Statutes of the Republic of Korea

No. 20775
Promulgation Date 2025-03-14
Ministry of Finance and Economy

ALL

CHAPTER I GENERAL PROVISIONS

Article 1 (Purpose)

Article 2 (Definition)

Article 3 (Taxpayer)

Article 4 (Scope of taxable income)

Article 5 (Trust income)

Article 6 (Business year)

Article 7 (Change of business year)

Article 8 (Constructive business years)

Article 9 (Place of tax payment)

Article 10 (Designation of place for tax payment)

Article 11 (Alteration of place of tax payment)

Article 12 (Jurisdiction of taxation)

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

SECTION 1 Tax Base and Calculation Thereof

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 (Constructive dividends or distributions)

Article 17 (Non-inclusion of gains from capital transactions in gross income)

Article 18 (Non-inclusion of evaluation profits in gross income)

Article 18-2 (Non-inclusion of domestic corporations' dividend income in gross income)

Article 18-3 Deleted.

Article 18-4 (Non-inclusion of dividend income of foreign subsidiaries in gross income)

Sub-Section 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 in deductible expenses)

Article 21 (Non-inclusion of taxes and public charges in deductible expenses)

Article 21-2 (Non-inclusion of punitive damages 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 business promotion 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 27-2 (Special cases, including exclusion of expenses incurred in relation to passenger vehicles for business use from deductible expenses)

Article 28 (Non-inclusion of interest expenses 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 business in deductible expenses for non-profit domestic corporation)

Article 30 (Inclusion of liability reserve funds in deductible expenses)

Article 31 (Inclusion of contingency reserve funds in deductible expenses)

Article 32 (Inclusion of surrender value reserve fund in deductible expenses)

Article 33 (Inclusion of retirement benefit appropriation funds 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 in deductible expenses)

Article 37 (Inclusion of value of business assets acquired with construction charges in deductible expenses)

Article 38 (Inclusion of value of assets acquired with insurance marginal profits in deductible expenses)

Article 39 Deleted.

Sub-Section 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 K-IFRS)

Article 42-3 (Special cases concerning calculation of income for insurance company applying Korean International Financial Reporting Standards)

Article 43 (Application of corporate accounting standards and practices)

Sub-Section 6 Special Cases concerning Mergers and Divisions

Article 44 (Taxation on merged corporation upon merger)

Article 44-2 (Taxation on surviving corporation upon merger)

Article 44-3 (Special provisions concerning taxation on surviving corporation upon qualified merger)

Article 45 (Restriction on deduction of losses carried forward upon merger)

Article 46 (Taxation on divided corporations upon division)

Article 46-2 (Taxation on corporations established through division upon unqualified division)

Article 46-3 (Special provisions concerning Taxation on corporation established through division upon qualified division)

Article 46-4 (Restriction on deduction of losses carried forward upon division)

Article 46-5 (Special provisions concerning taxation on divided corporations surviving division)

Article 47 (Special provisions concerning taxation on divided corporation upon split-off)

Article 47-2 (Special provisions concerning taxation upon investment in kind)

Article 48 Deleted.

Article 48-2 Deleted.

Article 49 Deleted.

Article 50 (Inclusion of amount equivalent to transfer marginal profits of assets due to exchange in deductible expenses)

Article 50-2 (Restriction on deduction of losses carried over in case of business acquisition)

Sub-Section 7 Tax Exemptions and Income Deductions

Article 51 (Non-taxable income)

Article 51-2 (Income deductions for special purpose companies)

Sub-Section 8 Special Cases concerning Calculation of Amounts of Income

Article 52 (Disaffirmation of calculation by wrongful acts)

Article 53 (Special cases concerning calculation of amount of income from transactions with foreign corporations)

Article 53-2 (Special cases concerning calculation of tax bases for corporations adopting functional currencies)

Article 53-3 (Special cases concerning calculation of tax dases for overseas place of business)

Article 54 (Detailed regulations for calculation of amount of income)

SECTION 2 Calculation of Tax

Article 55 (Tax rate)

Article 55-2 (Special provisions concerning taxation on capital gains on transfer of land)

Article 56 Deleted.

Article 57 (Foreign tax credits)

Article 57-2 (Special cases concerning refund of foreign tax credits for income received from indirect investment companies)

Article 58 (Tax credits for losses from disasters)

Article 58-2 Deleted.

Article 58-3 (Tax credits upon correction of wrongful accounting)

Article 59 (Calculation of amount of tax reductions/exemptions or tax credits)

SECTION 3 Reports and Payment

Article 60 (Filing reports on tax bases)

Article 60-2 (Submission of certificate of confirmation of compliant filing)

Article 61 (Special cases concerning inclusion of reserve funds in deductible expenses)

Article 62 (Special cases concerning filing interest income of non-profit domestic corporations)

Article 62-2 (Special provisions concerning filing capital gains on transfer of assets by non-profit domestic corporations)

Article 63 (Obligation of interim prepayment)

Article 63-2 (Calculation of interim tax)

Article 64 (Payment)

Article 65 Deleted.

SECTION 4 Determination, Correction, and Collection

Sub-Section 1 Determination and Correction of Tax Bases

Article 66 (Determination and correction)

Article 67 (Disposal of income)

Article 68 (Special cases concerning calculation of tax bases and amount by estimation)

Article 69 (Determination of occasional imposition)

Article 70 (Notification of tax base and tax amount)

Sub-Section 2 Collection and Refund of Tax

Article 71 (Collection and refund)

Article 72 (Refund by retroactive deduction of losses for small and medium enterprises)

Article 72-2 Deleted.

Article 73 (Withholding on the amount of interest income of domestic corporations)

Article 73-2 (Withholding on the amount of interest on interest accruing during the holding period of the bonds)

Article 74 (Issuance of withholding receipts)

Article 74-2 (Penalty tax on begligence in submitting detailed statement of expenses related to passenger vehicles for business use)

Article 75 (Penalty tax on negligence in submitting certificate of confirmation on compliant filing)

Article 75-2 (Penalty tax on negligence in submitting detailed statement of shareholders)

Article 75-3 (Penalty tax on negligence in recording and keeping account books)

Article 75-4 (Penalty tax on negligence in issuing, preparing and keeping donation receipts)

Article 75-5 (Penalty tax on negligence in receiving evidentiary documents)

Article 75-6 (Penalty tax on negligence in issuing credit cards and cash receipts)

Article 75-7 (Penalty tax on negligence in submitting payment statements)

Article 75-8 (Penalty tax on negligence in submitting invoice)

Article 75-9 (Penalty tax on negligence in submitting statement of retained earnings of specific foreign corporation)

CHAPTER II-2 SPECIAL CASES CONCERNING CORPORATE TAXATION ON INCOME FOR EACH BUSINESS YEAR OF CORPORATE TAXABLE TRUST PROPERTY

SECTION 1 Common Provisions

Article 75-10 (Application relationship)

Article 75-11 (Application of corporate taxation method to trust property)

Article 75-12 (Establishment, dissolution of corporate taxable trust property)

Article 75-13 (Application to corporate taxable trust property with co-trustees)

SECTION 2 Tax Base and Computation Thereof

Article 75-14 (Income deduction for corporate taxable trust property)

Article 75-15 (Merger and division of trusts)

Article 75-16 (Calculation of income of corporate taxable trust property)

SECTION 3 Report, Payment and Collection

Article 75-17 (Reporting and payment of corporate taxable trust property)

Article 75-18 (Withholding taxes on corporate taxable trust property)

Article 76 Deleted.

Article 76-2 Deleted.

Article 76-3 Deleted.

Article 76-4 Deleted.

Article 76-5 Deleted.

Article 76-6 Deleted.

Article 76-7 Deleted.

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

SECTION 1 Common Provisions

Article 76-8 (Application 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 Tax Base and Computation Thereof

Article 76-13 (Consolidated tax base)

Article 76-14 (Income for each consolidated business year)

SECTION 3 Computation of Amount of Tax

Article 76-15 (Calculated consolidation tax amount)

Article 76-16 (Tax reductions or exemptions and tax credits of consolidated corporations)

SECTION 4 Tax Return and Payment

Article 76-17 (Filing reports on consolidated tax base)

Article 76-18 (Consolidated interim prepayment)

Article 76-19 (Payment and settlement of consolidated corporate Tax)

SECTION 5 Determination, Correction, and Collection

Article 76-20 (Determination, correction, and collection of consolidated corporate Tax)

Article 76-21 (Additional tax of consolidated corporations)

Article 76-22 (Application of regulations related to small and medium enterprises to consolidated corporations)

CHAPTER III CORPORATE TAX ON LIQUIDATION INCOME OF DOMESTIC CORPORATIONS

SECTION 1 Tax Base and Calculation Thereof

Article 77 (Tax base)

Article 78 (Special provisions on taxation on liquidation income accruing from restructuring of corporation)

Article 79 (Calculation of liquidation income accruing from dissolution)

Article 80 Deleted.

Article 81 Deleted.

Article 82 (Detailed rules for calculation of amount of liquidation income)

SECTION 2 Calculation of Tax

Article 83 (Tax rate)

SECTION 3 Reports and Payment

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 tax amount)

Article 89 (Collection)

Article 90 (Exclusion from application of additional taxes for delayed payment? to liquidation income)

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

SECTION 1 Common Provisions on Taxation of Foreign Corporations

Article 91 (Tax base)

Article 92 (Calculation of amount of domestic source income)

Article 93 (Domestic source income of foreign corporations)

Article 93-2 (Special case concerning real beneficiary for foreign investment scheme)

Article 93-3 (Special cases concerning taxation on interest and capital gains on state bonds of foreign corporations)

Article 94 (Domestic place of business of foreign corporation)

Article 94-2 (Submission of data on liaison offices of foreign corporations)

SECTION 2 Calculation 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 provisions on taxation on domestic place of business of foreign corporation)

SECTION 3 Reports, Payments, Settlements, Corrections, 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 of capital gains 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 (Applying for non-taxation or tax exemption for foreign corporations under tax treaties)

Article 98-5 (Special case concerning withholding procedures for foreign corporations in specific places)

Article 98-6 (Special cases concerning withholding procedures to apply restrictive tax rates under tax treaties to foreign corporations)

Article 98-7 (Special cases concerning application of tax rates to interest, dividends and royalties)

Article 98-8 (Special cases concerning withholding tax on domestic source income received through foreigner consolidated account)

Article 99 (Special cases concerning reports on and payment of corporate tax on domestic source 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.

Article 102 Deleted.

Article 103 Deleted.

Article 104 Deleted.

SECTION 4 Deleted

Article 105 Deleted.

Article 106 Deleted.

Article 107 Deleted.

Article 108 Deleted.

CHAPTER VI SUPPLEMENTARY PROVISIONS

Article 109 (Reports on incorporation or establishment of corporation)

Article 109-2 (Report on change of trustee of corporate taxable trust property)

Article 110 (Reports on start of profit-making business by non-profit corporation)

Article 111 (Business registrations)

Article 112 (Keeping account books and making an entry in books)

Article 112-2 (Obligation 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 to become credit card merchants and to issue credit card sales slips)

Article 117-2 (Obligation to become cash receipt merchants and to issue cash receipts)

Article 118 (Preparation and keeping of stockholder register)

Article 119 (Submission of detailed statement of changes in stocks)

Article 120 (Obligation to file payment statements)

Article 120-2 (Special cases concerning obligation to file payment statements on domestic source income of foreign corporations)

Article 120-3 (Submission of aggregate tax invoices for individual suppliers)

Article 120-4 (Submission of virtual asset transaction details)

Article 121 (Preparation and issuance of invoices)

Article 121-2 (Purchaser-issued invoice)

Article 121-3 Deleted.

Article 121-4 Deleted.

Article 122 (Inquiry and inspection)

Article 122-2 (Request for computerized registration data)

CHAPTER VII PENTALTY PROVISIONS

Article 123 Deleted.

Article 124 (Administrative fines for non-compliance with order)

ADDENDA <Act No. 5581, Dec. 28, 1998>

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>

ADDENDUM <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>

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

Addendum <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>

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

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

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

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

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

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

Addendum <Act No. 12153, Jan. 1, 2014>

ADDENDA <Act No. 12166, Jan. 1, 2014>

ADDENDA <Act No. 12420, Mar. 18, 2014>

ADDENDA <Act No. 12850, Dec. 23, 2014>

ADDENDA <Act No. 13230, Mar. 27, 2015>

ADDENDA <Act No. 13426, Jul. 24, 2015>

ADDENDA <Act No. 13448, Jul. 24, 2015>

ADDENDA <Act No. 13499, Aug. 28, 2015>

ADDENDA <Act No. 13550, Dec. 15, 2015>

ADDENDA <Act No. 13555, Dec. 15, 2015>

ADDENDA <Act No. 14386, Dec. 20, 2016>

ADDENDA <Act No. 15022, Oct. 31, 2017>

ADDENDA <Act No. 15222, Dec. 19, 2017>

ADDENDA <Act No. 16008, Dec. 24, 2018>

ADDENDUM <Act No. 16096, Dec. 31, 2018>

ADDENDA <Act No. 16833, Dec. 31, 2019>

ADDENDA <Act No. 17476, Aug. 18, 2020>

ADDENDA <Act No. 17652, Dec. 22, 2020>

ADDENDA <Act No. 17758, Dec. 29, 2020>

ADDENDA <Act No. 17799, Dec. 29, 2020>

ADDENDA <Act No. 17924, Mar. 16, 2021>

ADDENDA <Act No. 18425, Aug. 17, 2021>

ADDENDA <Act No. 18521, Nov. 23, 2021>

ADDENDA <Act No. 18584, Dec. 21, 2021>

ADDENDA <Act No. 18590, Dec. 21, 2021>

ADDENDA <Act No. 19193, Dec. 31, 2022>

ADDENDA <Act No. 19930, Dec. 31, 2023>

ADDENDA <Act No. 20609, Dec. 31, 2004>

ADDENDA <Act No. 20613, Dec. 31, 2004>

ADDENDA <Act No. 20775, Mar. 14, 2025>