Statutes of the Republic of Korea

No. 6372
Promulgation Date 2001-01-16
Ministry of Economy and Finance

ALL

CHAPTER Ⅰ GENERAL PROVISIONS

Article 1 (Purpose)

Article 2 (Definitions)

Article 3 (Restrictions of Special Taxation)

CHAPTER Ⅱ DIRECT NATIONAL TAXES

Section 1 Special Taxation for Small and Medium Enterprises

Article 4 (Inclusion of Investment Reserves of Small and Medium Enterprises in Deductible Expenses)

Article 5 (Tax Deduction for Investments by Small or Medium Enterprises)

Article 6 (Tax Abatement or Exemption for Small and Medium Start-Up Enterprises)

Article 7 (Special Tax Abatement or Exemption for Small or Medium Enterprises)

Article 7-2 (Tax Deduction for Improving Bills System of Enterprise)

Article 8 (Special Cases, etc. to Inclusion for Donation of Facilities for Support of Small and Medium Enterprises in Deductible Expenses)

Article 8-2 (Inclusion of Business Loss Reserves for KSE-listed or KOSDAQregistered Small or Medium Businesses in Deductible Expenses)

Section 2 Special Taxation for Development of Technology and Human Resources

Article 9 (Inclusion of Research and Human Resources Development in Deductible Expenses)

Article 10 (Tax Credit for Research and Human Resources Development Expenses)

Article 11 (Tax Credit for Capital Investment for Research and Human Resouces Development)

Article 12 (Special Taxation on Income from Technology Transfer, etc.)

Article 13 (Tax Exemption on Profits from Stock Transfer by Small or Medium Start-Up Business Investment Company, etc.)

Article 14 (Special Taxation on Investments in Small or Medium StartUp Business Investment Company, etc.)

Article 15 (Special Taxation on Stock Option)

Article 16 (Income Deduction for Investment in Small and Medium Business Investment Association)

Article 17 (Inclusion of Investment or Loan Loss Reserves in Deductible Expenses)

Article 18 (Exemption of Income Tax for Foreign Engineers)

Article 19 Deleted.

Section 3 Special Taxation for International Capital Transactions

Article 20 (Special Taxation for Introduction of Public Loans)

Article 21 (Exemption from Corporate Tax, etc. on Interest Income, etc. Pursuant to International Financial Transactions)

Article 22 (Exemption of Corporate Tax on Dividend Income from Investment in Overseas Resource Development Projects)

Article 23 (Inclusion of International Ship Transfer Margin in Deductible Expenses)

Section 4 Special Taxation for Investment Promotion

Article 24 (Tax Credit for Investment in Productivity Improvement Facilities)

Article 25 (Tax Credit for Investment in Specific Equipment)

Article 25-2 (Tax Credit for Investment in Energy Conserving Facilities)

Article 26 (Temporary Tax Credit for Investment)

Articles 27 and 27-2 Deleted.

Article 28 (Inclusion of Infrastructure Investment Reserves in Deductible Expenses)

Article 29 (Separate Taxation on Interest Income from Infrastructure Bonds)

Article 30 Deleted.

Section 5 Special Taxation for Corporate Restructuring

Article 31 (Carried-Forward Taxation of Transfer Income Tax, etc. on Consolidation of Small or Medium Enterprises)

Article 32 (Carried-Forward Taxation of Transfer Income Tax for Conversion into Corporation)

Article 33 (Abatement or Exemption, etc. of Transfer Income Tax, etc. for Business-Converted Small or Medium Enterprises, etc.)

Article 34 (Tax Abatement or Exemption for Business-Converted Small or Medium Enterprise)

Article 35 (Abatement or Exemption of Transfer Income Tax, etc. for Relocating Existing Business Places)

Article 36 (Abatement or Exemption of Transfer Income Tax, etc. for Support of Small or Medium Enterprise Operators’ Management Stability)

Article 37 (Abatement or Exemption, etc. of Special Surtax for Support, etc. of Corporate Financial Structure Improvement)

Article 38 (Special Taxation on Investments in Kind)

Article 38-2 (Special Taxation on Holding Company Incorporated by Investment in Kind or Exchange of Stocks)

Article 39 (Special Taxation on Acceptance and Redemption, etc. of Guarantee Liabilities)

Article 40 (Abatement or Exemption of Transfer Income Tax on Transfer of Assets by Stockholders, etc.)

Article 41 (Special Taxation of Corporate Tax, etc. on Assets Donated by Stockholders)

Article 41-2 (Special Taxation on Assets Donated by Entrusting Companies’ Stockholders )

Article 42 (Abatement or Exemption of Transfer Income Tax, etc. for Support of Corporate Mergers, Business Transfers, Take-Overs, etc.)

Article 43 (Abatement or Exemption, etc. of Transfer Income Tax, etc. on Acquisitor of Real Estates Subject to Restructuring)

Article 43-2 (Special Taxation of Corporate Tax on Transfer Margin from Land, etc. Acquired for Support of Corporate Restructuring)

Article 44 (Special Taxation on Debt Exemption Gains of Corporation Made Decision of Approval of Reorganization Programs)

Article 45 (Special Taxation on Corporate Restructuring)

Article 45-2 (Special Taxation on Business Division under Corporate Restructuring Program)

Article 46 (Special Taxation on Stock Exchange between Enterprises)

Article 46-2 (Abatement or Exemption of Transfer Income Tax, etc. for Investment in Kind by Venture Enterprise Stockholders)

Article 47 (Special Taxation on Stock Exchange by New Corporations, etc.)

Article 47-2 (Special Taxation on Succession of Carried Forward Losses in Mergers, etc.)

Section 6 Special Taxation For Restructuring Financial Institutions

Article 48 (Special Taxation for Financial Institutions, etc.)

Article 49 (Special Taxation of Corporate Tax, etc. for Merger between Financial Institutions)

Article 50 (Abatement or Exemption of Special Surtax for Merger of Financial Institutions)

Article 51 (Abatement or Exemption of Special Surtax on Transfer of Real Estates Pursuant to Restructuring of Financial Industry)

Article 52 (Special Taxation of Corporate Tax on Asset Purchases and Assumptions by Financial Institutions)

Article 52-2 (Special Taxation for Incorporation of Financial Holding Company, etc.)

Article 53 Deleted.

Article 54 (Special Taxation on Securities Investment Companies, etc. under Restructuring)

Article 55 (Special Taxation on Vulture Funds, etc.)

Article 56 (Abatement or Exemption of Special Surtax on ABS Companies)

Article 57 (Business Year for Profit and Loss Derived from Investments in Securities Market Stabilization Fund, etc.)

Section 7 Special Taxation for Balanced Regional Development

Articles 58 and 59 Deleted.

Article 60 (Abatement or Exemption of Transfer Income Tax, etc. for Relocating Factory to Local Areas)

Article 61 (Abatement or Exemption of Special Surtax on Relocating Corporate Headquarters Outside Seoul Metropolitan Area)

Article 62 (Tax Credit for Investment in Equipment by Enterprises Relocated to Local Area)

Article 63 (Tax Abatement or Exemption for Small or Medium Enterprises Relocated Outside Seoul Metropolitan Area)

Article 63-2 (Temporary Tax Credit for Relocation of Corporations’ Factory and Head Office Outside Seoul Metropolitan Life Zone)

Article 64 (Tax Abatement or Exemption for Enterprises, etc. Housed in Agro-industrial Complex, etc.)

Article 65 Deleted.

Article 66 (Corporate Tax Exemption, etc. for Cooperative Farming Corporations, etc.)

Article 67 (Exemption, etc. of Corporate Tax for Cooperative Fishing Corporations, etc.)

Article 68 (Tax Abatement or Exemption for Incorporated Agricultural Company)

Article 69 (Exemption of Transfer Income Tax, etc. for Self-Cultivating Farmland)

Article 70 (Abatement or Exemption of Transfer Income Tax, etc. on Relocation of Livestock Raising Farms)

Article 71 (Abatement or Exemption of Transfer Income Tax, etc. on Transfer of Factory Operated for Over 5 Years)

Section 8 Special Taxation for Support of Public Projects

Article 72 (Special Taxation of Corporate Tax on Incorporated Cooperatives, etc.)

Article 72-2 (Special Taxation on Corporate Tax for Merger of National Agricultural Cooperatives Federation, etc.)

Article 73 (Special Cases of Inclusion of Donation in Deductible Expenses)

Article 74 (Special Cases of Inclusion of Proper Business Reserves in Deductible Expenses)

Article 75 (Inclusion of Distribution Improvement Support Reserves in Deductible Expenses)

Article 76 (Special Cases, etc. of Inclusion of Political Funds in Deductible Expenses)

Article 77 (Abatement or Exemption of Transfer Income Tax on Land for Public Projects)

Article 78 (Abatement or Exemption of Transfer Income Tax for Development Project Operators)

Article 79 (Abatement or Exemption of Transfer Income Tax on Land Transferred to State, etc.)

Article 80 (Abatement or Exemption of Transfer Income Tax on Land for Construction of People’s Houses)

Article 81 (Exemption of Special Surtax on School Foundation’s Land, etc.)

Article 81-2 (Special Cases of Imposition of Gift Tax for Dissolved School Foundation)

Article 82 (Exemption of Special Surtax on Social Welfare Corporation, etc.)

Article 83 (Exemption of Transfer Income Tax for Relocation of Museum, etc.)

Article 84 (Abatement and Exemption of Special Surtax for Agricultural Cooperatives, etc.)

Article 85 (Exemption of Special Surtax for Busan Asian Games Organizing Committee)

Section 9 Special Taxation for Support of Savings

Article 86 (Income Deduction for Private Annuity Savings)

Article 86-2 (Income Deduction, etc. for Annuity Savings)

Article 87 (Non-Taxation on Long-term Savings for Home Purchase)

Article 88 (Non-Taxation on Employed Workers Favored Savings)

Article 88-2 (Non-Taxation on Livelihood Savings of Aged and Disabled)

Article 88-3 (Non-Taxation, etc. on Securities Investment Trust Savings)

Article 88-4 (Non-Taxation of Income Tax on Employee Stock of Longterm Holding)

Article 88-5 (Non-Taxation, etc. on Investments in Cooperatives, etc.)

Article 88-6 (Tax Deduction, etc. on Employee Stock Savings)

Article 89 (Special Cases of Withholding Tax on Tax-Favored Comprehensive Savings)

Article 89-2 (Special Cases of Tax Withholding on Home Purchase Savings)

Article 89-3 (Lower Taxation, etc. on Deposits in Cooperatives, etc.)

Article 90 Deleted.

Article 90-2 (Penalty Tax on Failure to Furnish Tax-Favored Savings Data)

Article 91 (Special Cases of Withholding Tax on Dividend Income of Longterm Held Stocks)

Article 91-2 (Special Taxation on Dividends of Securities Investment Companies)

Section 10 Special Taxation for Stabilization of People¡?s Living

Article 92 (Separate Taxation, etc. on Lottery Prize Income)

Article 93 (Special Cases of Taxable Amount Exclusion for Inheritance Tax Calculation on Employee Held Stocks)

Article 94 (Tax Credit for Investment in Facilities to Promote Employees’ Welfare)

Article 95 (Tax Abatement or Exemption for Business Operating Dormitory)

Article 96 Deleted.

Article 97 (Abatement or Exemption of Transfer Income Tax, etc. on LongTerm Rental Houses)

Article 97-2 (Special Cases of Abatement or Exemption of Transfer Income Tax, etc. on Newly Built Rental Houses)

Article 98 (Special Taxation on Houses Unsold in Lots)

Article 99 (Exemption of Transfer Income Tax for Purchasers of Newly Built Houses)

Article 99-2 (Special Cases of Transfer Income Tax on House Transfer for Acquisition of Newly Built Houses)

Article 99-3 (Abatement or Exemption of Transfer Income Tax on Acquisitors of Newly Built Houses Outside Seoul Metropolitan Area)

Article 100 (Special Taxation for Assistance to Employees’ Housing Stability)

Section 11 Special Taxation for Other Direct National Taxes

Article 101 (Deduction of Income for Livestock Raising Business)

Article 102 (Tax Abatement or Exemption for Forest Development Income)

Article 103 Deleted.

Article 104 (Special Cases of Inclusion of Waste Disposal Deposits in Deductible Expenses)

Article 104-2 (Subsidies to Fishery Business Operators Affected by Fishery Treaties)

Article 104-3 (Inclusion of Treasury Stock Disposal Loss Reserves by KSEListed or KOSDAQ-Registered Corporations in Deductible Expenses)

CHAPTER Ⅲ INDIRECT NATIONAL TAXES

Article 105 (Application of Zero Tax Rate to Value-Added Tax)

Article 106 (Exemption, etc. of Value-Added Tax)

Article 106-2 (Abatement or Exemption of Value-Added Tax, etc. for Petroleum Products for Farming, Fishing and Coastal Passenger Ships)

Article 107 (Special Cases of Indirect Taxes on Foreign Business Operators, etc.)

Article 108 (Special Cases of Purchase Value-Added Tax Deduction on Recycled Waste Resources, etc.)

Article 109 (Exemption of Special Consumption Tax on Goods Difficult to Produce in Korea)

Article 110 (Exemption of Special Consumption Tax on Passenger Cars for Diplomats, etc.)

Article 111 (Exemption of Special Consumption Tax or Traffic Tax on Petroleum Products)

Articles 112 and 112-2 Deleted.

Article 113 (Procedures, etc. for Abatement or Exemption of Special Consumption Tax and Traffic Tax)

Article 114 (Exemption of Special Consumption Tax and Liquor Tax on Goods Sold to Military Personnel)

Article 115 (Exemption of Liquor Tax)

Article 116 (Exemption of Stamp Tax)

Article 117 (Exemption of Securities Transaction Tax)

Article 118 (Abatement of Customs)

CHAPTER Ⅳ LOCAL TAXES

Article 119 (Exemption of Registration Tax)

Article 120 (Exemption of Acquisition Tax)

Article 121 (Abatement of Property Tax)

CHAPTER Ⅴ SPECIAL TAXATION FOR FOREIGNERS’ INVESTMENT, ETC.

Article 121-2 (Abatement or Exemption of Corporate Tax for Foreigners’ Investment)

Article 121-3 (Exemption of Customs, etc.)

Article 121-4 (Tax Abatement or Exemption for Capital Increase)

Article 121-5 (Retroactive Collection of Taxes)

Article 121-6 (Tax Abatement or Exemption on Technical License Royalties)

Article 121-7 (Delegation of Authority)

CHAPTER Ⅵ OTHER SPECIAL TAXATION

Section 1 Special Taxation for Legalization of Tax Base

Article 122 (Tax Credit on Increased Revenue Amounts)

Article 123 (Deduction of Income Tax for Small Businesses Filing BonaFide Returns)

Article 124 Deleted.

Article 125 (Reduction of Value Added Tax for Businesses Filing BonaFide Returns)

Article 126 Deleted.

Article 126-2 (Income Deduction for Amounts Spent by Credit Cards, etc.)

Section 2 Restriction, etc. of Special Taxation

Article 127 (Elimination of Overlapping Supports)

Article 128 (Exclusion from Abatement and Exemption for Estimated Taxation, etc.)

Article 129 (Exclusion from Abatement or Exemption, etc. of Special Surtax)

Article 130 (Exclusion of Investment in Seoul Metropolitan Area from Tax Abatement or Exemption)

Article 131 (Exclusion from Abatement or Exemption of Transfer Income Tax for Relocating Factory, etc. into Seoul Metropolitan Area)

Article 132 (Minimum Tax)

Article 133 (Aggregate Ceiling of Abatement or Exemption of Transfer Income Tax)

Article 134 (Aggregate Ceiling of Abatement or Exemption of Special Surtax)

Article 135 (Exclusion of Interest Paid by Excessively Indebted Corporate from Deductible Expenses)

Article 136 (Special Cases of Exclusion of Entertainment Expenses From Deductible Expenses)

Article 137 (Exclusion from Operating Expenses of Consumptive Service Businesses’s Advertising and Publicity Expenses)

Article 138 (Presumed Income from Rental Deposits)

Article 139 (Special Cases of Calculating Income for Small Business Converted into Corporation)

Article 140 (Special Cases of Taxation for Submarine Mineral Resources Development)

Article 141 (Special Cases of Tax Imposition on Registration of Real Estate in Actual Title-holder’s Name)

CHAPTER Ⅶ SUPPLEMENTARY PROVISIONS

Article 142 (Ex-Ante and Ex-Post Management of Special Taxation)

Article 143 (Separate Accounting)

Article 144 (Deduction of Carried-Over Tax Credit)

Article 145 (Reserve Accumulation for Business Rationalization)

Article 146 (Retroactive Collection of Abated or Exempted Tax Amounts)

ADDENDA

ADDENDA<Act No. 5960, Mar. 31, 1999>

ADDENDA<Act No. 5980, Apr. 30, 1999>

ADDENDA<Act No. 5982, May 24, 1999>

ADDENDA<Act No. 5996, Aug. 31, 1999>

ADDENDA<Act No. 6045, Dec. 28, 1999>

ADDENDA<Act No. 6054, Dec. 28, 1999>

ADDENDA<Act No. 6055, Dec. 28, 1999>

ADDENDA<Act No. 6073, Dec. 31, 1999>

ADDENDA<Act No. 6136, Jan. 12, 2000>

ADDENDA<Act No. 6194, Jan. 21, 2000>

ADDENDA<Act No. 6273, Oct. 21, 2000>

ADDENDA<Act No. 6297, Dec. 29, 2000>

ADDENDA<Act No. 6299, Dec. 29, 2000>

ADDENDA<Act No. 6305, Dec. 29, 2000>

ADDENDA<Act No. 6312, Dec. 29, 2000>

ADDENDA<Act No. 6372, Jan. 16, 2001>