Statutes of the Republic of Korea

No. 11873
Promulgation Date 2013-06-07
Ministry of Economy and Finance

ALL

CHAPTER I GENERAL PROVISIONS

Article 1 (Definitions)

Article 2 (Tax Liability)

Article 3 (Scope of Taxable Income)

Article 4 (Substance Over Form)

Article 5 (Trust Income)

Article 6 (Business Years)

Article 7 (Change of Business Year)

Article 8 (Constructive Business Years)

Article 9 (Place of Tax Payment)

Article 10 (Designation of Place of Tax Payment)

Article 11 (Alteration of Place of Tax Payment)

Article 12 (Jurisdiction over Taxation)

CHAPTER II CORPORATE TAX ON INCOME OF DOMESTIC CORPORATION FOR EACH BUSINESS YEAR

Section 1 Tax Base and Calculation

Subsection 1 Common Provisions

Article 13 (Tax Base)

Article 14 (Income for Each Business Year)

Subsection 2 Calculation of Gross Income

Article 15 (Scope of Gross Income)

Article 16 (Constructive Dividends or Distributions)

Article 17 (Non-Inclusion of Gains from Capital Transactions in Gross Income)

Article 18 (Non-Inclusion of Evaluation Profits, etc. in Gross Income)

Article 18-2 (Non-Inclusion of Holding Companies' Dividend Income in Gross Income)

Article 18-3 (Non-Inclusion of Dividend Income in Gross Income)

Subsection 3 Calculation of Deductible Expenses

Article 19 (Scope of Deductible Expenses)

Article 19-2 (Non-Inclusion of Bad Debts in Deductible Expenses)

Article 20 (Non-Inclusion of Losses from Capital Transactions, etc. in Deductible Expenses)

Article 21 (Non-Inclusion of Taxes and Public Charges in Deductible Expenses)

Article 21 (Non-Inclusion of Taxes and Public Charges in Deductible Expenses)

Article 22 (Non-Inclusion of Losses from Evaluation of Assets in Deductible Expenses)

Article 23 (Non-Inclusion of Depreciation Costs in Deductible Expenses)

Article 24 (Non-Inclusion of Donations in Deductible Expenses)

Article 25 (Non-Inclusion of Entertainment Expenses in Deductible Expenses)

Article 26 (Non-Inclusion of Excessive Expenses in Deductible Expenses)

Article 27 (Non-Inclusion of Non-Business Expenses in Deductible Expenses)

Article 28 (Non-Inclusion of Interest Expenses in Deductible Expenses)

Subsection 4 Inclusion of Reserve Funds and Allowances in Deductible Expenses

Article 29 (Inclusion of Reserve Funds for Proper Purpose Business in Deductible Expenses)

Article 30 (Inclusion of Liability Reserve Funds, etc. in Deductible Expenses)

Article 31 Deleted.

Article 32 Deleted.

Article 33 (Inclusion of Allowances for Severance Benefits in Deductible Expenses)

Article 34 (Inclusion of Allowances for Bad Debts in Deductible Expenses)

Article 35 (Inclusion of Allowances to Redeem Claims for Indemnity in Deductible Expenses)

Article 36 (Inclusion of Value of Business Assets Acquired with National Subsidies, etc. in Deductible Expenses)

Article 37 (Inclusion of Value of Fixed Assets Acquired with Construction Charges in Deductible Expenses)

Article 38 (Inclusion of Value of Fixed Assets Acquired with Insurance Marginal Profits in Deductible Expenses)

Article 39 Deleted.

Subsection 5 Periods during which Gross Income and Deductible Expenses Accrue

Article 40 (Business Year in which Gross Income and Deductible Expenses Accrue)

Article 41 (Acquisition Value of Assets)

Article 42 (Evaluation of Assets and Liabilities)

Article 42-2 (Non-Inclusion in Gross Income of Evaluation Marginal Profits of Inventory Assets of Domestic Corporation that Applies International Accounting Standards)

Article 43 (Application of Corporate Accounting Standards and Practices)

Subsection 6 Special Cases concerning Mergers, Divisions, etc.

Article 44 (Taxation on Merged Corporation upon Merger)

Article 44-2 (Taxation on Surviving Corporation upon Unqualified Merger)

Article 44-3 (Special Provisions concerning Taxation on Merged Corporation upon Qualified Merger)

Article 45 (Restriction on Deduction of Losses Carried Forward, etc. upon Merger)

Article 46 (Taxation on Divided Corporations, etc. upon Division)

Article 46-2 (Taxation on Corporations, etc. Established through Division upon Unqualified Division)

Article 46-3 (Special Provisions concerning Taxation on Corporation, etc. Established through Division upon Qualified Division)

Article 46-4 (Restriction on Deduction of Losses Carried Forward, etc. upon Division)

Article 46-5 (Special Provisions concerning Taxation on Divided Corporations Surviving Division)

Article 47 (Special Provisions concerning Taxation on Divided Corporation upon Spin-off)

Article 47-2 (Special Provisions concerning Taxation upon Investment in Kind)

Articles 48 and 49 Deleted.

Article 50 (Inclusion of Amount Equivalent to Transfer Marginal Profits of Assets due to Exchange in Deductible Expenses)

Subsection 7 Tax Exemptions and Income Deductions

Article 51 (Non-Taxable Income)

Article 51-2 (Income Deductions for Special Purpose Companies, etc.)

Subsection 8 Special Cases concerning Calculation of Amounts of Income

Article 52 (Repudiation of Wrongful Calculations)

Article 53 (Special Cases concerning Calculation of Amount of Income from Transactions with Foreign Corporations, etc.)

Article 53-2 (Special Cases concerning Calculation of Tax Bases for Corporations Adopting Functional Currencies)

Article 53-3 (Special Cases concerning Calculation of Tax Bases for Overseas Place of Business)

Article 54 (Detailed Regulations for Calculation of Amount of Income)

Section 2 Calculation of Amount of Tax

Article 55 (Tax Rates)

Article 55-2 (Special Provisions concerning Taxation on Capital Gains on Transfer of Land, etc.)

Article 56 Deleted.

Article 57 (Foreign Tax Credits, etc.)

Article 57-2 (Special Cases concerning Foreign Tax Credits for Indirect Investment Companies, etc.)

Article 58 (Tax Credits for Losses from Disasters)

Article 58-2 Deleted.

Article 58-3 (Tax Credits Based on Correction due to Wrongful Accounting)

Article 59 (Calculation of Amount of Tax Reductions/Exemptions and Tax Credits)

Section 3 Reports and Payment

Article 60 (Filing Reports on Tax Bases, etc.)

Article 61 (Special Cases concerning Appropriation of Reserve Funds in Deductible Expenses)

Article 62 (Special Cases concerning Filing Tax Bases of Non-Profit Domestic Corporations)

Article 62-2 (Special Provisions concerning Taxation of Capital Gains on Transfer of Assets by Non-Profit Domestic Corporations)

Article 63 (Interim Prepayment)

Article 64 (Payment)

Article 65 (Payment in Kind)

Section 4 Determination, Correction, and Collection

Subsection 1 Determination and Correction of Tax Bases

Article 66 (Determinations and Corrections)

Article 67 (Disposal of Income)

Article 68 (Special Cases concerning Calculation of Tax Bases and Amount by Estimation)

Article 69 (Determination as to Occasional Imposition)

Article 70 (Notification of Tax Base and Amount of Tax)

Subsection 2 Collection, Refund, etc. of Tax

Article 71 (Collection and Refund)

Article 72 (Refund by Retroactive Deduction of Losses)

Article 72-2 (Refund following Correction due to Wrongful Accounting)

Article 73 (Withholding)

Article 74 (Issuance of Withholding Receipts)

Article 75 (Non-Collection of Small Amounts)

Article 76 (Penalty Tax)

CHAPTER II CORPORATE TAX ON INCOME OF DOMESTIC CORPORATION FOR EACH BUSINESS YEAR

Section 1 Tax Base and Calculation

Articles 76-2 and 76-3 Deleted.

Section 2 Calculation of Amount of Tax

Articles 76-4 through 76-6 Deleted.

Section 3 Reports and Payment

Article 76-7 Deleted.

CHAPTER II CORPORATE TAX ON INCOME OF DOMESTIC CORPORATION FOR EACH BUSINESS YEAR

Section 1 Tax Base and Calculation

Article 76-8 (Application, etc. of Consolidated Tax Return System)

Article 76-9 (Revocation of Approval for Applying Consolidated Tax Return System)

Article 76-10 (Abandonment of Consolidated Tax Return System)

Article 76-11 (Addition of Consolidated Subsidiary Corporations)

Article 76-12 (Exclusion of Consolidated Subsidiary Corporations)

Section 2 Calculation of Amount of Tax

Article 76-13 (Tax Base)

Article 76-14 (Income for Each Consolidated Business Year)

Section 3 Reports and Payment

Article 76-15 (Calculated Consolidation Tax)

Article 76-16 (Tax Reductions, Exemptions, etc.)

Section 4 Determination, Correction, and Collection

Article 76-17 (Filing Reports on Consolidated Tax Base, etc.)

Article 76-18 (Consolidated Interim Prepayment)

Article 76-19 (Payment of Consolidated Corporate Tax and Payment thereof in Kind)

Section 5 Determination, Correction, Collection, etc.

Article 76-20 (Determination, Correction, Collection, etc.)

Article 76-21 (Penalty Tax)

Article 76-22 (Application of Provisions Governing Small and Medium Enterprises)

CHAPTER III CORPORATE TAX ON LIQUIDATION INCOME OF DOMESTIC CORPORATIONS

Section 1 Tax Base and Calculation thereof

Article 77 (Tax Base)

Article 78 (Special Cases concerning Taxation on Liquidation Income Accruing from Restructuring of Corporation)

Article 79 (Calculation of Liquidation Income Accruing from Dissolution)

Articles 80 and 81 Deleted.

Article 82 (Detailed Rules for Calculation of Amount of Liquidation Income)

Section 2 Calculation of Amount of Tax

Article 83 (Tax Rate)

Section 3 Reports and Payments

Article 84 (Final Reports)

Article 85 (Interim Reports)

Article 86 (Payment)

Section 4 Determination, Correction, and Collection

Article 87 (Determination and Correction)

Article 88 (Notification of Tax Base and Amount)

Article 89 (Collection)

Article 90 (Exclusion from Application of Additional Dues to Liquidation Income)

CHAPTER IV CORPORATE TAX ON INCOME OF FOREIGN CORPORATIONS FOR EACH BUSINESS YEAR

Section 1 Tax Base and Calculation thereof

Article 91 (Tax Base)

Article 92 (Calculation of Amount of Domestic Source Income)

Article 93 (Domestic Source Income)

Article 93-2 Deleted.

Article 94 (Domestic Place of Business of Foreign Corporation)

Section 2 Calculation of Amount of Tax

Article 95 (Tax Rate)

Article 95-2 (Special Cases concerning Taxation on Capital Gains on Transfer of Land, etc. by Foreign Corporation)

Article 96 (Special Cases concerning Taxation on Domestic Place of Business of Foreign Corporation)

Section 3 Report, Payment, Determination, Correction, and Collection

Article 97 (Report, Payment, Determination, Correction, and Collection)

Article 98 (Special Cases concerning Withholding or Collection from Foreign Corporations)

Article 98-2 (Special Cases concerning Reports on, Payment, etc. of Capital Gains, etc. on Transfer of Securities by Foreign Corporation)

Article 98-3 (Special Cases concerning Withholding from Bonds, etc. subject to Withholding Tax of Foreign Corporations)

Article 98-4 (Application for Non-Taxation, etc. on Domestic Source Income of Foreign Corporation)

Article 98-5 (Special Case concerning Procedures for Withholding Tax from Foreign Corporations)

Article 98-6 (Special Cases concerning Withholding Procedures to Apply Restrictive Tax Rates under Tax Treaties to Foreign Corporations)

Article 99 (Special Cases concerning Reports on and Payment of Corporate Tax on Income of Foreign Corporation from Personal Services)

CHAPTER V Deleted.

Section 1 Deleted.

Article 100 Deleted.

Section 2 Deleted.

Article 101 Deleted.

Section 3 Deleted.

Articles 102 through 104 Deleted.

Section 4 Deleted.

Articles 105 through 108 Deleted.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 109 (Reports on Incorporation or Establishment of Corporation)

Article 110 (Reports on Start of Profit-Making Business by Non-Profit Corporation)

Article 111 (Business Registration)

Article 112 (Keeping Account Books)

Article 112-2 (Obligation, etc. to Prepare and Keep Detailed Statements of Donation Receipts Issued)

Article 113 (Separate Accounting)

Article 114 Deleted.

Article 115 Deleted.

Article 116 (Receipt and Keeping of Evidentiary Documents of Expenditures)

Article 117 (Obligation, etc. to Become Credit Card Merchants and to Issue Credit Card Sales Slips)

Article 117-2 (Obligation, etc. to Become Cash Receipt Merchants and to Issue Cash Receipts)

Article 118 (Preparation and Keeping of Stockholder Register, etc.)

Article 119 (Submission of Detailed Statement of Changes in Stocks, etc.)

Article 120 (Obligation to File Payment Statements)

Article 120-2 (Special Cases concerning Obligation to File Payment Statements on Domestic Source Income, etc. of Foreign Corporations)

Article 120-3 (Submission of Aggregate Tax Invoices for Individual Suppliers)

Article 121 (Preparation, Issuance, etc. of Invoices)

Article 121-2 (Obligation to Submit Data on Overseas Subsidiaries)

Article 121-3 (Sanctions against Non-Performance of Obligation to Submit Data on Overseas Subsidiaries)

Article 122 (Inquiries and Investigations)

ADDENDA

ADDENDA <Act No. 6047, Dec. 28, 1999>

ADDENDA <Act No. 6259, Feb. 3, 2000>

ADDENDA <Act No. 6293, Dec. 29, 2000>

ADDENDA <Act No. 6558, Dec. 31, 2001>

ADDENDA <Act No. 6852, Dec. 30, 2002>

ADDENDA <Act No. 7005, Dec. 30, 2003>

ADDENDA <Act No. 7117, Jan. 29, 2004>

ADDENDA <Act No. 7289, Dec. 31, 2004>

ADDENDA <Act No. 7317, Dec. 31, 2004>

ADDENDA <Act No. 7838, Dec. 31, 2005>

ADDENDA <Act No. 7908, Mar. 24, 2006>

ADDENDA <Act No. 8141, Dec. 30, 2006>

ADDENDA <Act No. 8519, Jul. 19, 2007>

ADDENDA <Act No. 8631, Aug. 3, 2007>

ADDENDA <Act No. 8831, Dec. 31, 2007>

ADDENDA <Act No. 8852, Feb. 29, 2008>

ADDENDA <Act No. 9267, Dec. 26, 2008>

ADDENDA <Act No. 9346, Jan. 30, 2009>

ADDENDA <Act No. 9401, Jan. 30, 2009>

ADDENDA <Act No. 9673, May 21, 2009>

ADDENDA <Act No. 9763, Jun. 9, 2009>

ADDENDA <Act No. 9898, Dec. 31, 2009>

ADDENDA <Act No. 9924, Jan. 1, 2010>

ADDENDA <Act No. 10221, Mar, 31, 2010>

ADDENDA <Act No. 10337, May 31, 2010>

ADDENDA <Act No. 10361, Jun. 8, 2010>

ADDENDA <Act No. 10423, Dec. 30, 2010>

ADDENDA <Act No. 10898, Jul. 25, 2011>

ADDENDA <Act No. 10907, Jul. 25, 2011>

ADDENDA <Act No. 11128, Dec. 31, 2011>

ADDENDA <Act No. 11603, Jan. 1, 2013>

ADDENDA <Act No. 11607, Jan. 1, 2013>

ADDENDA <Act No. 11873, Jun. 7, 2013>