 3. | A certificate of venture company confirmation issued under Article 25 (2) of the Act on Special Measures for the Promotion of Venture Businesses for the reinvested corporation or a document certifying that its technology has been rated as excellent under Article 2-2 (1) 2 (c) (3) of said Act: |
| Article 20 (Definition of Multi-Unit Houses) |
| Article 21 (Scope of Investment Trust Stabilization Funds) |
| Article 22 (Scope of Automobile Maintenance Shops) |
| Article 23 (Standard Area of Factory Site) |
| 1. | In cases of a manufacturing factory, the standard area of a factory site under attached Table 3 of the Enforcement Rule of the Local Tax Act; |
| 2. | In cases of an auto repair shop, the greater of the area calculated by multiplying the floor area of the relevant building (in cases of a structure its horizontally projected area) by the multiplying factor applicable to the specific-use area under Article 101 (2) of the Enforcement Decree of the Local Tax Act; and the area 1.5 times larger than the minimum standard area under relevant statutes at the time of registration of the relevant business. |
| Article 23-2 Deleted. <Mar. 24, 2003> |
| Article 24 (Scope of Business Assets, etc. upon Application of the Tax Reduction or Exemption for Corporations Relocating Their Head offices Outside the Seoul Metropolitan Area) |
| (1) | “Business assets specified by Ordinance of the Ministry of Economy and Finance” in Article 60-2 (4) 1 of the Decree mean the following assets: |
| 1. | Tangible assets for business located in the head office or main office relocated out of the Seoul metropolitan area (hereafter in this Article, referred to as “relocated head office”) or primarily used by the relocated head office; |
| 2. | Assets located at the relocated head office or under construction primarily to be used at the relocated head office; |
| (2) | “Amount computed specified by Ordinance of the Ministry of Economy and Finance” in Article 60-2 (4) 1 of the Decree means the amount obtained by subtracting the amount in subparagraph 2 from the amount in subparagraph 1. |
| 1. | The sum of the amount invested in assets specified in each subparagraph of paragraph (1) from the taxable year under which the date on which two years elapse retrospectively from the registration date of relocation of the relocated head office falls until the taxable year for which corporate tax is reduced or exempted under Article 63-2 (1) of the Act; |
| 2. | Where the assets are disposed of under each subparagraph of paragraph (1) invested during the period specified in subparagraph 1 (including leases but excluding cases falling under any of the subparagraphs of Article 137 (1) of the Decree), the value of the relevant assets at the time of acquisition thereof. |
| Article 25 (Scope of Areas Eligible for Special Support for Local Small or Medium-Sized Enterprises) |
| 1. | The Naju General Industrial Complex; |
| 2. | The Gimje Horizon General Industrial Complex; |
| 3. | The Jangheum General Industrial Complex for Bio-Food; |
| 4. | The Bukpyeong National Industrial Complex; |
| 5. | The Bukpyeing General Industrial Complex; |
| 6. | The Naju General Industrial Complex for Innovation; |
| 7. | The Gangjin Industrial Complex; |
| 8. | The |
| 9. | The Damyang General Industrial Complex; |
| 10. | The Daema Industrial Complex for Electric Vehicles. |
| 11. | The Donghampyeong General Industrial Complex; |
| 12. | The Sepung General Industrial Complex (Stage 1); |
| 13. | The Boryeong Jupo 2nd Agricultural and Industrial Complex. |
| Article 26 (Income Excluded from the Reduction or Exemption of Corporate Tax for Agricultural Incorporated Companies) |
| (1) | “Agricultural incorporated companies specified by Ordinance of the Ministry of Economy and Finance” in Article 65 (2) of the Decree mean farmers whose total investment exceeds eight billion won and who fall under subparagraph 1 of Article 2 under the Act on Fostering and Supporting Agricultural and Fisheries Business Entities and an agricultural incorporated company whose ratio of the total investment shares of agricultural producer organizations under subparagraph 4 of article 3 of the Framework Act on Agriculture, Rural Community and Food Industry is less than 50/100. |
| (2) | “Business category specified by Ordinance of the Ministry of Economy and Finance” in Article 65 (2) of the Decree means a wholesale/retail business and service business (excluding a service business related to crop cultivation). |
| Article 27 (Scope, etc. of Farmland) |
| (1) | “Farmland” in Articles 66 (4) and 67 (3) of the Decree means the land |
| (2) | Whether a parcel of land constitutes a farmland under Articles 66 (4) and 67 (3) of the Decree shall be determined according to the following criteria: <Amended on Mar. 30, 2002; Mar. 24, 2003; Mar. 11, 2005; Dec. 31, 2005; Apr. 17, 2006; Jul. 5, 2006; Nov. 23, 2007; Apr. 20, 2010; Aug. 3, 2011; Mar. 14, 2014; Mar. 17, 2017; Mar. 21, 2018> |
| 1. | It shall be verifiable by any of the following methods that the land has been owned by the transferor for at least eight years (or at least three years if the land is transferred to the Korea Rural Community Corporation under the Korea Rural Community Corporation and Farmland Management Fund Act, or an agricultural partnership or an agricultural incorporated company, under the Act on Fostering and Supporting Agricultural and Fisheries Business Entities, or at least four years if the formerly owned land, referred to in Article 67 (3) 1 and 2 of the Decree, is transferred). Where it shall be verified in such cases whether or not the farmland, etc. that a farmer, to whom capital gains tax was refunded under Article 70-2 (1) of the Act, repurchased can be classified as farmland under Article 66 (4) of the Decree, when the farmer re-transfers the farmland, the farmer shall be deemed to have owned the relevant farmland, etc. during the period in which the farmer has cultivated the land, from the lease period under Article 24-3 (3) of the Korea Rural Community Corporation and Farmland Management Fund Act: |
| (a) | Verification of the certificate of entries in the relevant register or the certified transcript of the relevant land cadastre by using the administrative information shared under Article 36 (1) of the Electronic Government Act; |
| (b) | Verification of other documentary evidence, if it is not verifiable through the means specified in item (a); |
| 2. | It shall be verified by all the following methods that the transferor has cultivated the farmland, while residing in the area in which the farmland is located, for at least eight years (or at least three years where the land is transferred to the Korea Rural Community Corporation, established under the Korea Rural Community Corporation and Farmland Management Fund Act, or an agricultural partnership or an agricultural company established under the Act on Fostering and Supporting Agricultural and Fisheries Business Entities, or at least four years where the formerly owned land referred to in Article 67 (3) 1 and 2 of the Decree is transferred) and that the land is farmland as at the date of transfer: |
| (a) | Verification of the individual register through joint use of the administrative information under Article 36 (1) of the Electronic Government Act: |
| (b) | Verification of the original copy of the relevant farmland register and the certificate of self-cultivation delivered or issued by the head of the relevant |
| (3) | “Scale specified by Ordinance of the Ministry of Economy and Finance” in Articles 66 (4) 1 (a) and 67 (8) 1 (a) of the Decree means one million square meters: |
| (4) | “Public institution specified by Ordinance of the Ministry of Economy and Finance” in Articles 66 (4) 1 (b) and 67 (8) 1 (b) of the Decree means a public institution designated under the Act on the Management of Public Institutions or an enterprise established and directly run by the local government or a public corporation or public service funded by a local government under the Local Public Enterprises Act. <Newly Inserted on Apr. 29, 2008; Apr. 20, 2010; Mar. 14, 2014> |
| (5) | “Unavoidable cause specified by Ordinance of the Ministry of Economy and Finance” in Articles 66 (4) 1 (b) and 67 (8) 1 (b) of the Decree means a ground that causes a delay in a project or compensation and for which the project implementer is held liable. <Newly Inserted on Apr. 29, 2008; Apr. 20, 2010; Mar. 14, 2014> |
| (6) | The standard market value which shall serve as the basis for the computation of an amount of compensation under the provisos to Article 66 (7) and 67 (7) of the Decree shall be the official value of individual land for the relevant land at the time the amount of compensation is determined. < Newly Inserted on Apr. 20, 2010; Mar. 14, 2014> |
| (7) | “Area specified by Ordinance of the Ministry of Economy and Finance” in Article 66 (12) 3 of the Decree means any of the following: Newly Inserted on Apr. 7, 2009; Apr. 20, 2010; Aug. 3, 2011; Mar. 17; 2017; Mar. 21, 2018> |
| 1. | A public housing zone designated under Article 6 of the Special Act on Public Housing; |
| 2. | An improvement zone designated and publicly notified under Article 16 of the Act on the Improvement of Urban Areas and Residential Environments; |
| 3. | A prearranged area for constructing a new harbor designated under Article 5 of the New Harbor Construction Promotion Act; |
| 4. | An urban development zone designated and publicly notified under Articles 3 and 9 of the Urban Development Act; |
| 5. | An area included in the plan approved for a railroad construction project under Article 9 of the Railroad Construction Act; |
| 6. | An area in which the activities of residents (such as the construction of structures, the change of the form or quality of the land and the partition of the land) are directly restricted due to a public works project, such as a prearranged zone under any other Act or an area included in an implementation plan approved under any other Act similar to those specified in subparagraphs 1 through 5. |
| Article 27-2 (Scope, etc. of Site of Livestock Stables) |
| (1) | “Site of livestock stables” in Article 66-2 (3) of the Act means the stables |
| (2) | Whether a parcel of land is classified as a site of livestock stables under Article 66-2 (3) of the Decree shall be subject to the following criteria: <Amended on Mar. 17, 2017; Mar. 21, 2018> |
| 1. | It shall be verified by either of the following methods that the land is a site for livestock stables that the transfer has owned for at least eight years: |
| (a) | Verification of the certificate of entries in the relevant register or the certified transcript of the relevant land cadastre by using the administrative information shared under Article 36 (1) of the Electronic Government Act; |
| (b) | Verification of other documentary evidence, if it is not verifiable through the means specified in item (a); |
| 2. | It shall be verified by all of the following methods that the transferor has directly engaged in breeding livestock for at least eight years, while residing in the area in which the site of livestock stables is located, and that the land is a site of livestock stables as of the date of transfer: |
| (a) | Verification of the individual register through joint use of the administrative information under Article 36 (1) of the Electronic Government Act: |
| (b) | Verification of the confirmation of the period of breeding livestock and business closure in item (b) of paragraph (7). |
| (3) | “Scale specified by Ordinance of the Ministry of Economy and Finance” in Article 66-2 (3) 1 (a) of the Decree means one million square meters: |
| (4) | “Public institution specified by Ordinance of the Ministry of Economy and Finance” in Article 66-2 (3) 1 (b) of the Decree means a public institution designated under the Act on the Management of Public Institutions or an enterprise established and directly run by the local government or a public corporation or public service funded by a local government under the Local Public Enterprises Act. |
| (5) | “Unavoidable cause specified by Ordinance of the Ministry of Economy and Finance” in Article 66-2 (3) 1 (b) of the Decree means an event that causes a delay in a project or compensation; and for which the project implementer is held liable. |
| (6) | “Area specified by Ordinance of the Ministry of Economy and Finance" in Article 66-2 (7) 3 of the Decree means any of the following: <Amended on Mar. 17, 2017; Mar. 21, 2018> |
| 1. | A public housing zone designated under Article 6 of the Special Act on Public Housing; |
| 2. | An improvement zone designated and publicly notified under Article 16 of the Act on the Improvement of Urban Areas and Residential Environments; |
| 3. | A prearranged area for constructing a new harbor designated under Article 5 of the New Harbor Construction Promotion Act; |
| 4. | An urban development zone designated and publicly notified under Articles 3 and 9 of the Urban Development Act; |
| 5. | An area included in the plan approved for a railroad construction project under Article 9 of the Railroad Construction Act; |
| 6. | An area in which the activities of residents (such as the construction of structures, the change of the form or quality of the land and the partition of the land) are directly restricted due to a public works project, such as a prearranged zone under any other Act or an area included in an implementation plan approved under any other Act similar to those specified in subparagraphs 1 through 5. |
| (7) | Whether a business is permanently closed as described in Article 66-2 (8) of the Decree shall be verified by all the following methods: <Amended on Mar. 17, 2017> |
| (a) | Verification of the certificate of entries in the relevant register or the certified transcript of the relevant land cadastre by using the administrative information shared under Article 36 (1) of the Electronic Government Act; |
| (b) | Verification of the written confirmation issued by the head of the relevant |
| (8) | The standard market value which shall serve as the basis for the computation of an amount of compensation under the proviso to Article 66-2 (10) of the Decree shall be the officially assessed individual land price for the relevant land at the time the amount of compensation is determined. |
| Article 27-3 (Scope, etc. of Land, etc. for Fisheries) |
| (1) | “Land, etc. for fisheries” in Article 66-3 (3) of the Decree means buildings and the land |
| (2) | Whether a parcel of land is classified as the land for fisheries under Article 66-3 (3) of the Decree shall be determined by the following criteria: |
| 1. | It shall be verified by either of the following methods that the transferor has owned the land for fisheries for at least eight years: |
| (a) | Verification of the certificate of entries in the relevant register or the certified transcript of the relevant land cadastre by using the administrative information shared under Article 36 (1) of the Electronic Government Act; |
| (b) | Verification of other documentary evidence, if it is not verifiable through the means specified in item (a); |
| 2. | It shall be verified by all of the following methods that the transferor has directly engaged in aquatic farming or producing fishery seedlings for at least eight years, while residing in the area in which the land for fisheries is located, and that the land is the land for fisheries as at the date of transfer: |
| (a) | Verification of the individual register through joint use of the administrative information under Article 36 (1) of the Electronic Government Act: |
| (b) | Verifying the written confirmation issued by the head of the relevant |
| (3) | “Scale specified by Ordinance of the Ministry of Economy and Finance” in Article 66-3 (3) 1 (a) of the Decree means one million square meters: |
| (4) | “Public institution specified by Ordinance of the Ministry of Economy and Finance” in Article 66-3 (3) 1 (b) of the Decree means a public institution designated under the Act on the Management of Public Institutions or an enterprise established by a local government and directly operated by the local government or a public corporation or public service funded by a local government pursuant to the Local Public Enterprises Act. |
| (5) | “Unavoidable cause specified by Ordinance of the Ministry of Economy and Finance” in Article 66-3 (3) 1 (b) of the Decree means an event that causes a delay in a project or compensation; and for which the project implementer is held liable. |
| (6) | “Area specified by Ordinance of the Ministry of Economy and Finance" in Article 66-3 (7) 3 of the Decree means any of the following: |
| 1. | A public housing zone designated under Article 6 of the Special Act on Public Housing; |
| 2. | An improvement zone designated and publicly notified under Article 16 of the Act on the Improvement of Urban Areas and Residential Environments; |
| 3. | A prearranged area for constructing a new harbor designated under Article 5 of the New Harbor Construction Promotion Act; |
| 4. | An urban development zone designated and publicly notified under Articles 3 and 9 of the Urban Development Act; |
| 5. | An area included in the plan approved for a railroad construction project under Article 9 of the Railroad Construction Act; |
| 6. | An area in which the activities of residents (such as the construction of structures, the change of the form or quality of the land and the partition of the land) are directly restricted due to a public works project, such as a prearranged zone under any other Act or an area included in an implementation plan approved under any other Act similar to those specified in subparagraphs 1 through 5. |
| (7) | The standard market value which shall serve as the basis for the computation of an amount of compensation under the latter part of Article 66-3 (8) of the Decree shall be based on the officially assessed individual land price for the relevant land as at the time the amount of compensation is determined. |
| Article 27-4 (Scope, etc. of Self-Cultivated Mountainous Districts) |
| (1) | “Mountainous district” in Article 66-4 (3) of the Decree means the land |
| (2) | Whether a parcel of land is classified as a mountainous district under Article 66-4 (3) of the Decree shall be determined by the following criteria: |
| 1. | It shall be verified by either of the following methods that the transferor has owned the mountainous district for at least eight years: |
| (a) | Verification of the certificate of entries in the relevant register or the certified transcript of the relevant land cadastre by using the administrative information shared under Article 36 (1) of the Electronic Government Act; |
| (b) | Verification of other documentary evidence, if it is not verifiable through the means specified in item (a); |
| 2. | It shall be verified by all of the following methods that the transferor has directly cultivated the mountainous district for at least eight years, while residing in the area in which the mountainous district is located, and that the land is a mountainous district as of the date of transfer: |
| (a) | Verification of the individual register through joint use of the administrative information under Article 36 (1) of the Electronic Government Act: |
| (b) | Verification of the written confirmation issued by the head of the relevant |
| (3) | “Scale specified by Ordinance of the Ministry of Economy and Finance” in Article 66-4 (3) 1 (a) of the Decree means one million square meters: |
| (4) | “Public institution specified by Ordinance of the Ministry of Economy and Finance” in Article 66-4 (3) 1 (b) of the Decree means a public institution designated under the Act on the Management of Public Institutions or an enterprise established by a local government and directly operated by the local government or a public corporation or public service funded by a local government pursuant to the Local Public Enterprises Act. |
| (5) | “Unavoidable cause specified by Ordinance of the Ministry of Economy and Finance” in Article 66-4 (3) 1 (b) of the Decree means an event that causes a delay in a project or compensation; and for which the project implementer is held liable. |
| (6) | “Area specified by Ordinance of the Ministry of Economy and Finance" in Article 66-3 (7) 3 of the Decree means any of the following: |
| 1. | A public housing zone designated under Article 6 of the Special Act on Public Housing; |
| 2. | An improvement zone designated and publicly notified under Article 16 of the Act on the Improvement of Urban Areas and Residential Environments; |
| 3. | A prearranged area for constructing a new harbor designated under Article 5 of the New Harbor Construction Promotion Act; |
| 4. | An urban development zone designated and publicly notified under Articles 3 and 9 of the Urban Development Act; |
| 5. | An area included in the plan approved for a railroad construction project under Article 9 of the Railroad Construction Act; |
| 6. | An area in which the activities of residents (such as the construction of structures, the change of the form or quality of the land and the partition of the land) are directly restricted due to a public works project, such as a prearranged zone under any other Act or an area included in an implementation plan approved under any other Act similar to those specified in subparagraphs 1 through 5. |
| (7) | The standard market value which shall serve as the basis for the computation of an amount of compensation under the latter part of Article 66-4 (8) of the Decree shall be based on the officially assessed individual land price for the relevant land as at the time the amount of compensation is determined. |
| Article 28 (Exception, etc. to Period for Commencement of Cultivation in Substitute Farmland) |
| (1) | “Extenuating circumstances specified by Ordinance of the Ministry of Economy and Finance” in Article 67 (3) 1 and 2 and Article 67 (10) 2 of the Decree mean the following circumstances: |
| 1. | Where a person needs to undergo medical treatment or medical care for an illness that requires medical treatment or medical care for at least one year; |
| 2. | Where a person suspends cultivation to improve the farmland under Article 3-2 of the Enforcement Decree of the Farmland Act; |
| 3. | Where a person suspends cultivation as a natural disaster renders it impossible to continue farming. |
| (2) | “Period specified by Ordinance of the Ministry of Economy and Finance” in Article 67 (3) 1 and 2 and Article 67 (10) 2 of the Decree both means two years. |
| Article 29 (Special Taxation of Corporate Tax for Association Corporations, etc.) |
| (1) | For calculations of the amount of non-deductible expenses under Article 26 of the Corporate Tax Act subject to Article 69 (1) of the Decree, if the maximum amount calculated according to Article 44-2 (4) of the Enforcement Decree of the same Act is negative, the amount shall be deemed nil. |
| (2) | For calculations of the amount of non-deductible expenses under Article 33 of the Corporate Tax Act subject to Article 69 (1) of the Decree, the cumulative amount of allowances for severance benefits on the annual financial statements as at the end of the business year under which December 31, 2012 falls shall be deemed to have been included in the deductible expenses under Article 60 (2) of the Enforcement Decree of the said Act, and thus, shall be applied with paragraph (3) of the same Article. |
| (3) | “As specified by Ordinance of the Ministry of Economy and Finance” in Article 72 (4) of the Act means keeping accounts for interests accrued from the fund deposited in the National Federation of Fisheries Cooperatives for improving the financial structure and the spending thereof independent and separate from other accounts. |
| (4) | “As specified by Ordinance of the Ministry of Economy and Finance" in Article 72 (5) of the Act mean keeping accounts for interests accrued from the fund deposited in the National Credit Union Federation of Korea or the Korean Federation of Community Credit Cooperatives for transferring contracts and the spending thereof independent and separate from other accounts. |
| Article 29-2 (Scope of Cultural and Arts Organizations) |
| Article 29-3 (Scope of Areas of Non-Profit Medical Corporations Eligible for Special Taxation for Including Reserves for Proper Purpose Business in Deductible Expenses) |
| Article 29-4 (Deadline, etc. for Reporting Fulfillment of Eligibility by Organizations Eligible for Donation Incentives) |
| (1) | An organization eligible for donation incentives designated under Article 75 (2) of the Act fill out a report on whether the organization meets the eligibility in Article 71 (1) of the Decree for organizations eligible for donation incentives (hereafter in this Article, referred to as “fulfillment of eligibility”) in attached Form 53-3 and shall submit the report to the Commissioner of the National Tax Service by the applicable deadline specified in the following: <Amended on Mar. 17, 2017> |
| 1. | Fulfillment of eligibility for the year in which the designation is granted and the year thereafter: March 31 of the year into which the second anniversary of the date of designation falls; |
| 2. | Fulfillment of eligibility for the year into which second anniversary of the date of designation falls and the year thereafter: March 31 of the year into which the fourth anniversary of the date of designation falls; |
| 3. | Fulfillment of eligibility for the year into which the fourth anniversary of the date of designation falls and the year thereafter: March 31 of the year into which the sixth anniversary of the date of designation falls. |
| (2) | If an organization eligible for donation incentives fails to file a report on the fulfillment of eligibility by the applicable deadline in paragraph (1), the Commissioner of the National Tax Service shall, without delay, require the organization to file the said report by May 31 of the year into which the applicable deadline in paragraph (1) falls. |
| (3) | “Statement of donation amount and utilization performance specified by Ordinance of the Ministry of Economy and Finance” in the main sentence of Article 71 (1) 4 of the Decree means attached Form 6-2 under subparagraph 7 of Article 100 of the Enforcement Rule of the Income Tax Act or attached Form 63-7 under Article 18-2 (5) of the Enforcement Rule of the Corporate Tax Act. <Amended on Mar. 16, 2021> |
| (4) | Where the Commissioner of the National Tax Service requests the Minister of Economy and Finance to revoke the designation of an organization eligible for donation incentives under Article 71 (8) of the Decree, such a request shall be made through a document containing the matters specified in the following subparagraphs. In this case, a report on whether the eligibility for an organization eligible for donation incentives are met under paragraph (1) shall be attached: |
| 1. | Name of the donation organization subject to revocation of designation; |
| 2. | Reason(s) for revocation of designation; |
| 3. | Other matters necessary for revocation of designation. |
| Article 30 (Reduction or Exemption of Capital Gains Tax on Land, etc. to be Purchased Following Designation of Development Restriction Areas) |
| 1. | Enrollment in schools under the Elementary and Secondary Education Act (excluding kindergartens, elementary schools and middle schools) and schools under the Higher Education Act; |
| 2. | Conscription under the Military Service Act; |
| 3. | Medical treatment or medical care for an illness that requires medical treatment or medical care for at least one year. |
| Article 31 Deleted. <Mar. 30, 2002> |
| Article 32 Deleted. <Mar. 30, 2002> |
| Article 32-2 (Special Taxation for Relocating Factories in Areas Subject to Development Plans of Administrative City and Innovation Cities to Rural Areas) |
| 1. | Where the permit or approval of a construction is delayed; |
| 2. | Where a lawsuit is filed in relation to the compensation for land, etc.; |
| 3. | Where the master plan for the construction of administrative city and innovation cities publicly notified Minister of Land, Infrastructure and Transport under Article 19 (4) of the Special Act on the Construction of Administrative City in Yeongi-Gongju Area for Follow-Up Measures for New Administrative Capital allows the operation for a certain period of time at the same location as the place to which the previous factories will be relocated has not been decided; |
| 4. | Where the master plan for the development of an innovation city publicly notified by the Minister of Land, Infrastructure and Transport under Article 11 (5) of the Special Act on the Construction and Support of Innovation Cities for the Relocation of Public Agencies to Rural Areas allows the operation for a certain period of time in the same location as the place to which the previous factories will be relocated has not been decided; |
| 5. | Where the relocation plan for factories established by project implementers under Article 78-2 of the Act on Acquisition of and Compensation for Land for Public Works Projects allows the operation for a certain period of time at the same location as the place to which the previous factories will be relocated has not been decided; |
| 6. | Other circumstances deemed equivalent to the reasons specified in subparagraphs 1 through 5. |
| Article 32-3 (Special Taxation for Relocating Logistics Facilities due to Expropriation, etc. for Public Works Projects) |
| (1) | “Facilities specified by Ordinance of the Ministry of Economy and Finance” in the part other than each subparagraph of Article 79-10 (1) of the Decree mean logistics facilities classified under each of the following subparagraphs: <Amended on Apr. 7, 2011> |
| 1. | Where a building for a logistics facility exists: The appurtenant land not greater than the area obtained by multiplying the floor areas of the building for the logistics facility and the relevant building by the multiples applicable to the relevant specific-use area under Article 101 (2) of the Enforcement Decree of the Local Tax Act; |
| 2. | Where no building for a logistics facility exists: The land not greater than the area for which the competent authority granted authorization or permission or accepted a report as land used for transportation, storage, unloading, fabrication, repair, etc. of cargoes. |
| Article 33 Deleted. <Feb. 23, 2013> |
| Article 33-2 Deleted. <Feb. 23, 2013> |
| Article 34 (Income Deductions for Housing Savings Accounts) |
| (1) | A person who intends to benefit from an income deduction under Article 87 (2) of the Act shall submit a certificate of deposit in a housing savings account to the head of the tax office having jurisdiction over his or her place of domicile or the relevant withholding agent when filing a final return on the tax base of income tax or applying for the year-end tax settlement. |
| (2) | The certificate of deposit in a housing savings account under paragraph (1) may be replaced by a copy of the bankbook of the housing savings account indicting the amount of deposit as of the end of each year or by a document issued by the Commissioner of the National Tax Service with the payment details for housing savings under Article 216-3 of the Enforcement Decree of the Income Tax Act. |
| (3) | “A document certifying the period of military service specified by Ordinance of the Ministry of Economy and Finance” in Article 81 (15) 2 of the Decree means the military service certificate in attached Form 5 of the Enforcement Rule of the Military Service Act. <Newly Inserted on Mar. 20, 2019> |
| Article 35 (Submission, etc. of Opinions on Notification) |
| Article 36 Deleted. <Mar. 16, 2021> |
| Article 37 Deleted. <Mar. 30, 2000> |
| Article 38 Deleted. <Mar. 30, 2000> |
| Article 39 Deleted. <Mar. 30, 2000> |
| Article 40 Deleted. <Mar. 30, 2000> |
| Article 41 Deleted. <Mar. 30, 2000> |
| Article 42 Deleted. <Mar. 14, 2014> |
| Article 42-2 (Submission, etc. of Opinions on Notification) |
| Article 42-3 (Special Taxation for Individual Savings Accounts) |
| (1) | Deleted. <Mar. 18, 2022> |
| (2) | Deleted. <Mar. 18, 2022> |
| (3) | Deleted. <Mar. 18, 2022> |
| (4) | Only where a trust business entity is unable to manage individual savings accounts as the assets under Article 91-18 (3) 3 of the Act, the trust business entity may manage such accounts by lending temporary funds to the accounts used to manage the own property of such trust business entity under Article 106 (5) 3 of the Enforcement Decree of the Financial Investment Services and Capital Markets Act. <Amended on Mar. 16, 2021> |
| (5) | Interest income accrued from the management under paragraph (4) shall be included in the interest income, etc. under Article 91-18 (5) of the Act. <Amended on Mar. 16, 2021> |
| Article 43 Deleted. <Mar. 20, 2019> |
| Article 43-2 Deleted. <Mar. 20, 2019> |
| Article 43-3 (Documents to be Submitted for Tax Reduction or Exemption for Small Housing Rental Business Entities) |
| Article 44 (Calculation of Housing Rental Period) |
| Article 44-2 (Real Estate Investment Companies for Rental Housing) |
| 1. | A real estate investment company shall provide at least 70/100 of the total floor area of the building it owns as build-to-rent housing or buy-to-rent housing (hereafter in this Article, referred to as “rental housing”) under subparagraph 2 or 3 of Article 2 of the Rental Housing Act; |
| 2. | The sum of the standard market price at the time of acquisition of each house provided as rental housing and the land appurtenant thereto shall not be greater than 600 million won; |
| 3. | The exclusive habitable area of each house provided as rental housing shall be no greater than 85 square meters. |
| Article 45 (Reduction or Exemption of Capital Gains Tax for Purchasers of Newly-Built Houses) |
| Article 45-2 (Special Taxation for Delinquent Taxes, etc. of Resurgent Small or Medium Entrepreneurs) |
| (1) | “Written form” under Article 99-6 (3) of the Decree means a payment plan for delinquent taxes. |
| (2) | “Application” under Article 99-6 (8) of the Decree means an application for postponement of notice of taxation, extension of the designated due date for payment or deadline specified in a reminder (hereinafter referred to as the “extension of the designated due date for payment, etc.”), and postponement of seizure or sale. <Amended on Mar. 14, 2016; Mar. 16, 2021> |
| (3) | Deleted. <Mar. 14, 2016.> |
| Article 45-3 (Calculation of Average Monthly Earned Income) |
| Article 45-4 (Scope and Value of Securities, etc.) |
| (1) | “Securities specified by Ordinance of the Ministry of Economy and Finance” in Article 100-4 (3) 6 of the Decree mean the following: <Newly Inserted on Mar. 18, 2022> |
| 1. | Stocks or shares; |
| 2. | Securities under each of the following: |
| (a) | National bonds, local government bonds or bonds issued in accordance with a Special Act by a corporation established pursuant to the Special Act; |
| (b) | Debentures (referring to such securities as corporate bonds); |
| (c) | Cheques or commercial papers. |
| (2) | “Rights to acquire real estate, as specified by Ordinance of the Ministry of Economy and Finance” in Article 100-4 (3) 7 of the Decree mean the following: <Newly Inserted on Mar. 18, 2022> |
| 1. | The right to acquire a house as an association member under subparagraph 9 of Article 88 of the Income Tax Act; |
| 2. | The right to acquire a building and the land appurtenant thereto once the construction thereof is completed (excluding the right to acquire a house as an association member referred to in subparagraph 1); |
| 3. | Land redemption bonds under the following Acts: |
| (e) | Special Act on Construction and Development of Innovation Cities; |
| 4. | Redeemable housing bonds under Article 80 of the Housing Act. |
| (3) | The value of securities under each subparagraph of paragraph (1) pursuant to Article 100-4 (8) 5 of the Decree shall be the value specified as follows: <Amended on Apr. 7, 2009; Apr. 20, 2010; Mar. 13, 2015; Mar. 14, 2015; Mar. 18, 2022> |
| 1. | Stocks of stock-listed corporations under the Financial Investment Services and Capital Markets Act: The closing market price on the Korea Exchange which is deemed to have been granted a permit to serve as an exchange under Article 15 (1) of the Addenda to the partial amendment (Act No. 11845) to the Financial Investment Services and Capital Markets Act as of the base date for ownership (referring to the base date for ownership under Article 100-4 (4) of the Decree): |
| 2. | Stocks and shares other than those specified in subparagraph 1 and securities under Article 45-3 (1) 2: Face value. |
| (4) | The assessed value of the rights under paragraph (2) pursuant to Article 100-4 (8) 5 of the Decree shall be the value specified as follows: <Amended on Oct. 30, 2015; Mar. 14, 2016; Mar. 13, 2020; Aug. 18, 2022> |
| 1. | The right to acquire a house as an association member under paragraph (2) 1: Amount under the classification of each of the following items: |
| (a) | Where the settlement money has been paid as of the base date for ownership: The amount calculated by adding the settlement money (limited to the amount that has been paid) to the price determined according to the management and disposal plan under Article 74 of the Act on the Improvement of Urban Areas and Residential Environments; |
| (b) | Where the settlement money has been received as of the base date for ownership: The amount calculated by subtracting the settlement money (limited to the amount that has been received) from the price determined according to the management and disposal plan under Article 74 of the Act on the Improvement of Urban Areas and Residential Environments; |
| 2. | The right under paragraph (2) 2: Amount paid up to the base date for ownership; |
| 3. | Bonds under paragraph (2) 3 and 4: Face value. |
| Article 45-5 (Scope, etc. of Persons Other than Business Entities) |
| 1. | A business registration certificate under Article 168 (3) of the Income Tax Act, Article 111 (3) of the Corporate Tax Act, or Article 8 (5) of the Value-Added Tax Act; |
| 2. | An identification number under Article 168 (5) of the Income Tax Act. |
| Article 45-6 (Submission, etc. of Materials) |
| (1) | “Materials specified by Ordinance of the Ministry of Economy and Finance” in Article 100-7 (5) of the Decree mean the certificate of family relations of a resident (referring to the certificate of family relations of a spouse in cases of an alien married to a person who has the nationality of the Republic of Korea under the proviso to Article 100-3 (2) 2 of the Act), a certified transcript of the resident registration card of the resident and the following documents: <Amended on Apr. 29, 2008; Apr. 20, 2010; Feb. 23, 2013; Mar. 17, 2017; Mar. 13, 2020; Mar. 16, 2021> |
| 1. | Where the resident supports a cohabiting adoptee under Article 100-2 (1) of the Decree: A certificate of adoption under the Act on Registration of Family Relationships; |
| 2. | Where the resident supports lineal grandchild or sibling under Article 100-2 (2) 1 and 3 of the Decree: Documents determined by the Commissioner of the National Tax Service as evidence of support, such as a certificate of enrollment in a school of a supported child and a certificate of payment of tuition fees; |
| 3. | Where a resident supports lineal grandchild or sibling under Article 100-2 (2) 2 of the Decree: Documents determined by the Commissioner of the National Tax Service as evidence of support, such as a certificate of enrollment in a school of a supported child and a certificate of payment of tuition fees, and any of the following documents: |
| (a) | A copy of the certificate of registration of a person with disabilities under Article 4 (2) of the Enforcement Decree of the Act on Welfare of Persons with Disabilities; |
| (b) | A copy of the certificate of a person of distinguished service to the State under the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State; |
| (c) | A copy of the certificate of a person of distinguished service to the May 18 Democratization Movement under Article 6 (6) of the Enforcement Decree of the Act on the Honorable Treatment of Persons of Distinguished Service to the May 18 Democratization Movement; |
| 4. | Where a resident supports a person with disabilities under Articles 100-2 (3) and 100-4 (9) of the Decree: Any of the following materials: |
| (a) | A copy of the certificate of registration of a person with disabilities under Article 4 (2) of the Enforcement Decree of the Act on Welfare of Persons with Disabilities; |
| (b) | A copy of the certificate of a person of distinguished service to the State under the Act on the Honorable Treatment of and Support for Persons, etc. of Distinguished Service to the State; |
| (c) | A copy of the certificate of a person of distinguished service to the May 18 Democratization Movement under Article 6 (6) of the Enforcement Decree of the Act on the Honorable Treatment of Persons of Distinguished Service to the May 18 Democratization Movement; |
| 5. | Where a resident temporarily vacates his or her domicile under Article 100-4 (2) of the Act and Articles 100-2 (3) 2 and 100-4 (9) 2 of the Decree: Certified transcripts of the resident registration card for the original domicile and for the temporary domicile, and any of the following documents: |
| (a) | Where a resident temporarily vacates his or her domicile to attend school: The certificate of enrollment issued by the head of the school (including private educational institutes); |
| (b) | Where a resident temporarily vacates his/her domicile for medical care for an illness: The certificate of medical care issued by the head of the relevant medical institution; |
| (c) | Where a resident temporarily vacates his/her domicile for work: The certificate of employment issued by the head of the relevant workplace; |
| 6. | For assets specified in each subparagraph of Article 100-4 (3) of the Decree: The following documents: |
| (a) | The land and buildings referred to in Article 100-4 (3) 1 of the Decree: A certified transcript of the relevant real estate register, a certified transcript of the relevant land cadastre or a certified transcript of the relevant building register; |
| (b) | A passenger vehicle referred to in Article 100-4 (3) 2 of the Decree: A copy of the certificate of registration of the relevant vehicle; |
| (c) | Key money for lease on a deposit basis referred to in Article 100-4 (3) 3 of the Decree: A copy of the relevant lease contract on a deposit basis or a copy of the lease contract; |
| (d) | Financial assets referred to in Article 100-4 (3) 4 of the Decree: A copy of the bankbook for the relevant financial assets or a certificate of balance of deposits; Provided, That, as for demand deposits such as ordinary deposits, savings deposits, and free savings deposits, this shall be a certificate of average daily balance between March 2 and June 1 of the year in which the taxable period for the relevant income ends. |
| (e) | Membership under Article 100-4 (3) 5 of the Decree: A copy of the certificate of membership; |
| (f) | Securities referred to in Article 100-4 (3) 6 of the Decree: A certificate of balance of stocks, national bonds, local government bonds, etc. or copies of national bonds, local government bonds, etc.; |
| (g) | The right to acquire real estate in cases under Article 100-4 (3) 7 of the Decree: A copy of the relevant sale contract, receipts of payment of the sale price or settlement money; and a copy of the land redemption bond or redeemable housing bond. |
| (2) | “Organizations or institutions specified by Ordinance of the Ministry of Economy and Finance” in Article 100-14 (1) 13 of the Decree means the following organizations or institutions: <Newly Inserted on Mar. 17, 2017> |
| 1. | The Korea Housing and Urban Guarantee Corporation established pursuant to the Housing and Urban Fund Act; |
| 2. | The Korea Housing Finance Corporation under the Korea Housing Finance Corporation Act; |
| 3. | A public housing project operator under Article 4 (1) of the Special Act on Public Housing; |
| 4. | Deleted. <Mar. 18, 2022> |
| (3) | “Data specified by Ordinance of the Ministry of Economy and Finance” in Article 100-14 (2) 25 of the Decree means any of the following data: <Newly Inserted on Mar. 17, 2017; Mar. 20, 2019; Mar. 13, 2020; Mar. 18, 2022> |
| 1. | Data regarding guarantee for sale under Article 26 (1) 2 of the Housing and Urban Fund Act; |
| 2. | Data regarding credit guarantee under subparagraph 8 of Article 2 of the Korea Housing Finance Corporation Act; |
| 3. | Data regarding lease agreement entered into between a public housing project operator and the housing tenant under Article 4 (1) of the Special Act on Private Rental Housing. |
| Article 45-7 (Inspection of Amount Paid as Earned Income or Business Income) |
| (1) | The Commissioner of the National Tax Service shall publish an amount paid as earned income or business income specified in Article 100-7 (3) of the Decree in the Home Tax Service Network pursuant to subparagraph 19 of Article 2 of the Framework Act on National Taxes, etc. to allow relevant residents to inspect the amount. <Amended on Feb. 30, 2013> |
| (2) | The time, methods, etc. for the inspection through the Home Tax Service Network, etc. shall be determined by the Commissioner of the National Tax Service. |
| Article 45-8 (Accompanies Documents in Reporting Tax Base and Amount of Corporate Tax on Quasi-Liquidation Income) |
| 1. | A statement of financial position of the relevant domestic corporation as at the date of quasi-liquidation; |
| 2. | A statement of adjustment of capital and reserves of the relevant domestic corporation as at the date of quasi-liquidation. |
| Article 45-9 (Special Taxation for Promoting Investment and Collaborative Cooperation) |
| (1) | “Corporate tax return on unappropriated earnings in the form specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (3) of the Decree means attached Form 114. |
| (2) | “Amount of corporate tax specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (4) 2 (a) of the Decree means an amount obtained by subtracting the reduced or exempted amount of tax and the amount of tax credit from the amount calculated by applying the tax rate under Article 55 (1) of the Corporate Tax Act to the tax base under Article 13 of the same Act, plus an additional tax. <Newly Inserted on Mar. 18, 2022> |
| (3) | “Amount of local corporate income tax specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (4) 2 (a) of the Decree means the amount equivalent to 10/100 of the amount obtained by applying the tax rate under Article 55 (1) of the Corporate Tax Act to the tax base under Article 13 of the same Act. <Newly Inserted on Mar. 18, 2022> |
| (4) | “Amount specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (4) 2 (c) of the Decree means any of the following amounts (limited to the amounts not included in the deficit/loss for the relevant business year) that need to be reserved within the limit of the amount subject to mandatory reservation as prescribed by individual statutes, such as the Banking Act. <Amended on Mar. 13, 2020; Mar. 16, 2021; Mar. 18, 2022> |
| 1. | Earned surplus reserve for the relevant business year under individual statutes such as the Banking Act (excluding the amount reserved as the earned surplus reserve under Article 100-32 (4) 2 (b) of the Decree); |
| 2. | The amount that financial companies or mutual aid associations are obliged to reserve as allowance for bad debts or reserve for bad debts for the relevant business year; |
| 3. | The amount that a corporation engaged in the insurance business is required to reserve as the reserve to compensate the loss in the dividend insurance and guarantee reserve under the Insurance Business Act for the relevant business year; |
| 4. | The amount that local public corporations are obliged to reserve as the sinking-fund reserve under Article 67 (1) 3 of the Local Public Enterprises Act; |
| 5. | The amount that corporations managing real estate trust business under the Financial Investment Services and Capital Markets Act are obliged to reserve as the reserve for trust business for the relevant business year under the same Act. |
| (5) | “Domestic corporation that meets the requirements specified by Ordinance of the Ministry of Economy and Finance, such as not owning stocks, etc. other than those issued by foreign corporations” in Article 100-32 (4) 2 (l) of the Decree means a domestic corporation that meets all of the following requirements: <Amended on Mar. 18, 2022> |
| 1. | The relevant domestic corporation shall not own stocks other than those issued by foreign corporations or investment shares (hereafter in this Article, referred to as “stocks, etc.”); |
| 2. | The sum of the stocks, etc. of foreign corporations owned by the domestic corporation shall be at least 50/100 of the total assets of the said domestic corporation. In this case, the sum of the stocks, etc. of foreign corporations and the total assets of the domestic corporation shall be computed based on the amount on the statement of financial position as of the end of the business year; |
| 3. | Within two years from the start of the business year following the business year under which the date of establishment falls, the share certificate of the relevant domestic corporation shall be listed on the securities market under Article 176-9 (1) of the Enforcement Decree of the Financial Investment Services and Capital Markets Act or the KOSDAQ market under Article 8 of the Addendum of the partial amendment to the Enforcement Decree of the said Act (Presidential Decree No. 24697). In this case, even if the share certificates of the relevant domestic corporation are not listed until the date on which two years elapse from the start of the business year following the business year under which the date of establishment falls, insofar as all of the following requirements are satisfied, the requirements of the former part shall be deemed satisfied: |
| (a) | Documents certifying the share certificate listing plan of the domestic corporation shall be submitted to the head of the tax office having jurisdiction over the place of tax payment by the end of the tax base report deadline for the relevant business year; |
| (b) | Documents certifying that the share certificates have been listed within two years from the start of the business year following the business year under which the date of establishment falls shall be submitted to the head of the tax office having jurisdiction over the place of tax payment by the end of the tax base return deadline for the business year under which the date of listing the share certificates falls. |
| (6) | “Amount specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (4) 2 (m) of the Decree means an amount falling under any of the following subparagraphs: <Amended on Mar. 13, 2020; Mar. 18, 2022> |
| 1. | The amount allocated by Suhyup Bank under Article 141-4 of the National Federation of Fisheries Cooperatives as the surplus appropriation for the relevant business year under the agreement on the management normalization plan, etc. pursuant to Article 6 (4) of the Addendum of the partial amendment to the National Federation of Fisheries Cooperatives Act (Act No. 14242) in the special accounting for credit business under Article 167 of the same Act; |
| 2. | The amount allocated by an insurance company which has been permitted to engage in the guarantee insurance business under Article 4 of the Insurance Business Act as the surplus appropriation for the relevant business year pursuant to the agreement on the management normalization plan pursuant to Article 17 of the Special Act on the Management of Public Funds. |
| (7) | “Assets specified by Ordinance of the Ministry of Economy and Finance” in the main sentence other than each item of Article 100-32 (6) 1 of the Decree means assets acquired from non-shipping income as the financial resource under Article 104-10 (1) 2 of the Act. In this case, the total amount of investment in shipping income and assets acquired through the joint financial resource under Article 104-10 (1) 1 of the Act shall be the amount obtained according to the following formula: <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| (8) | “Business buildings to be newly built or expanded specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (6) 1 (a) 2) of the Decree mean the buildings to be newly built or expanded by the relevant corporation for its own use for businesses under Article 26 (2) of the Enforcement Rule of the Corporate Tax Act, such as factories, business sites, and offices (hereinafter referred to as “new or expanded building for business”). |
| (9) | When applying paragraphs (7) and (8), if the part of the building that is directly used for business and the part that is not are located together, or if the building is jointly owned, the amount invested in the business building to be newly built or expanded for the relevant business year shall be according to the following formula: Provided, That, if the ratio of the total floor area of the part of the building directly used by the corporation for business to the total floor area of the building (hereafter in this paragraph, referred to as the “ratio directly used for business”) is 90/100 or more, it shall be deemed as 100 out of 100, and if the said building is jointly owned, the ownership percentage of the said corporation shall be the limit for the ratio directly used for business. <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| (10) | When calculating earned income under Article 100-32 (9) of the Decree, the book value of treasury shares or the sum of money and valuables contributed to the employee stock ownership association for the relevant business year shall be included: Provided, That, the book value of treasury shares or the sum of money and valuables paid to a person falling under any of the subparagraphs of Article 26-4 (2) of the Decree shall be excluded. <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| (11) | “Average amount of paid wages specified by Ordinance of the Ministry of Economy and Finance” in Article 100-32 (10) 2 of the Decree means the amount obtained by dividing the amount in subparagraph 1 by the amount in subparagraph 2. <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| 1. | The wage paid according to Article 100-32 (9) of the Decree for full-time workers who have entered into an employment agreement pursuant to the Labor Standards Act for the first time in the relevant business year (excluding cases where an employment agreement has been renewed; hereafter in this Article, referred to as “new full-time workers”); |
| 2. | The number of new full-time workers obtained by applying |
| (12) | “Where contributions are made to guarantee or provide loans to small and medium enterprises specified by Ordinance of the Ministry of Economy and Finance” in the part other than each item of Article 100-32 (14) 4 of the Decree means entering into an agreement for the purpose of guaranteeing or providing loans to small and medium enterprises that fall under subparagraph 1 among small and medium enterprises that fall into the category in Article 2 (1) (hereinafter referred to as “SMEs”) with the guarantee agency under each item of subparagraph 2. <Amended on Mar. 20, 2019; Mar. 13, 2020; Mar. 16, 2021; Mar. 18, 2022> |
| 1. | SMEs that fall under any of the following: |
| (a) | Micro enterprises under the Act on the Protection of and Support for Micro Enterprises; |
| (b) | Venture companies and companies specializing in new technology under the Act on Special Measures for the Promotion of Venture Businesses; |
| (c) | New technology business operators under the Korea Credit Guarantee Fund Act; |
| (d) | SMEs which have been established within the last seven years; |
| (e) | SMEs whose number of full-time workers in the relevant taxable year increased compared to the previous taxable year; |
| (f) | SMEs researching new growth engines and source technologies according to attached Table 7 of the Decree (limited to cases where the Minister of Economy and Finance and the Minister of Trade, Industry and Energy, after deliberation by the New Growth Engines and Source Technology Deliberation Committee pursuant to Article 9 (12) of the Decree, deem them as new growth engines and source technologies research and development expenses); |
| (g) | Enterprises selected as technologically innovative SMEs under Article 15 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises; |
| 2. | Contributions falling under any of the following: |
| (a) | Contributions made by financial companies under subparagraph 3 of Article 2 of the Korea Credit Guarantee Fund Act to the credit guarantee fund under the said Act (excluding the amount to be contributed pursuant to Article 6 (3) of the said Act); |
| (b) | Contributions made by financial companies under subparagraph 3 of Article 2 of the Korea Technology Guarantee Fund Act to the technology guarantee fund under the said Act (excluding the amount to be contributed pursuant to Article 13 (3) of the said Act); |
| (c) | Contributions made by mutual savings banks pursuant to subparagraph 5 of Article 3 of the Enforcement Decree of the Regional Credit Guarantee Foundation Act and banks pursuant to Article 5-2 (1) of the said Decree to the Credit Guarantee Foundation and the Korea Federation of Credit Guarantee Foundations pursuant to the Regional Credit Guarantee Foundation Act (excluding the amount to be contributed pursuant to Article 7 (3) of the said Act). |
| (13) | “Cases specified by Ordinance of the Ministry of Economy and Finance, such as a merger or business transfer” in Article 100-32 (16) of the Decree mean the case where a merging corporation or a corporation subject to business transfer pays the amount exceeding 50/100 of the corporate income under Article 100-32 (2) 1 of the Act in money and valuables in exchange for a merger or business transfer for the relevant business year. <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| (14) | “Other cases specified by Ordinance of the Ministry of Economy and Finance in consideration of the characteristics of the business category” in Article 100-32 (20) 1 (c) of the Decree mean the cases where a corporation whose main business is the leasing business under the Korean Standard Industrial Classification Table (referring to the case where the amount of income generated from the leasing business of assets under Article 100-32 (6) 1 (a) 1) of the Decree for the relevant business year is 50/100 or higher of the total amount of income in the event where it runs two or more different businesses). <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| (15) | “Cases specified by Ordinance of the Ministry of Economy and Finance, such as the case where it does not fall under paragraph (6) 1 (a) 2)” in Article 100-32 (20) 2 of the Decree mean cases falling under any of the following subparagraphs: <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| 1. | If the corporation does not directly use the new or expanded building for business by means such as leasing or consigning within two years of completion thereof: Provided, That, the case where a corporation whose main business is real estate business, construction business, or general retail business according to the Korean Standard Industrial Classification Table according to the latter part of paragraph (8) leases the said building shall be excluded; |
| 2. | Where the new or expanded building for business is disposed of before completion or within two years after completion: Provided, That, cases where donations are made to the state or local governments and new or expanded buildings for business shall be excluded; |
| 3. | Where the construction of a new or expanded building for business has commenced and then the construction is suspended without a natural disaster or other due cause. |
| (16) | “Date specified by Ordinance of the Ministry of Economy and Finance, such as the date on which any of the causes in subparagraphs of paragraph (20) arises” in Article 100-32 (21) of the Decree means any of the following dates: <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| 1. | The date on which assets are transferred or lent under Article 100-32 (20) 1 of the Decree; |
| 2. | The date not directly used for business, such as the date on which a new or expanded building for business is leased or consigned under paragraph (15) 1; |
| 3. | The date on which the new or expanded building for business was disposed of under paragraph (15) 2; |
| 4. | The date on which six months have elapsed from the date on which the construction of a new or expanded building for business was suspended under paragraph (15) 3. |
| (17) | When a merging corporation, etc. succeeds to the unreturned income or excess returned amount (hereafter in this paragraph, referred to as “unreturned income, etc.”) of the merged corporation, etc. under Article 100-32 (23) of the Decree, it shall be classified as follows: <Amended on Mar. 20, 2019; Mar. 18, 2022> |
| 1. | Where the merged corporation ceases to exist: The addition of the unreturned income, etc. (referring to the amount calculated by regarding the merger registration date as the end date of the business year, excluding the amount in Article 100-32 (2) 1 (b). |
| 2. | Where the divided corporation ceases to exist: The addition of the unreturned income, etc. of the divided corporation (referring to the amount calculated by regarding the date of registration of the division as the end date of the business year, excluding the amount under Article 100-32 (2) 1 (b) of the Act) of the divided corporation to the unreturned income, etc. of the divided newly-established corporation or the other corporation of the division and merger according to the ratio of owner’s equity pursuant to Article 100-32 (1). |
| Article 46 (Reasons, etc. for Tax Evasion Concerns) |
| (1) | “Reasons specified by Ordinance of the Ministry of Economy and Finance” in Article 100-17 (2) of the Decree mean the cases where the profit and loss sharing ratio for the immediately preceding taxable year and the profit and loss sharing ratio for the relevant taxable year are applied differently in any of the following circumstances: |
| 1. | Where the sum of income and deficits of the partner company by group of partner company of any of the partner company within the relevant partner company is greater than he Decree for the immediately preceding taxable year and less than the Decree for the relevant taxable year; |
| 2. | Where the sum of deficits of the partner company by group of partner company of any of the partner company within the relevant partner company is less than he Decree for the immediately preceding taxable year and greater than the Decree for the relevant taxable year; |
| (2) | Paragraph (1) shall apply only to partners that belonging to the group of partners in which the cause under paragraph (1) arose, and if a partner is changed due to joining or withdrawing during the relevant taxable year, it shall be applicable only to partners that have not been changed. |
| Article 46-2 (Documents Attached to Report Income Calculation and Distribution Specifications for Partner Companies) |
| 1. | Documents classified under each of the following: |
| (a) | Resident group and non-resident group consisting of non-residents under Article 121 (2) or (5) of the Income Tax Act: Documents related to the relevant resident group or non-resident group among the following documents: |
| (b) | Domestic corporation group and foreign corporation group consisting of foreign corporations under Article 97 (1) of the Corporate Tax Act: Among the following documents, documents related to the relevant domestic corporation group or foreign corporation group: |
| (c) | Non-resident group consisting of non-residents under Article 156 (1) of the Income Tax Act and foreign corporation group consisting of foreign corporations under Article 98 (1) of the Corporate Tax Act: Among the following documents, documents related to the relevant non-resident group or foreign corporation group: |
| 2. | Statement of loss in excess of distribution limit; |
| 3. | Statement of deficits carried forward for passive partners; |
| 4. | Statement of tax distribution for partner companies. |
| Article 46-3 (Special Treatment in Calculating Corporate Tax Base for Shipping Enterprises) |
| (1) | “Joint navigation specified by Ordinance of the Ministry of Economy and Finance” in the part other than each subparagraph of Article 104-7 (1) of the Decree means a type of navigation of ships under an agreement entered into by at least two shipping enterprises to each assign and navigate at least one ship according to the joint shipping scheduling and to allow the shipping enterprises to share ships assigned by them mutually. <Amended on Apr. 29, 2008; Mar. 20, 2019> |
| (2) | “Standard ships determined by Ordinance of the Ministry of Economy and Finance” in the part other than each subparagraph of Article 104-7 (1) of the Decree means the following international ships registered under Article 4 of the International Ship Registration Act: <Amended on Apr. 17, 2006; Apr. 29, 2008; Apr. 20, 2010> |
| 1. | Ships owned by the relevant enterprise; |
| 2. | Bare boats chartered under the name of the relevant enterprise with an option to acquire nationality; |
| 3. | Ships leased by the relevant enterprise on an annual installment payment basis for the transfer of ownership from a person who has registered a facility leasing business under Article 3 (2) of the Specialized Credit Finance Business Act. |
| (3) | The calculation of the annual net navigation tonnage under Article 104-7 (1) of the Decree shall be based on the end of the business year immediately preceding the business year under which the deadline for filing an application for special treatment in calculating the tax base falls (or if a statement of requirements for special treatment in calculating the tax base of a shipping enterprise is to be submitted under Article 104-7 (6) of the Decree; the business year under which the deadline for submitting the statement of requirements falls). <Amended on Apr. 29, 2008; Apr. 7, 2009> |
| (4) | “Activities specified by Ordinance of the Ministry of Economy and Finance and related to the lease of facilities necessary to engage in ocean-going transportation activities” in Article 104-7 (2) 2 (b) of the Decree mean the activities related to the lease of containers necessary for maritime transportation activities. <Amended on Apr. 29, 2008> |
| (5) | “Combined shipping activities specified by Ordinance of the Ministry of Economy and Finance” in Article 104-7 (2) 2 (f) of the Decree mean transportation activities using at least two modes of transportation such as ships, aircraft, railroad vehicles, or motor vehicles. <Amended on Apr. 29, 2008> |
| (6) | “Activities specified by Ordinance of the Ministry of Economy and Finance” in Article 104-7 (2) 2 (g) of the Decree mean activities related to the sale of containers necessary for activities of maritime transportation. <Newly Inserted on Mar. 17, 2017> |
| (7) | “Documents specified by Ordinance of the Ministry of Economy and Finance, such as a statement of tax adjustment under Article 60 (2) 2 of the Corporate Tax Act” in the proviso to the part other than each subparagraph of Article 104-7 (8) 4 of the Decree mean the documents provided in Article 60 (2) of the Corporate Tax Act and drafted for the period eligible for the application of special treatment. < Newly Inserted on Aug. 28, 2009; Mar. 17, 2017> |
| (8) | “Methods specified by Ordinance of the Ministry of Economy and Finance” in Article 104-7 (9) of the Decree means the method of calculation by applying Article 76 (6) of the Enforcement Rule of the Corporate Tax Act |
| Article 46-4 (Scope of Facilities Donated to Schools for Research and Development of Human Resources) |
| (1) | “Facilities for research and experimenting for the purpose of research and development specified by Ordinance of the Ministry of Economy and Finance” in Article 104-17 (2) of the Decree mean research and experiment facilities corresponding to any of the subparagraphs in Article 13 (1): |
| (2) | “Facilities for vocational training specified by Ordinance of the Ministry of Economy and Finance” in Article 104-17 (2) of the Decree mean vocational training facilities corresponding to any of the following subparagraphs in Article 13 (1): |
| Article 47 (Special Taxation for Establishment and Operation of Sports Teams, etc. of Enterprises) |
| (1) | “Any event specified by Ordinance of the Ministry of Economy and Finance” in the part other than each subparagraph of Article 104-20 (1) of the Decree and in the part other than each subparagraph of paragraph (3) in the said Article means any event specified in subparagraphs 1 and 2 of attached Table 9, respectively. <Newly Inserted on Mar. 18, 2022> |
| (2) | “Expenses specified by Ordinance of the Ministry of Economy and Finance” in Article 104-20 (4) 2 of the Decree mean the following: <Amended on Mar. 14, 2014; Mar. 18, 2022> |
| 1. | Expenses incurred for the preparation of an establishment of sports teams including screening and testing of players; |
| 2. | Use charges for sports arenas and training facilities; |
| 3. | Meal expenses; |
| 4. | Expenses incurred in off-season training; |
| 5. | Costs of repairing training facilities; |
| 6. | Articles for sports, equipment for training, sportswear, expenses incurred in purchasing medicines and repair expenses; |
| 7. | Expenses incurred in participating in sports and travel expenses incurred in participating in games; |
| 8. | Expenses incurred in lodging and meals for participation in games held in distant areas; |
| 9. | Rental charges for accommodations for players and for vehicles for transporting players; |
| 10. | Other direct expenses incurred directly in the operation of an athletic club or an e-sports club. |
| Article 47-2 (Criteria for Practical Control, etc.) |
| (1) | “Nationals of the Republic of Korea who |
| (2) | “Amount converted as specified by Ordinance of the Ministry of Economy and Finance in consideration of exchange rates, etc.” in the formulas specified in Article 104-21 (5) 1 and 2 of the Decree and paragraph (6) 1 and 2 of the said Article means the amount calculated according to the classification: < Newly Inserted on Apr. 21, 2020; Mar. 16, 2021> |
| 1. | Where it falls under Article 104-21 (5) 1 of the Decree: Amount calculated according to the following formula |
| 2. | Where it falls under Article 104-21 (5) 2 of the Decree: Amount calculated according to the following formula |
| 3. | Where it falls under Article 104-21 (6) 1 of the Decree: Amount calculated according to the following formula |
| 4. | Where it falls under Article 104-21 (6) 2 of the Decree: Amount calculated according to the following formula |
| (3) | “Factory specified by Ordinance of the Ministry of Economy and Finance” in Article 104-21 (10) 1 of the Decree means the factory under subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act, and the “factory gross floor area of the relevant factory” means the floor area of a building within a factory site: Provided, That, the area of facilities provided to promote the welfare of employees, such as cafeterias, resting rooms, bathroom suites, laundry facilities, medical rooms, outdoor sports facilities, and dormitories, and the areas of shelters, arsenals, ammunition dump, and educational facilities, shall not be included in the total floor area of the relevant factory. < Newly Inserted on Apr. 21, 2020; Mar. 16, 2021> |
| (4) | The case in which the quantity of fixed assets for business increases in Article 104-21 (10) 2 of the Decree means the case in which production facilities required for business execution are additionally installed within the previous business establishment and the gross area of the relevant business establishment in the same subparagraph means the floor area of each floor in the buildings within the site of the business establishment: Provided, That, the area of facilities provided to promote the welfare of employees, such as cafeterias, resting rooms, bathroom suites, laundry facilities, medical rooms, outdoor sports facilities, and dormitories, and the areas of shelters, arsenals, ammunition dump, and educational facilities, shall not be included in the total floor area of the relevant business establishment. < Newly Inserted on Apr. 21, 2020; Mar. 16, 2021> |
| (5) | “Other necessary documents” in Article 104-21 (12) of the Decree means the following documents: < Newly Inserted on Apr. 21, 2020; Mar. 16, 2021> |
| 1. | Documents certifying the business establishment have been in operation overseas for at least two consecutive years; |
| 2. | Documents certifying that the overseas business establishment was transferred or closed if Article 104-21 (1) 1 or 2 of the Decree applies (excluding a person who has operated business in Korea for less than four years and has not transferred or closed the domestic business establishment); |
| 3. | A copy certifying the reduction of the volume of production in the business establishment operated overseas as verified by the Minister of Trade, Industry and Energy if Article 104-21 (3) 2 of the Decree applies. |
| Article 47-3 (Special Taxation for 2018 PyeongChang Olympic and Paralympic Winter Games) |
| (1) | “Foreign corporations specified by Ordinance of the Ministry of Economy and Finance” in Article 104-28 (3) of the Act means the following foreign corporations: <Amended on Mar. 17, 2017> |
| 1. | Business entities that measure game hours and points or operate an information system for the management of games with a license to use the emblem of the International Olympic Committee under an agreement entered into with the International Olympic Committee; |
| 2. | Regional broadcasting service providers with an exclusive license for the 2018 PyeongChang Olympic and Para-Olympic Winter Games. |
| (2) | “Person specified by Ordinance of the Ministry of Economy and Finance” in Article 104-28 (4) of the Act means any executive or employee of a foreign corporation specified in any of the following subparagraphs: <Amended on Mar. 17, 2017> |
| 1. | The Olympic Broadcasting Services established by the International Olympic Committee to provide facilities and services necessary for broadcasting the Winter Olympic Games; |
| 2. | Regional broadcasting service providers with an exclusive license for the 2018 PyeongChang Olympic and Para-Olympic Winter Games. |
| 3. | Business entities that measure game hours and points or operate an information system for the management of games with a license to use the emblem of the International Olympic Committee under an agreement entered into with the International Olympic Committee; |
| Article 47-4 (Income Deduction for Project Financing and Investment Companies) |
| (1) | “Documents specified by Ordinance of the Ministry of Economy and Finance” in the part other than each item of Article 104-28 (4) 5 of the Decree means the following documents: |
| 1. | Articles of incorporation; |
| 2. | Details of the specific business that manages the company's assets; |
| 3. | Procurement of funds and operational plan; |
| 4. | Documents certifying the payment of stocks; |
| 5. | A copy of the business consignment agreement entered into with an asset management company and a fund management business consignment company. |
| (2) | The head of the tax office having jurisdiction over the place of tax payment who has received a report under Article 104-28 (4) 5 or (6) of the Decree shall certify the certificate of registered entries for corporation of the declarant through the joint use of administrative information under Article 36 (1) of the Electronic Government Act. |
| Article 47-5 (Application of Zero Rate of Value Added Tax) |
| (1) | “Assisting devices specified by Ordinance of the Ministry of Economy and Finance” in Article 105 (2) of the Decree means assisting devices for persons with disabilities under attached Table 9-2. |
| Article 48 (Exemption, etc. from Value-Added Tax) |
| (1) | “Multi-unit houses stipulated by Ordinance of the Ministry of Economy and Finance” in Article 106 (4) 1 of the Decree means those falling under subparagraph 1 (c) of attached Table 1 of the Enforcement Decree of the Building Act. In this case, each section separated for independent dwelling of one household shall be deemed as one house. <Newly Inserted on Mar. 16, 2021> |
| (2) | “Businesses specified by Ordinance of the Ministry of Economy and Finance” in the main sentence of the part other than each subparagraph of Article 106 (8) of the Decree mean tax-free businesses of substitute organizations for government affairs in attached Table 10. <Amended on Mar. 6, 2004; Apr. 29, 2008; Mar. 20, 2019; Mar. 16, 2021> |
| (3) | Deleted. <Mar. 28, 2001.> |
| (4) | The verification of a farmer or fisher under Article 106 (17) of the Decree shall be subject to a certificate of a farmer or fisher issued by the head of the relevant local agricultural cooperative, local livestock industry cooperative, cooperative by item or by business category or fisheries cooperative. <Amended on Mar. 30, 2000; Feb. 28, 2012; Mar. 21, 2018> |
| Article 48-2 (Scope, etc. of Tax-Free Gold Bullion Wholesalers) |
| (1) | “At least the amount stipulated by Ordinance of the Ministry of Economy and Finance” in Article 106-3 (2) 1 (b) of the Decree means where the sum of the supply price during two taxable periods immediately preceding the taxable period in which a person intends to trade the tax-free gold bullion under Article 106-3 is at least three billion won. <Amended on Mar. 11, 2005; Apr. 29, 2008> |
| (2) | “Person who satisfies the requirements stipulated by Ordinance of the Ministry of Economy and Finance” in the part other than each subparagraph of Article 106-3 (3) of the Decree means a person who meets the following requirements: <Amended on Apr. 29, 2008; Apr. 7, 2009> |
| 1. | A person who retains a computer system of sufficient speed and capacity for stably performing brokerage of transactions of tax-free gold bullions and reporting such transactions; |
| 2. | A person who retains professional capabilities necessary for performing brokerage of transactions of tax-free gold bullions, including knowledge and experience in such business. |
| Article 48-3 (Recommended Quantity of Tax-Free Gold Bullions) |
| 1. | A person who is authorized to recommend transactions of tax-free gold bullions shall not recommend the quantity of a transaction in excess of the recommendable quantity publicly notified by the Commissioner of the National Tax Service within 100 kilograms per day for each business entity; |
| 2. | A person who is authorized to recommend importation of tax-free gold bullions shall not recommend the quantity to be imported in excess of the recommendable quantity publicly notified by the Commissioner of the National Tax Service within 300 kilograms per day for each business entity. |
| Article 48-4 (Special Taxation for Payment of Value-Added Tax by Purchasers of Gold-Related Products) |
| (1) | A person designated by the Commissioner of the National Tax Service under Article 106-9 (5) of the Decree may refund the value-added tax paid by a business entity (input tax amount) to the said business entity within the scope of the value-added tax paid by the purchaser under Article 106-4 (3) of the Act (output tax amount) as determined by the Commissioner of the National Tax Service. |
| (2) | Notwithstanding paragraph (1), the amount specified in either of the following subparagraphs may be refunded, if the amount deemed as value-added tax paid by the relevant business entity (input tax amount): |
| 1. | The amount of value-added tax paid to the customs office at the time of importing gold-related products; |
| 2. | The amount equivalent to 70/100 of an amount obtained by subtracting the amount of value-added tax paid by a refiner of gold bullions (input tax amount) from the amount of value-added tax paid by the purchaser (output tax amount) if the designated person is a refiner of gold bullions. |
| (3) | If an importer of gold-related products intends to receive a refund of the value-added tax paid at the time of importation under paragraph (2) 1, the importer shall file an application for a refund of value-added tax for the importer of gold-related products with the head of the competent tax office. |
| (4) | The head of the competent tax office upon receipt of an application under paragraph (3) shall verify the payment of value-added tax and, if value-added tax has been paid, he or she shall notify the person designated by the Commissioner of the National Tax Service under paragraph (1) of the payment. |
| Article 48-5 Deleted. <Mar. 14, 2014> |
| Article 48-6 (Special Taxation for Payment of Value-Added Tax by Purchasers of Scraps, etc.) |
| (1) | A person designated by the Commissioner of the National Tax Service under Article 106-13 (4) of the Decree may refund the value-added tax paid by a business entity (input tax amount) to the said business entity within the scope of the value-added tax paid by the purchaser under Article 106-9 (3) of the Act (output tax amount) as determined by the Commissioner of the National Tax Service. |
| (2) | Notwithstanding paragraph (1), the amount paid to the customs office at the time of importation of scraps, etc. may be refunded if the amount is deemed value-added tax paid by the relevant business entity (input tax amount). <Amended on Mar. 14, 2016> |
| (3) | If an importer of scraps, etc. intends to receive a refund of the value-added tax paid at the time of importation under paragraph (2), he or she shall file an application for a refund of the value-added tax to the head of the competent tax office: |
| (4) | The head of the competent tax office upon receipt of an application under paragraph (3) shall verify the payment of value-added tax and, if value-added tax has been paid, he or she shall notify the person designated by the Commissioner of the National Tax Service under paragraph (1) of the payment. |
| Article 49 (Refund of Value-Added Tax to Foreign Business Entities and Procedure therefore) |
| (1) | “Goods or services specified by Ordinance of the Ministry of Economy and Finance” in Article 107 (1) 3 of the Decree means the following goods or services: |
| 1. | Buildings and structures for an office in the Republic of Korea or repair services of such buildings and structures; |
| 2. | Office equipment and furniture or leasing services of such equipment and furniture. |
| (2) | If a business entity who has been registered as a business entity under Article 8 of the Value-Added Tax Act (excluding business entities subject to simplified taxation that supply goods or services during the period to which the regulations on the issuance of receipts are applied according to Article 36-2 (1) or (2) needs to supply goods or services in Article 107 (6) of the Act to a foreign business entity, he or she shall issue the tax invoice to a foreign business entity upon receipt of a request from a foreign business entity for an issuance of a tax invoice. <Amended on Mar. 16, 2021> |
| (3) | Matters necessary for the procedure for a refund of value-added tax to foreign business entities shall be determined and publicly notified by the Commissioner of the National Tax Service. |
| Article 49-2 (Certificates of Provision of Medical Services, etc.) |
| Article 50 (Special Cases concerning Deduction of Input Tax for Value-Added Tax Imposed for Recycled Waste Resources, etc.) |
| (1) | “Persons designated by Ordinance of the Ministry of Economy and Finance” in Article 110 (3) 5 of the Decree means persons who are primarily engaged in the business of collecting and selling waste materials for recycling. <Amended on Apr. 29, 2008> |
| (2) | Deleted. <Apr. 17, 2006.> |
| Article 50-2 (Submission of Documentary Evidence) |
| 1. | The motor vehicle registers of the decrepit diesel motor vehicle and new motor vehicle; |
| 2. | A copy of the resident registration certificate (or a copy of the business registration certificate for a business entity): |
| 3. | If the resident registration number, business registration number or trade name written on the motor vehicle register of the decrepit diesel motor vehicle does not match the resident registration number, business registration number or trade name at the time of registration of the new motor vehicle, documents certifying that the registered owner of the decrepit diesel motor vehicle and the new motor vehicle is the same person or the same corporation, such as the abstract of the registration card and the certificate of entries of the owner in the relevant register under Article 15 of the Commercial Registration Act. |
| Article 50-3 (Method for Calculating Quantity of Petroleum, etc. Eligible for Tax Refund) |
| 1. | The quantity of petroleum under Article 112-2 (11) of the Decree = (The amount of petroleum purchased with an oil purchase card for refund)/(The average selling price per unit of petroleum at a petrol station or a charging station in the Special Metropolitan City, Metropolitan City, Special Self-Governing City, |
| 2. | The quantity of butane under Article 112-3 (3) of the Decree = (The amount of butane purchased with an oil purchase card for tax-exempted taxis)/(The average selling price per unit of butane at a charging station in the Special Metropolitan City, Metropolitan City, Special Self-Governing City, |
| 3. | The quantity of petroleum under Article 112-4 (5) of the Decree = (The amount of petroleum purchased with an oil purchase card)/(The average selling price per unit of petroleum at a petrol station or a charging station in the Special Metropolitan City, Metropolitan City, Special Self-Governing City, |
| Article 50-4 (Articles Eligible for Reduction of Customs Duties) |
| (1) | The articles eligible for reduction of customs duties under Article 118 (2) of the Act shall be as indicated in attached Table 13: Provided, That, articles eligible for reduction of customs duties under Article 118 (1) 22 of the Act shall be those recommended by the head of the pertinent central administrative agency in charge of manufacturing, processing, etc., or a person designated by the head of the pertinent central administrative agency. <Amended on Mar. 13, 2020> |
| (2) | The rate of reduction of customs duties levied on the articles eligible for reduction of customs duties pursuant to paragraph (1) shall be 50/100 of the said amount of customs duties (100/100 for articles under the proviso to paragraph (1)). <Amended on Dec. 29, 2017; Mar. 13, 2020> |
| Article 50-5 (Application for Reduction or Exemption of Customs Duties for Overseas Korean Enterprises on Their Return to Korea) |
| 1. | A copy of the certificate of selection as an enterprise returning to Korea that is eligible for support issued by the Minister of Trade, Industry and Energy under Article 7 (4) of the Act on Assistance to Korean Off-Shore Enterprises in Repatriation; |
| 2. | A copy of the confirmed statement of imported articles verified by the Minister of Trade, Industry and Energy as capital goods under Article 115-3 (1) of the Decree; |
| 3. | Other documents publicly notified by the Commissioner of the Korea Customs Service as necessary. |
| Article 50-6 (Requirements, etc. for Exemption of Market Makers from Securities Transaction Tax) |
| (1) | “Requirements specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (1) of the Decree mean the following: |
| 1. | The person shall be a clearing member of an exchange under Article 387 (2) 1 of the Financial Investment Services and Capital Markets Act; |
| 2. | A person in charge of the market-making shall be designated among any of its executives or employees. |
| (2) | “Ratio specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (3) 1 (a) and 2 (a) of the Decree means 5/100, respectively. <Newly Inserted on Mar. 16, 2021> |
| (3) | “Amount specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (3) 1 (b) and 2 (b) of the same paragraph means the amount classified as follows: <Newly Inserted on Mar. 16, 2021> |
| 1. | Amount in Article 115 (3) 1 (b): 300 trillion won. |
| 2. | Amount in Article 115 (3) 2 (b): 9 trillion won. |
| (4) | “Ratio specified by Ordinance of the Ministry of Economy and Finance” in the latter part of Article 115 (4) of the Decree means the figure specified in each of the following subparagraphs: <Amended on Mar. 16, 2021> |
| 1. | For stock-index futures and stock-index futures (hereafter in this Article, referred to as the “stock-index derivatives”), the following figures: |
| (a) | The figure that the Korea Exchange calculates for each issue of stock index derivatives on each trading day according to the Derivatives Market Business Regulations under Article 393 (2) of the Financial Investment Services and Capital Markets Act as the rate of price change in the stock index derivatives with the relevant stock index as the underlying asset in line with the change in the stock index (hereafter in this Article, referred to as “conversion rate of the underlying asset”); |
| (b) | The figure that the Korea Exchange calculates for each stock price index on each trading day as the weighted value of each individual stock to the stock price index (hereafter in this Article, referred to as “ratio of index-reflected total market price”); |
| 2. | For stock futures and stock options (hereafter in this Article, referred to as “stock derivatives”): The figure that the Korea Exchange calculates for each issue of stock derivatives on each trading day according to the Derivatives Market Business Regulations under Article 393 (2) of the Financial Investment Services and Capital Markets Act as the rate of price change in the relevant stock derivatives according to the changes in the stock price index (hereafter in this Article, referred to as “conversion rate of the trading volume of stocks”). |
| (5) | “Amount specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (5) 1 of the Decree means 1 trillion won. <Newly Inserted on Mar. 16, 2021> |
| (6) | “Turnover ratio specified by Ordinance of the Ministry of Economy and Finance (hereafter in this Article, referred to as the “turnover ratio” )” in Article 115 (5) 2 of the Decree shall be the ratio calculated according to the following formula based on the trading date of the relevant type. <Newly Inserted on Mar. 16, 2021> |
| (7) | “Ratio specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (5) 2 of the Enforcement Decree of the Securities Transaction Tax Act means the ratio equivalent to top 50 out of 100 of the issues with the highest turnover ratio by market among share certificates traded on the securities market under subparagraph 1 of Article 5 of the Enforcement Decree of the Securities Transaction Tax Act and the KOSDAQ market under subparagraph 3 (a) of the said Article. <Newly Inserted on Mar. 16, 2021> |
| (8) | The Korea Exchange shall, on each trading day, notify market makers who have entered into a market making agreement according to the Derivatives Market Business Regulations under Article 393 (2) of the Financial Investment Services and Capital Markets Act (hereafter in this Article, referred to as “derivatives market makers”) among market makers pursuant to Article 115 (1) of the Decree of the conversion rate of the underlying asset, ratio of index-reflected total market price, and conversion rate of the trading volume of stocks using electronic documents under the Framework Act on Electronic Documents and Transactions. <Amended on Mar. 16, 2021> |
| (9) | “The transfer of stock certificates to hedge risks of stock derivatives” in the former part of Article 115 (4) of the Decree means the transfer of stocks in a quantity not greater than that calculated according to subparagraph 2 by the trading method under subparagraph 1 (any fraction below the decimal point shall be excluded; hereafter in this Article, referred to as “daily maximum quantity eligible for exemption”). In this case, stocks traded earlier shall be included successively in the daily maximum quantity eligible for exemption: <Amended on Mar. 16, 2021> |
| 1. | Either of the following transactions: |
| (a) | Where stock certificates are transferred without delay upon the conclusion of a contract for the purchase of stock futures or stock call options or a contract for selling stock put options (excluding transactions for eliminating the agreed but unsettled quantity for each purchase contract and sale of each issue (hereafter in this Article, referred to as “covering transactions”)); |
| (b) | Where stock certificates are purchased without delay upon the conclusion of a contract for selling stock futures or stock call options or a contract for purchasing stock put options (excluding covering transactions) and such contract is covered or the purchased stocks are transferred on the last trading day; |
| 2. | The sum of the quantities according to each of the following: |
| (a) | The sum of the quantities obtained by multiplying the conversion rate of the traded volume of stocks for each quantity of stock futures purchased daily, each quantity of stock call options purchased and each quantity of stock put options sold by the trading leverage under the Derivatives Market Business Regulations under Article 393 (2) of the Financial Investment Services and Capital Markets Act (hereafter in this Article, referred to as “trading leverage”); |
| (b) | The sum of the quantities obtained by multiplying the agreed but unsettled quantity of each issue of stock option until the preceding day by the figure determined by subtracting the conversion rate of traded volume of stocks for the preceding date from the conversion rate of traded volume of stocks for the current day and the trading leverage: |
| (c) | The sum of the quantities obtained by multiplying the agreed but unsettled quantity of each issue of stock futures and options not liquidated until the last trading day, by the figure determined by subtracting the conversion rate of traded volume of stocks on the last trading day from zero and the trading leverage: |
| (10) | “The transfer of stock certificates to hedge risks of stock-index derivatives” in the former part of Article 115 (4) of the Decree means the transfer of stocks in a quantity not greater than that calculated according to subparagraph 2 by the trading method under subparagraph 1 (any fraction below the decimal point shall be excluded; hereafter in this Article, referred to as “daily maximum quantity of index products eligible for exemption”). In this case, stocks traded earlier shall be included successively in the daily maximum quantity of index products eligible for exemption: <Amended on Mar. 16, 2021> |
| 1. | Either of the following transactions: |
| (a) | Where stock certificates comprising the index of the relevant issue are transferred without delay upon the conclusion of a contract for purchasing stock-index futures or stock-index call options or a contract for selling stock-index put options (excluding covering transactions); |
| (b) | Where stock certificates are purchased without delay upon the conclusion of a contract for selling stock-index futures or stock-index call options or a contract for purchasing stock-index put options (excluding covering transactions) and such contract is covered or the purchased stocks are transferred on the last trading day; |
| 2. | The sum of the quantities according to each of the following: |
| (a) | The sum of the quantities obtained by multiplying the daily purchased quantity of stock-index futures, the purchased quantity of stock-index call options and the sold quantity of stock-index put options by the conversion rate of the underlying asset and the trading leverage respectively and the quantities obtained by multiplying the closing price of the stock price index on each trading day by the ratio of the index-reflected total market price of each issue of stock certificates comprising the index and then dividing the amount therefrom by the closing price of each issue of stock certificates (hereafter in this Article, referred to “index conversion coefficient”); |
| (b) | The sum of the quantities obtained by multiplying the agreed but unsettled quantity of each issue of stock-index options until the preceding day by the figure determined by subtracting the conversion rate of the underlying asset for the preceding date from the conversion rate of the underlying asset for the current day and the trading leverage and the quantities obtained by multiplying the agreed but unsettled quantity of each issue of stock-index options composing the index by the index conversion coefficient: |
| (c) | The sum of the quantities obtained by multiplying the agreed but unsettled quantity of each issue of stock-index futures not liquidated until the last trading day by the figure obtained by subtracting the conversion rate of the underlying asset on the last trading day from zero and the trading leverage and the quantities obtained by the agreed but unsettled quantity of each issue of stock-index futures composing the index by the index conversion coefficient: |
| (11) | Where a market-maker of derivatives submits a report on the transactions for hedging risks under Article 115 (7) of the Decree to the Korea Securities Depository established under Article 294 of the Financial Investment Services and Capital Markets Act (hereafter in this Article, referred to as the “Korea Securities Depository”), he or she shall prepare and keep the documents necessary for the exemption from securities transaction tax under Article 117 (1) 2-5 of the Act under the following classification. <Amended on Mar. 16, 2021> |
| 1. | A market-maker of stock derivatives: The conversion rate of the trading volume of each issue of stocks on each trading day, the daily maximum quantity eligible for exemption, the quantity of sold stock certificates for hedging risks, the sale price, etc.; |
| 2. | A market-maker of stock-index derivatives: The closing price of the stock price index of each issue on each trading day, the conversion rate of the underlying asset, the closing price of each issue comprising the stock price index, the proportion of the stock-reflected market capitalization, the daily maximum quantity of index products eligible for exemption; details of transactions of stock-index derivatives by issue, the quantity of sold stock certificates for hedging risks, the sale price, etc. |
| (12) | The transfer under Article 115 (8) of the Decree means the transfer of stock certificates by a market-maker who has entered into a market-making agreement under the Derivatives Market Business Regulations under Article 393 (1) of the Financial Investment Services and Capital Markets Act (hereafter in this Article, referred to as “stock market-maker”) at an asking sale price higher than the top-priority asking purchase price at the time of offering asking prices for stock certificates subject to the market-making agreement (including all asking sale prices offered at any price if no asking purchase price has been offered at the time of offering asking prices): |
| 1. | Stock futures or stock options with stocks certificates subject to market-making agreements as underlying assets shall not be listed on the Korea Exchange; |
| 2. | The price of stock certificates subject to market-making agreements shall drop by more than 4/100 of the standard price prescribed under the securities market business regulations in Article 393 (1) of the Financial Investment Services and Capital Markets Act. |
| (13) | The Korea Exchange shall notify stock market makers and the Korea Securities Depository of the details of transactions eligible for exemption from securities transaction tax under the transfer method set out in paragraph (10) every trading day using electronic documents pursuant to the Framework Act on Electronic Documents and Transactions. <Amended on Mar. 16, 2021> |
| (14) | Where a stock market maker submits a market making transaction report under Article 115 (10) of the Decree to the Korea Securities Depository, he or she shall prepare and keep the documents necessary to be exempted from the securities transaction tax under Article 117 (1) 3, such as the quantity sold and the amount sold for each market-making transaction on each trading day. <Amended on Mar. 16, 2021> |
| Article 50-7 (Requirements to be Eligible for Exemption from Securities Transaction Tax for Arbitrage Trading) |
| (1) | “Synthetic futures specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (11) 4 of the Decree means obtaining the results similar to trading futures pursuant to the provisions in Article 115 (11) 1 through 3 by trading call options and put options with the same settlement month and exercise price (hereafter in this Article, referred to as the “basic futures for arbitrage trading”) falling under either of the following: <Amended on Mar. 16, 2021> |
| 1. | Selling call options and purchasing put options; |
| 2. | Purchasing call options and selling put options. |
| (2) | “Account only for arbitrage trading specified by Ordinance of the Ministry of Economy and Finance” in Article 115 (12) of the Decree means an account only for transactions made for gains (hereafter in this Article, referred to as “arbitrage trading”) by using a price difference between derivatives specified in any of the subparagraph in Article 115 (11) of the Decree (hereafter in this Article, referred to as “futures for arbitrage trading”) and the stock certificates which are underlying assets of the said futures for arbitrage trading (referring to stock certificates comprising the relevant index if the underlying asset of the relevant derivative is a stock price index; hereafter in this Article, the same shall apply) which has been reported by the organization for postal services pursuant to subparagraph 2 of Article 2 of the Act on Special Cases concerning the Management of Postal Services (hereafter in this Article, referred to as the “organization for postal services”) or the corporation that manages and operates funds established pursuant to the provisions set out in attached Table 2 of the National Finance Act (hereafter in this Article, referred to as “fund managing entity”) to the Korea Exchange by satisfying all of the following requirements: <Amended on Mar. 20, 2019; Mar. 16, 2021> |
| 1. | An account of derivatives for trading futures for arbitrage trading and an account for trading stock exchange shall be reported jointly; |
| 2. | Basic futures for arbitrage trading shall be separately reported by issue. |
| (3) | The amount of a purchase contract cleared under Article 115 (13) 4 of the Decree means the sum of the following amounts aggregated on each day. In this case, if the underlying asset of the futures for arbitrage trading is a stock price index, the clearing amount of a purchase price for the relevant issue shall be obtained by multiplying the clearing amount of the purchase contract by the ratio of the total market capitalization (referring to the figure obtained based on the price of each issue at the time of the first arbitrage trading on the transfer date of stock certificates; hereafter in this Article, referred as “ratio of total market price comprising the index”) that each issue for the share certificates accounts for the stock index as the underlying asset of the futures for arbitrage trading: <Amended on Mar. 16, 2021> |
| 1. | If the futures for arbitrage trading are not synthetic futures: The sum of the following amounts: |
| (a) | The amount obtained by multiplying the clearing price for the purchase of futures by the cleared quantity and then multiplying the amount therefrom by the trading leverage under the Derivatives Market Business Regulations under Article 393 (2) of the Financial Investment Services and Capital Markets Act (hereafter in this Article, referred to as “trading leverage”); |
| (b) | The amount obtained by multiplying the final payment price for the purchase of futures by the final payment quantity and then multiplying the amount therefrom by the trading leverage; |
| 2. | If the futures for arbitrage trading are synthetic futures: The sum of the following amounts: |
| (a) | The amount obtained by multiplying the clearing price for the purchase of synthetic futures (the figure obtained by adding the purchase price for call options to the option exercise price and then subtracting the sale price for put options from the amount therefrom) by the cleared quantity (referring to the lesser of the quantity of purchased call options or the quantity of sold put options) and then multiplying the amount therefrom by the trading leverage; |
| (b) | The amount obtained by multiplying the standard price payable for exercising the right to sell synthetic futures (referring to the standard price payable for exercising the right to purchase put options or to sell call options) by the quantity payable for exercising the right (referring to the quantity payable for exercising the right to purchase put options or to sell call options) and then multiplying the amount therefrom by the trading leverage. |
| (4) | The ratio of the total market capitalization for each issue under Article 115 (13) 5 of the Decree shall be determined by dividing the sum of the sale price of each issue of stock certificates sold on each day by the sum of the sale price of all stock certificates sold on each day but shall not exceed the ratio of the total market capitalization comprising the index under paragraph (3) for each issue of stock certificates. <Amended on Mar. 16, 2021> |
| (5) | Paragraphs (2) through (4) shall apply to each category of basic futures for arbitrage trading by categorizing them by the type of assets managed under a contract for arbitrage trading. |
| (6) | The Korea Exchange shall notify the financial investment business entities who have an exclusive account for arbitrage trading and the Korea Securities Depository of the details of transactions under Article 115 (15) of the Decree on each trading day using electronic documents under the Framework Act on Electronic Documents and Transactions. <Amended on Mar. 16, 2021> |
| (7) | The organization for postal services and fund managing entities shall prepare and keep documents necessary to be eligible for exemption from securities transaction tax for each trading day, such as the quantity sold and amount purchased, for each arbitrary trading in relation to the statement of arbitrage trading submitted to the Korea Securities Depository pursuant to Article 115 (16) of the Decree. <Amended on Mar. 20, 2019; Mar. 16, 2021> |
| Article 51 (Standards, etc. for Tax Reduction or Exemption for Foreign Investment) |
| (1) | “Amount specified by Ordinance of the Ministry of Economy and Finance” in Article 116-2 (1) 2 of the Decree means two million U.S. dollars. |
| (2) | “Technologies specified by Ordinance of the Ministry of Economy and Finance” in Article 116-2 (2) of the Decree means the technologies as specified in attached Table 14. |
| Article 51-2 (Scope, etc. of Appurtenant Land) |
| 1. | Land within an urban area: Five times; |
| 2. | Land outside an urban area: Ten times. |
| Article 51-3 (Application, etc. for Tax Reduction or Exemption) |
| (1) | A person who intends to apply for tax reduction or exemption or for amending the details of tax reduction or exemption pursuant to Article 121-2 (6) of the Act shall submit three duplicates of an application for tax reduction or exemption or an application for amending the details of tax reduction or exemption to the Minister of Economy and Finance (including the head of the institution delegated by the Minister of Economy and Finance under Article 116-13 (1) of the Decree) accompanied by documents demonstrating or explaining in detail the reasons for filing the application for tax reduction or exemption or the application for amending the details of tax reduction or exemption. <Amended on Apr. 29, 2008; Feb. 23, 2013> |
| (2) | A person who intends to apply for verification of eligibility for tax reduction or exemption before filing an application pursuant to Article 121-2 (7) of the Act shall submit three duplicates of an application for prior verification of eligibility for tax reduction or exemption to the Minister of Economy and Finance (including the head of the institution delegated by the Minister of Economy and Finance under Article 116-13 (1) of the Decree) accompanied by documents demonstrating the eligibility for tax reduction or exemption. <Amended on Apr. 29, 2008; Feb. 23, 2013> |
| Article 51-4 (Reporting of Commencement of Business) |
| Article 51-5 (Application for Exemption from Customs Duties, etc.) |
| 1. | A set of documents demonstrating that the relevant business is eligible for reduction of or exemption from corporate tax, etc. under Article 121-2 (1) of the Act; |
| 2. | A set of documents demonstrating that the relevant capital goods fall under any of the subparagraphs in Article 121-3 (1) of the Act; |
| 3. | A copy of the statement of details of imported goods verified pursuant to Article 38 (2) of the Enforcement Decree of the Foreign Investment Promotion Act. |
| Article 51-6 (Standards for Proportional Distribution of Common Gross Income and Common Deductible Expenses for Tax Reduction or Exemption of Capital Increase) |
| Article 51-7 (Application for Exemption from Customs Duties on Goods Imported by Resident Enterprises of Jeju Advanced Science and Technology Complex) |
| 1. | If the person intends to be held eligible for exemption from customs duties pursuant to Article 121-10 of the Act, a document certifying that the company is a resident enterprises of |
| 2. | If the person intends to be held eligible for exemption from customs duties pursuant to Article 121-11 of the Act: |
| (a) | Documents verified by the Governor of |
| (b) | Documents verified by the head of a central administrative agency in charge of the production of goods in issue or a person designated by the head of the said central administrative agency that it is difficult to manufacture the pertinent goods (excluding goods imported by a foreign investor or a foreign-invested enterprise for the purpose of foreign investment). |
| Article 51-8 Deleted. <Mar. 20, 2019> |
| Article 51-9 (Limit on Deductible Income to be Included in Reserves for Proper Purpose Business of National Agricultural Cooperative Federation) |
| Article 51-10 (Limit on Deductible Income to be Included in Reserves for Proper Purpose Business of National Federation of Fisheries Cooperatives) |
| Article 51-11 (Scope, etc. of Liabilities) |
| (1) | “Liabilities specified by Ordinance of the Ministry of Economy and Finance” in the former part of Article 116-30 (13) of the Decree means the total amount of loans borrowed from others out of the total liabilities on the statement of financial position as of the end of each business year: |
| 1. | Assets eligible for exemption under Article 24 (1) 1; |
| 2. | Factories for business under Article 54 (1); |
| 3. | Land appurtenant to a factory for business under subparagraph 2: Provided, That, if the land appurtenant exceeds three times the floor area of the factory for business, the excess portion shall not be deemed as the land appurtenant thereto. |
| (2) | When calculating the debt ratio and the standard debt ratio under Article 116-30 (13) and (14) of the Decree, the stockholders' equity shall be obtained by deducting total liabilities (including various reserves and allowances but excluding accrued corporate tax) from total assets as of the end of each business year or the record date for calculation of the standard debt ratio under paragraph (14) 1 of the same Article (hereafter in this Article, referred to as “record date for calculation of the standard debt ratio”). In this case, when determining total assets, if assets owned by the relevant corporation have been revaluated pursuant to the Assets Revaluation Act before the end of each business year or the record date for calculation of the standard debt ratio, the difference accruing from the revaluation under the said Act (referring to the amount after deducting the revaluation tax) shall be deducted. <Amended on Mar. 17, 2017> |
| (3) | Notwithstanding the forepart of paragraph (2), if the stockholders' equity for each business year is reduced to be less than the stockholders' equity for the immediately preceding business year or as of the record date for calculation of the standard debt ratio due to deficits incurred within three years after paying debts owed to financial creditors, the calculation of the debt ratio shall be based on stockholders' equity for the immediately preceding business year and the stockholders' equity as of the record date for calculation of the standard debt ratio, whichever is greater. <Amended on Mar. 21, 2018> |
| (4) | When determining the debt ratio and the standard debt ratio under Article 116-30 (13) and (14) of the Decree, the paid-in capital shall be based on the paid-in capital as of the end of each business year or the record date for calculation of the standard debt ratio, but if the relevant domestic corporation has reduced capital without consideration before the end of each business year, the reduced amount shall be added to the paid-in capital. <Amended on Mar. 17, 2017> |
| (5) | When determining the standard debt ratio where a merger has taken place before the record date for calculation of the standard debt ratio, the calculation of the standard debt ratio of the merging corporation shall be based on the sum of the liabilities (referring to the liabilities under paragraph (1)) and the stockholders' equity on the statements of financial position of the merging corporation (referring to the corporation that has been dissolved or has been absorbed by the merger) and the merging corporation (referring to the corporation newly established or surviving upon the merger) as of the record date for calculation of the standard debt ratio. |
| (6) | When converting assets, etc. from a foreign currency to Korean currency for valuation, the exchange rate specified in Article 76 (1) of the Enforcement Decree of the Corporate Tax as of the record date specified in any of the following shall be used: <Amended on Mar. 17, 2017> |
| 1. | Where the debt ratio under Article 116-30 (13) of the Decree is determined: The end of each business year: |
| (a) | Assets, etc. in foreign currencies within the extent of the amount of assets, etc. in each foreign currency as of the record date for calculation of the standard debt ratio shall be valuated at the exchange rate as of the record date for calculation of the standard debt ratio; whereas for the rest of assets, etc. in foreign currencies, the debt ratio shall be valuated at the exchange rate as of the end of each business year; |
| (b) | The debt ratio valuated all assets, etc. in foreign currencies at the exchange rate as of the end of each business year; |
| 2. | Where the standard debt ratio under Article 116-30 (14) of the Decree is determined: The record date for calculation of the standard debt ratio (for the repaid debts, the date of repayment). |
| Article 52 Deleted. <Apr. 7, 2011> |
| Article 52-2 (Deduction of Medical Expenses, etc. for Compliant Business Operators) |
| 1. | If the person intends to have medical expenses deducted, the form under subparagraph 17 of Article 101 of the Enforcement Rule of the Income Tax Act; |
| 2. | If the person intends to have educational expenses deducted, the form under subparagraph 18 of Article 101 of the Enforcement Rule of the Income Tax Act. |
| Article 52-3 (Income Deduction for Amounts Spent on Credit Cards, etc.) |
| (1) | “Sales amount specified by Ordinance of the Ministry of Economy and Finance” in Article 121-2 (9) of the Decree means sales classified as follows: <Newly Inserted on Mar. 16, 2021> |
| 1. | A business operator who deals with books or newspapers: 300 million won |
| 2. | A business operator who deals with theater tickets or tickets to museums and art galleries: 75 million won |
| (2) | “Documents specified by Ordinance of the Ministry of Economy and Finance” in Article 121-2 (12) of the Decree means documents issued by the Commissioner of the National Tax Service with full details on income deductions associated with the payments specified in Article 216-3 (1) of the Enforcement Decree of the Income Tax Act. <Amended on Mar. 20, 2019; Mar. 16, 2021> |
| Article 52-4 (Reasons for Extension of Transaction Application Verification Period) |
| 1. | Where the supplier has requested an extension because it is difficult to verify the transaction due to the supplier's bankruptcy, illness, long-term business trip, etc.; |
| 2. | Where a tax official has visited the supplier more than twice to verify the transaction, but has been unable to meet the supplier due to closure or absence. |
| Article 52-5 (Verification, etc. of Cash Transactions) |
| Article 52-6 (Procedures for Restriction of Special Taxation for Savings Support) |
| (1) | “Matters specified by Ordinance of the Ministry of Economy and Finance” in Article 123-2 (2) of the Decree means the resident registration number of a person subject to aggregate taxation on financing income by taxation period under Article 129-2 of the Act. |
| (2) | A person who intends to offer an opinion to the Commissioner of the National Tax Service under Article 123-2 (5) of the Decree shall submit a written opinion to the head of the tax office having jurisdiction over the place of tax payment within 14 days from the date on which he or she is notified under paragraph (4) of the same Article. |
| (3) | Notwithstanding paragraph (2), where a person who has been notified under Article 123-2 (4) of the Decree fails to submit a written opinion within the period specified in paragraph (2) due to death, long-term overseas business trip, or other compelling circumstances, he or she may submit the written opinion within seven days from the date on which the reason thereof ceases to exist. |
| Article 53 (Scope, etc. of Factories according to Standards for Investment for Extension) |
| (1) | “Factory as stipulated by Ordinance of the Ministry of Economy and Finance” in Article 124 (1) 1 of the Decree means a factory defined in subparagraph 1 of Article 2 of the Industrial Cluster Development and Factory Establishment Act and “aggregate sizes of the relevant factory” in the said subparagraph means the area of the factory site or the floor area of all floors of buildings located inside the factory site: |
| (2) | “Investments which lead to an increase of the number of fixed assets for business” in Article 124 (1) 2 of the Decree mean investments made to install additional fixed assets for business such as machinery, and the aggregate size of the relevant business place in the same subparagraph means the area of the business site or the floor area of each floor of a building within the business site: Provided, That, the area of facilities provided to promote the welfare of employees, such as cafeterias, resting rooms, bathroom suites, laundry facilities, medical rooms, outdoor sports facilities, and dormitories, and the areas of shelters, arsenals, ammunition dump, and educational facilities, shall not be included in the total floor area of the relevant business establishment. <Newly Inserted on Apr. 21, 2020> |
| Article 54 (Scope of Fixed Assets for Business eligible for Tax Reduction or Exemption for Investment in Over-Concentration Control Regions) |
| 1. | Facilities falling under either of Article 13-10 (3) or (4); |
| 2. | Facilities to improve the quality control of medical supplies under attached Table 11. |
| Article 55 (Calculation of Amount of Tax Credit for Business Income) |
| 1. | A tax credit for the tax paid in a foreign country under Article 57 of the Income Tax Act: |
| (a) | If the case falls under Article 117 (1) 1 of the Enforcement Decree of the Income Tax Act: |
| (b) | If the case falls under Article 117 (1) 2 of the Enforcement Decree of the Income Tax Act: |
| 2. | A tax credit for casualty losses under Article 58 of the Income Tax Act: |
| (a) | If the case falls under Article 58 (1) 1 of the Income Tax Act: |
| (b) | If the case falls under Article 58 (1) 2 of the Income Tax Act: |
| Article 56 Deleted. <mar. 28, 2001> |
| Article 56-2 Deleted. <Apr. 17, 2006> |
| Article 57 (Scope of Expenditures Included in Special Cases on Non-Inclusion of Entertainment Expenses in Deductible Expenses) |
| Article 58 Deleted. <Apr. 17, 2006> |
| Article 59 (Calculation of Deemed Gross Income from Rental Security Deposits, etc.) |
| (1) | Where part of the assets under the latter part of Article 132 (3) of the Decree is used for a rental business, the value of the asset used for the rental business shall be calculated by the following formula: <Amended on Mar. 30, 2007> |
| (2) | When applying Article 132 (5) and (6) of the Decree, the amount equivalent to construction cost shall be the acquisition price for the relevant building (including capital expenses but excluding a difference from the revaluation price) and the cumulative amount shall be the amount obtained by the following formulas. In this case, the cumulative area may be obtained by multiplying the balance as of the end of each month by the number of elapsed days: <Amended on Mar. 30, 2007> |
| 1. | If the case fall sunder Article 132 (6) 1 of the Decree: |
| 2. | If the case fall sunder Article 132 (6) 2 of the Decree: |
| (3) | If a leased real estate is sublet, the cumulative amount of the security deposits, etc. specified in the formula in Article 132 (5) of the Decree shall be obtained by subtracting the cumulative amount of the security deposits for lease from the cumulative amount of security the deposits, etc. for sublease. In this case, if the cumulative amount of the security deposits for lease, etc. exceeds the cumulative amount of the security deposits for sublet, etc., the excess shall be deemed nil. <Amended on Mar. 30, 2007> |
| (4) | “Interest rate of time deposit” in the formula in Article 132 (5) of the Decree means the interest rate specified in Article 6 of the Enforcement Rule of the Corporate Tax Act. <Amended on Mar. 11, 2005; Mar. 30, 2007> |
| (5) | “Profits from disposal of securities” in the formula in Article 132 (5) of the Decree means the amount obtained by subtracting the loss on the sale of securities from the gain on the sale of securities. <Amended on Mar. 30, 2007> |
| (6) | When applying Article 132 (5) of the Decree, if a rental business began to operate during a business year, the cumulative amount shall be calculated from the day on which the rental business began to operate. <Amended on Mar. 30, 2007> |
| (7) | When applying Article 132 (6) 2 of the Decree, the amount equivalent to the construction cost of real estate acquired or built for rental in or before the business year that commences on or after January 1, 1991 shall be the acquisition price of the real estate or the amount obtained by multiplying the total floor area of the relevant real estate by the security deposit for lease per unit area as of the end of the business year, whichever is greater, under which December 31, 1990 falls. In this case, if the acquisition price of the relevant real estate is not verified, the standard market price under Article 99 of the Income Tax Act shall be deemed as the acquisition price. <Amended on Mar. 11, 2005; Apr. 17, 2006; Mar. 30, 2007> |
| Article 59-2 (Application for Confirmation of Tax Exemption) |
| Article 59-3 (Scope of Buildings or Structures Subject to Collection of Tax Reduction or Exemption) |
| Article 60 (Collection of Non-Taxable and Reduced Tax for Interest and Dividend Income) |
| (1) | “Days specified by Ordinance of the Ministry of Economy and Finance” in Article 137-2 (2) 2 of the Decree means 30 days. |
| (2) | “Cases specified by Ordinance of the Ministry of Economy and Finance” in the proviso to Article 137-2 (2) 3 of the Decree means cases where income generated until the expiration date of the term of contract immediately before the date of disqualification is withheld. |
| Article 61 (Forms, etc.) |
| (1) | Forms for the application for tax reduction or exemption, etc. shall be subject to each of the following subparagraphs: <Amended on May 24; 1999; Sep. 30, 1999; Mar. 30, 2000; Mar. 28, 2001; Sep. 29, 2001; Mar. 30, 2002; Mar. 24, 2003; Mar. 6, 2004; Oct 16, 2004; Mar. 11, 2005; Dec. 31, 2005; Apr. 17, 2006; Mar. 30, 2007; Nov. 23, 2007; Apr. 29, 2008; Apr. 30, 2008; Oct. 15, 2008; Apr. 7, 2009; Aug. 28, 2009; Apr. 20, 2010; Jun. 8, 2010, Jun. 30, 2010; Apt. 7, 2011; Aug. 3, 2011; Feb. 28, 2012; Oct. 16, 2012; Feb. 23, 2013; May 14, 2013; Oct. 21, 2013; Dec. 30, 2013; Feb. 28, 2014; Mar. 14, 2014; Jul. 4, 2014; Mar. 13, 2015; Feb. 25, 2016; Mar. 14, 2016; Aug. 9, 2016; Mar. 10, 2017; Jan. 9, 2018; Mar. 21, 2018; Mar. 20, 2019; Mar. 13, 2020; Apr. 21, 2020; Jun. 15, 2020; Mar. 16, 2021; May 13, 2021; Nov. 9, 2021; Mar. 18, 2022> |
| 1. | Deleted. <Mar. 30, 2007> |
| 2. | Application for tax credit under Articles 30-2 (3), 30-4 (5), 122-4 (3), and 126-7 (13) of the Act and Articles 6-4 (4), 7-2 (4), 7-2 (12), 9 (14), 11 (6), 11-3 (14), 11-4 (12), 12-3 (15), 17 (5), 21 (11), 22-10 (6), 23 (15) through (17), 26-2 (3), 26-3 (6), 26-4 (17), 26-5 (11), 26-7 (10), 27-3 (3), 96-3 (7), 99-11 (4), 104-5 (6), 104-14 (2), 104-20 (5), 104-22 (3), 104-27 (3), 104-29 (2) of the Decree: Attached Form 1, Annex (1) to attached Form 1 and Annexes (1) and (2) to attached Form 1; |
| 2-2. | Statement of adjustment of inclusion in deductible expenses under Article 4-2 (3) and Article 7 (3) of the Decree: Attached Form 1-2; |
| 2-3. | Statement of disbursement of contributions under Article 7-2 (5) of the Decree: Attached Form 1-3; |
| 2-4. | Certificate of gratuitous lease under Article 7-2 (9) of the Decree: Attached Form 1-4; |
| 3. | Application for tax reduction (exemption) under Article 85-2 (6) of the Act or Article 5 (26), 6 (8), 11 (6), 11-2 (10), 58 (11), 60 (8), 60-2 (15), 61 (7), 63 (7), 64 (8), 65 (5), 79-7, 96 (8), 99-8 (6), 99-10 (5), 102, 104-21 (12), 116-14 (5), 116-15 (7), 116-21 (7), 116-25 (6), 116-26 (9), 116-27 (6) of the Decree: Attached Form 2 and the Annex to attached Form 2; |
| 3-2. | Statement of the reduced or exempted tax amount for a newly established small or medium enterprise under Article 5 (26) of the Decree: Attached Form 2-2; |
| 3-3. | Application for special tax refund for retrospective deduction of deficits of small and medium enterprises under Article 7-3 (3) of the Decree: Attached Form 2-3 or 2-4; |
| 3-4. | Deleted. <Mar. 18, 2022> |
| 3-5. | Deleted. <Mar. 30, 2007> |
| 3-6. | Deleted. <Mar. 24, 2003> |
| 3-7. | Deleted. <Mar. 24, 2003> |
| 4. | Statement of research and human resources development expenses under Article 9 (14) of the Decree: Attached Form 3 (1), attached Form 3 (2), attached Form 3 (3), Annex (1) to attached Form 3, Annex (2) to attached Form 3, and Annex (3) to attached Form 3; |
| 4-2. | Research and development plan, research and development report, and research note under Article 9 (13) of the Decree: Attached Form 3-2; |
| 4-3. | Statement of non-inclusion of contributions, etc. in gross income under Article 9-2 (4) of the Decree: Attached Form 3-3; |
| 5. | Application for tax credits and a statement of tax credits under Article 11-3 (14) of the Decree: Attached Form 4; |
| 5-2. | Application for tax credits and a statement of tax credits under Article 11-4 (12) of the Decree: Attached Form 4-2; |
| 5-3. | Application for exemption from secondary tax obligations under Article 13-2 (3) of the Decree: Attached Form 4-3; |
| 5-4. | Application for exemption from secondary tax obligations under Article 13-2 (4) of the Decree: Attached Form 4-4 (1), attached Form 4-4 (2), and attached Form 4-4 (3); |
| 6. | Application for income deductions for investment, etc., a written confirmation of contribution or investment, or an application for modifying the time period for income deduction under Article 14 (7) of the Decree: Attached Form 5, Annex (1) to attached Form 5, and Annex (2) to attached Form 5; |
| 7. | Notice of changes in equity shares, etc. under Article 14 (8) of the Decree Attached Form 6; |
| 7-2. | Statement of special treatment under Article 14-2 of the Decree: Attached Form 6-2; |
| 7-3. | Application of special treatment under Article 14-3 (2) of the Decree: Attached Form 6-3; |
| 7-4. | Statement on the subjects of application of special treatment under Article 14-3 (3) of the Decree: Attached Form 6-4; |
| 7-5. | Application of special treatment under Article 14-4 (2) of the Decree: Attached Form 6-5; |
| 7-6. | Confirmation of opening an account only for stock options under Article 14-4 (2) of the Decree: Attached Form 6-6; |
| 7-7. | Statement of deposit of stocks by the exercise of a stock option in Article 14-4 (3) of the Decree: Attached Form 6-7; |
| 7-8. | Statement on the subjects of application of special treatment under Article 14-4 (3) of the Decree: Attached Form 6-8; |
| 7-9. | Report on transactions through the accounts only for stock options under Article 14-4 (4) of the Decree: Attached Form 6-9; |
| 7-10. | Confirmation on an application for special taxation under Article 14-4 (6) of the Decree: Attached Form 6-10; |
| 7-11. | Application of special treatment under Article 14-5 (3) of the Decree: Attached Form 6-11; |
| 7-12. | Confirmation of opening of an account only for stocks for the investment of an industrial property right under Article 14-5 (3) of the Decree: Attached Form 6-12; |
| 7-13. | Confirmation on an application for special taxation under Article 14-5 (4) of the Decree: Attached Form 6-13; |
| 7-14. | Statement of the delivery of stocks for the investment of an industrial property right under Article 14-5 (5) of the Decree: Attached Form 6-14; |
| 7-15. | Statement on the subjects of application of special treatment under Article 14-5 (5) of the Decree: Attached Form 6-15; |
| 7-16. | Report on transactions through accounts only for stocks for the investment of an industrial property right under Article 14-5 (6) of the Decree: Attached Form 6-16; |
| 8. | Application for tax reduction for earned income of a foreign engineer under Article 16 (3) of the Decree: Attached Form 7; |
| 9. | Application for applying a single tax rate to a foreign engineer under Article 16-2 (4) of the Decree: Attached Form 8; |
| 9-2. | Application for withholding (or renouncing the withholding of) the tax by applying a single tax rate to a foreign engineer under Article 16-2 (4) or (5) of the Decree: Attached Form 8-2; |
| 9-3. | Application for income tax reduction or exemption for the return of talented Koreans to the Republic of Korea under Article 16-3 (3) of the Decree: Attached Form 7-2; |
| 9-4. | Statement of tax credits for performance-base pay of performance-sharing small and medium enterprises under Article 17 (5) of the Decree: Attached Form 8-3; |
| 9-5. | Application for income tax reduction or exemption for performance-based pay of performance-sharing small and medium enterprises under Article 17 (9) of the Decree: Attached Form 8-4; |
| 9-6. | Statement of performance-sharing small and medium enterprises eligible for income tax reduction or exemption for performance-based pay under Article 17 (10) of the Decree: Attached Form 8-5; |
| 9-7. | Statement of tax credits for investment in facilities for commercializing a new technology for growth under Article 36 of the Addenda of the partial amendment to the Restriction of Special Taxation Act (Act No. 17759) and Article 25-5 of the previous Act (referring to the Act prior to the amendment under Act No. 17759): Attached Form 8-6; |
| 9-8. | Statement of tax credits for the production cost of video contents under Article 22-10 (6) of the Decree: Attached Form 8-7; |
| 9-9. | Application for tax credits for facility investment for building a hyper-connected network under Article 36 of the Addendum to the Restriction of Special Taxation Act (Act No. 17759) and Article 27-7 of the previous Act (referring to the law prior to the amendment under Act No. 17759): Attached Form 8-8; |
| 9-10. | Application for tax credit on integrated investment under Article 21 (11) of the Decree: Attached Form 8-9; |
| 9-11. | Volume of production data under Article 21 (14) of the Decree: Attached Form 8-10; |
| 10. | Statement of tax credits under Article 23 (15): Attached Form 9; |
| 10-2. | Return on an interim tax payment under Article 23 (17) of the Decree: Attached Form 9-2; |
| 10-3. | Application for combined taxation of financial investment income under Articles 24 (14), 24-2 (6), 81-4 (5), 82-2 (6), 83 (12), 92-13 (10), and 93-3 (9): Attached Form 9-3; |
| 10-4. | Statements of adjustment of depreciation cost and a sum table of statements of adjustment of depreciation cost under Articles 25 (9), 25-2 (9) and 25-3 (10) of the Decree: Attached Form 9-4 (1), attached Form 9-4 (2), and attached Form 9-4 (3); |
| 10-5. | Application for special taxation for service life under Articles 25 (9), 25-2 (9), and 25-3 (10) of the Decree: Attached Form 9-5; |
| 11. | Application for tax credits for a small or medium enterprises with employees returned after graduating from high schools bespoke to industrial needs, etc. under Article 26-2 (3) of the Decree: Attached Form 10; |
| 11-2. | Application for tax credits under Article 26-3 (6): Attached Form 10-2 (1) and attached Form 10-2 (2); |
| 11-3. | Application for tax credits under Article 26-4 (17): Attached Form 10-3 or 10-4; |
| 11-4. | Statement of tax credits under Article 26-5 (11); Attached Form 10-5; |
| 11-5. | Application for tax reduction or exemption under Article 26-6 (4) of the Decree: Attached Form 10-6; |
| 11-6. | Statement of persons eligible for tax reduction or exemption under Article 26-6 (5); Attached Form 10-7; |
| 11-7. | Statement of tax credits under Article 26-7 (10); Attached Form 10-8; |
| 12. | Application for tax reduction or exemption under Article 27 (5); Attached Form 11; |
| 12-2. | Statement of persons eligible for tax reduction or exemption under Article 27 (6): Attached Form 11-2; |
| 12-3. | Statement of resignees ineligible for tax reduction under Article 27 (7) of the Decree: Attached Form 11-3; |
| 12-4. | Application for tax credits for a small or medium enterprise maintaining employment under Article 27-3 (3); Attached Form 11-4; |
| 12-5. | Statement of tax credits under Article 30-4 (5): Attached Form 11-5 or 11-8; |
| 12-6. | Application for special taxation for start-up funds and a statement on the spending of start-up funds under Article 27-5 (11) of the Decree: Attached Form 11-6; |
| 12-7. | Application for special taxation for gift tax on stocks, etc. for succession to a family business under Article 30-6 (3) of the Act: Attached Form 11-7 |
| 12-8. | Report on the ground for additional tax collection relating to special taxation of gift tax on the succession to a family business and a statement of voluntary tax payment under Article 27-6 (10) of the Decree: Attached Form 11-9; |
| 13. | Application for a tax carry-over under Article 28 (3), 29 (4), 63 (10) or 65 (5) of the Decree: Attached Form 12; |
| 13-2. | Statement of capital gains and a statement of adjustment for inclusion in gross income in installments under Article 30 (11), 43-4 (7), 44-4 (7), 79-3 (8), 79-6 (6), 79-8 (8), 79-9 (8), 79-10 (9), 104-16 (6) or 116-35 (10) of the Decree: Attached Form 12-2; |
| 13-3. | Statement of (planned) business conversion under Article 30 (11) or (12) of the Decree Attached Form 12-3; |
| 13-4. | Application for tax deferral under Article 30 (12), 73 (6), 79-3 (9) or 79-6 (7) of the Decree: Attached Form 12-4; |
| 13-5. | Report on the completion of the business conversion under Article 30 (13) of the Decree: Attached Form 12-5; |
| 14. | Application for tax reduction (exemption) for investment in kind, etc. under Article 30 (12), 63 (10) (including cases to which the same paragraph shall apply |
| 15. | Application for tax reduction under Article 74 (3) of the Decree: Attached Form 14; |
| 16. | Report on the completion of relocation under Article 56 (7) 1 or 2, 57 (11) 1 or 2, 58 (4), 78 (6), 79-3 (10), 79-6 (8), 79-8 (10), 79-9 (10) or 79-10 (11) of the Decree: Attached Form 15; |
| 16-2. | Statement of (planned) relocation under Article 78 (5), 79-3 (8) or (9), 79-6 (6) or (7), 79-8 (8) or (9), 79-9 (8) or (9) or 79-10 (9) or (10) of the Decree: Attached Form 15-2; |
| 17. | Relocation plan under Article 63 (1), Article 63-2 (1) 2 of the Act or Article 57 (11) 2 or 58 (4) of the Decree: Attached Form 16; |
| 18. | Deleted. <Mar. 30, 2002> |
| 19. | Deleted. <Mar. 30, 2002> |
| 20. | Deleted. <Mar. 30, 2002> |
| 21. | Application for tax credits and a statement of tax credits under Article 12-3 (15) of the Decree: Attached Form 19 and attached Form 20; |
| 22. | Statement of debts paid (or payable) under Articles 34 (19) of the Decree: Attached Form 21; |
| 23. | Financial restructuring plan under Article 34 (18) of the Decree: Attached Form 21-2; |
| 24. | Report on performance of a financial restructuring plan under Articles 34 (18) and 37 (22) of the Decree: Attached Form 22; |
| 25. | Statement of transfer gains and a statement of adjustment for inclusion in gross income in installments under Articles 34 (19) and 116-30 (20) of the Decree: Attached Form 22-2; |
| 25-2. | Application for special taxation for comprehensive transfer of assets under Article 35 (15) of the Decree: Attached Form 23; |
| 25-3. | Statement of the asset adjustment account under Articles 35 (15) and (16) and 35-2 (15) of the Decree: Attached Forms 23-2 (A) and (B); |
| 25-4. | Application for special taxation for all-inclusive share swap, etc. under Article 35-2 (14) of the Decree: Attached Form 23-3; |
| 25-5. | Account statement of the aggregate of the book value of stocks of a wholly-owned subsidiary under Article 35-2 (15) of the Decree: Attached Form 23-4; |
| 25-6. | Statement of book value of stocks of a subsidiary corporation under Articles 35-3 (16) and 35-4 (7) of the Decree: Attached Form 23-5; |
| 26. | Submission of a statement of performance of a financial restructuring plan or of a self-rescue plan under Article 18 (7): Attached Form 25; |
| 27. | Statement on investment in kind under Articles 79-4 (5) and 79-5 (4) of the Decree: Attached Form 26; |
| 27-2. | Application for special taxation for investment in kind, etc. under Article 35-3 (15) of the Decree: Attached Form 26-2; |
| 27-3. | Application for special taxation for investment in kind, etc. under Article 35-4 (6) of the Decree: Attached Form 26-3; |
| 28. | Financial restructuring plan under Article 36 (17) of the Decree: Attached Form 27; |
| 29. | Report on performance of a financial restructuring plan under Articles 36 (17) of the Decree: Attached Form 28; |
| 30. | Plan for transfer/acquisition (or liquidation) of a corporation under Article 36 (18) or (19) of the Decree: Attached Form 29; |
| 31. | Statement of debts assumed and paid under Articles 36 (18) and (19) and 116-31 (19) and (20) of the Decree: Attached Form 30; |
| 32. | Application for tax reduction or exemption under Articles 36 (18) and 116-31 (19) of the Decree: Attached Form 31; |
| 32-2. | Statement of adjustment for inclusion in gross income in installments under Articles 36 (19) and 116-31 (20) of the Decree: Attached Form 31-2; |
| 33. | Financial restructuring plan under Article 37 (22) of the Decree: Attached Form 32; |
| 33-2. | Deleted. <Apr. 29, 2008> |
| 34. | Statement of donated assets, a statement of debts paid (or payable) and a statement of adjustment for inclusion in gross income in installments under Articles 37 (23) and 116-32 (24) of the Decree: Attached Form 33; |
| 34-2. | Deleted. <Apr. 29, 2008> |
| 35. | Statement of debts paid (or payable) under Articles 37 (24) and (25) and 116-32 (25) and (26) of the Decree: Attached Form 34; |
| 36. | Application for tax reduction or exemption under Articles 37 (24) and (25) and 116-32 (25) and (26) of the Decree: Attached Form 35; |
| 37. | Deleted. <Mar. 30, 2002> |
| 38. | Application for tax reduction or exemption under Article 40 (2) and 99 (4) of the Decree: Attached Form 37; |
| 38-2. | Statement of capital gains and a statement of adjustment for inclusion in deductible expenses under Article 35-5 (2) of the Decree: Attached Form 37-2; |
| 39. | Statement of debt relief under Articles 41 (4) and 116-33 (8) of the Decree: Attached Form 38; |
| 39-2. | Deleted. <Mar. 17, 2017> |
| 40. | Statement of assets received and an application for tax reduction or exemption under Article 42 (5) and (6) of the Decree: Attached Form 39; |
| 40-2. | Financial restructuring plan under Article 42 (5) and (6) of the Decree: Attached Form 39-2; |
| 41. | Financial restructuring plan under Article 43 (11) of the Decree: Attached Form 40; |
| 41-2. | Report on performance of the financial restructuring plan under Article 43 (11) of the Decree: Attached Form 40-2; |
| 41-3. | Statement of transfer/acquisition of stocks, etc. under Articles 43 (12) and 116-34 (12) of the Decree: Attached Form 40-3; |
| 41-4. | Application for tax deferral under Articles 43 (12), 73 (6) and 116-34 (12) of the Decree: Attached Form 40-4; |
| 42. | Application for deferred taxation on the gains from the transfer of stocks, such as the exchange of stocks of a venture business (or a logistics enterprise) under Articles 43-2 (9) and 43-3 (3) of the Decree: Attached Form 41; |
| 42-2. | Statement of (planned) acquisition of fixed assets under Articles 44-4 (7) and 116-35 (10) of the Decree: Attached Form 41-2; |
| 43. | Report on the completion of acquisition of fixed assets under Articles 44-4 (7) and 116-35 (10) of the Decree: Attached Form 41-3; |
| 43-2. | Application for deferred taxation on the gains from the transfer of stocks, such as the exchange of stocks or investment in kind of a venture business (or a logistics enterprise) under Article 43-7 (9) of the Decree: Attached Form 41-4; |
| 43-3. | Application for tax deferral on the gains from the transfer of stocks and a certificate of re-investment under Article 43-8 (12) of the Decree: Attached Form 41-5 and Annex to attached Form 41-5; |
| 43-4. | Statement of reserves for compensation for losses under Article 45 (3) of the Decree: Attached Form 42; |
| 44. | Application for income deductions under Article 51-2 (5): Attached Form 43; |
| 45. | Deleted. <Apr. 29, 2008> |
| 46. | Plan for use of the disposal proceeds or a statement on use of the disposal proceeds under Articles 57 (11) 1 and 2 and 58 (4) of the Decree: Attached Form 45; |
| 46-2. | Statement of gains from the transfer of land, etc. under Articles 56 (7), 57 (11) and 58 (4) of the Decree: Attached Form 45-2; |
| 46-3. | Statement of calculation of tax reduction or exemption under Article 58 (11) of the Decree: Attached Form 45-3; |
| 47. | Deleted. <Mar. 16, 2021> |
| 47-2. | Statement of the reduced or exempted tax amount under Articles 60 (8) and 60-2 (15) of the Decree: Attached Form 46-2 and Annex to attached Form 46-2; |
| 47-3. | Deleted. <Mar. 30, 2002> |
| 48. | Statement of the exempted amount of tax under Article 63 (7) of the Decree: Attached Form 47; |
| 49. | Application for tax exemption under Article 63 (8) of the Decree: Attached Form 48; |
| 50. | Statement of the exempted amount of tax under Article 64 (8) of the Decree: Attached Form 49; |
| 51. | Application for tax exemption under Article 64 (9) of the Decree: Attached Form 50; |
| 51-2. | Statement of the exempted amount of tax under Article 65 (5) of the Decree: Attached Form 50-2; |
| 52. | Application for tax exemption under Article 65 (6) of the Decree: Attached Form 51; |
| 52-2. | Confirmation on the period of operation of a livestock business and business closure under Article 66-2 (8) and (12) of the Decree: Attached Form 51-2; |
| 52-3. | Application for refunding capital gains tax on the sale, etc. of farmland for supporting business rehabilitation under Article 67-2 (1) of the Decree: ; Attached Form 51-3; |
| 53. | Application for tax reduction under Article 68 (9) of the Decree: Attached Form 52; |
| 54. | Application for waiver of tax on net income for the relevant term under Article 69 (2) of the Decree: Attached Form 53; |
| 54-2. | Application for designation of an organization eligible for donation incentives under Article 71 (2) of the Decree: Attached Form 53-2; |
| 54-3. | Report on whether an organization meets the requirements for an organization eligible for donation incentives under Article 71 (4) of the Decree: Attached Form 53-3; |
| 54-4. | Application for donation incentives under Article 71 (10) of the Decree: Attached Form 53-4; |
| 54-5. | Statement of applications for donation incentives under Article 75 (3) of the Act: Attached Form 53-5; |
| 55. | Application for tax reduction or exemption under Article 72 (4) and (7) of the Decree: Attached Form 54; |
| 55-2. | Document certifying that the relevant land has been expropriated under Article 72 (8) of the Decree: Annex to attached Form 54; |
| 56. | Statement of compensation for a person who signed a special agreement to hold compensation bonds until the maturity (or a statement of compensation for a person to whom the substitute land has been transferred for compensation) and the notice of breach of the special agreement to hold such bonds until the maturity (or the notice of the change of the compensation method from substitute land to cash compensation for a person eligible for compensation by substituting the land) under Articles 72 (6) and 73 (2) and (3) of the Decree: Attached Form 55 (1) and attached Form 55 (2); |
| 57. | Application for the payment of capital gains tax in installments under Articles 78 (5), 79-8 (9), 79-9 (9) and 79-10 (10) of the Decree: Attached Form 56; |
| 58. | Deleted. <Mar. 30, 2002> |
| 59. | Certificate of deposit in a personal pension savings account under Article 80 (4) of the Decree: Attached Form 58; |
| 59-2. | Certificate of deposit in a pension savings account under Article 80-2 (6) of the Decree: Attached Form 58-2; |
| 59-3. | Report on the ground for special termination under Articles 14 (12), 24 (12), 24-2 (4), 80-3 (8), 81 (7) and (12), 81-4 (4), 83 (10), 92-13 (5), 93 (11), 93-2 (9) and 93-4 (15), 93-6 (11), and 93-7 (9) of the Decree: Attached Form 58-3; |
| 59-4. | Certificate of deposit in a mutual aid installment savings account under Article 80-3 (6) of the Decree: Attached Form 58-4; |
| 59-5. | Certificate of deposit in a housing savings account under Article 34 (1): Attached Form 58-5; |
| 59-6. | Letter of opinion under Article 35: Attached Form 58-6; |
| 59-7. | Non-homeowner certificate under Article 87 (4) of the Act: Attached Form 58-7; |
| 59-8. | Application for refund under Articles 81 (7) and 137-2 (3) of the Decree: Attached Form 58-8; |
| 60. | Deleted. <Mar. 17, 2017> |
| 60-2. | Statement of the separate taxation of dividend income from a real estate fund, etc. under Article 87-6 (4) of the Act: Attached Form 59-2; |
| 60-3. | Application for special taxation for collective investment securities of a publicly-offering real estate fund under Article 81-4 (2); Attached Form 59-3; |
| 60-4. | Deleted. <Mar. 16, 2021> |
| 61. | Statement of non-taxation on dividends on employee stocks and of the refund of the withheld tax under Article 82-4 of the Decree: Attached Form 60; |
| 61-2. | Deleted. <Mar. 30, 2002> |
| 61-3. | Deleted. <Mar. 30, 2002> |
| 61-4. | Deleted. <Mar. 7, 2011> |
| 61-5. | Statement of withdrawal of employee stocks and taxation thereon under Article 82-4 of the Decree: Attached Form 60-5; |
| 61-6. | Deleted. <Mar. 13, 2015> |
| 61-7. | Deleted. <Mar. 17, 2017> |
| 61-8. | Deleted. <Mar. 13, 2015> |
| 61-9. | Deleted. <Mar. 7, 2011> |
| 61-10. | Deleted. <Mar. 13, 2015> |
| 61-11. | Deleted. <Mar. 13, 2015> |
| 61-12. | Deleted. <Mar. 14, 2016> |
| 61-13. | Certificate of deposit in a long-term collective investment savings account under Article 91-16 (3) of the Act: Attached Form 60-13; |
| 61-14. | Deleted. <Mar. 14, 2016> |
| 61-15. | Letter of opinion under Article 93-2 (3) of the Decree: Attached Form 60-15; |
| 61-16. | Application for tax reduction under Article 96 (8) of the Decree: Attached Form 60-16; |
| 61-17. | Letter of opinion under Article 92-13 (3), 93-2 (3), ,93-6 (4), and 93-7 (6) of the Decree: Attached Form 60-17; |
| 61-18. | Deleted. <Mar. 14, 2016> |
| 61-19. | Income certificate under Article 93-4 (1) 1 of the Decree: Attached Form 60-19; |
| 61-20. | Deleted. <Mar. 16, 2021> |
| 61-21. | Letter of opinion under Article 81 (9): Attached Form 60-21; |
| 61-22. | Income certificate under Article 81 (15) 1: Attached Form 60-22; |
| 61-23. | certificate of eligibility for opening an account of the installment savings for future-preparation of military personnel under Article 93-5 (3): Attached Form 60-23; |
| 61-24. | Income certificate under Articles 93-6 (2) 1 and 93-7 (3) 1 of the Decree: Attached Form 60-24 and attached Form 60-25; |
| 61-25. | Application for tax reduction or exemption under Article 96-2 (5): Attached Form 60-26; |
| 61-26. | Application for tax credits under Article 96-3 (8): Attached Form 60-27; |
| 62. | Report on a housing lease under Article 97 (3) of the Decree (including cases to which the same paragraph shall apply |
| 63. | Application for tax reduction or exemption under Article 97 (4) (including cases to which the same paragraph shall apply |
| 63-2. | Application for special taxation under Article 97-3 (6) of the Decree: Attached Form 62-2; |
| 63-3. | Application for special taxation for long-term rental housing under Article 97-4 (3) of the Decree: Attached Form 62-3; |
| 63-4. | Statement of investments in kind under Article 97-6 (9) of the Decree: Attached Form 62-4; |
| 63-5. | Statement of special taxation for investments in kind under Article 97-6 (9) of the Decree: Attached Form 62-5; |
| 64. | Report on special taxation for unsold housing units under Article 98 (4) of the Decree: Attached Form 63; |
| 64-2. | Application for imposing capital gains tax at a special rate under the main sentence of Article 99-2 (4) of the Decree: Attached Form 63-2; |
| 64-3. | Report on the acquisition of a newly-built house under Article 99-2 (5) of the Decree: Attached Form 63-3; |
| 64-4. | Report on special taxation for a person acquiring a house in an agricultural or fishing village under Article 99-4 (10) of the Decree: Attached Form 63-4; |
| 64-5. | Seal certifying unsold housing unit under Articles 98-2 (2) and (4), 98-4 (5), (8) and (9) and 98-6 (5), (8) and (9) of the Decree: Attached Form 63-5; |
| 64-6. | Unsold housing unit register under Articles 98-2 (5) and (6), 98-4 (8) through (10) and 98-6 (8) through (10) of the Decree: Attached Form 63-6 (1) and attached Form 63-6 (2); |
| 64-7. | Status of unsold housing units under Articles 98-4 (6), (7) and (9) and 98-6 (6), (7) and (9) of the Decree: Attached Form 63-7 (1) and attached Form 63-7 (2); |
| 64-8. | Application to cancel the obligation of payment of delinquent tax under Article 99-5 (3) of the Decree: Attached Form 63-8; |
| 64-9. | Notice of determination under Article 99-5 (4) of the Decree: Attached Form 63-9 (1) and attached Form 63-9 (2); |
| 64-10. | Seal certifying completed but unsold housing units under Article 98-5 (6), (9) and (10) of the Decree: Attached Form 63-10; |
| 64-11. | Status of unsold housing units after completion under Article 98-5 (7) of the Decree: Attached Form 63-11 (1) and attached Form 63-11 (2); |
| 64-12. | Register of completed but unsold housing units under Article 98-5 (9) of the Decree: Attached Form 63-12 (1) and attached Form 63-12 (2); |
| 64-13. | Status of newly-built housing units, etc. under Article 99-2 (9) of the Decree: Attached Form 63-13 (1), attached Form 63-13 (2), and attached Form 63-13 (3); |
| 64-14. | Seal certifying newly-built housing units, etc. and the seal certifying existing housing units eligible for tax reduction or exemption under Article 99-2 (11) and (12) of the Decree: Attached Form 63-14; |
| 64-15. | Register for confirmation of newly-built houses (for project operators, etc.) under Article 99-2 (11) of the Decree: Attached Form 63-15; |
| 64-16. | Register for confirmation of newly-built houses (for the head of a |
| 64-17. | Register for confirmation of existing houses eligible for tax reduction or exemption under Article 99-2 (15) of the Decree: Attached Form 63-17; |
| 64-18. | Payment plan of delinquent taxes under Article 99-6 (3) of the Decree and Article 45-2 (1) of this Rule: Attached Form 63-18; |
| 64-19. | Application for deferred payment notice, extension of designated payment deadline, etc. and deferred seizure and sale under Article 99-6 (8) of the Decree and Article 45-2 (2) of this Rule: Attached Form 63-19; |
| 64-20. | Notice of cancellation of deferred payment notice, extension of designated payment deadline, etc. and deferred seizure and sale under Article 99-6 (11) of the Decree: Attached Form 63-20; |
| 64-21. | Certificate of interest payment under Article 99-7 (2) of the Decree: Attached Form 63-21; |
| 64-22. | Status of unsold housing units after completion under Article 98-7 (6) of the Decree: Attached Form 63-22 (1) and attached Form 63-22 (2); |
| 64-23. | Register of completed but unsold housing units (for project operators, etc.) under Article 98-7 (9) of the Decree: Form 63-23; |
| 64-24. | Seal certifying completed but unsold housing units under Article 98-7 (10) of the Decree: Attached Form 63-24; |
| 64-25. | Register of completed but unpurchased housing units (for the head of a |
| 64-26. | Application for special collection of delinquent taxes under Article 99-9 (3): Attached Form 63-26; |
| 64-27. | Notice of results of application for special collection of delinquent taxes under Article 99-9 (4): Attached Form 63-27 (1) and attached Form 63-27 (2); |
| 64-28. | Notice of cancellation of determination for special collection of delinquent taxes under Article 99-9 (4): Attached Form 63-28; |
| 64-29. | Application for tax credits for prepaid amount in the part other than each subparagraph of Article 99-11 (4) of the Decree: Attached Form 63-29; |
| 64-30. | Confirmation of prepayment usage details under Article 99-11 (4) 2 of the Decree: Attached Form 63-30 (1) and attached Form 63-30 (2); |
| 65. | Statement of payment of housing subsidies under Article 100 (2) of the Decree: Attached Form 64; |
| 65-2. | Application for subsidies for labor encouragement and/or child care under Article 100-6 (1) or 100-30 (1) of the Act: Attached Form 64-2; |
| 65-3. | Report on the opening (change/withdrawal) of an account under Article 100-9 (1) of the Decree: Attached Form 64-3; |
| 65-4. | Notice of determination of subsidies for labor encouragement and/or child care under Article 100-9 (2) and 100-31 of the Decree: Attached Form 64-4; |
| 65-5. | Application for electronic delivery of notice of determination under Article 100-9 (2) 2 of the Decree: Attached Form 64-5; |
| 65-6. | Notice of restriction on refund of subsidies for labor encouragement and/or child care under Article 100-9 (3) and 100-31 of the Decree: Attached Form 64-6; |
| 65-7. | Certificate of investigator under Articles 100-12 and 100-31 of the Decree: Attached Form 64-7; |
| 65-8. | Statement of tax credits for electronically submitted statements of payment under Article 104-2 (3) of the Decree: Attached Form 64-8; |
| 65-9. | Application for special treatment for a shipping enterprise in the calculation of the tax base of corporate tax under Article 104-7 (5) of the Decree: Attached Form 64-9; |
| 65-10. | Statement of requirements for special treatment for a shipping enterprise in the calculation of the tax base of corporate tax under Article 104-7 (6) of the Decree: Attached Form 64-10; |
| 65-11. | Application for renunciation of special treatment for a shipping enterprise in the calculation of the tax base of corporate tax under Article 104-7 (7) of the Decree: Attached Form 64-11; |
| 65-12. | Statement of reserves for compensation for losses under Article 104 (4) of the Decree: Attached Form 64-12; |
| 65-13. | Report of special taxation of comprehensive real estate holding tax under Article 104-13 (1) of the Decree: Attached Forms 64-13 (1) and (2), Annex (1) to attached Form 64-13, Annexes (2) and (2) to attached Forms 64-13, and attached Forms 63-14 (1) and (2); |
| 65-14. | Report of completion of acquisition under Article 104-16 (7) of the Decree: Attached Form 64-15; |
| 65-15. | Application for subsidies for labor encouragement under Article 100-6 (7): Attached Form 64-16; |
| 65-16. | Report on non-inclusion of (or modification in) the land for the construction of housing under Article 104-18 (1) of the Decree: Attached Form 64-17 (1) and attached Form 64-17 (2); |
| 65-17. | Statement of the reserve fund for participation under Article 104-6 (4) of the Decree: Attached Form 64-18; |
| 65-18. | Statement of loss reserves under Article 104-10 of the Decree: Attached Form 64-19; |
| 65-19. | Application for non-inclusion of bad debt allowances in gross income under Article 104-23 (3) of the Act: Attached Form 64-20; |
| 65-20. | Statement of tax reduction or exemption for an enterprise repatriating to the Republic of Korea under Article 104-21 (12) of the Decree: Attached Form 64-21; |
| 65-21. | Application for and statement of tax credits for a shipper company that has been certified as an excellent shipper company under Article 104-27 (3) of the Decree: Attached Form 64-22; |
| 65-22. | Statement of dividends of a high-dividend company under Article 104-27 (4) of the Act: Attached Form 64-23; |
| 65-23. | Statement of taxes withheld from dividends on stocks of a high-dividend company under Article 104-27 (4) of the Act: Attached Form 64-24; |
| 65-24. | Report on the deduction of a deemed input tax amount under Article 104-25 (2) of the Decree: Attached Form 64-25; |
| 65-25. | Report on the deduction of a deemed input tax amount under Article 104-26 (1) of the Decree: Attached Form 64-26; |
| 65-26. | Paper company establishment (modification) report under Article 104-28 (4) 5 and (6) of the Decree: Attached Form 17; |
| 65-27. | Application for income deductions for project finance investment companies under Article 104-28 (8) of the Decree: Attached Form 18; |
| 65-28. | Confirmation of application of special taxation for partner companies and taxation of partners under Article 104-28 (9) of the Decree: Attached Form 24; |
| 65-29. | Statement of tax credits under Article 104-29 (2); Attached Form 64-27; |
| 66. | Monthly total sales table under Article 106 (12) 2 of the Decree: Attached Form 65; |
| 67. | Certificate of tax-free supply under Article 106 (12) 3 of the Decree: Attached Form 66; |
| 67-2. | Certificate of the supply price for outsourced meal services under Article 106 (13) of the Decree: Attached Form 66-2; |
| 67-3. | Sales ledger under Article 106 (16) of the Decree: Attached Form 66-3; |
| 68. | Certificate of a farmer or fisher under Article 106 (17) of the Decree and Article 48 (4) of this Rule: Attached Form 67; |
| 68-2. | Deleted. <Mar. 14, 2014> |
| 68-3. | Notice of non-payment under Article 106-12 (2) of the Decree: Attached Form 67-2; |
| 68-4. | Report on payment by proxy under Article 106-14 (3) of the Decree: Attached Form 67-3; |
| 69. | Statement of transactions of a foreign business operator and an application for the refund of value-added tax under Article 107 (2) of the Decree: Attached Form 68; |
| 69-2. | Certificate of provision of medical services under Article 107-3 (2) of the Act: Attached Form 68-2; |
| 69-3. | Application for the refund of value-added tax to a diplomat, etc. under Article 108 (3) of the Decree: Attached Form 68-3; |
| 69-4. | Statement of refunds made for accommodation services for foreign tourists under Article 109-2 (7) of the Decree: Attached Form 68-4 (1) and attached Form 68-4 (2); |
| 69-5. | Statement of refunds made for cosmetic surgery and medical services for foreign tourists under Article 109-3 (9) of the Decree: Attached Form 68-5 (1) and attached Form 68-5 (2); |
| 70. | Report on the deduction of an input tax amount on recycled waste resources, etc. under Article 110 (5) of the Decree: Attached Form 69 (1) and attached Form 69 (2); |
| 70-2. | Report on the deduction of an input tax amount for scrap, etc. under Article 110-2 (4) of the Decree: Attached Form 69-2 (1) and attached Form 69-2 (2); |
| 70-3. | Application under Articles 112-2 (11), 112-3 (3) and 112-4 (5) of the Decree: Attached Form 69-3; |
| 70-4. | Statement of supply of petroleum eligible for tax reduction or exemption (Form A) as evidentiary document under Articles 112-2 (11), 112-3 (3) and 112-4 (5) of the Decree: |
| 70-5. | Statement of supply of petroleum eligible for tax reduction or exemption (Form B), as an evidentiary documentation under Articles 112-2 (11), 112-3 (3) and 112-4 (5) of the Decree: Attached Form 69-5; |
| 70-6. | Notice of details of refund under Article 112-4 (7) of the Decree: Attached Form 69-6; |
| 70-7. | Application for tax reduction or exemption for replacing a decrepit motor vehicle under Article 111 (1) of the Decree: Attached Form 69-7; |
| 70-8. | Verification of a motor vehicle to replace a decrepit diesel motor vehicle under Article 111 (3) of the Decree: Attached Form 69-8; |
| 70-9. | Application for refund (deduction) for the replacement of a decrepit diesel motor vehicle under Article 111 (6) of the Decree: Attached Form 69-9; |
| 70-10. | Application for VAT reduction or exemption for small-scale sole proprietorship under Article 110-3 (7) of the Decree: Attached Form 69-10; |
| 70-11. | Application for refund or deduction of transportation, energy, and environmental tax for coastal cargo ships under Article 112-7 (1) of the Decree: Attached Form 69-11 and Annex to attached Form 69-11; |
| 70-12. | Notice of refund or deduction details for transportation, energy, and environmental tax for coastal cargo ships under Article 112-7 (3) of the Decree: Attached Form 69-12; |
| 70-13. | Statement of annual supply of diesel for coastal cargo ships under Article 112-7 (8) of the Decree: Attached Form 69-13; |
| 71. | Application for tax exemption under Article 115 (18) of the Decree: Attached Form 70; |
| 71-2. | Application for confirmation of eligibility for exemption from additional tax collection under Article 116-10 (3) of the Decree: Attached Form 70-2; |
| 71-3. | Preliminary notice of determination under Article 116-3 (2) of the Decree: Attached Form 70-3; |
| 71-4. | Statement of deducted, reduced or exempted amount of tax and income tax on dividends under Article 116-2 (13) of the Decree: Attached Form 70-4; |
| 71-5. | Statement of hedging transactions (for stock derivatives) under Article 115 (7) of the Decree: Attached Form 70-5; |
| 71-6. | Statement of hedging transactions (for stock-index derivatives) under Article 115 (7) of the Decree: Attached Form 70-6; |
| 71-7. | Report on market-making transactions under Article 115 (9) of the Decree: Attached Form 70-7; |
| 71-8. | Statement of debt repayment and investment (plan) under Article 116-30 (2) and (20) of the Decree: Attached Form 70-8; |
| 71-9. | Business restructuring plan under Article 116-30 (19) of the Decree: Attached Form 70-9; |
| 71-10. | Report on the performance of a business restructuring plan under Articles 116-30 (19) and 116-32 (23) of the Decree: Attached Form 70-10; |
| 71-11. | Business restructuring plan under Article 116-31 (18) of the Decree: Attached Form 70-11; |
| 71-12. | Business restructuring plan under Article 116-31 (18) of the Decree: Attached Form 70-12; |
| 71-13. | Plan for transfer/acquisition of a corporation under Article 116-31 (19) and (20) of the Decree: Attached Form 70-13; |
| 71-14. | Business restructuring plan under Article 116-32 (23) of the Decree: Attached Form 70-14; |
| 71-15. | Business restructuring plan under Article 116-33 (7) of the Decree: Attached Form 70-15; |
| 71-16. | Business restructuring plan under Article 116-33 (7) of the Decree: Attached Form 70-16; |
| 71-17. | Business restructuring plan under Article 116-34 (11) of the Decree: Attached Form 70-17; |
| 71-18. | Business restructuring plan under Article 116-34 (11) of the Decree: Attached Form 70-18; |
| 71-19. | Business restructuring plan under Article 116-35 (9) of the Decree: Attached Form 70-19; |
| 71-20. | Business restructuring plan under Article 116-35 (9) of the Decree: Attached Form 70-20; |
| 71-21. | Report on arbitrage trading under Article 115 (16) of the Decree: Attached Form 70-21; |
| 72. | Statement of payment of gross income and deductible expenses by a purchaser under Article 117-4 (3) of the Decree: Attached Form 71; |
| 73. | Application for tax credit for increased revenue, etc. under Article 117-4 (4) of the Decree; Attached Form 72; |
| 74. | Application for refund of value-added tax for an importer of scrap, etc. under Article 48-6 (3): Attached Form 73; |
| 75. | Deleted. <Mar. 7, 2011> |
| 75-2. | Deleted. <Mar. 7, 2011> |
| 75-3. | Deleted. <Apr. 29, 2008> |
| 75-4. | Deleted. <Apr. 29, 2008> |
| 75-5. | Confirmation of amounts spent on credit cards, etc. under Article 121-2 (7) of the Decree: Attached Form 74-5; |
| 75-6. | Application for income deduction for credit cards, etc. under Article 121-2 (8) of the Decree: Attached Form 74-6; |
| 75-7. | Deleted. <Mar. 7, 2011> |
| 76. | Application for tax credit for the amount of value-added tax on cash a receipt service operator under Article 121-3 (9) of the Decree: Attached Form 75; |
| 77. | Deleted. <Mar. 17, 2017> |
| 78. | Deleted. <Mar. 17, 2017> |
| 79. | Deleted. <Mar. 17, 2017> |
| 80. | Application for verification of cash transactions under Article 121-5 (2) of the Decree: Attached Form 77; |
| 80-2. | Application for tax deduction for expenses incurred in verifying compliant filing under Article 121-6 (2) of the Decree: Attached Form 78; |
| 81. | Application for tax reduction or exemption or an application for amending details of tax reduction or exemption under Article 51-3 (1): Attached Form 80 (including the form in English); |
| 82. | Application for preliminary verification of eligibility for tax reduction or exemption under Article 51-3 (2): Attached Form 81 (including the form in English); |
| 83. | Report on the date of business commencement under Article 51-4: Attached Form 82; |
| 83-2. | Statement of investment under Article 116-4 (5) of the Decree: Attached Form 82-2; |
| 84. | Application for exemption from customs duties, individual consumption tax and value-added tax under Article 51-5: Attached Form 83 (including the form in English); |
| 85. | Deleted. <Mar. 14, 2014> |
| 86. | Application for special taxation for partnerships under Article 100-16 (1) of the Decree: Attached Form 104; |
| 86-2. | Application for waiving special taxation for a partnership under Article 100-16 (2) of the Decree: Attached Form 104-2; |
| 87. | Tax return on the tax base and amount of corporate tax on quasi-liquidation income under Article 100-16 (7) of the Decree: Attached Form 105; |
| 88. | Statement of contribution of dormant deposits under Article 104-17 of the Decree: Attached Form 106; |
| 88-2. | Statement of contributions to credit rehabilitation services companies under Article 104-11 (2) of the Act: Attached Form 106-2; |
| 89. | Application for exemption from withholding tax on profits from the sale of inventory assets in logistics facilities of a non-resident, etc. in a bonded area under Article 134-2 (1) of the Decree: Attached Form 84-2; |
| 90. | Report on the details of calculation and allocation of income of partnership firms in the part other than each subparagraph of Article 100-24 of the Decree: Attached Forms 107 (1), (2-1) and (2-2), the Annex to attached Form 107 (2-2), attached Forms 107 (3-1) and (3-2), Annexes 1 and 2 to attached Form 107 (3-2), attached Form 107 (4-1) and (4-2), the Annex to attached Form 107 (4-2), attached Forms 107 (5-1) and (5-2) and Annexes 1 and 2 to attached Form 5-2; |
| 91. | Statement of adjustment of an equity price under subparagraph 2 of Article 100-24 of the Decree: Attached Form 108; |
| 92. | Statement of deficits exceeding the limit on allocation under subparagraph 2 of Article 46-2 : Attached Form 109; |
| 93. | Statement of carried-over deficits allocated to passive partners under subparagraph 3 of Article 46-2: Attached Form 110; |
| 94. | Statement of allocation of tax amount of partnership firms under subparagraph 4 of Article 46-2: Attached Form 111; |
| 95. | Statement of adjustment of inclusion in deductible expenses of an amount equivalent to deemed dividends, etc. under Article 104-19 (4) of the Decree: Attached Form 112; |
| 96. | Application for confirmation eligibility for exemption from customs duties in accordance with subparagraph 2 of Article 51-7: Attached Form 113; |
| 97. | Letter of opinion under Articles 93-4 (4), 123-2 (5), and 52-6 (2): Attached Form 115; |
| (2) | Forms for transactions, etc. of gold bullions shall be as follows: <Newly Inserted on Mar. 24, 2003; Mar. 6, 2004; Mar. 11, 2005; Apr. 7, 2009; Mar. 14, 2014> |
| 1. | Payment return of value-added tax on gold bullions under Article 106-3 (9) of the Decree: Attached Form 85; |
| 2. | Receipt for collecting value-added tax on gold bullions under Article 106-3 (10) of the Decree: Attached Form 86; |
| 3. | Statement of facts regarding transactions of tax-free gold bullions under Article 106-3 (12) 1 of the Decree: Attached Form 87 (1) and attached Form 87 (2); |
| 4. | Statement of facts regarding importation of tax-free gold bullions under Article 106-3 (12) 1 of the Decree: Attached Form 88 (1) and attached Form 88 (2); |
| 5. | Statement of facts regarding consignment of gold bullions under Article 106-3 (12) 2 of the Decree: Attached Form 89 (1) and attached Form 89 (2); |
| 6. | Statement of facts regarding recommendation of tax-free gold bullions under Article 106-3 (12) 3 of the Decree: Attached Form 90 (1) and attached Form 90 (2); |
| 7. | Application for approval of transactions of tax-free gold bullions (for wholesalers, etc. of gold bullions) under Article 106-4 (1) of the Decree: Attached Form 91; |
| 8. | Application for approval of recommendation of transactions (importation) of tax-free gold bullions under Article 106-4 (2) of the Decree: Attached Form 92; |
| 9. | Application for approval of transactions of tax-free gold bullions (for gold craftsmen, etc.) under Article 106-4 (4) of the Decree: Attached Form 93; |
| 10. | Report on a change in the approval of transactions of tax-free gold bullions under Article 106-4 (5) and (6) of the Decree: Attached Form 94; |
| 11. | Report on the change of the recommender of transactions (importation) of tax-free gold bullions in accordance with Article 106-4 (8) of the Decree: Attached Form 95; |
| 12. | Report on the refund of value-added tax on gold bullions under Article 106-5 (3) of the Decree: Attached Form 96; |
| 12-2. | Confirmation of the security provided for tax payment for tax-free gold bullions under Article 106-8 (2) of the Decree: Attached Form 96-2; |
| 13. | Application for confirmation on exemption from customs duties and value-added tax under Article 59-2: Attached Form 97; |
| 14. | Deleted. <Apr. 7, 2009> |
| 15. | Application for a refund under Article 48-4 (3) of the Decree: Attached Form 99; |
| 16. | Deleted. <Mar. 14, 2014> |
| 17. | Deleted. <Mar. 14, 2014> |
| 18. | Statement of production and release of gold bullions under Article 106-11 (2) of the Decree: Attached Form 103; |
| 1. | Amended provisions of Articles 42-3, 61 (1), and 10-3, and attached Forms 6-6, 6-11, 6-15, and 9-3 January 1, 2023 |
| 2. | Amended provisions of attached Form 64-16: September 1, 2022 |
| (2) | Notwithstanding the amended provisions of Article 14-2 (3), the previous provisions shall apply to the taxable tear that began before January 1, 2022. |