| (1) | Dividend income shall be the following income generated during the relevant taxable period: <Amended by Act No. 11146, Jan. 1, 2012; Act No. 15225, Dec. 19, 2017; Dec. 29, 2020; Dec. 31, 2022> |
| 1. | Dividends or shares of profits or a surplus received from a domestic corporation; |
| 2. | Dividends or shares received from an organization deemed a corporation; |
| 2-2. | Dividends or shares received from a trust property deemed to be a corporation under Article 5 (2) of the Corporate Tax Act (hereinafter referred to as “trust property subject to corporate tax”); |
| 5. | Profits from collective investment schemes prescribed by Presidential Decree, received in Korea or overseas; |
| 5-2. | Deleted; <Dec. 29, 2020> |
| 6. | Dividends or shares of profits or a surplus received from a foreign corporation; |
| 8. | The amount equivalent to the profit-and-loss distribution ratio of joint investment business entities pursuant to Article 43 (1), of the amount of income generated from joint business pursuant to Article 43; |
| 9. | Income in the nature of distributions of profit, as income similar to any one of those referred to in subparagraphs 1, 2, 2-2, 3 through 7; |
| 10. | Profits from transactions or activities of derivatives, where transactions or activities generating the income referred to in any of subparagraphs 1, 2, 2-2, 3 through 9 are linked to derivatives, as prescribed by Presidential Decree. |
| (2) | Deemed dividend referred to in paragraph (1) 3 means any of the following amounts, and shall be deemed paid to the relevant stockholders, employees, and other investors: <Amended by Act No. 11146, Jan. 1, 2012> |
| 1. | The amount of money acquired by a stockholder through retirement of stocks or reduction of capital, the value of other assets or the amount of money acquired by an employee or investor through his/her resignation, withdrawal or reduction of investment and the value of other assets exceeding the amount disbursed by the stockholder, employee, or investor to acquire such stocks or investment; |
| 2. | The value of stocks or investment acquired by capitalizing all or part of a surplus fund of a corporation in the amount of capital or investment: Provided, That this shall not apply where any of the following amounts is capitalized: |
| 3. | The amount of money acquired by a stockholder, an employee, an investor, or a member of a dissolved corporation (including an organization deemed a corporation) through distribution of the remaining assets by dissolution of such corporation, or the value of other assets is the amount exceeding the amount disbursed to acquire the relevant stocks, investment, or capital: Provided, That where a domestic corporation changes its organizational structure, any of the following cases shall be excluded therefrom: |
| (a) | Where a corporation changes its organizational structure under the Commercial Act; |
| (b) | Where a corporation incorporated under a special law changes its organizational structure, due to the amendment or repeal of the relevant special law, to a company under the Commercial Act; |
| (c) | Cases prescribed by Presidential Decree where a domestic corporation changes its organizational structure pursuant to other Acts; |
| 4. | The total value and money of stocks or investment which stockholders, employees, or investors of a corporation which has become extinct by the merger acquire from a corporation which survives merger or a corporation incorporated by the merger due to such merger, which exceed the amount disbursed to acquire stocks or investment of the corporation which has become extinct by such merger; |
| 5. | Where the stockholding ratio of stockholders, etc. other than a corporation, is increased because the corporation capitalizes pursuant to the items of subparagraph 2 retaining its treasury stocks or shares in investment, the value of stocks, etc. equivalent to the increased ratio of shares; |
| 6. | In cases of split of a corporation, the total value of stocks, money, and other assets (hereinafter referred to as "consideration for split") which stockholders of a corporation which is split (hereinafter referred to as "split corporation") or of the other corporation of the split and merger which has ceased to exist, acquire by the split from a corporation incorporated by the split or the other corporation of the split and merger, which exceeds the amount disbursed to acquire stocks (limited to stocks decreased due to retirement, etc. where the split corporation survives) of such split corporation or the other corporation of the split and merger which has ceased to exist. |
| (3) | The amount of dividend income shall be the total amount in the relevant taxable period: Provided, That with regard to the part, excluding any of the following dividends of those dividend incomes described in paragraph (1) 1, 2, 3 and 4 and dividend income prescribed by Presidential Decree of those dividend incomes described in paragraph (1) 5, the amount of dividend income shall be the amount calculated by adding the amount equivalent to 11/100 (or 12/100 for dividend income from January 1, 2009, to December 31, 2009) of such dividend income to the total amount of income in the relevant taxable period: <Amended on Dec. 29, 2020> |
| 1. | Deemed dividend by capitalizing gains on retirement of treasury stocks or shares in investment under paragraph (2) 2 (a); |
| 2. | Deemed dividend by capitalizing the net reassessed value of land under paragraph (2) 2 (b); |
| 3. | Deemed dividends under paragraph (2) 5; |
| 4. | Where any dividend income is received from a corporation prescribed by Presidential Decree, among corporations eligible for a non-taxation, exemption, reduction and exemption, or income deduction of corporate income tax to which the minimum tax under Article 132 of the Restriction of Special Taxation Act does not apply (including non-taxation, exemption, reduction and exemption, or income deduction pursuant to Acts, other than the Restriction of Special Taxation Act), the amount calculated by multiplying the amount of such dividend income by the rate prescribed by Presidential Decree. |
| (4) | In applying paragraph (2) 1, 3, 4, and 6, where the amount disbursed to acquire stocks or investment is unclear, the par value of such stocks or investment (in cases of the stocks without par value, referring to the amount obtained after dividing the capital of a stock-issuing corporation concerned as at the date of acquisition of the stocks concerned by the total number of issued stocks; hereinafter the same shall apply) or the amount of investment shall be deemed the amount disbursed to acquire such stocks or investment. <Amended by Act No. 11146, Jan. 1, 2012> |
| (5) | When applying paragraph (2), matters necessary for assessing the price of stocks or shares in investment shall be prescribed by Presidential Decree. |
| (6) | Matters necessary for the scope of dividend income under the subparagraphs of paragraph (1) and the amount of dividend income under paragraph (3) shall be prescribed by Presidential Decree. |
[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]
[Enforcement Date: Jan. 1, 2025] Articles 17 (1) 5, 17 (1) 5-2, 17 (1) 9, and 17 (1) 10