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CORPORATE TAX ACT
CHAPTER II CORPORATE TAX ON INCOME OF DOMESTIC CORPORATION FOR EACH BUSINESS YEAR
조문단위인쇄
 Article 25 (Non-Inclusion of Entertainment Expenses in Deductible Expenses)
(1) Entertainment expenses paid by a domestic corporation (excluding the amount provided for in paragraph (2)) for each business year, which exceeds the sum of the following amounts, shall not be included in deductible expenses for the purposes of calculating the amount of income for the relevant business year: <Amended by Act No. 10423, Dec. 30, 2010; Act No. 11128, Dec. 31, 2011; Act No. 11607, Jan. 1, 2013; Act No. 12850, Dec. 23, 2014>
1. The amount computed by multiplying 12 million won (18 million won for small or medium enterprises prescribed by Presidential Decree (24 million won until the business year in which December 31, 2016 falls)) by the number of months in the relevant business year, and then dividing it by 12;
2. The amount computed by multiplying the amount of income for the relevant business year (limited to the amount of income prescribed by Presidential Decree) by the rates specified in the following table: Provided, That with respect to the amount of income accrued from transactions with a related party provided for in Article 52 (1), it means an amount equivalent to 10/100 of the amount computed by multiplying such amount of income by the rates specified in the following table:
Amount of IncomeRate
Not exceeding 10,000,000,000 won20/10,000
Between 10,000,000,000 won and 50,000,000,000 won 20,000,000 won＋10/10,000 of the amount in excess of 10,000,000,000 won
Exceeding 50,000,000,000 won 60,000,000 won＋3/10,000 of the amount in excess of 50,000,000,000 won
(2) Entertainment expenses paid by a domestic corporation in excess of the amount prescribed by Presidential Decree on one occasion, which do not fall under any of the following, shall not be included in deductible expenses for the purpose of calculating the amount of income for each business year: Provided, That the same shall not apply to any entertainment expenses paid in any foreign country prescribed by Presidential Decree or for farmers or fishermen, which makes it impractical to obtain documents evidencing that such entertainment expenses fall under any of the followings, but the expenditure of such entertainment expenses is objectively unquestionable: <Amended by Act No. 10423, Dec. 30, 2010; Act No. 11128, Dec. 31, 2011; Act No. 11873, Jun. 7, 2013>
1. Entertainment expenses paid upon using any of the following (hereinafter referred to as "credit card, etc."):
(a) Credit cards as defined in the Specialized Credit Finance Business Act (including items prescribed by Presidential Decree and similar to credit cards; the same shall apply hereafter in Article 117);
(b) Cash Receipts prescribed in Article 126-3 (4) of the Restriction of Special Taxation Act (hereinafter referred to as "Cash Receipts");
2. Expenses paid upon receiving an invoice referred to in Article 121 of this Act and Article 163 of the Income Tax Act or a tax invoice referred to in Article 32 of the Value-Added Tax Act or upon issuing a purchaser-issued tax invoice pursuant to Article 126-4 (1) of the Restriction of Special Taxation Act or a withholding receipt prescribed by Presidential Decree.
(3) Where sales slips, etc., are issued in the name of a credit card merchant, etc., different from the one that actually supply the relevant goods or services, the relevant amount of spending shall not be included in the entertainment expenses referred to in paragraph (2) 1 for the purposes of paragraph (2) 1. <Amended by Act No. 10423, Dec. 30, 2010>
(4) Deleted. <by Act No. 6558, Dec. 31, 2001>
(5) "Entertainment expenses" referred to in paragraphs (1) through (3) mean entertainment expenses, social expenses, monetary rewards, or expenses of a similar nature spent by a corporation in connection with its business, irrespective of however named. <Amended by Act No. 10423, Dec. 30, 2010>
(6) The scope of entertainment expenses, keeping documents evidencing disbursement, and other necessary matters, shall be prescribed by Presidential Decree. <Amended by Act No. 10423, Dec. 30, 2010>