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| Article 29 (Tax Bases) |
| (1) | The tax base for value-added tax on the supply of goods or services shall be the total value of all supplies of goods or services provided during the relevant taxable period. |
| (2) | The tax base for value-added tax on the importation of goods shall be the total sum of the taxable value for customs duties and the customs duties, individual consumption tax, liquor tax, education tax, special rural development tax, and traffic, energy and environment tax on such goods. |
| (3) | The value of supply referred to in paragraph (1) means each of the following. In such cases, it shall include payments, rates, fees, or all other things of value, whatever their names are, which are provided by recipients of goods or services, but exclude value-added taxes: |
| 1. | Where payments are made in money: The payments: |
| 2. | Where payments other than money are made: The market price of goods or services supplied by the supplier himself/herself; |
| 3. | Where a business is closed: The market price of goods in stock at the time of closing the business; |
| 4. | Where goods or services are deemed to be supplied under Articles 10 (1), (2), (4) and (5) and 12 (1): The market price of the goods or services supplied by the supplier himself/herself; |
| 5. | Where goods are deemed to be supplied under Article 10 (3): The value prescribed by Presidential Decree based on the acquisition value, etc. of the goods; |
| 6. | Where goods or services are supplied through credit sales, installment sales, etc.: The value prescribed by Presidential Decree in consideration of the types, etc. of supply. |
| (4) | Notwithstanding paragraph (3), if it is likely to unreasonably reduce tax burden on goods or services supplied to related persons, as provided in any of the following, the market price of the supplied goods or services shall be deemed the value of supply thereof: |
| 1. | Where payments for the supply of goods are unreasonably low or no payments therefor are made; |
| 2. | Where payments for the supply of services are unreasonably low; |
| 3. | Where no payments for the supply of services are made and the proviso to Article 12 (2) is applicable. |
| (5) | None of the following amounts shall be included in the value of supply: |
| 1. | The amount of discount made directly on the normal price of goods or services according to their quality, quantity, conditions of delivery, methods of making payments for supply, and other conditions of supply, at the time of their supply; |
| 2. | The value of returned goods; |
| 3. | The value of goods, which are broken, damaged, or lost before they reach a person to whom they are supplied; |
| 4. | National subsidies and public subsidies not directly related to the supply of goods or services; |
| 5. | Overdue interests received due to a delay in payments for supply; |
| 6. | The amount of discount by an entrepreneur from the original value of supply on grounds of receiving payments for supply in advance of the agreed date. |
| (6) | Neither a bounty and other similar subsidy that an entrepreneur pays to a person to whom goods or services are supplied nor a bad debt amount under Article 45 (1) shall be deducted from the tax base. |
| (7) | Where it is not clear whether payments for goods or services supplied by an entrepreneur include value-added taxes, an amount calculated by multiplying the payments by 100/110 shall be the value of supply. |
| (8) | Where an entrepreneur supplies any goods common to a taxable business, a tax-free business, and a business of supplying goods or services exempt from value-added tax (hereinafter referred to as “tax-free business, etc.”), an amount calculated according to the formula prescribed by Presidential Decree shall be the value of supply. |
| (9) | Where an entrepreneur supplies land with buildings, structures, etc. standing thereon, the actual transaction price of such buildings, structures, etc. shall be the value of supply: |
| (10) | Where an entrepreneur leases any real estate as provided in any of the following, the value of supply shall be an amount calculated according to the formula prescribed by Presidential Decree: |
| 1. | Where he/she receives security money for lease on a deposit basis or for lease in return for the lease of the real estate; |
| 2. | Where he/she renders a taxable real estate lease with a tax-free housing lease and so the distinction between the leases or between the rents is not clear; |
| 3. | Where he/she leases real estate over at least two taxable periods on conditions of receiving the rents in advance or later. |
| (11) | Where any goods deemed the goods supplied under Article 10 (1), (2), and (4) through (6) fall within depreciable assets prescribed by Presidential Decree (hereinafter referred to as “depreciable assets”), an amount calculated according to the formula prescribed by Presidential Decree shall be the value of supply, notwithstanding paragraph (3) 3 and 4. |
| (12) | Matters necessary for the calculation of market prices and other values of supply and tax bases shall be prescribed by Presidential Decree. |