Statutes of the Republic of Korea

No. 9267
Promulgation Date 2008-12-26
Ministry of Finance and Economy

ALL

CHAPTER Ⅰ GENERAL PROVISIONS

Article 1 (Definitions)

Article 2 (Tax Liability)

Article 3 (Scope of Taxable Income)

Article 4 (Real Taxation)

Article 5 (Trust Income)

Article 6 (Business Year)

Article 7 (Change of Business Year)

Article 8 (Legal Fiction of Business Year)

Article 9 (Place of Tax Payment)

Article 10 (Designation of Place of Tax Payment)

Article 11 (Change of Place of Tax Payment)

Article 12 (Jurisdiction of Taxation)

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

Section 1 Tax Base and Its Calculation

Sub-Section 1 Common Provisions

Article 13 (Tax Base)

Article 14 (Income for Each Business Year)

Sub-Section 2 Calculation of Gross Income

Article 15 (Scope of Gross Income)

Article 16 (Legal Fiction of Dividends or Distributions)

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

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

Article 18-2 (Non-Inclusion of Holding Company’s Received Dividend Amount in Gross Income)

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

Sub-Section 3 Calculation of Deductible Expenses

Article 19 (Scope of Deductible Expenses)

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

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

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

Article 22 (Non-Inclusion of Marginal 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 Ex penses)

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

Sub-Section 4 Inclusion of Reserve Funds and Appropriation Funds in Deductible Expenses

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

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

Article 31 Deleted.

Article 32 Deleted.

Article 33 (Inclusion of Allowance for Severance and Retirement Benefits in Deductible Expenses)

Article 34 (Inclusion of Bad Debt Allowance in Deductible Expenses)

Article 35 (Inclusion of Allocation for Payment of Claims for Compensation in Deductible Expenses)

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

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

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

Article 39 Deleted.

Sub-Section 5 Period during Which Gross Income and Deductible Expenses Accrue

Article 40 (Business Year during Which Gross Income and Deductible Expenses Accrue)

Article 41 (Acquisition Value of Assets)

Article 42 (Evaluation of Assets and Liabilities)

Article 43 (Application of Corporate Accounting Standards and Practices)

Sub-Section 6 Special Cases Concerning Mergers and Divisions, etc.

Article 44 (Inclusion of Appropriate Amount of Marginal Profits from Merger Evaluation in Deductible Expenses)

Article 45 (Succession to Losses Carried Forward Following Merger)

Article 46 (Inclusion of Appropriate Amount of Marginal Profits from Division Evaluation in Deductible Expenses)

Article 47 (Inclusion of Reasonable Amount for Asset Transfer Marginal Profits Due to Spin-off in Calculation of Deductible Expenses)

Article 47-2 (Inclusion of Amount Equivalent to Marginal Profits from Transfer of Asset in Deductible Expenses Following Investment in Kind)

Article 48 (Special Cases for Calculation of Income for Corporations which Continue to Exist After Division)

Article 48-2 (Succession of Loses Carried Forward Following Division)

Article 49 (Succession to Assets and Liabilities upon Merger and Division)

Article 50 (Inclusion of Reasonable Amount for Asset Transfer Marginal Profits due to Exchange in Calculation of Deductible Expenses)

Sub-Section 7 Tax Exemption and Income Deduction

Article 51 (Non-Taxable Income)

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

Sub-Section 8 Special Cases concerning Calculation of Income Amount

Article 52 (Repudiation of Wrongful Calculation)

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

Article 54 (Regulations for Calculation of Income Amount)

Section 2 Calculation of Tax Amount

Article 55 (Tax Rates)

Article 55-2 (Special Cases for Taxation on Income Accruing from Land Transfer)

Article 56 Deleted.

Article 57 (Tax Credit, etc. for Tax Amount Paid in Foreign Country)

Article 57-2 (Special Cases for Tax Credit for Foreign Corporate Tax Amount Paid in Foreign Country by Indirect Investment Companies, etc.)

Article 58 (Tax Credit for Losses from Disasters)

Article 58-2 (Tax Credit for Agricultural Income Tax)

Article 58-3 (Tax Credit following Correction due to Wrongful Accounting Handling)

Article 59 (Calculation of Amount of Tax Reduction/Exemption and Tax Deduction)

Section 3 Report and Payment

Article 60 (Report on Tax Base, etc.)

Article 61 (Special Cases concerning Appropriation of Reserve Fund as Deductible Expenses)

Article 62 (Special Cases concerning Tax Base Report of Non-Profit Domestic Corporations)

Article 62-2 (Special Cases concerning Taxation of Income Accruing from Transfer of Assets by Non-profit Domestic Corporation)

Article 63 (Interim Prepayment)

Article 64 (Payment)

Article 65 (Payment in Kind)

Section 4 Determination, Correction, and Collection

Sub-Section 1 Determination and Correction of Tax Base

Article 66 (Determination and Correction)

Article 67 (Disposal of Income)

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

Article 69 (Determination of Occasional Imposts)

Article 70 (Notification of Tax Base and Tax Amount)

Sub-Section 2 Collection and Return of Tax Amount

Article 71 (Collection and Return)

Article 72 (Refund by Retroactive Deduction of Deficits)

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

Article 73 (Withholding)

Article 74 (Issuance of Withholding Receipt)

Article 75 (Non-Collection of Small Amounts)

Article 76 (Additional Taxes)

CHAPTER Ⅱ-2 CORPORATE TAX ON INCOME OF FAITHFUL SMALL AND MEDIUM CORPORATIONS FOR EACH BUSINESS YEAR

Section 1 Tax Base and Its Calculation

Article 76-2 (Application of Faithful Tax Payment Method)

Article 76-3 (Special Cases for Calculation of Tax Base)

Section 2 Calculation of Tax Amount

Article 76-4 (Calculation of Tax Amount)

Article 76-5 (Standard Tax Deduction)

Article 76-6 (Tax Deduction for Increase in Revenue)

Section 3 Report, Payment, etc.

Article 76-7 (Report, Payment, etc.)

CHAPTER Ⅱ-3 CORPORATE TAX ON INCOME OF EACH CONSOLIDATED BUSINESS YEAR

Section 1 Common Provisions

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

Article 76-9 (Cancellation of Consolidated Tax Return System)

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

Article 76-11 (Addition of Consolidated Subsidiary Corporation)

Article 76-12 (Exclusion of Consolidated Subsidiary Corporation)

Section 2 Tax Base and Its Calculation

Article 76-13 (Tax Base)

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

Section 3 Calculation of Tax Amount

Article 76-15 (Consolidated Calculated Tax Amount)

Article 76-16 (Reduction, Exemption, etc. of Tax Amount)

Section 4 Return and Payment

Article 76-17 (Return of Consolidated Tax Base, etc.)

Article 76-18 (Consolidated Interim Prepayment)

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

Section 5 Decision, Rectification, Collection, etc.

Article 76-20 (Decision, Rectification, Collection, etc.)

Article 76-21 (Additional Tax)

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

CHAPTER Ⅲ CORPORATE TAX ON LIQUIDATION INCOME OF DOMESTIC CORPORATION

Section 1 Tax Base and Its Calculation

Article 77 (Tax Base)

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

Article 79 (Calculation of Liquidation Income Accruing from Dissolution)

Article 80 (Calculation of Liquidation Income from Merger)

Article 81 (Calculation of Liquidation Income Amount due to Division)

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

Section 2 Calculation of Tax Amount

Article 83 (Tax Rate)

Section 3 Report and Payment

Article 84 (Settlement Report)

Article 85 (Interim Report)

Article 86 (Payment)

Section 4 Settlement, Correction, and Collection

Article 87 (Settlement and Correction)

Article 88 (Notification of Tax Base and Tax Amount)

Article 89 (Collection)

Article 90 (Exclusion from Application of Additional Amounts, etc. to Liquidation Income)

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

Section 1 Tax Base and Its Calculation

Article 91 (Tax Base)

Article 92 (Calculation of Amount of Income Generated from Sources in Korea)

Article 93 (Income Generated from Sources in the Republic of Korea)

Article 94 (Domestic Place of Business of Foreign Corporation)

Section 2 Calculation of Tax Amount

Article 95 (Tax Rate)

Article 95-2 (Special Cases for Taxation on Income Accruing from Transfer of Land, etc. by Foreign Corporation)

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

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

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

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

Article 98-2 (Special Cases for Report, Payment, etc. on Income Accruing from Transfer of Securities by Foreign Corporations)

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

Article 98-4 (Application for Non-Taxation on Income Generated from Sources in Korea by Foreign Corporation)

Article 98-5 (Special Case for Procedures for Collecting Withholding Taxes from Foreign Corporations)

Article 99 (Special Cases for Return and Payment Concerning Income of Foreign Corporation from Human Services)

CHAPTER Ⅴ Deleted.

CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS

Article 109 (Report on Establishment or Foundation of Corporation)

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

Article 111 (Registration of Business)

Article 112 (Keeping of Account Books)

Article 112-2 (Liability to Prepare and Keep Detailed Statement of Donation Receipt Issuance)

Article 113 (Separate Accounting)

Article 114 Deleted.

Article 115 Deleted.

Article 116 (Receipt and Preservation of Documentary Evidence of Expenditures)

Article 117 (Duty to Join Credit Card Affiliate Membership and to Issue Credit Card Sales Slips, etc.)

Article 117-2 (Duty to Join Cash Receipt Affiliate Membership and to Issue Cash Receipts, etc.)

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

Article 119 (Submission of Detailed Statement on Change of Stocks)

Article 120 (Duty to Submit Payment Statements)

Article 120-2 (Special Cases for Duty to Submit Payment Statements on Income, etc. Generated from Sources in Korea by Foreign Corporations)

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

Article 121 (Preparation and Issuance of Invoice)

Article 122 (Inquiry and Investigation)

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>