Statutes of the Republic of Korea

No. 6194
Promulgation Date 2000-01-21
Ministry of Economy and Finance

ALL

CHAPTER Ⅰ GENERAL PROVISIONS

Article 1 (Purpose)

Article 2 (Definitions)

Article 3 (Restrictions on Special Taxation)

CHAPTER Ⅱ DIRECT NATIONAL TAX

Section 1 Special Taxation for Small and Medium Businesses

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

Article 5 (Tax Credit for Investments by Small and Medium Enterprise)

Article 6 (Reduction and Exemption of Tax Amount for Small and Medium Start-Up Enterprise)

Article 7 (Special Reduction and Exemption of Tax Amount for Small and Medium Manufacturing Industry)

Article 8 (Special Cases for Inclusion of Deductible Expenses with Respect to Facilities and Equipment of Small and Medium Enterprises)

Article 8-2 (Inclusion of Business Loss Reserves in Deductible Expenses for Small Businesses Registered with Association)

Section 2 Special Taxation for Development of Technology and Manpower

Article 9 (Inclusion of Technical Development Reserves in Expenses)

Article 10 (Tax Credit for Technology and Manpower Development Expenses)

Article 11 (Tax Credit for Investment in Equipment to Develop Technology and Manpower)

Article 12 (Reduction and Exemption of Tax on Income from Technological Transfer)

Article 13 (Non-Imposition of Capital Gains Tax on Stock Transfer of Small Start-Up Investment Company, etc.)

Article 14 (Special Taxation on Investments in Small and Medium Enterprise Start-Up Investment Company)

Article 15 (Special Taxation on Stock Option)

Article 16 (Income Deduction for Contribution to Small and Medium Enterprise Investment Cooperative)

Article 17 (Inclusion of Investment and Financing Loss Reserves in Expenses)

Article 18 (Exemption from Income Tax for Foreign Engineer or Technician)

Article 19 (Income Deduction for Field Technical Manpower in Capital Goods Industry)

Section 3 Special Taxation for International Capital Transactions

Article 20 (Special Taxation Pursuant to Inducement of Public Loans)

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

Article 22 (Exemption from Corporate Tax on Income from Dividends on Overseas Resources Development Investment)

Article 23 (Inclusion of Gains on Transfer of International Ships in Expenses)

Section 4 Special Taxation for Promotion of Investment

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

Article 25 (Tax Credit for Investment in Specific Equipment)

Article 26 (Tax Credit for Temporary Investment)

Article 27 (Tax Credit for Investment in Used Facilities and Equipment)

Article 27-2 (Tax Credit for Disposal of Excess Production Facilities and Equipment)

Article 28 (Inclusion of Social Overhead Capital Investment Reserves in Expenses)

Article 29 (Special Cases for Tax Rates on Interest Income of Social Overhead Capital Bonds)

Article 30 (Inclusion of Energy-Saving Facilities Investment Reserves in Expenses)

Section 5 Special Taxation for Corporate Restructuring

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

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

Article 33 (Reduction and Exemption of Transfer Income Tax for BusinessConverted Small and Medium Enterprises)

Article 34 (Reduction and Exemption for Tax Amount for BusinessConverted Small and Medium Enterprise)

Article 35 (Reduction and Exemption of Transfer Income Tax, etc. for Relocation of Existing Business Place)

Article 36 (Reduction and Exemption of Transfer Income Tax, etc. for Support for Managerial Stability of Small and Medium Enterprise Owner)

Article 37 (Exemption, etc. of Special Surtax for Support, etc. to Improvement of Financial Structure of Corporations)

Article 38 (Special Taxation on Investments in Kind)

Article 38-2 (Reduction and Exemption of Special Surtax on Spin-off Enterprises)

Article 39 (Special Taxation on Acceptance and Performance of Guarantee Liabilities)

Article 40 (Reduction and Exemption of Transfer Income Tax Pursuant to Transfer of Assets by Stockholder, etc.)

Article 41 (Special Taxation of Corporate Tax, etc. on Asset Donation by Stockholders)

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

Article 42 (Abatement of Transfer Income Tax for Supporting Corporate Mergers, Business Transfer and Take-Over, etc.)

Article 43 (Reduction in and Exemption from Transfer Income Tax, etc. on Acquirers of Real Estate to be Restructured)

Article 44 (Special Case for Taxation of Debt Exemption Income of Corporation under Approved Reorganization Plan)

Article 45 (Special Taxation on Workouts)

Article 46 (Special Taxation on Stock Exchange between Enterprises)

Article 46-2 (Abatement of Transfer Income Tax for Exchange of Stocks, etc. of Venture Enterprises)

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

Article 47-2 (Special Taxation on Succession of Loss Carried Forward in Merger)

Section 6 Special Taxation For Restructuring Financial Institutions

Article 48 (Special Taxation for Financial Institutions)

Article 49 (Special Taxation of Corporate Tax on Financial Institution Merger)

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

Article 51 (Reduction in and Exemption from Special Surtax on Transfer of Real Estate Pursuant to Structural Improvement of Financial Industry)

Article 52 (Special Cases of Imposition of Corporate Tax on Purchases and Assumptions by Financial Institutions)

Article 53 Deleted.

Article 54 (Special Taxation on Corporate Restructuring Mutual Funds)

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

Article 56 (Reduction in and Exemption from Special Surtax on Special Purpose Companies)

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

Section 7 Special Taxation for Balanced Develop-ment Among Regions

Articles 58 and 59 Deleted.

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

Article 61 (Abatement and Exemption of Special Surtax on Corporate Headquarters Relocated from Seoul Metropolitan Area to other Area)

Article 62 (Tax Credit for Investment in Equipment of Enterprise Relocated to Local Area)

Article 63 (Abatement and Exemption of Tax Amount for Small and Medium Enterprises Relocated to Areas Outside Seoul Metropolitan Area)

Article 63-2 (Temporary Special Tax Abatement, etc. for Corporations’ Factory and Head Office Relocated to Areas Outside Seoul Metropolitan Life Zone)

Article 64 (Reduction and Exemption of Tax Amount for Enterprise, etc. Housed in Agricultural and Industrial Complex)

Article 65 (Tax Reduction and Exemption, etc. for Construction of New Hospital in Underprivileged Area in Medical Service)

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

Article 67 (Exemption, etc. of Corporate Tax for Incorporated Fishing Cooperatives, etc.)

Article 68 (Tax Reduction and Exemption for Agricultural Company)

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

Article 70 (Reduction and Exemption of Transfer Income Tax, etc. on Transfer of Ranch Run)

Article 71 (Reduction and Exemption of Transfer Income Tax, etc. on Transfer of Factory Operated for Five Years or More)

Section 8 Special Taxation for Support of Public Activities

Article 72 (Special Cases of Imposition of Corporate Tax on Incorporated Cooperative)

Article 73 (Special Cases of Inclusion of Contribution in Expenses)

Article 74 (Special Cases of Inclusion of Reserve for Proper Purpose Business in Expenses)

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

Article 76 (Special Cases of Inclusion of Political Funds in Expenses)

Article 77 (Reduction in and Exemption from Transfer Income Tax on Land for Public Activities)

Article 78 (Abatement or Exemption of Transfer Income Tax for Developers)

Article 79 (Reduction in and Exemption from Transfer Income Tax on Land Transferred to State, etc.)

Article 80 (Reduction in and Exemption from Transfer Income Tax on Land for Construction of National Housing)

Article 81 (Exemption from Special Surtax on Land of School Foundation)

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

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

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

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

Section 9 Special Taxation for Support of Savings

Article 86 (Income Deduction from Private Annuity Savings)

Article 87 (Non-Taxation on Long-term Savings for Purchasing Houses)

Article 88 (Non-Taxation on Workers Favored Savings)

Article 89 (Special Cases of Withholding on Interest and Dividend Income)

Article 89 (Special Cases for Withholding Tax on Interest and Dividend Income)

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

Article 90 (Separate Taxation on Housekeeping Fund Savings)

Article 90 Deleted. ≪Enforcement Date: Jan. 1, 2001≫

Article 90-2 (Special Cases for Tax Withholding on Home Purchase Savings)

Article 91 (Special Cases of Withholding on Dividend Income of LongtermHeld Stocks)

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

Section 10 Special Taxation for Stabilization of National Living

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

Article 93 (Special Cases of Noninclusion in Taxable Amount of Inheritance Tax on Employees Stocks)

Article 94 (Tax Credit for Equipment Investment to Promote Workers’ Welfare)

Article 95 (Reduction and Exemption of Tax Amount for Business Operating Dormitory)

Article 96 (Special Case of Tax Credit on National Pension Premium)

Article 97 (Reduction and Exemption of Transfer Income Tax, etc. on LongTerm Rental House)

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

Article 98 (Special Case of Taxation on Houses Unsold in Lots)

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

Article 100 (Special Taxation for Assistance to Workers’ Residential Stability)

Section 11 Special Taxation for Other Direct National Taxes

Article 101 (Deduction of Income for Livestock Industry)

Article 102 (Reduction and Exemption of Tax Amount for Forest Development Income)

Article 103 (Tax Credit for Investment in Medical Instruments)

Article 104 (Special Cases of Inclusion of Waste Deposits and Surplus Food Value in Expenses)

Article 104-2 (Subsidies for Fishery Business Operators in Connection with Fishery Treaties)

CHAPTER Ⅲ INDIRECT NATIONAL TAXES

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

Article 106 (Exemption of Value Added Tax)

Article 107 (Special Cases of Indirect Tax on Foreign Businessman, etc.)

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

Article 109 (Exemption of Special Consumption Tax on Goods Whose Production Is Difficult 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 Oils)

Articles 112 and 112-2 Deleted.

Article 113 (Procedure, etc. for 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 (Reduction 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 FOREIGN INVESTMENT

Article 121-2 (Reduction and Exemption of Corporate Tax for Foreign Investment)

Article 121-3 (Exemption from Customs Duties)

Article 121-4 (Tax Reduction or Exemption of Capital Increase)

Article 121-5 (Additional Collection of Taxes)

Article 121-6 (Tax Reduction or Exemption of Royalties for Technical License)

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 Increase of Receipt Amount)

Article 123 (Tax Credit Paid for Income Tax to Small Businessmen who Make Bona-Fide Returns)

Article 124 (Reduction of Payable Tax Amount of Value-Added Tax for Businessman, etc. who has Introduced Point-of-Sale System)

Article 125 (Reduction of Payable Tax Amount of Value Added Tax for Businessmen who Make Bona-Fide Returns)

Article 125 (Reduction of Payable Tax Amount of Value Added Tax for Businessmen who Make Bona-Fide Returns)

Article 126 (Tax Credit for Investments in Establishment of Point-Of-Sale System)

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

Section 2 Restriction, etc. of Special Taxation

Article 127 (Exclusion of Overlapping Assistance)

Article 128 (Exclusion of Abatement and Exemption in Case of Estimated Taxation)

Article 129 (Exclusion from Reduction and Exemption, etc. of Special Surtax)

Article 130 (Exclusion of Tax Reduction and Exemption on Investment in National Capital Region)

Article 131 (Exclusion from Reduction and Exemption of Transfer Income Tax for Case, etc. of Moving Factory into Seoul Metropolitan Area)

Article 132 (Minimum Tax)

Article 133 (Aggregate Ceiling of Reduction and Exemption from Transfer Income Tax)

Article 134 (Aggregate Ceiling of Reduction and Exemption from Special Surtax)

Article 135 (Non-Inclusion of Interest Paid by Corporations Which Obtain Excessive Loans in Expenses)

Article 136 (Special Cases of Non-Inclusion of Entertainment Expenses in Expenses)

Article 137 (Non-Inclusion in Expenses of Advertising and General Promotion Expenses by Consumption Service Business)

Article 138 (Deemed Gross Income of 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 Imposition of Taxes on Registration of Real Estate under Actual Titleholder’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 Amount of Carried-Over Tax Credit)

Article 145 (Accumulation of Reserve for Enterprise Rationalization)

Article 146 (Additional Collection of Reduced or Exempted Tax Amount)

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>