Statutes of the Republic of Korea

No. 7335
Promulgation Date 2005-01-14
Ministry of Finance and Economy

ALL

CHAPTER Ⅰ GENERAL PROVISIONS

Article 1 (Liability for Tax Payment)

Article 2 (Scope of Tax Liability)

Article 3 (Scope of Taxable Income)

Article 4 (Classification of Income)

Article 5 (Taxable Period)

Article 6 (Place of Tax Payment)

Article 7 (Tax Payment Place in Case of Withholding Tax, etc.)

Article 8 (Tax Payment Place in Case of Inheritance, etc.)

Article 9 (Designation of Tax Payment Place)

Article 10 (Report on Change of Tax Payment Place)

Article 11 (Jurisdiction over Taxation)

CHAPTER Ⅱ TAX LIABILITY ON GLOBAL, RETIREMENT AND FOREST INCOMES OF RESIDENT

Section 1 Non-Taxation, Reduction and Exemption

Article 12 (Non-Taxable Income)

Article 13 (Reduction and Exemption of Tax Amount)

Section 2 Calculation of Tax Base and Tax Amount

Sub-Section 1 Common Provisions concerning Calculation of Tax Amount

Article 14 (Calculation of Tax Base)

Article 15 (Order in Calculation of Tax Amount)

Sub-Section 2 Categories and Amount of Incomes

Article 16 (Interest Income)

Article 17 (Dividend Income)

Article 18 (Real Estate Rental Income)

Article 19 (Business Income)

Article 20 (Labour Income)

Article 20-2 (Temporary Property Income)

Article 20-3 (Annuity Income)

Article 21 (Other Incomes)

Article 22 (Retirement Income)

Article 23 (Forest Income)

Section 3 Calculation of Income Amount

Sub-Section 1 Total Gross Income Amount

Article 24 (Calculation of Total Gross Income Amount)

Article 25 (Special Case for Calculation of Total Gross Income Amount)

Sub-Section 2 Necessary Expenses and Year of Reversion

Article 27 (Calculation of Necessary Expenses)

Article 28 (Calculation of Allowance for Bad Debts as Necessary Expenses)

Article 29 (Calculation of Allowance for Severance Benefits as Necessary Expenses)

Article 30 Deleted.

Article 31 (Calculation of Necessary Expenses in Case of Acquisition of Fixed Assets by Insurance Gain)

Article 32 (Calculation of Value of Assets for Business Acquired with National Subsidies, as Necessary Expenses)

Article 33 (Non-Inclusion of Necessary Expenses)

Article 34 (Non-Inclusion of Contribution in Necessary Expenses)

Article 35 (Non-Inclusion of Entertainment Expenses in Necessary Expenses)

Article 36 Deleted.

Article 37 (Calculation of Necessary Expenses in Other Income)

Article 38 (Calculation of Necessary Expenses in Forest Income)

Article 39 (Year, etc. to which Total Gross Income Amount and Necessary Expenses are reverted)

Article 40 (Year to which Dividend Income, etc. is Reverted)

Sub-Section 3 Special Cases of Calculation of Income Amount

Article 41 (Calculation in Case of Wrongful Act)

Article 42 (Special Case of Calculation of Income Amount on Trade with Nonresident, etc.)

Article 43 (Distribution of Income in Case of Joint Ownership, etc.)

Article 44 (Separate Calculation of Income Amount in Case of Inheritance)

Article 45 (Deduction of Deficiency and Deficit Brought Forward)

Article 46 (Special Cases Regarding Calculation of, and Submission of Written Payment Statement, etc. for Income Amount Accruing from Bonds, etc.)

Article 46 (Special Cases regarding Calculation of Income Amount Accruing from Bonds and Submission of Written Payment Statement, etc.)

Article 46-2 (Exception to Calculation of Interest Income Amount due to Premature Termination)

Sub-Section 4 Employment, Annuity, Retirement and Forest Income Deductions

Article 47 (Employment Income Deduction)

Article 47-2 (Annuity Income Deduction)

Article 48 (Retirement Income Deduction)

Article 49 (Forest Income Deduction)

Sub-Section 5 Global Income Deduction

Article 50 (Basic Deduction)

Article 51 (Additional Deduction)

Article 51-2 (Additional Allowances, etc. in respect of Small Number of Eligible Persons)

Article 51-3 (Pension Insurance Premium Deduction)

Article 52 (Special Deduction)

Article 53 (Scope of Dependents Living Together and Time of Determination Thereof)

Article 54 (Exclusion of Global Income Deduction)

Section 4 Calculation of Tax Amount

Sub-Section 1 Tax Rates

Article 55 (Tax Rates)

Sub-Section 2 Tax Credits

Article 56 (Tax Credits for Dividend Income)

Article 56-2 (Tax Credit for Book-Keeping)

Article 57 (Tax Credit for Payments in Foreign Country)

Article 58 (Tax Credit for Casualty Losses)

Article 59 (Tax Credit for Employment Income)

Article 59-2 Deleted.

Article 60 (Order, etc. Applicable upon Reduction or Exemption of Tax or Tax Credit)

Section 5 Special Cases in Calculation ofTax Amount

Article 61 Deleted.

Article 62 (Special Case in Calculation of Tax Amount in Case of Global Taxation on Interest Income, etc.)

Article 63 (Special Case in Calculation of Tax Amount on Excess Refund of Workplace Mutual Aid Association)

Article 64 (Special Case in Calculation of Tax Amount on Real Estate Sales Businessmen)

Section 6 Interim Prepayment, PreliminaryReturn and Payment of Tax

Sub-Section 1 Interim Prepayment

Article 65 (Interim Prepayment)

Articles 66 and 67 Deleted.

Article 68 (Special Cases of Interim Prepayment by Member of Taxpayers Association)

Sub-Section 2 Provisional Return of Gains from Sale of Land, etc. and Payment

Article 69 (Provisional Return on Gains accruing from Sale of Land, etc. and Voluntary Payment by Realtor)

Section 7 Final Return on Tax Base and Voluntary Payment

Article 70 (Final Return on Tax Base of Global Income)

Article 71 (Final Return on Tax Base of Retirement Income)

Article 72 (Final Return on Tax Base of Forest Income)

Article 73 (Exception to Final Return on Tax Base)

Article 74 (Special Case of Final Return on Tax Base)

Article 75 (Application for Reduction and Exemption of Tax Amount)

Article 76 (Voluntary Payment by Final Return)

Article 77 (Payment in Installments)

Section 8 Report and Confirmation on Present Situation of Business Place

Article 78 (Report on Present Situation of Business Place)

Article 79 (Investigation and Confirmation on Present Situation of Business Place)

Section 9 Determination, Rectification, Collection and Refund

Sub-Section 1 Determination and Rectification of Tax Base

Article 80 (Determination and Rectification)

Article 81 (Additional Tax)

Article 82 (Occasional Assessment)

Article 83 (Notification of Tax Base and Amount)

Article 84 (Minimum Taxable Limit of Other Incomes)

Sub-Section 2 Collection and Refund of Tax Amount

Article 85 (Collection and Refund)

Article 85-2 (Refund by Retroactive Deduction of Loss)

Article 86 (Non-Collection of Small Sum)

Section 10 Special Case in Calculation, etc. of Income Amount for Joint Business Place

Article 87 (Special Case in Calculation, etc. of Income Amount for Joint Business Place)

CHAPTER Ⅲ TAX LIABILITY OF RESIDENT ON TRANSFER INCOME

Section 1 Definition of Transfer

Article 88 (Definition of Transfer)

Section 2 Non-Taxation, Reduction and Exemption on Transfer Income

Article 89 (Non-taxable Transfer Income)

Article 90 (Reduction and Exemption of Transfer Income Tax)

Article 91 (Exclusion of Non-Taxation of Transfer Income Tax)

Section 3 Computation of Tax Base and Tax Amount of Transfer Income

Article 92 (Calculation of Tax Base of Transfer Income)

Article 93 (Order in Calculation of Transfer Income Tax Amount)

Section 4 Computation of Transfer Income Amount

Article 94 (Scope of Transfer Income)

Article 95 (Transfer Income Amount)

Article 96 (Transfer Value)

Article 97 (Calculation of Necessary Expenses for Transfer Income)

Article 98 (Time of Transfer or Acquisition)

Article 99 (Computation of Standard Market Price)

Article 100 (Computation of Gains from Transfer)

Article 101 (Wrongful Act and Calculation of Transfer Income)

Article 102 (Separate Calculation of Transfer Income Amounts)

Section 5 Basic Transfer Income Deduction

Article 103 (Basic Transfer Income Deduction)

Section 6 Calculation of Tax Amount on Transfer Income

Article 104 (Rates of Transfer Income Tax)

Section 7 Preliminary Return and Voluntary Payment of Tax Base of Transfer Income

Article 105 (Preliminary Return of Tax Base of Transfer Income)

Article 106 (Voluntary Payment by Preliminary Return)

Article 107 (Calculation of Tax Amount to be Paid by Preliminary Return)

Article 108 (Deduction of Tax Amount paid by Preliminary Return)

Article 109 Deleted.

Section 8 Final Return on Tax Base of Transfer Income and Voluntary Payment

Article 110 (Final Return on Tax Base of Transfer Income)

Article 111 (Voluntary Payment by Final Return)

Article 112 (Payment of Transfer Income Tax in Installments)

Article 112-2 (Payment of Transfer Income Tax in Kind)

Section 9 Determination, Rectification, Collection and Refund of Transfer Income

Article 113 Deleted.

Article 114 (Determination, Rectification and Notification of Transfer Income Tax Base and Tax Amount)

Article 115 (Additional Tax on Transfer Income Tax)

Article 116 (Collection of Transfer Income Tax)

Article 117 (Refund of Transfer Income Tax)

Article 118 (Applicable Provisions)

Section 10 Transfer Income Tax concerning Transfer of Assets in Foreign Countries

Article 118-2 (Scope of Transfer Income)

Article 118-3 (Value of Transfer)

Article 118-4 (Calculation of Necessary Expenses in Transfer Income)

Article 118-5 (Rate of Transfer Income Tax)

Article 118-6 (Deduction of Tax Amount Paid to Other States)

Article 118-7 (Basic Deduction for Transfer Income)

Article 118-8 (Applicable Provisions)

CHAPTER Ⅳ TAX PAYMENT LIABILITY FOR NONRESIDENT

Section 1 Common Provisions concerning Calculation of Tax Amount for Nonresident

Article 119 (Domestic Source Income of Nonresident)

Article 120 (Domestic Business Place of Nonresident)

Article 121 (Method of Taxation on Nonresident)

Section 2 Global Taxation on Nonresident

Article 122 (Calculation of Tax Base and Tax Amount in Case of Global Taxation on Nonresident)

Article 123 (Application of Nonresident for Reduction and Exemption of Tax Amount)

Article 124 (Return and Payment of Nonresident)

Article 125 (Determination and Collection of Tax Base and Tax Amount on Nonresident)

Section 3 Separate Taxation on Nonresident

Article 126 (Calculation of Tax Base and Tax Amount in Case of Separate Taxation on Nonresident)

Article 126-2 (Exception to Filing, Payment, etc. by Nonresidents of Income Tax from Transfer of Securities)

CHAPTER Ⅴ WITHHOLDING TAX

Section 1 Withholding Tax

Sub-Section 1 Withholding Agent, and Collection and Payment

Article 127 (Liability for Withholding)

Article 128 (Payment of Withholding Tax)

Article 129 (Withholding Tax Rates)

Sub-Section 2 Withholding on Interest Income, etc.

Article 130 (Method of Withholding on Interest Income, etc.)

Article 130 (Method of Withholding on Interest Income, etc.)

Article 131 (Fictitious Payment Date of Interest Income)

Article 132 (Fictitious Payment Date of Dividend Income)

Article 133 (Delivery of Withholding Receipt on Interest Income, etc.)

Sub-Section 3 Withholding on Employment Income

Article 134 (Method of Withholding on Employment Income)

Article 135 (Fictitious Payment Date of employment income)

Article 136 (Collected Tax Amount on Bonus, etc.)

Article 137 (Year-End Adjustment of Employment Income Tax Amount)

Article 138 (Year-End Finalizations of Earned Income Tax Amount for Reemployed Person)

Article 139 (Collection of Carry-Over Shortage in Collection)

Article 140 (Report on Income Deduction by Person having employment income)

Article 141 (Income Deduction Report by Reemployed Person)

Article 142 (Report on Service Place)

Article 143 (Delivery of Receipt of Withholding on Employment Income)

Sub-Section 3-2 Withholding Tax on Annuity Income

Article 143-2 (Method of Withholding Tax on Annuity Income)

Article 143-3 Deleted.

Article 143-4 (Year-end Reconcilement of Annuity Income Tax)

Article 143-5 (Carried-over Collection of Deficient Tax Amounts)

Article 143-6 (Return on Income Deduction by Annuity Income Earner)

Article 143-7 (Issuance of Withholding Tax Receipts for Annuity Income)

Sub-Section 4 Collection of Tax on Business Income through Withholding

Article 144 (Method of Collection of Tax on Business Income through Withholding and Delivery of Withholding Receipt)

Article 144-2 (Settlement of Accounts in Year-End on Tax Amount of Business Income Except for Final Return of Tax Base)

Sub-Section 5 Collection of Tax on Other Incomes through Withholding

Article 145 (Method of Collection of Tax on Other Incomes through Withholding and Delivery of Withholding Receipt)

Sub-Section 6 Collection of Tax on Retirement Income through Withholding

Article 146 (Method of Collection of Tax on Retirement Income through Withholding and Delivery of Withholding Receipt)

Article 147 (Fictitious Payment Date of Retirement Income)

Article 148 (Withholding Tax Amount on Retirement Income)

Section 2 Collection of Tax through Withholding by Tax Association

Article 149 (Organization of Tax Association)

Article 150 (Liability of Tax Association for Collection of Taxes)

Article 151 (Payment of Tax Amount Collected by Tax Association)

Article 152 (Method of Collection by Tax Association)

Article 153 (Management of Tax Payment by Tax Association)

Section 3 Special Case of Collection of Tax through Withholding

Article 154 (Exemption from Withholding)

Article 155 (Exclusion from Withholding)

Article 156 (Special Case of Collection through Withholding of Tax on Income Accruing from Domestic Source of Nonresident)

Article 156-2 (Application for Non-Taxation, etc. on Domestic Source Incomes of Nonresident)

Article 157 (Succession to Withholding)

Section 4 Additional Tax for Unfaithfulness in Withholding, Collection and Payment of Tax

Article 158 (Additional Tax for Unfaithfulness in Withholding, Collection and Payment of Tax)

Article 159 (Additional Tax for Nonpayment by Tax Association)

CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS

Article 160 (Keeping and Entry of Books)

Article 160-2 (Reception and Preservation of Evidence of Disbursement of Expenses)

Article 160-3 (Duty to Make and Keep Records on Issue of Contribution Receipts)

Article 160-4 (Duty of Financial Institutions to Make and Keep Records on Issue of Certificates)

Article 161 (Separate Entry)

Article 162 (Installation and Use of Cash Register)

Article 162-2 (Administrative Guideline concerning Subscription for Credit Card Member Store)

Article 163 (Preparation, Delivery, etc. of Account Statement)

Article 164 (Submission of Payment Record)

Article 164-2 (Exception to Duties for Submission of Payment Records on Nonresident’s Domestic Source Income, etc.)

Article 165 Deleted.

Article 166 (Use of Computer Processing Information Data on Resident Registration)

Article 167 (Presentation of Copy of Resident Registration Card)

Article 168 (Registration of Business or Trade Operators and Assignment of Taxpayer Code Numbers)

Article 169 (Payment of Grant)

Article 170 (Question and Investigation)

Article 171 (Consultation)

Article 172 Deleted.

ADDENDA

ADDENDA<Act No. 5031, Dec. 29, 1995>

ADDENDA<Act No. 5108, Dec. 29, 1995>

ADDENDA<Act No. 5155, Aug. 14, 1996>

ADDENDA<Act No. 5191, Dec. 30, 1996>

ADDENDA<Act No. 5193, Dec. 30, 1996>

ADDENDA<Act No. 5259, Jan. 13, 1997>

ADDENDA<Act No. 5291, Jan. 13, 1997>

ADDENDA<Act No. 5374, Aug. 28, 1997>

ADDENDA<Act No. 5424, Dec. 13, 1997>

ADDENDA<Act No. 5493, Dec. 31, 1997>

ADDENDA<Act No. 5503, Jan. 13, 1998>

ADDENDA<Act No. 5532, Apr. 10, 1998>

ADDENDA<Act No. 5552, Sep. 16, 1998>

ADDENDA<Act No. 5559, Sep. 16, 1998>

ADDENDA<Act No. 5580, Dec. 28, 1998>

ADDENDA<Act No. 5994, Aug. 31, 1999>

ADDENDA<Act No. 6051, Dec. 28, 1999>

ADDENDA<Act No. 6124, Jan. 12, 2000>

ADDENDA<Act No. 6276, Oct. 23, 2000>

ADDENDA<Act No. 6292, Dec. 29, 2000>

ADDENDA<Act No. 6429, Mar. 28, 2001>

ADDENDA<Act No. 6557, Dec. 31, 2001>

ADDENDA<Act No. 6781, Dec. 18, 2002>

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

ADDENDA<Act No. 6916, May 29, 2003>

ADDENDA<Act No. 6958, Jul. 30, 2003>

ADDENDA<Act No. 7006, Dec. 30, 2003>

ADDENDA<Act No. 7120, Jan. 29, 2004>

ADDENDA<Act No. 7319, Dec. 31, 2004>

ADDENDA<Act No. 7335, Jan. 14, 2005>