| (1) | When a business operator makes deferred appropriation of donations under Article 34 of the Act as an advance, it shall be deemed a donation in the taxable period wherein it has been given. <Amended by Presidential Decree No. 22034, Feb. 18, 2010> |
| (2) | When a business operator has appropriated a donation under Article 34 of the Act as an unpaid amount, such donation shall not be included in necessary expenses until it is actually paid. |
| (3) | Where a business operator offers any asset, other than money, as a donation or entertainment expenses under Article 34 or 35 of the Act, the valuation of such asset shall be based on its market price (or its book value if the market price is lower than the book value) at the time it is offered: Provided, That the valuation of a donation under Article 34 (2) 1 of the Act shall be based on its book value, while the value of a donation made to a national museum or a national art gallery, as defined in the Museum and Art Gallery Support Act, shall be determined by the committee established as an organ of the Ministry of Culture, Sports and Tourism for appraising donated artifacts. <Amended by Presidential Decree No. 19890, Feb. 28, 2007; Presidential Decree No. 22580, Dec. 30, 2010; Presidential Decree No. 25193, Feb. 21, 2014> |
| (4) | Where a business operator has made a donation under Article 34 of the Act and a donation under Articles 76 and 88-4 (13) of the Restriction of Special Taxation Act, he/she shall include the relevant donations in necessary expenses in order within the limit of the amount by the following classifications: <Added by Presidential Decree No. 17456, Dec. 31, 2001; Presidential Decree No. 18173, Dec. 30, 2003; Presidential Decree No. 18705, Feb. 19, 2005; Presidential Decree No. 20618, Feb. 22, 2008; Presidential Decree No. 21301, Feb. 4, 2009; Presidential Decree No. 22034, Feb. 18, 2010; Presidential Decree No. 22580, Dec. 30, 2010; Presidential Decree No. 24356, Feb. 15, 2013> |
The amount of income in the relevant taxable period (referring to the amount of income before donations are included in necessary expenses; hereafter the same shall apply in this paragraph) － Loss carried forward (referring to the aggregate of loss carried forward pursuant to Article 45 (3) of the Act; hereafter the same shall apply in this paragraph); | 2. | Deleted; <by Presidential Decree No. 22580, Dec. 30, 2010> |
(The amount of income in the relevant taxable period － Loss carried forward － Political funds donations － Legal donations) × 30/100;
| 3. | In cases of designated donations, the amount calculated by a formula under item (a) or (b). In such cases, where the total amount of losses carried forward, political funds donations, legal donations, and donations to an employee stock ownership association (hereafter referred to as "total amount of donations, etc." in this subparagraph) is deducted from income for the relevant taxable period, the deduction shall be made in the order of losses carried forward, political funds donations, legal donations, and donations to an employee stock ownership association: |
| (a) | Where there is an amount donated to a religious organization: |
(The amount of income in the relevant taxable period - The total amount of donations, etc.) × 10/100 + [The smaller of (Income in the relevant taxable period - The total amount of donations, etc.) × 20/100, or the amount paid to organizations, other than religious organizations];
| (b) | Cases other than those falling under item (a): |
(Income in the relevant taxable period - The total amount of donations, etc.) × 30/100.
| (5) | The value of voluntary services under Article 34 (2) 2 of the Act (hereinafter referred to as "voluntary services") shall be the total of the amounts calculated pursuant to the following subparagraphs: <Added by Presidential Decree No. 18173, Dec. 30, 2003; Presidential Decree No. 22034, Feb. 18, 2010; Presidential Decree No. 22580, Dec. 30, 2010> |
| 1. | The amount obtained by multiplying 50 thousand won to the number of service days calculated by the following formula (the portion below the decimal point shall be calculated by regarding it as one day). In such cases, in cases of a private business operator, it shall be limited to the portion of his/her own services): |
Number of service days = Total service hours ÷ 8 hours;
| 2. | Direct expenses, such as oil expenses and material expenses, incurred incidental to the relevant voluntary services: |
Market values or book value at the time of providing them.
| (6) | In applying Article 34 (2) 2 of the Act, the relevant voluntary service (including the voluntary service rendered in the same area before a special disaster area is declared) shall be confirmed by issuing a written confirmation of donation prescribed by Ministerial Decree of Strategy and Finance by the head of a local government of a special disaster area (including the head of an organization delegated by the head of the relevant local government or the head of the voluntary service center established in the relevant local government). <Amended by Presidential Decree No. 22034, Feb. 18, 2010; Presidential Decree No. 22580, Dec. 30, 2010; Presidential Decree No. 24356, Feb. 15, 2013> |
| (7) | Where a person entitled to the legal reserve of inheritance claims a return of his/her trust property under Article 1115 of the Civil Act and receives such trust property after the death of the trustor who added donations under Article 80 (1) 3 to the necessary expenses or had tax credits for such donations, the head of the tax office having jurisdiction over the domicile of the person entitled to the legal reserve shall collect the amount determined by multiplying the amount specified in subparagraph 1 by the relevant rate specified in subparagraph 2 from the person entitled to the legal reserve: <Amended by Presidential Decree No. 22580, Dec. 30, 2010; Presidential Decree No. 25193, Feb. 21, 2014> |
| 1. | The amount of income tax equivalent to the amount that the relevant resident added donations to the necessary expenses or had tax credits for the donations, before a person entitled to the legal reserve of inheritance has the legal reserve returned, for a taxable period during the period in which he/she was eligible for the exclusion from national taxes under Article 26-2 of the Framework Act on National Taxes; |
| 2. | The amount redeemed by a person entitled to legal reserve/the amount of trusted properties as at the time of redemption of legal reserve by a person entitled to the legal reserve. |