7 Income Tax Act 1

Table
Table of
of Contents
Contents
CHAPTERI GENERAL PROVISIONS ································································

CHAPTERⅠ ................................................................ 22
Article 11 (Liability
Article
for Tax Payment) ························································································ 2
(Llablllty for Tax Payment) ........................................................................................ 2
Article 2
Article
(Scope of Tax Liability) ······························································································ 2
2 (Scope Of Tax Llablllty) .............................................................................................. 2
Article 3
Article
(Scope of Taxable Income) ························································································ 4
3 (Scope Of Taxable Income) ........................................................................................ 4
Article 4
Article
(Classification of Income) ···························································································· 6
4 (Classification Of Income) ............................................................................................ 6
Article 5
Article
(Taxable Period) ············································································································· 6
5 (Taxable Period) ............................................................................................................. 6
Article 6
Article
(Place of Tax Payment) ······························································································· 6
6 (Place Of Tax Payment) ............................................................................................... 6
Article 7 (Place of Tax Payment in Cases of Withholding Tax,

Tax, etc.) ·························
""""""""""""""" 8
Article 8 (Place of Tax Payment in Cases of Inheritance,
Inheritance, etc.) ··································
""""""""""""""""""""""" 10 10
Article 9
Article
(Designation of Tax Payment Place) ···································································· 10
9 (Designation of Tax Payment Place) .................................................................... 10
Article 10
Article
(Report on Change of Tax Payment Place) ···················································· 12
10 (Report on Change of Tax Payment Place) .................................................... 12
Article 11
Article
(Jurisdiction over Taxation) ··················································································· 12
11 (Jurisdiction OVer TaXatIOn) ................................................................................... 12
CHAPTER Ⅱ
II TAX LIABILITY ON RESIDENT’S GLOBAL INCOME
AND RETIREMENT INCOME ···············································
............................................... 12
12
Article
Article 12 (Non-Taxable Income) ····························································································· 12
12 (Non—Taxable Income) ............................................................................................. 12
Article
Article 13 (Reduction and Exemption of Tax Amount) ···················································· 18
13 (Reduction and Exemption Of TaX Amount) .................................................... 18
Article
Article 14 (Calculation of Tax Base) ······················································································ 20
14 (Calculation Of Tax Base) ...................................................................................... 20
Article
Article 15 (Order in Calculation of Tax Amount) ······························································ 22
15 (Order in Calculation Of Tax Amount) .............................................................. 22
Article
Article 16 (Interest Income) ······································································································· 24
16 (Interest Income) ....................................................................................................... 24
Article
Article 17 (Dividend Income) ······································································································ 24
17 (DIVIdend Income) ...................................................................................................... 24
Article 18 (Real Estate Rental Income) ·················································································· 30

18 (Real Estate Rental Income) .................................................................................. 3O
Article 19 (Business Income) ····································································································· 32

19 (BUSIHGSS Income) ..................................................................................................... 32
Article 20 (Earned Income) ········································································································· 34

20 (Earned Income) ......................................................................................................... 34
Article 20-2
Article Deleted. <by Act No. 8144, Dec. 30, 2006> ············································· 36
20_2 Deleted. <by Act No. 8144, Dec. 30’ ZOO6> ............................................. 36
Article 20-3
Article (Annuity Income) ··································································································· 36
20—3 (Annuity Income) ................................................................................................... 36
Article 21
Article (Miscellaneous Incomes) ························································································· 38
21 (Miscellaneous Incomes) ......................................................................................... 38
Article 22
Article (Retirement Income) ································································································· 42
22 (Retirement Income) ................................................................................................. 42
Article 23
Article Deleted. <by Act No. 8144, Dec. 30, 2006> ·················································· 44
23 Deleted. <by Act No. 8144, Dec. 30, 2006> .................................................. 44
Article 24
Article (Calculation of Total Gross Income Amount) ················································· 44
24 (Calculation Of Total Gross Income Amount) ................................................. 44
Article 25 (Special Case for Calculation of Total Gross Income Amount) ···············
Article """""""""" 44
Article 26
Article (Non-Inclusion in Total Gross Income Amount) ············································ 46
26 (Non_1nclusion in Total Gross Income Amount) ............................................ 46
Article 27
Article (Calculation of Necessary Expenses) ································································ 48
27 (Calculation Of Necessary Expenses) ................................................................ 48
Article 28 (Calculation of Allowance for Bad Debts as Necessary Expenses) ······

Article """" 48
Article 29
Article 29 (Calculation
(Calculation of Allowance for
of Allowance for Retirement
Retirement Benefits
Benefits as
as Necessary
Necessary Expenses)
Expenses) ··· 50
50
Article 30 Deleted.
Article 30 Deleted. <by <by Act
Act No.
NO. 5532,
5532, Apr. Apr. 10, 10’ 1998>
1998> ··················································
.................................................. 50
50
Article 31
(Calculation of of Gain
Gain from
from Insurance
Insurance Settlement Settlement Used Used for Acquisition of
for Acquisition of
Fixed Assets as
Fixed Assets as Necessary
Necessary Expenses) Expenses) ·························································
......................................................... 50
5O
Article 32
(Calculation of of Value
Value of Assets for
of Assets for Business
Business Acquired Acquired with With National
National
Subsidies as Necessary Expenses) ································································· 52
Subsidies as Necessary Expenses) ................................................................. 52
Article 33
Article 33 (Non-Inclusion
(Non-Inclusion of Of Necessary
Necessary Expenses) Expenses) ··························································
.......................................................... 52
52
Article 34
(Non-Inclusion of of Donations
Donations in in Necessary
Necessary Expenses) Expenses) ································
""""""""""""""""""""" 56 56
Article 35
(Non-Inclusion of of Entertainment
Entertainment Expenses Expenses in in Necessary
Necessary Expenses) Expenses) ·' 60 6O
Article 36
36 Deleted. <by Act NO. 5580, Dec. 28, 1998> .................................................. 64
Article 37
(Calculation of of Necessary
Necessary ExpensesExpenses in in Miscellaneous
Miscellaneous Income) Income) ··············
""""""""" 64 64
Article 38 Deleted. <by Act No. 8144, Dec. 30, 2006> ·················································· 64
Article 38 Deleted. <by Act NO. 8144’ Dec. 30, 2006> .................................................. 64
Article 39
Article 39 (Year,
(Year, etc.
etc. for
for which
which Total
Total GrossGross Income Income Amount Amount and and Necessary
Necessary Expenses Expenses
are Included) ············································································································· 64
are Included) ............................................................................................................. 64
Article 40
Article 40 (Year
(Year for for which
which Dividend
Dividend Income,Income, etc. etc. is is Included)
Included) ····································
""""""""""""""""""""""" 66 66
Article
Article 41 (Calculation in Case of Wrongful Act) ······························································ 66
41 (Calculation in Case Of Wrongful Act) .............................................................. 66
Article
Article 42
42 (Special
(Special CaseCase ofof Calculation
Calculation of of Income
Income Amount Amount Accruing Accruing from from Trade Trade
with Nonresident, etc.) ························································································· 68
Wltl’l Nonresident, etc.) ......................................................................................... 68
Article
Article 43
48 (Special
(Special Cases
Cases of
of Calculation
Income AmountAmount AccruingAccruing from from Joint
Joint Business)
Business) ··· 68 68
Article
Article 44
44 (Separate
(Separate Calculation
Income Amount Amount in in Case
Case of of Inheritance)
Inheritance) ·········· """""" 70 7O
Article
Article 45
45 (Deduction
(Deduction of of Deficiency
Deficiency and and Carryover
Carryover of of Deficits)
Deficits) ··································
""""""""""""""""""""" 70 7O
Article
Article 46
46 (Special
(Special Cases
Cases for
for Calculation
Income Amount Amount Accruing Accruing from from Bonds Bonds
and
and Submission
Submission of Of Payment
Payment Records, Records, etc.) etc.) ···················································
................................................... 72
72
Article
Article 46-2
46-2 (Special
(Special Cases
Cases for
for Calculation
Calculation of of Interest
Interest Income Income Amount Amount due due to to Premature
Premature
Termination) ·········································································································· 74
Termination) .......................................................................................................... 74
Article 47
Article (Earned Income Deduction) ···················································································· 76
47 (Earned Income Deduction) .................................................................................... 76
47_2 (Annuity
Article 47-2
Article (Annuity Income
Income Deduction)
Deduction) ············································································
............................................................................ 76
76
Article 48 (Retirement Income Deduction) ············································································ 78

Article 48 (Retirement Income Deduction) ............................................................................ 78
Article 49
49 Deleted. <by Act No. 8144, Dec. 30, 2006> .................................................. 80
Article 50
Article (Basic Deduction) ······································································································· 80
50 (Basic Deduction) ....................................................................................................... 80
Article 51 (Additional Deduction) ······························································································ 82

Article 51 (Additional Deduction) .............................................................................................. 82
Article 51-2
Article 51-2 (Additional
(Additional Deduction
Deduction for for Persons
Persons with with Many Many Children)
Children) ·······················
---------------- 82 82
Article 51-3 (Pension Insurance Premium Deduction) ····················································· 84
Article 51—3 (Pension Insurance Premium Deduction) ..................................................... 84
Article 51-4
Article 51-4 (Interest
(Interest Expense
Expense Deduction
Deduction for for Reverse
Reverse Mortgage-Backed
Mortgage-Backed Retirement Retirement
Pension System) ································································································· 84
Pension System) ................................................................................................. 84
Article 52
Article (Special Deduction) ··································································································· 86
52 (Special Deduction) ................................................................................................... 86
Article 53
Article 53 (Scope
(Scope of of Dependents
Dependents Living Living Together
Together with with Resident
Resident and and Time Time of of
Determination Thereof) ······················································································· 98
Determination Thereof) ....................................................................................... 98
Article 54
Article (Exclusion of Global Income Deduction) ························································ 100
54 (Exclusion Of Global Income Deduction) ........................................................ 100
Article
Article 54-2
54-2 (Special
(Special Cases
Cases forfor Income
Income Deduction
Deduction for for Joint
Joint Business)
Business) ················
----------- 100 100
Article 55 (Tax Rates) ··············································································································· 100
Article 55 (Tax Rates) ............................................................................................................... 100
Article
Article 56 (Tax Credits for Dividend Income) ································································
56 (Tax Credits for DiViClel’lCl Income)
102
................................................................ 102
Article 56-2 (Tax Credit for Book-Keeping) ·································································· 104

Article 56—2 (Tax Credlt for Book—Keeping) .................................................................. 104
Article 57 (Tax Credit for Payments in Foreign Country) ··········································· 104

57 (Tax Credit for Payments in Foreign Country) ........................................... 104
Article 58 (Tax Credit for Casualty Losses) ····································································· 106

58 (Tax Credit for Casualty Losses) ..................................................................... 106
Article 59 (Tax Credit for Earned Income) ········································································ 108

59 (Tax Credit for Earned Income) ........................................................................ 108
Article 59-2 Deleted. <by Act No. 6292, Dec. 29, 2000> ·········································· 108
59—2 Deleted. <by Act NO. 6292, Dec. 29, 2000> .......................................... 108
Article 60
60 (Order,
(Order, etc.
etc. Applicable
Applicable toto Reduction
Reduction or or Exemption
Exemption of of Tax
Tax or or TaxTax Credit)
Credit) ··· 108 108
Article 61 Deleted. <by Act No. 6781, Dec. 18, 2002> ··············································· 110
Article 61 Deleted. <by Act No. 6781, Dec. 18’ 2002> ............................................... 110
Article 62
Article 62 (Special
(Special Case
Case in in Calculation
Calculation of of Tax Amount in
Tax Amount in Case
Case of of Global Taxation
Global Taxation
on Interest Income, etc.) ···················································································· 110
Ol’l Interest Income, ETC.) .................................................................................... 110
Article 63
Article 63 (Special
(Special Case
Case in
in Calculation
Calculation of of Tax Amount on
Tax Amount on Excess
Excess Refund Refund of Workplace
of Workplace
Mutual Aid Association) ······················································································ 112
Mutual Ald Association) ...................................................................................... 112
Article 64
Article 64 (Special
(Special Cases
Cases forfor Calculation
Calculation of of Tax Amount for
Tax Amount for Real
Real Estate
Estate Broker)
Broker) ··· 112 112
Article 65 (Interim Prepayment) ····························································································· 114
Article 65 (Interim Prepayment) ............................................................................................. 114
Articles 66 Deleted. ····················································································································· 118

Articles 66 Deleted. ..................................................................................................................... 118
Articles 67 Deleted. <by Act No. 6292, Dec. 29, 2000> ············································· 118
Articles 67 Deleted. <by Act NO. 6292, Dec. 29, 2000> ............................................. 118
Article 68
Article 68 (Special
(Special Cases
Cases for
for Interim
Interim Prepayment
Prepayment by by Member
Member of of Tax Association) ···· 118
Tax Association) 118
Article 69
Article 69 (Provisional
(Provisional Return
Return on on Gains Accruing from
Gains Accruing from Trading
Trading of of Land,
Land, etc. etc. andand Voluntary
Voluntary
Payment by Real Estate Broker) ···································································· 120
Payment by Real Estate Broker) .................................................................... 120
Article 70 (Final Return final return on tax base of Global Income) ······················ --------------- 120 120
Article 71
71 (Final Return final return on tax base of Retirement Income) ············· --------- 124 124
Article
Article 72
72 Deleted.
Deleted. <by Act No.
<by Act No. 8144,
8144, Dec. Dec. 30, 30, 2006>
2006> ···············································
............................................... 124
124
Article 73 (Exception to Final Return final return on tax base) ······························· ----------------------- 124 124
Article 74 (Special Case of Final Return final return on tax base) ························· ------------------ 126 126
Article 75 (Application for Reduction and Exemption of Tax Amount) ··················· ------------- 128 128
Article
Article 76
76 (Voluntary
(Voluntary Payment
Payment by by Final
Final Return)
Return) ······························································
.............................................................. 128
128
Article 77 (Payment in Installments) ····················································································· 130

Article 77 (Payment in Installments) ..................................................................................... 130
Article 78 (Report on Present Situation of Business Place) ······································· ---------------------------- 130 130
Article 79 (Investigation and Confirmation on Present Situation of Business Place) ·· " 132
132
Article
ArtTCle 80
80 (Determination
(Determination and and Rectification)
Rectification) ····································································
.................................................................... 132
132
Article 81 (Additional Tax) ····································································································· 134

Article 81 (Addltlonal Tax) ..................................................................................................... 134
Article 82 (Occasional Assessment) ······················································································ 144

Article 82 (Occasional Assessment) ...................................................................................... 144
Article 83 (Notification of Tax Base and Tax Amount) ················································ 146

Article 83 (Notification Of Tax Base and Tax Amount) ................................................ 146
Article 84 (Minimum Taxable Limit of Miscellaneous Incomes) ································· ----------------------- 146 146
Article 85 (Collection and Refund) ························································································ 148
Article 85 (Collection and Refund) ........................................................................................ 148
Article 85-2 (Refund by Retroactive Deduction of Deficit) ·········································

------------------------------ 150 150
Article 86 (Non-Collection of Small Sum) ·········································································· 152
Article 86 (Non—Collection Of Small Sum) .......................................................................... 152
Article 87 (Special Cases for Joint Business Place) ······················································· 152

Article 87 (Special Cases for Joint Business Place) ....................................................... 152
CHAPTER Ⅱ-2
11-2 TAX LIABILITY ON SINCERE SMALL OR MEDIUM
BUSINESS PROPRIETORS’
PROPRIETORS’ CONSOLIDATED INCOME ········
-------- 154
154
Article 87-2 (Application of Sincere Tax Payment Method) ·······································
--------------------------- 154 154
Article 87-3 (Special Exceptions for Calculation of Tax Base) ································
"""""""""""""""""""""" 156 156
Article
Article
87-4
87—4
(Calculation of Tax Amount) ·········································································· 158
(Calculation of TaX Amount) .......................................................................... 158
Article
Article 87-5
87—5 (Standard Tax Deduction)
(Standard Tax Deduction) ···············································································
............................................................................... 160
160
Article
Article 87-6
87—6 (Tax
(Tax Deduction
Deduction for
for Increased
Increased Revenue)
ReVel’lue) ···················································
................................................... 160
160
Article
Article 87-7
87—7 (Reporting,
(Reporting, Payment,
1331at, etc.)
etc.) ··············································································
.............................................................................. 160
160
CHAPTER
CHAPTER Ⅲ
111 RESIDENT’S
RESIDENT’S TAX TAX LIABILITY LIABILITY ON ON TRANSFER TRANSFER
INCOME
INCOME ·································································································
................................................................................................. 162
162
Article 88 (Definition of Transfer) ························································································· 162

Article 88 (Definition Of Transfer) ......................................................................................... 162
Article 89 (Non-Taxable Transfer Income) ······································································· 162

Article 89 (Non—Taxable Transfer Income) ....................................................................... 162
Article
Article 90
90 (Reduction
(Reduction and
and Exemption
Exemption of
of Transfer
Transfer Income
Income Tax)
Tax) ································
""""""""""""""""""""" 164 164
Article 91
Article 91 (Exclusion of Non-Taxation of Transfer Income Tax) ····························
""""""""""""""""""" 164 164
Article 92 (Calculation of Tax Base of Transfer Income) ···········································
Article -------------------------------- 166 166
Article 93 (Order in Calculation of Tax Amount of Transfer Income) ····················
Article """"""""""""" 166 166
Article 94
Article (Scope of Transfer Income) ················································································ 166
94 (Scope Of Transfer Income) ................................................................................ 166
Article 95
Article (Transfer Income Amount) ·················································································· 168
95 (Transfer Income Amount) .................................................................................. 168
Article 96
Article (Transfer Value) ····································································································
96 (Transfer Value)
172
.................................................................................................... 172
Article 97 (Calculation of Necessary Expenses for Transfer Income) ····················

Article """"""""""""" 174 174
Article 98
Article (Time of Transfer or Acquisition) ···································································· 178
98 (Time Of Transfer Or Acquisition) .................................................................... 178
Article 99
Article (Computation of Standard Market Price) ························································ 178
99 (Computation Of Standard Market Prlce) ........................................................ 178
Article 99-2
Article 99—2 ((Application Price))184
Application for Re-computation and Pubic Notification of Standard Market Price 184
Article 100
Article (Computation of Gains from Transfer) ························································· 184
100 (Computation of Gains from Transfer) ......................................................... 184
Article 101
Article 101 (Calculation of Transfer Income by Unlawful Act) ··································
----------------------- 186 186
Article 102
Article 102 (Separate Calculation of Transfer Income Amount) ································
----------------------- 186 186
Article
Article 103 (Basic Deduction for Transfer Income) ························································ 188
103 (Basic Deduction for Transfer Income) ........................................................ 188
Article
Article 104 (Tax Rates of Transfer Income) ····································································· 188
104 (Tax Rates Of Transfer Income) ..................................................................... 188
Article
Article 104-2 (Operation of Designated Area) ·································································· 194
104_2 (Operation Of Designated Area) .................................................................. 194
Article
Article 104-3 (Scope of Land for Non-business) ··························································· 194
104_3 (Scope Of Land for Non—business) ........................................................... 194
Article
Article 105
105 (Preliminary Return of Tax Base of Transfer Income) ·························
------------------ 198 198
Article
Article 106 (Voluntary Payment by Provisional Return) ··············································· 200
106 (Voluntary Payment by Provisional Return) ............................................... 200
Article
Article 107
107 (Calculation of Tax Amount to be Paid by Provisional Return) ·········
"""""" 200
Article
Article 108
108 (Deduction of Tax Amount paid by Provisional Return) ·······················
----------------- 200
Article
Article 109 Deleted. <by Act No. 6051, Dec. 28, 1999> ···········································
109 Deleted. <by Act No. 6051, Dec. 28, 1999>
202
........................................... 202
Article 110
110 (Final Return on Tax Base of Transfer Income) ·····································
""""""""""""""""""""" 202
Article 111
Article (Voluntary Payment by Final Return) ··························································· 202
111 (Voluntary Payment by Final Return) ........................................................... 202
Article 112
Article 112 (Payment of Transfer Income Tax in Installments) ································
----------------------- 204
Article 112-2
Article (Payment of Transfer Income Tax in Kind) ·········································· 204
112_2 (Payment Of Transfer Income Tax in Kind) .......................................... 204
Article 113
Article Deleted. <by Act No. 6051, Dec. 28, 1999> ···········································
113 Deleted. <by Act No. 6051, Dec. 28, 1999>
204
........................................... 204
Article 114
Article 114 (Determination,
(Determination, Reassessment,
Reassessment, and Notification of Tax Base and Tax
Amount of Transfer Income) ·········································································· 204
Amount
Of Transfer Income) .......................................................................... 204
Article 115 (Additional Tax

Article 115
on Transfer Income Tax) ·················································· 208
(Additional
Tax on Transfer Income Tax) .................................................. 208
Article 116
Article (Collection of Transfer Income Tax) ···························································· 210
116 (Collection Of Transfer Income Tax) ............................................................ 210
Article 117
Article (Refund of Transfer Income Tax) ·································································· 210
117 (Refund Of Transfer Income Tax) .................................................................. 210
118 (Applicable
Article 118
Article (Applicable Provisions)
Provisions) ·······················································································
....................................................................................... 210
210
Article 118-2
Article (Scope of Transfer Income) ······································································
118—2 (Scope of Transfer Income)
210
...................................................................... 210
Article 118-3
Article (Value of Transfer) ························································································· 212
118—3 (Value of Transfer) ......................................................................................... 212
Article 118-4
Article 118-4 (Calculation
(Calculation of
of Necessary
Necessary Expenses
Expenses in
in Transfer
Transfer Income)
Income) ·············
--------- 212 212
Article 118-5
Article (Tax Rate of Transfer Income) ·································································· 214
118_5 (Tax Rate Of Transfer Income) .................................................................. 214
Article
Article 118-6
118-6 (Deduction
(Deduction of
of Tax Amount Paid
Tax Amount Paid to
to Foreign
Foreign Countries)
Countries) ··················
------------- 214 214
Article
Article 118-7 (Basic Deduction for Transfer Income) ··················································· 216
118_7 (Basic Deduction for Transfer Income) ................................................... 216
118—8 (Applicable
Article 118-8 (Applicable Provisions)
Provisions) ················································································
................................................................................ 216
216
CHAPTER Ⅳ
IV TAX LIABILITY FOR NONRESIDENT ···················
------------------- 216
Article 119
Article
(Domestic Source Income of Nonresident) ················································· 218
119 (Domestic Source Income Of Nonresident) ................................................. 218
Article 119-2
Article 119-2 (Special
(Special Provisions
Provisions on on Taxation
Taxation concerning concerning Income Income Accruing Accruing from from
Transfer
Transfer and
and Interest,
Interest, Including
Including State State Bonds Bonds of of Nonresidents)
Nonresidents) 224 224
Article 120
120 (Domestic Business Place of Nonresident) ·················································
------------------------------------ 224
Article 121 (Method of Taxation on Nonresident) ·························································· 226
Article 121 (Method Of Taxation On Nonresident) .......................................................... 226
Article 122
Article 122 ((Calculation
Calculation of Tax Base and Tax Amount in Cases of Global Taxation on Nonresident Nonresident)) ·' 228 228
Article 123
Article 123 (Application
(Application ofof Nonresident
Nonresident for for Reduction
Reduction and and Exemption
Exemption of of Tax Amount) ···· 230
Tax Amount) 230
Article 124 (Return and Payment by Nonresident) ························································· 230
Article 124 (Return and Payment by Nonresident) ......................................................... 230
Article 125
Article 125 (Determination
(Determination andand Collection
Collection of of Tax
Tax BaseBase and and Tax Amount on
Tax Amount on Nonresident)
Nonresident) ·· '- 230
230
Article 126
(Calculation of of Tax
Tax Base
Base and and Tax Amount in
Tax Amount in Cases
Cases of of Separate
Separate Taxation Taxation
on Nonresident) ···································································································· 230
01’1 Nonresident) .................................................................................................... 230
Article 126-2
(Special Cases
Cases for
for Return
Return by by Nonresidents
Nonresidents on on Income
Income Amount Amount from from
Transfer
Transfer of of Securities
Securities and and Payment
Payment of of Tax Amount, etc.)
Tax Amount, etc.) ···········
""""""" 232 232
CHAPTER Ⅴ
V WITHHOLDING TAX ································································
................................................................ 234
234
Article
Article
127
127
(Liability for Withholding) ················································································
(Llabflity for Withholding)
234
................................................................................ 234
Article
Article
128
128
(Payment of Withholding Tax) ········································································· 236
(Payment Of Withholding Tax) ......................................................................... 236
Article
Article
129
129
(Withholding Tax Rates) ····················································································· 238
(Withholdll’lg Tax Rates) ..................................................................................... 238
Article 130
130 (Method of Withholding from Interest Income, etc.) ······························· ---------------------- 242
Article 131
131 (Fictitious Payment Date of Interest Income) ············································
-------------------------------- 242
Article 132
132 (Fictitious Payment Date of Dividend Income) ··········································
------------------------------ 242
Article
Article 133
133 (Delivery
(Delivery ofof Withholding
Withholding Receipt
Receipt on on Interest
Interest Income, Income, etc.) etc.) ·················
------------ 242 242
Article 134
134 (Method of Withholding from Earned Income) ···········································
-------------------------------- 244
Article 135
135 (Fictitious Payment Date of Earned Income) ·············································
---------------------------------- 246
Article
Article
136
136
(Tax Amount Withheld from Bonus, etc.) ··················································· 246
(Tax Amount Wlthheld from Bonus, etc.) ................................................... 246
Article
Article 137
137 (Year-End Adjustment
Adjustment of Earned Income Tax Amount) Amount) ························
-------------------- 248
Article
Article 138
138 (Year-End Adjustment of Earned
(Year-Bid Adjustment Famed Income
Incorre Tax Armunt Amount for Re-employed Person) ····· ----- 250
Article
Article 139
139 (Collection of Carry-Over Shortage in Collection) ··································
""""""""""""""""""""""" 250
Article
Article 140
140 (Report on Income Deduction for Person Having Earned Income) Income)'· 252
Article
Article 141
141 (Report on Income Deduction by Reemployed Person) ························· ---------------------- 252
Article
Article 142
142 (Report on
(Report on Workplace) ........................................................................................ 254
Workplace) ························································································ 254
Article 143
143 (Delivery of Receipt of Withholding from Earned Income) ·················· """""""""""" 254
Article
Article 143-2
143-2 (Method
(Method of Withholding from
of Withholding Annuity Income)
from Annuity Income) ····································
-------------------------- 254 254
Article
Article 143-3
143-3 Deleted.
Deleted. <by Act No.
<by Act No. 6557,
6557, Dec.
Dec. 31,
31, 2001>
2OOI> ········································
---------------------------------------- 256
256
Article
Article 143-4
143-4 (Year-End
(Year-End Reconcilement
Reconcilement of Annuity Income
of Annuity Income Tax) Tax) ····························
""""""""""""""" 256 256
Article
Article 143-5
143-5 (Collection
(Collection ofof Deficient
Deficient Tax Amounts Carried-Over)
Tax Amounts Carried-Over) ························
"""""""""""""""" 256 256
Article
Article 143-6
143-6 (Return
(Return onon Income
Income Deduction
Deduction by Annuity Income
by Annuity Income Earner) Earner) ··············
---------- 256 256
Article
Article 143-7
143-7 (Issuance
(Issuance ofof Withholding
Withholding TaxTax Receipts
Receipts for Annuity Income)
for Annuity Income) ·········"""""" 258258
Article
Article 144
144 (Method
(Method of of Collection
Collection of
of Tax
Tax on on Business
Business Income
Income through Withholding
through Withholding
and Delivery of Withholding Receipt) ························································· 258
and DeliVery Of WItl’ll’lOlClll’lg Receipt) ......................................................... 258
Article 144-2
144-2 (Settlement of Accounts
Accounts in Year-End on Tax Amount Amount of Business
Income Except for Final Return of Tax Base) ··································
------------------------ 260
Article 145
145 (Method of Collection of Tax on Miscellaneous Incomes through
Withholding
Withholding and and Delivery
Delivery of of Withholding
Withholding Receipt)
Receipt) ······························
"""""""""""""""" 260 260
Article
Article 146
146 (Method
(Method of
of Withholding
Withholding from
from Retirement
Retirement Income
Income and
and Delivery
Delivery of
of Withholding Receipt) ··
Withholding Receipt) " 260
260
Article 147
Article 147 (Fictitious
(Fictitious Payment
Payment Date
Date of
of Retirement
Retirement Income)
Income) ······································
---------------------------- 262 262
Article 148
Article 148 (Withholding Tax Amount on Retirement Income) ···································
"""""""""""""""""""" 262
Article 149
Article (Organization of Tax Association) ·································································· 262
149 (Organization Of Tax Association) .................................................................. 262
Article 150
Article 150 (Liability
(Liability of
of Tax Association for
Tax Association for Collection
Collection of
of Taxes)
Taxes) ··························
""""""""""""""""" 264 264
Article 151
Article 151 (Payment
(Payment of
of Tax Amount Collected
Tax Amount Collected by
by Tax Association) ····················
Tax Association) """"""""""""" 264 264
Article 152
Article (Method of Collection by Tax Association) ················································ 264
152 (Method Of Collection by Tax Association) ................................................ 264
Article 153
Article 153 (Management
(Management of
of Tax
Tax Payment
Payment by
by Tax Association) ·······························
Tax Association) """""""""""""""""""" 266 266
154 (Exemption
Article 154
Article (Exemption from
from Withholding) .......................................................................... 266
Withholding) ·········································································· 266
Article 155
Article (Exclusion from Withholding) ··········································································· 266
155 (Exclusion from Withholdll’lg) ........................................................................... 266
Article 155-2
(Special Cases
Cases for Withholding of
for Withholding of Specified
Specified Money
Money Trust,
Trust, etc.)
etc.) ··
'- 266
266
Article 155-3
(Special Cases
Cases for Withholding of
for Withholding of Collective
Collective Investment
Investment Scheme) 268
Scheme)268
Article 156
Article 156 (Special
(Special Cases
Cases for
for Withholding
Wlthholding from
from Domestic
Domestic Source
Source Income
Income of
of Nonresident)
Nonresident) ·- 268
268
Article 156-2
Article 156-2 (Application
(Application for
for Non-Taxation,
Non-Taxation, etc.
etc. on
on Domestic Source
Donestic Source Incom es of
Incorres of Nonresident)
Nonresident) ·- 274
274
Article
Article 156-3
156-3 (Special
(Special Cases
Cases for
for W ithholding on
\Mthholding on Debentures,
Debentures etc.
etc. of
of Non-resident)
Non-resident) ···················
-------------- 274 274
Article
Article 156-4
156-4 (Special
(Special Cases
Cases for
for Procedures
Procedures for
for Withholding
Withholding on
on Non-residents)
Non-residents) ·················
""""""""""" 274 274
Article
Article 156-5
156-5 (Special
(Special Cases
Cases concerning
concerning Withholding
Withholding Procedures Procedures Related Related to to Services
Services
Performed by Nonresident Entertainers) ·············································· 276
Performed by Nonresident Entertainers) .............................................. 276
Article 157 (Succession to Withholding) ·············································································· 276

Article 157 (Succession to Withholding) .............................................................................. 276
Article
Article 158
158 (Additional
(Additional Tax
Tax for
for Unfaithfulness
Unfaithfulness in in Withholding,
Withholding, Collection Collection and and
Payment of Tax) ······························································································ 278
Payment Of Tax) .............................................................................................. 278
Article
Article 159
159 (Additional
(Additional Tax
Tax for
for Nonpayment
Nonpayment by by Tax Association) ···························
Tax Association) """"""""""""""""""" 280 280
CHAPTERVISUPPLEMENTARY PROVISIONS ······································

CHAPTERⅥSUPPLEMENTARY ...................................... 280
280
Article 160 (Keeping and Entry of Books) ·······································································
Article 160 (Keeping and Entry Of Books)
280
....................................................................... 280
Article 160-2
Article 160-2 (Receipt and Keeping of Evidence of Disbursement of Expenses,
Expenses, etc.) ···· 282
Article 160-3
Article 160-3 (Obligation to Make and Keep Records on Issuance of Donation Receipts) ··· 284
Article 160-4
Article 160-4 (Obligation of Financial Institutions to Make and Keep Records on
Issuance of Certificates) ············································································· 286
Issuance Of Certificates) ............................................................................. 286
Article 160-5
Article 160-5 (Obligation to Open and Use Business Account) Account) ·······························
""""""""""""""""""""" 286
Article 161
Article (Separate Entry) ···································································································· 288
161 (Separate Entry) .................................................................................................... 288
Article 162
Article (Installation and Use of Cash Register) ······················································· 288
162 (Installation and Use Of Cash Register) ....................................................... 288
Article 162-2
Article 162-2 (Obligation
(Obligation to
to Subscribe
Subscribe for
for Credit
Credit Card
Card Member
Member Store
Store and
and to
to Issue
Issue
Credit Card Sales Slip) ··············································································
Credit Card Sales Shp)
288
.............................................................................. 288
Article 162-3
Article 162-3 (Obligation
(Obligation to
to Subscribe
Subscribe for for Cash
Cash Receipt
Receipt Member Member Store Store and and to to Issue
Issue
Cash Receipt) ·······························································································
Cash Receipt)
290
............................................................................................... 290
Article 163
Article 163 (Preparation,
(Preparation, Delivery,
Delivery, etc.etc. of Account Statement)
of Account Statement) ·································
------------------------- 292 292
Article 163-2
Article 163-2 (Submission
(Submission of
of Table
Table of
of Sum
Sum of
of Tax
Tax Invoices
Invoices by
by Sellers)
Sellers) ·············
""""""""" 294 294
Article 164
Article (Submission of Payment Record) ···································································· 294
164 (Submission Of Payment Record) .................................................................... 294
Article
Article 164-2
164-2 (Special
(Special Cases
Cases concerning Duties for
concerningDuties for Submission
Submission of of Payment
Payment Records Records
on Nonres1dent’s
Nonresident’s Domestic Source Income, Income, etc.) ·····························
"""""""""""".------- 298 2 98
Article 165
165 (Submission
(Submiss10n of Supporting Documents for Income Deduction and
Administrative Guidance) ·················································································· 300
Administrative Guidance) .................................................................................. 300
Article 166
166 (Use of Computer Processing Information Data on Resident Registration) ·· " 300
Article 167
167 (Submission of Certified Copy of Resident Registration, etc.) ············
""""""" 302
Article
Article 168
168 (Registration of Business Proprietors and Assignment of Taxpayer Code Numbers) ··· 302
302
Article 169
Article (Payment of Grant) ······························································································ 304
169 (Payment Of Grant) .............................................................................................. 304
Article 170
Article (Question and Investigation) ············································································· 304
170 (Question and Investigation) ............................................................................. 304
Article 171
Article (Consultation) ·········································································································· 304
171 (Consultation) .......................................................................................................... 304
Article 172
Article 172 (Perusal,
(Perusal, etc.
etc. of Documents Related to Sale,
Sale, Registration,
Registration, Entry,
Entry, etc.) ··· 306
Article 173
Article 173 (Cooperation
(Cooperation for
for Collection
Collection of
of Taxation
Taxation Data)
Data) ··········································
"""""""""""""""""""""""""" 306 306
Article 174
Article 174 (Submission of Material of Payment of Insurance Money against Loss) ··· 306
306
Article 175
Article (Sample Surveys) ·································································································· 308
175 (Sample SUrVeys) .................................................................................................. 308
INCOME TAX ACT
Amended by [Act No. 9672, May 21, 2009]
CHAPTER Ⅰ
I GENERAL PROVISIONS
Art i
cle1(
Article Liabilityf
1 (Liability orT
for axP
TaX ayment)
Payment)
(1
(1))A n
Any yp er s
person onw whoh of allsu
falls n d
underera nyo
any offt h
theef ollowi
followingngs ub p a ra gr
subparagraphs ap h ss h a
shallllb
beel iabl
liable et op
to ay
pay
th
theei nc omet
income a
taXxo nh
on isi
his nc o
incomemeu nd
under ert hi
thissA ct
Act::
11..
Ap er
A personso nw h
who oh o l
holdsdsh i
hissd o mi c
domicilei
lei nK
in o r
e
Korea aoorrh a
has sh e
heldldh i
hisst emp o r
temporary ar yd o mic
domicilei
lei nK
in ore
a
Korea
fo
forro ney
one ea
year ro orrm o
morere( he r ei
na f
(hereinafterte rr e ferre
referreddt oa
to assa“ re s ident
a “resident”); ”) ;a nd
and
2
2..Ap er
A persons onw h
who oi issn otar
not es ide
a residentnt( h er ein af
(hereinafterterr ef er r
referrede dttooa assa“ n o n r
a “nonres-e s-i d ent ”
ident”),) ,h a
hassa ny
any
w i
th ho ld
withholding ingi nc o
income med erive
derived df ro
frommt heR
the e pub
Republiclico offK o r
Korea.e a .
(2
(2))A n
Any yp er s
person onw whoh of allsu
falls n d
underera n
anyyo offt h
theef ollowi
followingngs u bp a r agr
subparagraphs ap h ss ha
shallllb el
be iab
liablel
et op
to ay
pay
th
theei nc omet
income a
taXxw i thhe
withheld ldu nde
under rt hi
thissA c
Act:t:
11..
R es i
d e
Resident;nt ;
2
2..No nre s i
d
Nonresident; e nt ;
3
3..C or po ra
Corporationt i
o nh a vi
having ngi tsh
its e a
head do ffic
officeeo orrp rinc ipa
principallo f f i
officecei nK
in or
Koreaea( he re
(here- -i na f t
inaftererr e f
e rr
ed
referred
toa
to assa“ do me
a “domestic s ticc o rpo r ation”
corporation”); ) ;
4
4..B ranc
Branch ho orrbusiness
b us in es so ffic
officeei nK
in or
Korea ea( includ inga
(including nys
any ub -b
sub-branchra ncha n
and do the
other rs imi l
similararo nes;
ones;
h erein a f
hereinafterte rt hes
the a mes
same hal
shallla pp ly)o
apply) offac o rpo
a corpora-ra-t io
tion nh a vi
having ngi tsh
its ea
head do ffi
officeceo orrp rincipa
principall
o ffi
c
officeei naf
in or e
a foreignignc o unt
countryr y( he re ina
(hereinafterfterr e ferr
referrededt tooa assa“ fore
a “foreigni gnc o rp or atio
corporation”);n” );a nd
and
5
5..A
Anynyo t he
other rw ith ho
withholdingldinga ge
agentnta assp r es c
r i
b
prescribed edb byyt h
thisi
sA c
Act. t.
(3
(3))A nyu
Any ninc or p o
unincorporated ra teda s so ciatio
association, n,f o und at
foundationio noorro th
other ero rga ni za t
organization, i
o n,w hi
whichc hi issn o
not tan
an
or ga ni zat
organization i
o nc o ns id
consideredere da assac orpo r a
a corporationt i
o nu nd e
under rA rtic
Article l e1 133( 4
(4))oofft heF
the r ame
Frameworkwo r kA c
Act ton
on
Na tiona
National lT axe
Taxes s( he r eina
(hereinafterfterreferred
re ferre dt oa
to assaann“ o rga ni z
“organizationatio nc o ns i
d e
consideredreda assac o rp o ra t
io
a corporation”),n”),
sha l
shall lbe
bec o ns ide
consideredr eda ass ar esi de
a residentnta nds
and ub j
e
subjectctt ot
to hea
the p p lica
applicationtio noofft hi
thissA c
Act.t.< Amended
<Amended
b
byyA ActctNoNo..8144,
81 44 ,Dec.
Dec .30,
30,2006>
20 06 >
(4
(4))T hema
The tt
matterser sc onc er
concerningningt hed
the istinc t
distinctionionb e twe
between ent hed
the omi c
domicileilea ndt
and e mpor
temporary a ryd o mi c
il
domicilee
andb
and e twe
betweene nt her
the e s ide
resident nta ndn
and onr eside
nonresident nta assre f
e rre
referreddt oi
to np
in ara gr
paragraph aph( 1)s
(1) ha l
shalllbe
bed e ter mine
detemnined d
byP
by re side nt
Presidential ialD e c
Decree.ree.
Art i
cle2(
Article Scopeo
2 (Scope offTax Liability)
TaX Liability)
(1)Wh
(1) e
Whennc alc ulat
i ngt
calculating hea
the mo unto
amount offinc omed
income e
r i
vedf
derived ro
fromm aj ointbusiness
a joint bus i
ne ssu nd e
rthe
under thep rovisio ns
provisions
o
offArticle
Ar t
icl
e4 3,e
43, ac
eachhr el
e vantr
relevant eside nts
resident ha l
lb
shall beel iabl
liableet op
to a
payyt her
the e levantt
relevant ax:Provided,
taXi Pr ovi ded,
T hatwh
That er
whereet hei
the nc omea
income mounto
amount offa nys
any pe ciall
speciallyyr elatedp
related er s
personsonsiisss ummi
summingngu pt
up ot
to he
the
inc omea
income mounto
amount offt hema
the j
majororj ointbusiness
joint bus i
ne s sp ropr ie t
oru
proprietor nde
under rt hep
the rovi sonso
provisons offA rticl
Articlee4 3
43
(3)(
(3) hereafterr
(hereafter ef erre
referred dt tooa
assa“ ma
a “majorj
orj ointbusiness
joint bus i
ne s sp ropri et
proprietor”or”i nt
in hisp
this aragraph)f
paragraph) or
for
- 2 -
taxation,t
taxation, hes
the peci
all yr
specially elatedp
related ersonss
persons hallbe
shall bejointlyl
jointly iablet
liable op
to ayt
pay het
the axo
tax nt
on hes
the um
sum
o
offther
the elevanti
relevant ncomea
income mountswi
amounts tht
With hema
the jorjoint
major j
ointbusiness
bus
inessp roprietorw
proprietor ithint
Within hee
the xtent
extent
o
offthei
the ncomea
income mountc
amount orrespondingt
corresponding oh
to isprofit-and-loss
his p
rof
it-and- l
ossd istributionr
distribution atiou
ratio nderthe
under t
heprovisions
p
rovisions
o
offparagraph
paragraph( 2)o
(2) offthes
the ameA
same rt i
c l
e.<
Article. Amendedb
<Amended yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998;
19
98;
ActNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
(2)I
(2) Iffat axi
a tax issleviedo
levied nt
on hea
the mounto
amount offincomeo
income offap redecessoru
a predecessor nderA
under rt i
cle4
Article 4,t
44, he
the
inheritors
inheritor hallbe
shall beliablet
liable op
to ayt
pay het
the ax.
tax.
(3)D
(3) eleted.<
Deleted. byA
<by ctNo
Act No..6781,De
678], c
Dec..18,2002>
18, 20
02>
(4)Wh
(4) erei
Where itti
issdeemedt
deemed hatad
that onorh
a donor asd
has irectlyt
directly ransferredt
transferred hep
the ro-
pro-
pertyu
perty nderA
under rt i
cle1
Article 01(
101 2),t
(2), hed
the onora
donor ndd
and onees
donee hallbe
shall beseverallya
severally ndj
and ointlyl
jointly iablet
liable o
to
payat
pay axo
a tax nt
on het
the ransferi
transfer ncome.<
income. NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.6557,
6557,Dec.
Dec.3],
31,2001>
2
001>
(5)A
(5) nyp
Any ersonwh
person oh
who asa
has nyi
any ncomewh
income ichi
Which isssubjectt
subject ot
to hewi
the thholdingu
Withholding nderA
under rt i
cle
Article
127a
127 ndw
and hichi
which issnota
not ddedt
added ot
to het
the axb
tax asef
base ort
for heg
the lobalincome
global i
ncomet axu
tax nderA
under rt i
cle1
Article 4
14
(3)o
(3) orranyo
any therA
other cts,s
Acts, hallbe
shall beliablet
liable op
to ayt
pay hei
the ncomet
income axt
tax ob
to ew
be ithheld.<
Withheld. Amended
<Amended
byA
by ctNo
Act No..5493,
5493,Dec.
Dec.3],
31,1997>
19
97>
(6)I
(6) ncomev
Income estedt
vested ot
to rustp
trust ropertys
property hallb
shall ed
be eemedt
deemed ob
to ev
be estedt
vested oab
to eneficiary(
a beneficiary a
(a
trustero
truster offthet
the rusto
trust orrhiss
his uccessor,i
successor, iffab eneficiaryi
a beneficiary issnots
not pecifiedo
specified orrdoesn
does otexist).
not e
xist).
<NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..8825,
8825,Dec.
Dec.8],
31,2007>
2
007>
Art i
cle3(
Article Scopeo
3 (Scope offTaxableI
Taxable ncome)
Income)
(1)I
(1) ncomet
Income axs
tax hallb
shall ei
be mposedo
imposed na
on llt
all hei
the ncomeso
incomes offar esident,w
a resident, hicha
Which rep
are rescribed
prescribed
byt
by hisA
this ct
:P
Act rovided,T
Provided, hata
That assforaf
for oreignerr
a foreigner esidentwh
resident oset
Whose otalp
total eriodd
period uringwh
during ich
which
heh
he ash
has adh
had isa
his ddresso
address orrplace
placeooffresidence
residences incet
since eny
ten earsb
years eforet
before hee
the ndo
end offthe
ther elevant
relevant
taxablep
taxable eriodi
period issfi
vey
five earso
years orrless,o
less, nlyh
only isi
his ncomet
income hathas
that ha
sb eenp
been aidi
paid nK
in oreao
Korea orrhas
has
beenr
been emittedt
remitted oK
to oreas
Korea hallbe
shall betaxedi
taxed nc
in aseso
cases offani
an ncomea
income ccruingo
accruing utsideo
outside offKorea
Korea
from a
from mongt
among het
the axablei
taxable ncomes.
incomes.
(2)N
(2) onresidentss
Nonresidents hallb
shall ei
be mposedo
imposed nlyo
only nt
on hed
the omestics
domestic ourcei
source ncomeu
income nderA
under rt i
cle1
Article 19.
119.
(3)I
(3) na
In pplyingp
applying aragraphs(
paragraphs 1)a
(1) nd(
and 2),the
(2), t
hep artnersu
partners nders
under ubpara-g
subpara- raph2o
graph 2 offArt i
c l
e
Article
100-14o
100-14 offtheR
the estrictiono
Restriction offSpecialT
Special axationA
Taxation cts
Act hallbe
shall betaxedo
taxed nt
on hei
the ncomea
income ccruing
accruing
ine
in xcesso
excess offthev
the alueo
value offequi
t ys
equity harea
share asso
offthea
the llocationd
allocation atef
date rom a
from mongt
among hei
the ncome
income
allocatedu
allocated nderA
under rt i
cle1
Article 00-18(
100-18 1)o
(1) offthes
the ameA
same cta
Act ndt
and hema
the rketp
market riceo
price offthea
the sset
asset
distributedu
distributed nderA
under rticle1
Article 00-22(
100-22 1)o
(1) offthes
the ameA
same ct.
Act.
[ThisA
[This rt i
cleWh
Article ollyA
Wholly mendedb
Amended yA
by ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008]
20
08]
- 4 -
Art i
cle4(
Article Classificationo
4 (Classification offIncome)
Income)
(1
(1))T h
The ei nc o
income meo offar eside
a resident nts ha
shalll
lb beec lassifi
classifiededa assf o llo ws
follows; :< Amendedb
<Amended yA
by ActctNo
No..
5 03
5031,1,Dec.
Dec .29,
29 ,1995;
1 99 5;ActAc tNo.
No.6292,
6 29 2,Dec.
Dec .29,
29 ,2000;
200 0;ActAc tNo.
No.8144,8 14 4,Dec.
Dec .30,
30 ,2006>
20 06 >
1
1..
G lobali
Global nc ome
income; :I nc omec
Income al culat
calculatededb byys ummi
summing ngu uppi nt e re
interests tincome,
inc ome ,d ivide
dividend ndi ncome
income, ,
re a
realle s ta
estateter ent a
rental li nc o me
income, ,b us i
ne
businessssi nco me
income, ,e a rne
earned di nc ome
income, ,a nnui
annuity tyi nc o
income mea ndmi
and sc ell
miscella-a-
n e ousi
neous nc omea
income cc r ui
accruing ngd ur ingt
during hec
the orr espondi
corresponding ngy e ar
year; ;
2
2..
R e tire me
Retirement nti nc ome
income; :I nc omea
Income cc rui
accruingngf rom retirement
from r e tireme nta ndl
and ump-s
lump-sum um p a yme
payment ntu nde
under r
theN
the a tio
Nationalna lP ens
PensionionA c
Actto orrthe
theP ubl
PublicicO ff
ic ial
OfficialssP e ns
Pensionio nA c
Act, t,e t
etc.c.( inc ludi
(including ngl ump-s
lump-sum um
p ayme
payments,nt s ,s uc
such ha assa ddi ti
o na
additional lpayments
payme ntsa nda
and l l
o wa nc
allowances,e s ,paid
p aidi nf
in o rmso
forms the
other rthan
tha na nnui t
y;
annuity;
h e reinaf
hereinafter te rt hes
the ames
same hal
shallla pply)
apply); ;
3
3..
T r ans
Transfer fe ri nc ome
income; :I ncomea
Income c crui
accruingngf rom at
from r ans
a transferfe ro offa s set
assets; s ;a nd
and
4
4..
D e lete
Deleted. d.< <bybyA Actc tNoNo..8144,
81 44 ,Dec
Dec .80,
30,2006>
2 00 6>
(2)I
(2) nc
In las s i
f yi
classifying ngi nc ome
incomes su nde
under rt hep
the rovi sionso
provisions offp ar agr
paragraph aph( 1)
(1),,t hei
the nc omef
income r om p
from r ofi
t
profit
ac cr ui
accruingngf rom t
from rus
trust to the
other rt ha
thannc o l
lect ivei
collective nve stme
investment nts c he
scheme meu nde
under rt hep
the r ovi s
provisionio no offArticles
Artic l
es
1
177( 1)5(
(1) e xc ludi
5 (excluding ngt hes
the pe c i
ala
special ccounto
account offaanni ns ur anc
insurance ec ompanyt
company hatruns
that runsac ol l
ec t
a collectiveive
inve st me
investment ntb us ine
business s sc o nc urr ent
concurrently lyu nde
under rA rt i
cl
Articlee2 5
251 1oofft heF
the ina nc
Financial ialI nve s t
Investmentme ntS ervi c
Serviceses
a ndC
and apit
CapitalalMarkets
Ma rke tsA c
Act)t)s ha l
shalllbe
bec la ssifi
e
classified da cc or di
accordingngt toot hes
the ubs t a
substancenc eo offincome
inc o mea ccrui ng
accruing
from t
from hep
the r ope
property rtyr ight
rights swh i
Whichchh aveb
have ee
beennt rans fe r
transferredredt ot
to het
the rus te
trusteese su nde
under rt hep
the rovis i
provisionon
o
offA rtic
Articlele1( 1 (2)2 )o offt heT
the rus
Trust tA c
Act toorrw hi
Whichchh aveb
have ee
been no the r wi
otherwise s ed i
s pos
disposed e do f
of..< Newl
<Newly y
Ins er
Inserted tedb by yA Actc tNo.
No.7 00 6,Dec.
7006, Dec .80,
30 ,2003;
2 00 3;Act
Ac tNo.
No.8144,
8 14 4,Dec.
Dec .30,
30 ,2006;
2 00 6;ActAc tNo.
No.
9 27
9270,0,Dec.
Dec .26,
26 ,2 00
2008> 8>
(3
(3))T hei
The nc omeo
income offan onr es i
a nonresidentde nts hal
shalllbbeec lass ifi
classifiededu nde
under rt hep
the r ovi si
provisionsonso offA r
t i
c
Article l
e1 19
119..
< Amendedb
<Amended byyA Actc tNoNo..8144,
814 4,Dec.
Dec .80,
30,2006>
200 6>
Art i
cle5(
Article TaxableP
5 (Taxable eriod)
Period)
(1
(1))TThehei nc omet
income axs
tax ha
shalll
lbbeel eviedo
levied nt
on h
theea mo unto
amount offi ncomef
income oro
for ney
one e
a
year rf ro
frommJ anuary
January
1t
1 tooD ece mb
December er3 1
31..
(2
(2))IIffar es i
d e
a residentntd ies,t
dies, hei
the nco met
income a
xs
tax h al
shalllbe
bel eviedo
levied onnt hea
the mo unto
amount offincome
inc o mea ccruing
accruing
int
in h
theep e rio
perioddf ro
fromm January
Ja nua ry1t ot
1 to hed
the at
dateeooffd eath.
death.
(3
(3))IIffar e s i
den
a resident tb ecome
becomes san onresiden
a nonresidenttd uet
due ot
to h
theem o vi
movingngo offthed
the omi-c
domi- ileo
cile orrtemp or
ar
temporaryy
d omi c
domicilei
let oaf
to or ei
a foreigngnc ount
countryr
y( hereinaf te
(hereinafterrr eferre
referreddt oa
to ass“ d epar tur
“departure ef romK
from ore a”
Korea”),),the
the
inc omet
income a
taxxs ha l
shalllbe
bel eviedo
levied onnt hea
the mo
amountunto offincome
i
nc omea ccr uingf
accruing rom January
from J
a nua r y1t ot
1 to he
the
d at
dateeo offd epart
departureuref ro
from mK o r
e
Korea a.
Art i
cle6(
Article Placeo
6 (Place offTaxP
Tax ayment)
Payment)
(1)T
(1) h
Theep aymen
paymenttp laceo
place offthei
the ncomet
income axo
tax nar
on es i
d e
a residentntsha
shalll
lb
beeth
theep l
aceo
place offh i
hissd omicile:
domicilei
Pr ovi
ded,T
Provided, hati
That iffnos
no uc
such hp laceo
place offdomi ci
lee
domicile xists,i
exists, ittshallb
shall et
be hep
the laceo
place offhis
hist empor ar
temporary y
domi ci
le.
domicile.
- 6 -
(2)T
(2) hep
The aymentp
payment laceo
place offthei
the ncomet
income axo
tax nan
on onresidents
a nonresident hallb
shall et
be hes
the eato
seat offthed
the omestic
domestic
businessp
business lacea
place assprescribedi
prescribed nA
in rt i
cle1
Article 20(
120 ift
(if woo
two orrmored
more omesticb
domestic usinessp
business laces
places
exist,t
exist, hep
the rincipalo
principal ne):Provided,
one): Pr
ovided,T hatif
That i
fn od
no omesticb
domestic usinessp
business lacee
place xists,it
exists, i
ts hall
shall
bet
be hep
the lacewh
place eret
Where hed
the omestics
domestic ourcei
source ncomea
income ccrues.
accrues.
(3)I
(3) Iffthep
the laceo
place offtaxp
tax aymenti
payment issobscure,it
obscure, i
ts hallbe
shall bedeterminedu
determined nderc
under onditionsp
conditions rescribed
prescribed
byP
by residentialD
Presidential ecree.
Decree.
Art i
cle7(
Article Placeo
7 (Place offTaxP
Tax aymenti
Payment nC
in aseso
Cases offWithholding Ta
Withholding x,e
Tax, tc.)
etc.)
(1)T
(1) hep
The aymentplace
payment pl
aceooffthei
the ncomet
income axwi
tax thheldf
Withheld rom the
from thes ources
source hallbe
shall bea
assfollows:
followsi
<Amendedb
<Amended yA
by ctNo.
Act No.6292,
6292,Dec
Dec
.29,
2
9,2000;
20
00;A ctNo.
Act No.6557,
6557,Dec.
Dec.3],
31,2001;
2
001; Act
Act
No.8825,
No. 88
25,Dec.
Dec.3],
31,2007;
2
007;A ctNo
Act No..9270,
9270,De c
Dec.26,
26,2008>
20
08>
1
1..
IIffthep
the ersonwh
person oc
Who ollectst
collects hei
the ncomet
income axt
tax hroughwi
through thholdingi
Withholding issar esident,i
a resident, ittshall
shall
bet
be hes
the eato
seat offhisp
his rincipalplace
principal pl
aceooffbusiness:
business:Pro-
Pr
o- vided,T
vided, hati
That iffthet
the axi
tax isswithheld
Withheld
from ap
from laceo
a place offbusinesso
business thert
other hant
than hep
the rincipalo
principal ne,it
one, i
ts hallbe
shall bethes
the eato
seat offsuch
such
placeo
place offbusiness,
business,a ndi
and iffnop
no laceo
place offbusiness
businesse xists,it
exists, i
ts hallbe
shall bethep
the laceo
place offhis
hisd omicile
domicile
o
orrtemporaryd
temporary omicile;
domicile;
2
2..
IIffthep
the ersonwh
person oc
Who ollectst
collects hei
the ncomet
income axt
tax hroughwi
through thholdingi
Withholding issan onresident,i
a nonresident, itt
shallbe
shall bethes
the eato
seat offhisp
his rincipald
principal omesticp
domestic laceo
place offbusiness:Provided,
business: Pr
ovided,That
Thati
iffh
hee
collectst
collects hei
the ncomet
income axt
tax hroughwi
through thhol
d-i
Withhold- nga
ing attad omesticp
a domestic laceo
place offbusiness
businesso ther
other
thanh
than isp
his rincipald
principal omesticp
domestic laceo
place offbusiness,i
business, ittshallb
shall et
be hes
the eato
seat offsuchd
such omestic
domestic
placeo
place offbusi
-n
busi- ess,a
ness, ndi
and iffnod
no omesticb
domestic usinessp
business lacee
place xists,it
exists, i
ts hallbe
shall behisp
his lace
place
o
offtemporarys
temporary ettlemento
settlement orrhisp
his laceo
place offsojourn;
sojourn;
3
3..
IIffthep
the ersonwh
person oc
Who ollectst
collects hei
the ncomet
income axt
tax hroughwi
through thholdingi
Withholding issac orporation,i
a corporation, itt
shallbe
shall bethes
the eato
seat offitsh
its eado
head fficeo
office orrprincipalo
principal ffice;
office;
4
4..
Notwithstandingt
Notwithstanding hep
the rovisionso
provisions offsubparagraph3
subparagraph 3,,if
ift hep
the ersonwh
person o collects
Who collectst he
the
incomet
income axt
tax hroughwi
through thholdingi
Withholding issac orporation,a
a corporation, ndi
and tsb
its ranch,b
branch, usinesso
business ffi
cea
office nd
and
otherplace
other p
laceooffbusiness
businessi ndependent
lyma
independently naget
manage hea
the ccountinga
accounting ffairso
affairs nap
on ay-as-you-go
a pay-as-you-go
basis,i
basis, ittshallb
shall et
be hes
the eato
seat offsuchp
such laceo
place offbusiness(
business excludingc
(excluding aseswh
cases eret
Where hes
the eat
seat
o
offsuchb
such usinessp
business lacei
place isslocatedi
located naf
in oreignc
a foreign ountry)
country)3:Provided,
Provided,T hat,in
That, i
n cases
cases
prescribedb
prescribed yP
by residentialDecree,
Presidential De
cree,t hes
the eato
seat offtheh
the eado
head fficeo
office orrprincipalo
principal fficeo
office off
thec
the orporationm
corporation ayb
may et
be reateda
treated assthep
the laceo
place offpayment
paymentooffthe
thei ncomet
income axt
tax ob
to ec
be ollected
collected
throughwi
through thholding;a
Withholding; nd
and
5
5..
IIffthewi
the thholdinga
Withholding gentp
agent rescribedi
prescribed nA
in rt i
c l
es1
Articles 56a
156 nd1
and 56-3t
156-3 hrough1
through 56-5,has
156-5, hasno
no
placeo
place offtaxp
tax aymenta
payment assreferredt
referred oi
to ns
in ubparagraphs1t
subparagraphs hrough4
1 through 4,,i
ittshallbe
shall bethe
the
placep
place rescribedb
prescribed yP
by residentialDecree.
Presidential De
cree.
(2)T
(2) hep
The laceo
place offpaymento
payment offthei
the ncomet
income axc
tax ollectedb
collected yt
by het
the axa
tax ssoci
-a
associ- tionu
ation nder
under
Article1
Article 50,s
150, hallbe
shall bethes
the eato
seat offther
the elevantt
relevant axa
tax ssociation.
association.
- 8 -
Art i
cle8(
Article Placeo
8 (Place offTaxP
Tax aymenti
Payment nC
in aseso
Cases offInheri t
ance,e
Inheritance, tc.)
etc.)
(1
(I))I Innc a s
cases esw he
where reaanni nhe rit
inheritoro ro offar es i
de
a resident nto orrn o nr e s
nonresidenti
d e ntb e come
becomes sap er s
a persono nl iab l
et
liable o
to
pa
payyt hei
the nc o
incomemet a
taxxoonnt hep
the r ed e c es
predecessor, s o r,d uet
due toot hed
the ea
deatht ho offthe
theresident
re side ntoorrnonresident,
no nr e sident,
th
theep la
placec eo offp a yme
payment nto offt hei
the nc o
incomemet axs
tax ha
shalll
lbebet hep
the la
placeceo offthe
thel oc alit
localityyo offd o mi c
domicileil
eoorr
temp o
temporary ra r yd omi c
domicile il
eo off t hep
the re d e ce
predecessor,s so r,inheritor
inhe rit oro orrt a
taxxm a na
manager,ger ,w hi
whichcht hei
the nhe rit
o
inheritor r
o
orrt a
taxxm ana
manager ge rr eport
reportssa asst heplace
the p l
a c eo offtax
t
a xp ay me
payment n ttotot h
thees u p e ri
n ten
superintendentde ntooffthe
t hecompetent
co mp et
en t
dis tr i
districtc tt a
taxxo ffic e
office, ,u nde
under rt hec
the o nd iti
conditionso nsa sp
as re sc ri
prescribedbe db yP
by r es i
d ent
Presidential ialDecree.
De c re e .
(2
(2))I Iffan o nr es
a nonresidentid enta p p o
appointsintsata taxa xm ana ge
manager, r ,the
thep la c
placeeo offpayment
p ayme nto offthe
thei nc o
income met ax
tax
ont
on h
the en onr e si
nonresidentd e nts ha
shall llb beet hes
the ea
seat to offh i
hissd o me s
domestic ticb us ine
business ssp la c
placeeo orrt hel
the oc a l
it
localityyooff
do mi
domicileci l
eo orrt emp o
temporaryraryd o mi c
domicilei l
eo offh i
hisst axm
tax ana
manager,ge r,w hi
which chi sreported
is rep or teda sat
as a
a tax xp a yme
payment nt
pla c
place et ot
to hes
the up e rinte nde
superintendent nto offt hec
the o mp e
competent tentd istr i
districtc tt a
taxxo f fic
office,e,under
und erthe
t
hec o nd it
conditionsi
o nsaass
pr es c r
prescribedibe db byy P re
sid e nt
Presidential ialD ec r
Decree.e e .
(3
(3))WhWhen e nt her
the ep o
reportrta assr efer r
referrede dt oi
to np
in a ra gr
paragraphap h( 1
(I))oorr( 2
(2))i issm ad
made, e,t her
the e p or
reportedte dp lac
placee
sh a l
l
shall,,t h e r eaft
thereafter,er ,bbeec on s id e
considered reda st
as h
theep l
a
placecef o
forrt axp
tax ay-m
pay- e
mentn toofft her
the es i
d e
residentnto orrnonresident
n o n resident.
(4)I
(4) Ifft h e
therereiissnnoor eporta
report assr e f
e rre
referreddt oi
to np
in a rag ra
paragraphp h( 1
(I))oorr( 2),t
(2), h
the ep l
a c
placeeooffp ay me
paynent n tooffi n
km c
o me
taxo
tax onnt h
the er esid e
residentn toorrn o nre sid
nonresidente n ts h a
shallllb es
be ub je
subjectctt ot
to h
the ep r ovi si
provisionson so offA rti
c le
Articles s6a6 andnd77..
(5)T
(5) Theh ep lac
place eooffp ayme
payment n to offin co
incomemet a
taxxo nap
on ub
a publiclico ffi ci
officialalw whoh oh a
hassn oa
no d d re
address ssi nK
in orea
Korea,,
sha
shallllb es
be uc
such hp l a
placecea assp res cr i
be
prescribed db byyP re side nt
Presidential ia lD e cr
Decree. e e .
Art i
cle9(
Article Designationo
9 (Designation offTaxP
Tax aymentP
Payment lace)
Place)
(1
(1))N o t wi t
hs t
Notwithstandingandi ngt hep
the r o vi s
provisions ionso offA r ti
c l
Articleses6t hr o
6 throughugh8 8,,t heC
the o mmi s s
Commissionerione ro offt he
the
N atio
Nationalna lT a
TaxxS e r vi
Service c eo orrt hec
the o mmi s s
commissioneri one ro offt hec
the o mp
compe- e-t entr
tent egio na
regional lt a
taxxo ffic
office emmayay
d esig na
designate t es ep a r
a te
separately lyt h
the et a
taxxp a y me
payment n tp lac
place e,u n de
under rt h
theec o n di t
io
conditionsn saassp re
Wbedscribedb yP
by re side n
Presidentialt
ia l
D e c r
Decree,ee ,i nt
in hef
the o llo wi
following ngc a s
cases:e s:< Amendedb
<Amended byyA c
Act tNoNo..8825,
88 25 ,Dec.
Dec .3],
3 1,2007>
20 07 >
1
1..Whe
Where r ear eside
a resident nth avi
having nga nyr
any eale
real stat
estate er ent
rental alincome
inc omeo orrb us ine
business s si nc ome
income, ,r eque
requestss ts
a
asst a
taxxp ayme
payment ntp lac
place ei nt
in hes
the e ato
seat offh i
hissb us i
ne
business s s place;
plac e;a nd
and
2
2..Inc
In as
case eo offar es i
a residentde nto the
other rt hant
than her
the e side
residentnta assr e f
e rr
referrededt oi
to inns ub-p
sub- a ra gr
paragraphaph1o 1 orr
n onr e side
nonresident, nt,iiffiitti issd eeme
deemed dt hatt
that het
the axp
tax a yme
payment nt place
pl acea assp res cribe
prescribed di nA
in rticl
Articleses6 6
thr o ugh8i
through 8 issu nr ea s
unreasonableo na blei nv
in ie
viewwo offthe
thei nc o
incomemes i
tua t i
o
situation nooffthe
t
het axp aye
taxpayer,r,oorrinconvenient
i
nc o nve nie nt
forma
for ki
making ngt het
the axp
tax a yme
payment. nt .
(2
(2))I nt
In hee
the ve
eventntt hatt
that het
the axp
tax ayme
payment ntplace
plac eiissd e signa
designated t
e du nde
under rpara-
para -g raph(
graph 1)
(1),,oorrthe
the
re que
requests ta assr ef e
r r
referrede dt tooi ns
in ubpa ra
subparagraph gr aph1o 1 offt hes
the ai
saiddp a ra gr
paragraph aphi issf il
edb
filed utthe
but thed e signa t
designationion
o
offt het
the axp
tax ayme
payment ntp l
placeac ei issn ot
not
ma
madedea assr eque st
requestede db e c a
because us ei ittiissd e eme
deemed du nr ea so na
unreasonable blef o
forrt hec
the o nve
conve- -n ienc
nienceeo offtax
taxa dmi
admin-n-
ist r
a tio
istrationnt od
to e signa
designate t et hes
the e a
seat to offbusiness
bus i
ne s sp l
a c
placeea asst het
the axp
tax ayme
payment ntplace,
place,the
theC o mmi ss
Commissioner i
o ne r
o
offt heN
the ationalT
National Taxa xS er vi
Servicec eo orrt hec
the ommi ss
commissioner i
one roofft hec
the ompe
competent tentr egi ona
regional ltax
taxo ff i
c
officee
shal
shall ln ot i
notifyfyi ittinwr
in it
writing ingt toot het
the axpa ye
taxpayer, r,his
hisi nhe ri
tor
inheritor, ,t axma
tax nage
manager, r,oorrt axa
tax s s oc iati
association,on,
re spe c ti ve
respectively. ly.
- 10 -
_10_
(3)I
(3) Iffthec
the auseo
cause offdesignationo
designation offthe
thet axp
tax aymentplace
payment pl
aceaassreferredt
referred oi
to np
in aragraph(
paragraph 1),
(1),
i
issextinguished,t
extinguished, heC
the ommissionero
Commissioner offtheN
the ationalT
National ax
Tax
Serviceo
Service orrthec
the ommissionero
commissioner offthec
the ompetentr
competent egionaltax
regional t
axo ffices
office hall
shall
revoket
revoke hed
the esignationo
designation offthet
the axp
tax aymentp
payment lace.
place.
(4)E
(4) vent
Even hought
though hed
the esignationo
designation offthet
the axp
tax aymentplace
payment pl
aceaassreferredt
referred oi
to np
in aragraph
paragraph
(1)i
(1) issrevoked,a
revoked, nyr
any eturn,r
return, equest,c
request, laim,p
claim ayment,o
payment, orrotherA
other ctso
Acts nt
on hei
the ncomet
income ax,
tax,
madep
made riort
prior ot
to her
the evocation,s
revocation, halln
shall otb
not ea
be ffected.
affected.
Art i
cle1
Article 0(
10 Reporto
(Report nC
on hangeo
Change offTaxP
Tax aymentP
Payment lace)
Place)
I
Iffthet
the axp
tax aymentplace
payment pl
aceaassreferredt
referred oi
to nA
in rt i
c l
es6t
Articles hrough9
6 through 9,,is
isc hanged,it
changed, i
ts hallbe
shall be
reportedt
reported ot
to hes
the uperintendento
superintendent offthec
the ompetentd
competent istrictt
district axo
tax fficei
office nt
in hep
the lacewh
place eret
where he
the
taxp
tax aymenti
payment isstob
to ep
be aid,wi
paid, thinf
within if t
eend
fifteen aysa
days ftert
after hec
the hanget
change akesp
takes lace,under
place, unde
rt he
the
conditionsa
conditions assprescribed by
prescribed byP residentialDecree.
Presidential De
cree.< Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.
31,2007>
3], 2
007>
Art i
cle1
Article 111(Jurisdictiono
(Jurisdiction verT
over axation)
Taxation)
Thei
The ncomet
income axs
tax hallb
shall el
be eviedb
levied yt
by hes
the uperintendento
superintendent offthed
the istrictt
district axo
tax ffi
ceo
office orrthec
the ommis -
comrnis-
sionero
sioner offther
the egionalt
regional axo
tax fficeh
office avingt
having hejurisdic—
the j
ur isdic
-t iono
tion vert
over het
the axp
tax aymentp
payment lacea
place ass
prescribedi
prescribed nA
in rt i
c l
es6t
Articles hrough1
6 through 0.<
10. Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
CHAPTER Ⅱ
CHAPTER II TAX LIABILITY
TAX LIABILITY ON RESlDENT’S
ON RESIDENT’SG LOBALI
GLOBAL NCOMEA
INCOME ND RETIREMENT
AND RETIREMENT
INCOME
INCOME
Art i
cle1
Article 122(Non-TaxableI
(Non-Taxable ncome)
Income)
Anyi
Any ncomet
income axs
tax halln
shall otb
not beeleviedo
levied nt
on hef
the ollowingi
following ncomes:
incomes;
1
l..Profitso
Profits offthep
the ublict
public rustu
trust ndert
under hep
the rovisionso
provisions offArt i
cle6
Article 655o
offtheT
the rustAc
Trust t;
Act;
2
2..
R e
ale
Real stater
estate entali
rental ncomea
income ccruingf
accruing rom using
from usingt hep
the addiesa
paddies ndd
and ryf
dry i
eldsf
fields orthe
for t
hep roduction
production
o
offcropsa
crops ndf
and rom t
from heh
the ouser
house ent,wh
rent, ichi
which issprescribedb
prescribed yP
by residentialD
Presidential ecree;
Decree;
3
3..
B usi
nessi
Business ncomea
income ccruingf
accruing rom a
from nys
any ideb
side usinesso
business offthef
the armh
farm ouse-h
house- oldp
hold rescribed
prescribed
byP
by residentialD
Presidential ecree;
Decree;
3-2.Business
3-2. Busi
nessi ncomea
income ccruing from
accruing from manufacturing t
manufacturing raditionall
traditional iquorsp
liquors rescribed b
prescribed y
by
PresidentialD
Presidential ecree;
Decree;
3-3.Business
3-3. Busi
nessi ncomea
income ccruingf
accruing rom t
from hef
the ellingo
felling orrtransfero
transfer offtheg
the rowingt
growing reeso
trees nt
on he
the
forestlandh
forestland avingf
having ivey
five earso
years orrmoreo
more offafforestationp
afforestation eriod,wh
period, ichd
which oesn
does ote
not xceed
exceed
sixmi
six llionwo
million ni
won nay
in ear.I
a year. ns
In uchc
such ases,n
cases, ecessaryma
necessary ttersf
matters orc
for alculatinga
calculating fforestation
afforestation
perioda
period ndt
and ax a
tax mounts
amount hallb
shall beeprescribedb
prescribed yP
by residentialD
Presidential ecree;
Decree;
- 12 -
_12_
4
4..
Ear
Earnedne di ncomeo
income orrr e t ir e
retirementme nti nc ome
income, ,whwhichichf al l
fallssu nde
under ra nyo
any offthe
thef ollowi
following ngi te ms
itemsi :
( a)S
(a) ala
Salary ryr e ce i
ve
received db byyas oldi
a soldier e ro onna ctives
active ervi c
service,e ,a ndp
and res cribe
prescribed db byyP re side
Presidentialnt ia lDecree;
De cr ee ;
( b ) Wa g e re ce ived b ya pe rs o nm ob il ized u n de r law , fromt h e w
(b) Wage received by a person nDbilized under law, from the workplace which rmbilizes him; ork -p lac e w h ichm o b iliz e s him ;
( c
(c))Me di
Medical c a lc ar
careeb e ne
benefits,f its ,t e mpo
temporary r a ryd is a bi l
i
disabilitytyc o mpe ns
compensation a tionb e ne
bene- -f its
fits, ,d is a bi
disability lityb e ne
bene- -
f it
fits,s ,n ur s
nursingingb e ne f
benefits,i ts,s ur vi vor
survivor’s ’
sb e ne f
benefits,its,s ur
sur--v ivor
vivor’s ’
ss pe c
specialialb e ne f
benefits,i
t s ,a nds
and pe c
specialia l
d isa bil
disability ityb ene f
benefits,its ,f une
funeralra le xpe
expensesns e sr e c eive
received db yt
by heb
the ene fic
beneficiaryia ryu nde
under rt heI
the ndus
Industrialtria l
A c c i
Accidentde ntC ompe ns
Compensation at ionI ns ur
Insurance anc eA c
Act, t,a ndp
and ayo
pay offac ompe ns
a compensatory, at or y,reparative,
r e pa r a ti ve ,o orr
c ons ol
consolatorya tor yn at ur
nature, e ,r e ce i
receivedve db byya ne
an mpl oye
employee eo orrhis
hi sb ere ave
bereaved df a mi
family lyi innc onne
connection c tion
w i
witht ha nyi
any nj ur
injury,y,d is e
diseasea seo orrd e at
death hc aus
causede dw hi
whilel eo f feringl
offering abors
labor e rvi c
services; e s ;
( d)Me
(d) di
Medical c alt re atme
treatment ntc ompe ns
compensation, at ion,temporary
te mpor a ryd is abi
disabilitylityc ompe
compen- n-s at io
sation, n,injury
inj ur yo orr
d is e as ec o m p en s a ti on , lu m ps u m c o m p en s atio n ,
disease compensation, lump sum compensation, disability compensation, survivor’sdi s ab il
ityc o mp en s a t
i o n , s u r v iv o r’s
c o mp e ns
compensation, ation,c o mp e ns
compensation atio n forfo rmissing,
mi ss ing,c o mp ens
compensation a ti onf orl
for os
lossso offpersonal
p e rs ona lbelongings,
be lo ngi ngs ,
f une
funeralra le xp e ns
expenses,e s ,a ndf
and une
funeralra ls er vi
servicecec omp e ns
compensationa tionr ec e i
ve
received db byya anne mpl o
employee, ye e ,s e ama
seaman, n,
o
orrh isb
his e reave
bereaved df ami
family lyu nde
under rt heL
the abo
Labor rS tanda
Standards r dsA c
Act to orrt heS
the e afa
Seafarersr e r sA c
Act; t;
( e
(e))U ne mpl
Unemployment oyme ntb e ne
benefits,fits ,c hi l dc
childcare a rel e aveb
leave e ne fi
benefits,t s,ma terni
maternity tyl e a
leaveveb ene
benefits fi tsr e c ei
receivedve d
u nde
under rt heE
the mp lo yme
Employment ntI ns ur
Insurancea nc eA c
Act,t,a ndc
and hi ldc a
childcare r el e avea
leave llo wa
allowancesnc e sr e c e
receivedive du nde
under r
t her
the el evantA
relevant c
Acts tsa nds
and ubor di
subordinate nat es tat ut
statutese sb byyap ubl
a public ico ffi ci
officiala lunder
unde rt heS
the ta
Statete
P ubl
Public icO fficia
Officials lsA Actc to orrt heL
the oc
Local a lPublic
Publ i
cO f fic
Officialsi
al sA c
Act,t,o orrb byyap er
a persons ont owh
to whom om
t heP e n s ionf or P ri v at eS ch o o l T ea c h e rsa n dS ta
the Pension for Private School Teachers and Staff Act or the Special Post Officesff A ct o r th eS p e cia l P o s t O ff ice s
A
Actc ta ppl i
applies,es,a ndt
and hel
the umps
lump um refund
sum r efund( limi t
(limitede dt toot ha
that treceived
rec e ive dd uet
due od
to e a
death)t h)o orr
t hel
the umps
lump um f
sum ord
for e a
deatht hr e ce i
receivedve du nde
under rt heN
the at iona
National lPension
Pe ns i onA c
Act; t;
( f)Me
(f) d
Medicalic a lt rea tme
treatment nte xpe ns
expenses, e s,l umps
lump um f
sum orm
for edi
medicalca lt rea tme
treatment,nt ,d i s abi l
disabilityityc o mp e ns
compensation, a t
io n,
d e at
death hc ondol e
condolence nc emo ne
money, y,d e a
death t hc ompe ns
compensation,at ion,s ur vivor
survivor’s ’sc o mpe ns
compensation, a t
i o n,s ur vi vor
survivor’s ’s
lumps
lump um,l
sum, umps
lump sumum o offs ur vi vo
survivor’s r’sp e ns i
pension,on,a ddi tio
additional na lmo
moneyne yt os
to ur vi vo
survivor’s r ’sp e ns i
pension,o n,
s pe
spe- -c ia
cial la ddi ti o
additionalna lmoney
mo ne yt os
to ur vivo
survivors r ’
sp e ns i
pension,o n,a c cide
accident ntrelief
relie fmoney,
mo ne y,a nda
and c cide
accident nt
c o mpe ns
compensation, a tion,o orrw a
wagesge sr e c ei
received ve dd ur
duringingl e avef
leave orap
for hys
a physicali c alo orrme nt
mental a ld is a bi
disabilitylity
o
orrd is e
diseaseas eu nde
under rt heP
the ubl
Public icO ffici
Officialsa lsP e ns
Pensionio nA c
Act, t ,the
theV ete r
Veterans’a ns ’Pension
Pe ns io nA c
Act, t,the
the
P ens
Pension ionf o
forrP ri va
Private teS c ho
School o lT e a c
Teachers he rsa ndS
and ta
StaffffAct,
Ac t ,oorrthe
theS pe c
Special ialPost
Po s tO ff
Officesic e sA c
Act;t ;
( g)S
(g) choole
School xpe ns
expenses esd e te rmi
determined ne db byyP re s ide nt
Decree;ree ;
( h)A
(h) llowa
Allowances nc esf ort
for hec
the ompe ns
compensation a tiono offa c tuale
actual xpe
expenses,ns e s,wh
whichic ha r
areed e t e rmi
determined ne db y
by
P re side
Presidentialnt ialDecree;
De c r e e ;
( i)P
(i) Payayr e c e i
receivedve db byyt hep
the e rs
person o nwo r
workingkingf oraf
for or e
a foreign i
gng ove r nme
government nt( inc ludi
(including ngt hel
the oc a
local l
g ove rnme
government nto offt hef
the or e
foreignignc ount
country, ry,a ndt
and heS
the ta
Stateteg ove r nme
government nto offaf or
a foreigne ignf ede
federalral
s ta t
state; e;h e reina f
hereinaftert e rthethes a mes
same hal
shall la ppl
apply),y) ,oorraanni nt e rna t
i
internationalo nalo r ga ni z
organizationationp re s c
prescribedr i
be d
b
byyP re s ide nt
Decree,r e e ,wh
who oi issp r es c ri
prescribedbe db yP
by r e s ide
Presidentialnti alD e c
Decree;re e:Provided,
Pr ovi ded,Tha That t
i
ittiissl imi t
limitede dt oc
to a
casesse swh wheree r et hef
the or e
foreignigng ove rnme
government ntd oe
does sn otl
not e vya
levy nyi
any nc ome
income
t a
taxxo onnt hep
the a
payyr e c e i
receivedve db by ya nyp
any ubl
public ico ffic i
officialalo offK o
Koreare awwho how o
worksrksi nt
in ha
that tc o unt
country; r y;
( j)R
(j) ewar
Reward db ene fi
benefits tsa nds
and c hoole
school xpe ns
expenses e sr e c eive
received du nde
under rt heA
the Act cto onnt heH
the onor
Honorable abl e
T re at
Treatmentme nta ndS
and uppor
Support to offP e rs
Persons,ons ,e t c
etc..ooffD is ti
Distin-n-g uis he
guished dS e rvi
Services c est toot heS
the tat
State,e ,
a nda
and nnui
annuity tyr e c e
receivedive du nde
under rt heH
the onor
Honorableabl eT re a
Treatmenttme nto offE x-Pr e s
Ex-Presidentsi de nt sA Act;c t;
( k)A
(k) llowa
Allowances nc esr e c e i
receivedve db byymi l
i t
militaryar yp e rs onne
personnel la ndmi
and l
itar
military ys e r vi
service c eo f
of--f ic ia
ficials lswh who o
a r
are es ta t ione
stationed di naf
in or e
a foreign ignc ount
country ryt tooc a r
carryryo uta
out nyo
any pe r a ti
operational ona lmission;
mi s s ion;
- 14 -
_14_
(l)I
(I) Iffmi litar
military yp ers onne
personnel loorrmi lita
militaryrys er vi
servicec eo f
f icia
officialslswwhohos e rvei
serve naw
in a war, a r,d ie
diessi na
in c ti
on
action
( i
nc ludi
(including ngd ea
deaththc aus
caused edb byya nywa
any warrw ound;h
wound; ere ina f
hereinaftert erthe
thes a
samemes hal
shall la ppl y)
apply), ,the
the
p a yf o rt h ey e ari nwh ic
pay for the year in which death ensues;hd e a the n s u e s ;
(
(m) Wa
m )Wagesge sp re sc ri
prescribedbe db byyP res ide nt
Presidential ia lD ec
Decreere er e c eive
received df o
forrs e rvi c
services esf ur nis
furnished he da br o
abroada doorr
inN
in o r
NorththK or
Koreaeaa assp r ovide
provided du nde
under rthe
theI nt e
Inter-r -K ore
Koreana nE xc ha
Exchange ngea ndC
and oo pe r
CooperationationA ct
Act;;
(n)S
(n) ha r
Sharese sb o r
borneneb yt
by heS
the tate
State,,l oc a
local lg ove r
nme
governments, nts ,oorre mp loye
employers rsu nde
under rthe
t heN a tio
Nationalna lHealth
He al
th
Ins ur a
Insurancenc eA c
Act,t,t heE
the mpl oyme
Employment ntI ns ura
Insurance nc eA c
Act,t,t heN
the a ti
o na
National lP e ns
Pension io nA c
Act,t,the
theP ubl i
c
Public
O fficial
Officials sP e ns
PensionionA c
Act,t,the
theP e ns
Pension ionf orP
for r ivat
Private eS choolT
School e ac
Teachershe r sa andndS taf
Staff fA ct
Act,,
t heV
the et er
Veterans ans ’Pension
Pe ns ionA c
Act,t,the
theG uar ant
Guarantee eeo offWorkers’
Wor ke rs’Retirement
Re tir e me ntB ene
BenefitsfitsA ct
Act,,
theK
the o r
Koreae aS cient i
Scientistsstsa ndE
and ngi ne
Engineers e rsMu tua
Mutual-Aidl-Ai dA s soc ia
Associationtio nA c
Act to orrthe
theL o ng-Te
Long-Term r
m
C areI n su ra n cef o rt
Care Insurance for the Aged Act; heA ge dA ct;
(o ) A ll
o wa
(0) Allowances nc e sr ec eive
received db yw
by o rke
workers rsp r esc r i
prescribedbe db yP
by re side nt
Presidentialia lD e cr
Decree eewh who oa ree
are nga ge
engaged d
ina
in nyp
any r oduc t
productioniona ndr
and e lat
relatededw or
works ksf o
forrthe
thee xt ende
extended dw or
work, k,night
ni ghtwo work,rk,o orrholiday
ho liday
wo
work rkp re sc r
prescribedi
be db byyP res ide nt
Decree, e e ,taking
ta ki ngt hel
the e ve
level lo offwa
wages, ge s,c ate gor
categories iesooff
wo
work,rk,e tc
etc. .i nt
intooa cc ount
account; ;
(p)Me
(p) Mealsal soorrmemeal ale xpe
expensesns esd e te rmi
determined ne db byyP r e side nt
Presidential ialDecree;
De c re e;
(q)Wa
(q) Wagesge sr e ceive
received dbby yw orke
workers r sf r o
from me mp lo ye
employers rsi nc
in onne c
connectiont
io nw i
t
with ht he
their iro orrtheir
t hei rs p ous e
spouses’s’
c hildbi r
childbirth tho orrwi
withthu pbr ingi
upbringing ngo offt he i
theirrc hi ldr
childrene nu nde
under rt hea
the geo
age offs i x,wh
six, whichic ha mount
amount
n o tmo ret h an1 0 0,0 00wo
not more than 100,000 won per month; and np e rmo n th ; a n d
(r)R emune
(r) Remunerationsrat ionsa ndr
and etire me
retirement ntl umps
lump um mo
sum moneyne yr ec e i
ve
received db byyt he R
the ROKOK A rme
Armed d
For c
Forces e sP r isone
Prisoners rso offWar
Waru nde
under rt heA
the Act c toonnt heR
the e
Repa-pa-t r ia ti
ona
triation ndT
and re at
Treatmentme ntooff
R
ROKOK Armed
Ar me dF or
Forcesce sP ris one
Prisoners rso offWa
WarrD et ai
Detained nedi nN
in or
North thK or
Korea; e a;
4 -2
4-2. .D e lete
Deleted; d;< byA
<by Actc tNoNo..7 00
7006,6,Dec.
Dec .30,
30 ,2 00
2003> 3>
4 -3
4-3. .A nnui
Annuity t yI nc omef
Income al li
fallingngu nde
under ra nyo
any offt hef
the ol lowi
following ngi te ms
items: :
(a)S
(a) ur vi vo
Survivor’s r ’
sp ens
pensioni
o no orrd isa bili
disabilitytyp e ns
pensionionr ec e ive
received du nde
under rt heN
the Na-a -t io na
tional lPension
Pe ns ionA ct
Act;;
(b)S
(b) ur vi vor
Survivor’s ’sp ens ion,d
pension, i
s abi li
disabilitytyp e ns i
pension,on,o orri nj ur
injury ya nnui
annuity t
yr ec e ive
received du nde
under rt heP
the ubl
Publici
c
O ffi
c ia
OfficialslsP e ns
Pensionio nA c
Act,t,t heV
the e te r
Veterans’ans ’Pension
Pe ns io nA c
Act,t,the
t heP e ns
Pensionionf orP
for ri va
Private teS chool
School
T ea c
Teachershe rsa ndS
and t af
Staff fA ct
Act,,o orrt he S
the pe c
Special ialPost
Pos tO ffic
Offices esA c
Act; t;
(c
(c))V ario
Various usa nn ui ti
annuitiesesreceived
re ce ivedu nd
undere rt h
theeI n du s tr
Industrial ialkcident
Ac c i
de ntC omp e ns
Compensationati o nI n sur a
Insurancenc eAct;
Ac t;a nd
and
(d)P
(d) e ns
Pensionionr ec e i
ve
received db byyt heR
the OKA
ROK rme
Armed dF o r
Forcesce sP riso ne
Prisoners rso offWa
Warrunder
unde rthe
theA Actctoonnt he
the
T rea tme
Treatment nto offROK
ROK ArmedAr me dF o rc
Forces e sP ri so ne
Prisoners rso offWaWarrD etai
Detainedne di nN
in o
Northr thK o r
Korea;ea ;a nd
and
5
5..Mi sc e l
la ne
Miscellaneous ousi nc ome
incomes, s ,wh i
c
which hf al
fall lunder
unde ra nyo
any offt hef
the ol lowi
following ngi te ms
items: :
(a)R
(a) ewar
Reward db ene f
benefitsitsa nds
and c hoole
school xpe ns
expenses e sr ec e i
receivedve du nde
under rt heA
the Actc to onnt heH
the onor
Honorableable
T reat me
Treatment nta ndS
and uppor
Support tooffP e r s
Persons,ons ,e tc
etc. .o offD isti
Distin-n-g uis he
guished dS e rvi
Services c est ot
to heS
the tate
State,,
a ndt
and hes
the e tt l
e me
settlement ntmoney,
mone y,recom-
re c om-p e ns
pense emomoneyne ya ndo
and the
other rmomoney ne ya ndv
and alua bl
valuableses
r ec eive
received du nde
under rt heA
the Actcto nt
on heP
the r ote c
Protectiont iona ndS
and e ttle me
Settlement ntS uppor
Support to offR eside
Residentsnts
Es capi
Escaping ngf r om North
from Nor t hK or e
Korea;a;
(b)P
(b) r i
z
Prizese sa ndr
and e wa
reward rdr e ceive
received du nde
under rt heN
the at ionalS
National e cur
SecurityityA c
Act; t;
(c
(c))S uppl eme
Supplementary nt ar yp riz
prizes e sr ec eive
received di nc
in onne
connectionc tionwi t
withha nyd
any ec or at
decoration i on a assp r esc ri
prescribedbed
byt
by heA
the wa
Awards rdsa ndD
and e cor at
DecorationsionsA c
Act,t,a ndo
and t he
other rp r i
z
prizese sa nds
and uppl eme
supplementary nta r yp rizes
prizes
pr e sc ri
prescribedbe db byyP re s ide
Presidentialnt i
alD e c
Decree;r ee ;
- 16 -
_16_
(d)T
(d) Thehef oll owi
following ngc ompe ns at
compensations ionsp ai
paiddt oa
to anne mpl oye
employee effororaanno ut standi
outstanding ngi nvent ion
invention
r e lat
related e dt ot
to hee
the mpl oye
employees e’sw or
work, k,w hic
which hi issp resc ri
be
prescribed db yP
by re s i
de nt
re
Decree:e :
(
( ⅰ)
i ) C ompe ns
Compensation ationp a
paididt oa
to anne mpl oye
employee ef r
om his
from hise mpl oye
employer, r,pursu-
pur su-a ntto
ant t oA r ti
c l
e
Article
1
155o offt heI
the nve nt
Inventioni
onP r omot
Promotion ionA c
Act;t ;a nd
and
( ⅱ)
(ii ) C omp ens a
Compensationt ionp ai
paiddt ot
to hef
the ac ult
facultyyoorrs ta ff
sf
staffs r
omt
from hei
the nd ustry-a
industry- ca d emi
academic cc o operati
o n,
cooperation,
fo und
foundededi nt
in heu
the n i
ve r
s i
universitytyt he
they yb el
on
belonggt o
to,,under
un derthe
thePromotion
Pr omo ti
o nooffIndustrial
In dus t
rialEducation
Educ at
ion
a ndI
and ndus tr y-Ac a
Industry-Academic de mi cC o op erat
CooperationionA ct
Act,,p ursua
pursuantntt oA
to rticl
Articlee3 2o
32 offthes
the ameA
same ct
Act;;
(e
(e))S e t tleme
Settlement ntmoney
mone ya ndo
and the
other rmo ne
money ya ndv
and al uabl
valuablesesr e ceive
received db byyt heR
the OK A
ROK r me
Armed d
F o r
Forcesc e sP r i
s one
Prisoners r sooffWa
Warrunder
unde rthe
theAActcto nt
on heT
the rea
Treat-t
-m ento
ment offROK
ROK A r
me
Armed dF or ce
Forcess
P ris one
Prisoners r so offWa
WarrD etai ne
Detained di nN
in or
NorththK ore
Korea; a;
(f)I
(f) nc omea
Income ccr ui
accruingngf rom t
from het
the r ans
transferferooffp a i
nt ings
paintings, ,wr i
tings
writings, ,a nda
and nt i
que
antiques sd e signa t
designateded
aasst heS
the ta te-de signat
State-designated e dh e rit
heritageageu nde
under rthe
theC ulturalH
Cultural eritageP
Heritage rot ecti
ProtectiononA c t
;a
Act; nd
and
≪E nf or
<<Enf0rcementc ementDa t
Date!e:J an.1,
jam. 1,2011))
201 1≫
(g)I
(g) nc omea
Income cc rui
accruingngf r o
frommt het
the r a ns
transferferooffp aint ings
paintings, ,w riti
ngs
writings, ,a nda
and nti que
antiques st omu
to s e
museumum
oorrg al l
e rie
galleries. s.≪E nfor c
<<Enf0rcementementDa t
Dateie:J an.1
fan. 1,,201])
2 01 1≫
Art i
cle1
Article 3(
13 Reductiona
(Reduction ndE
and xemptiono
Exemption offTaxA
Tax mount)
Amount)
(1
(1))I Iffa nyi
any nc o
incomemef a lli
ngu
falling nd
undere ra n
anyyo neo
one offt hef
the o l
lowi
followingn gs ub p ar agra
subparagraphs phsi si
is nc lud
includede di n
in
th
theeg lo b
globala li n co
incomemea mo
amount,unt ,t h
theei nc o
incomemetaxta xa mo u
amount nts ha l
shalllbe
b ec a l
c ula t
calculatededbbyya pp lyingt
applying hetax
the ta x
ra t
rateea assp re sc ri
prescribedb edi nA
in rtic
Articlele5555( h ere
(here--i na fte
inafterrreferred
r e fe rredt oa
to asst he“
the ba si
“basicct a
taxxr ate
rate”)”)to
tot h
thee
b a l
a nc
balance ea mo
amountun ta f te
after rt a kingt
taking h
the ed educ t
deductionionu nd
under e rthe
thep ro vis i
provisionso nso offArticles
Ar t
ic les5 0
50,,51,
51 ,51-2,
51-2 ,
5 1
51- -3 3,,5 1 -4a
51-4 n
and d5 522f ro
frommt hes
the a
saididg lo b
globalalincome
inc o mea mo
amountunt( he r eina f
(hereinafterterreferred
re ferre dt oa
to asst h
thee
“g lob
“globala li nc o
incomemed ed uc t io
deduction”),n ”),a n
and da anna mo u
amountn te q u i
v a l
equivalente n tto
tothe
thea mo
amountu ntc alculate
calculateddb ym
by u l
tiplyi
multiplyingn g
thes
the a
saididt a
taxxa mo
amountu ntb byyt her
the at
rateea attw h i
whichc ht h
theerelevant
r ele v ante a rn
earnede di n co
incomemea mo un
amount toorrbusiness
b us ine ss
inc omea
income mo
armuntun to ccu p
occupiesi est h
theeg lob
globala li nc omea
income mo
amountun ts h a
shalll
lbe
b ereduced
r ed u cedo orre xemp te
exempted:d :< Ame
<Amended nde d
b
byyA Act c tNo
No..5559,
555 9 ,S ep.16,
Sep. 1 6 ,1998;
1 9 9 8;AActc tNo
No..8144,
8 1 44 ,Dec.
Dec .80,
3 0 ,2006>
2 00 6>
1
1..
A ll
o wa
Allowancesnc esr e ce i
ve
received dbbyyaf or e igne
a foreigner rd i
s p atche
dispatched dt oK
to o r
e
Korea ap ur sua
pursuant ntto
t oa nyi
any ntergo ve rnme
intergovemmental nt al
c onve nt
convention, ion,f rom both
from bot ho orrooneneo offt hec
the ount
countriesrie sc onc e rne
concerned; d;
2
2..D e let
Deleted;ed;a nd<
and byA
<by ActctNoNo..5580,55 80 ,Dec.
Dec .28,
2 8,1998>
19 98 >
3
3..Inc omee
Income ar ne
earned db by yar e side
a resident ntwh who oiissn otan
not a ti
a nationalonalo offthe
theR e publ
Republic i
co offK or
Koreae aa nda
and a
n o nr eside
nonresident nt( he re a f
(hereafterte ri nt
in hisA
this r t
icl
Articleer eferr
referrededt tooa ass“ no nr es ide
“nonresident, nt,e t
c .
”)
etc”),,from
f
r oma nyo
any ve rse
overseasas
n avi gat
navigation ionb us ine
business sso offs uc
suchhv esse
vessel la nda
and i
r c r
aircraftaf taassp r e sc ri
prescribedbe db byyP res i
de nt
Presidentialia lDecree:
De cr ee :
P r ov i
ded,T
Provided, ha
That ti itts ha
shalll
lbe
bel imi t
limitededt oac
to as
a caseew he
where ret hec
the o unt
country ryt hen
the at i
ona li
nationalitytyo offw hic
which h
then
the onr e side
nonresident, nt ,e tc
etc. .h ol ds
holds, ,a llowst
allows hee
the quale
equal xe mpt
exemption iono onna nyv
any es s
vessele la nda
and ircr af
aircraftt
o pe rat
operated e db yan
by ati
a nationalonalo offt heR
the epubl
Republic ico off K or e
Korea.a.
(2
(2))D e let
Deleted.ed.< byA
<by Act ctNoNo..503],
503 1,DeDec.c .29,
29 ,1 99
1995> 5>
(3
(3))E ve
Even nt houghi
though nc o
income met a
taxxi issr educ
reducede do orre xe mpt
exempted edp ur s uantto
pursuant toA ct
Actsso the
otherrt ha
thannt hi
thiss
A c
Act,t,t hei
the nc omet
income a
taxxc alcul at
calculated edb byya ppl yi
applyingngmu t
mtatisa ti smu
mu- -t a ndi
tandis st hep
the r
o vis i
o
provisionsnso offt het
the e xt
text
o
offparagraph
pa ra gra ph( 1
(I))s ha
shalll lbbeer e duc
reducede do orre xe mpt
exempted,e d,e xc
excepte ptaassp ro vi
providedde do therwi
otherwise sebbyys uc
such hA ct
Acts.s.
- 18 -
_18_
Art i
cle1
Article 144(Calculationo
(Calculation offTaxB
Tax ase)
Base)
(1)T
(1) axb
Tax asef
base ora
for aresi
d e
n t’sg
residait’s lobali
global ncomea
incorre ndr
and et
irementi
retirenmt ncomes
incone hallb
shall beecalculateds
calculated eparately.
separately.
<Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
(2)T
(2) axb
Tax asef
base ort
for heg
the lobali
global ncome(
income hereinafterr
(hereinafter eferredt
referred oa
to assthe“
the globalincome
“global i
ncomet ax
tax
base”)s
base”) hallb
shall et
be hea
the mounto
amount btainedb
obtained yd
by eductingt
deducting hes
the um o
sum offinteresti
interest ncomea
income mount,
amount,
dividendi
dividend ncomea
income mount,real
amount, r
eale stater
estate entalincome
rental i
ncomea mount,business
amount, bus
inessi ncomea
income mount,e
amount, arned
earned
incomea
income mount,a
amount, nnu-i
annu- tyi
ity ncomea
income mounta
amount ndmi
and scellaneousi
miscellaneous ncomea
income mountt
amount hata
that re
are
calculatedu
calculated ndert
under hep
the rovisionso
provisions offArticles
Art i
c l
es1 6t
16 hrough4
through 7-2f
47-2 rom ag
from lobali
a global ncome.<
income. Amended
<Amended
byA
by ctNo.
Act No.503],
5031,Dec.
Dec.29,
29,1995;
1
995;Act
Ac
tNo.
No.6292,
6292,Dec.
Dec.29,
29,2000;
2
000;Act
Ac
tNo.
No.8144,
8144,Dec.
Dec.
30,2006;
30, 2
006;A ctNo
Act No..8825,
8825,De c
Dec..3],
31,2007>
20
07>
(3)T
(3) hei
The ncomef
income allingu
falling ndera
under nyo
any offthef
the ollowings
following ubparagraphss
subparagraphs halln
shall otb
not beeaddedu
added p
up
inc
in alculatingt
calculating heg
the lobali
global ncomet
income axb
tax asea
base assreferred to
referred toi np
in aragraph(
paragraph 2)
(2)3:
1
1..
Non-taxablei
Non-taxable ncomeu
income ndert
under heR
the estrictiono
Special axationA
Taxation cto
Act orrArt i
cle1
Article 2;
12;
2
2..
Wageso
Wages offad aily-paidwo
a daily-paid rkerp
worker rescribedb
prescribed yP
by residentialD
Presidential ecree;
Decree;
3
3..
I nteresta
Interest ndd
and ividendi
dividend ncomeswi
incomes thhelda
Withheld attthet
the axr
tax atesa
rates assprescribedi
prescribed nA
in rt i
cle1
Article 29
129
(1)1(
(1) a)o
1 (a) orr(2),a
(2), ndt
and hee
the xcessiver
excessive efundo
refund offthe
thew ork-p
work- lacemu
place tual
-a ida
mutual-aid ssociation
association
a
assprescribedi
prescribed nA
in rt i
cle1
Article 166(1)1
(1) 1;
11;
3-2.
3-2. Interesta
Interest ndd
and ividendi
dividend ncomesr
incomes eceivedf
received rom financial
from financialinstitutions
i
nstitutions by
byt heo
the rganization
organization
makingaf
making i
nancialt
a financial ransactionw
transaction itha
With ni
an ndica-t
indica- iono
tion offits
itst it l
e,w
title, hichd
Which oesn
does otd
not istribute
distribute
itsp
its rofitst
profits ot
to hec
the onst
i-t
consti- utingme
tuting mbers,from
members, f
rom amongo
among thero
other rganizationst
organizations hant
than hose
those
considereda
considered assac orporation;
a corporation;
3-3.I
3-3. ncomess
Incomes ubjectt
subject os
to eparatet
separate axationu
taxation ndert
under heR
the estrictiono
Restriction offSpe-c
Spe- ialT
cial axation
Taxation
Act;
Act;
4
4..
Inc
In asesw
cases heret
vvhere hea
the ggregatea
aggregate mounto
amount offinteresti
interest ncomea
income ndd
and ividendi
dividend ncome(
income excluding
(excluding
thed
the ividendi
dividend ncomea
income mountu
amount ndert
under hep
the rovisionso
provisions offArt i
cle1
Article 7(
17 1)6
(1) -3)o
6-3) thert
other han
than
thosea
those assreferredt
referred oi
to ns
in ubpara-g
subpara- raphs3
graphs 3,,3-2a
3-2 nd3
and -3d
3-3 oesn
does ote
not xceed4
exceed 0mi
40 llion
million
wo n(
vvon hereinafterr
referred tooa
assthe“
the standarda
“standard mounto
amount offglobaltaxation
global t
axationo na
on nyi
any nter-
inter-
esti
est ncome,e
income, tc.”),t
etc.”), hei
the ncomea
income mountt
amount ow
to hicht
Which hep
the rovisionso
provisions offAr-
Ar-t icle1
ticle 27a
127 pply;
apply;
5
5..
Miscel l
aneousi
Miscellaneous ncomesp
incomes rescribedi
prescribed nA
in rt i
c l
es2
Articles 211(1)1t
(1) hrough2
1 through 2 w
22 hichd
Which on
do ote
not xceed
exceed
threemi
three llionwo
million na
won ndt
and owh
to icht
Which hep
the rovisionso
provisions offArt i
cle1
Article 27a
127 pply(
apply excludingc
(excluding ases
cases
wherear
where esidentw
a resident itht
With her
the elevanti
relevant ncomei
income ntendst
intends oa
to ddi
add ittupi
up nc
in aseso
cases offcalculation
calculation
o
offtheg
the lobali
global ncomet
income axb
tax ase;hereinafter
base; he
reinafterreferred
r
eferredt oa
to assthe“
the miscellaneousi
“miscellaneous ncomes
incomes
subjectt
subject os
to eparatet
separate axation”):Provided,
taxation”); Pr
ovided,T hatt
That hei
the ncomeu
income nders
under ubparagraph7s
subparagraph hall
7 shall
bee
be xcluded;
excluded;
- 20 -
_20_
5-2.
5-2. Mi sc ellane
Miscellaneous ousi nc omea
income mountunder
amount unde rA r t
i c
Articlele2 211( 1)2
(1) 5;≪
25; Enf or c
<<Enf0rcementementDate-'Dat e:fan.
Ja n.
1
1,,2011>>
2 01 1≫
6
6..
Annui
Annuity tyi nc omeu
income nde
under rA r tic
Articlele2 0 -3wh
20-3 Where eret heg
the ros
gross sa nnui
annuity tya mountu
amount nde
under rparagraph
pa r agra ph
(3)o
(3) offt hes
the a
samemeA rtic
Articleled o e
does sn o
notte xc e
exceededs ixm
six ill
io
million nw o
won n( exc ludi
(excluding ngc as e
sw
cases he
Whererear eside
a residentnt
h avi
havingngs uc
such hi nc omei
income nte ndst
intends oa
to ddi
add ittu pi
up innc al c ulat
calculatingingt heg
the loba
global li nc omet
income taxaxb as
base;e;
h er einaf
hereinafter terr efer r
referrede dt tooa ass“ annui
“annuityt
yi nc omes
income ubj
subjectectt os
to e pa r
separateatet a xa tion”
taxation”); ) ;aandnd
7
7..
Mi sc e l
la
Miscellaneousne ousi nc omea
income mountp
amount re sc r
prescribedibe db byyP res ide nt
Presidential ialDecree,
De cre e,s uc
such ha asst hep
the r i
z
prizee
o
offl ot te
lotteryryu nde
under rA rti
Articlecle2o 2 offt heL
the ot t
LotteryeryT ic ke
Tickets tsa ndL
and ot te
LotteryryF undA
Fund ct
Act..
(4
(4))D e let
Deleted.ed.< <bybyA Act c tNo
No..7 00 6,De
7006, Dec c.30,30 ,2 00
2003> 3>
(5
(5))I nc
In omp ut
computing ingt hes
the ta nd a
standard rda mo unto
amount offg lob
global alt a xa ti
taxationo noonna nyi
any nter es
interestti nco me
income, ,e t
c
etc..pursuant
pur s ua nt
top
to ar agr
paragraph aph( 3)4
(3) 4,,t hea
the mountt
amount hati
that issa dde
added dp ur suantt
pursuant ot
to hep
the rovi
proviso sot oA
to rti
Articlecle1 177
(3
(3))s ha l
shallln otb ei n clude di nt h ed i
notbeimludedinthedividarlirmre.v idendi nco me .< Ne wl yI n ser tedb
<NaulyInsertedbyActN0. yAc tNo .6 2
9 2
629.2,,Dec
De c. 2 9,296%
.29, 200 0>
(6
(6))O Offt hei
the nc ome
incomes sf al li
ngu
falling nde
under rp ar agr
paragraph aph( 3
(3))3 3,,3-2,
3-2 ,3-3,
3 -3,a nd4
and 4,,the
thei nt ere
interests tincome
inc ome
sha l
shalllbbeec alle
calledda ass“ int e re
“interests ti nc o
incomemes ubj e
subjectc tt os
to e pa r
separatea tet axa tio
taxation”,n” ,a ndt
and hed
the i
vi de
dividendndi nco me
income, ,
a
ass“ di vi de
“dividend ndi nc omes
income ubj e
subjectc tt os
to ep-a
sep- r a
aratetet a xat ion”
taxation”, ,respectively.
res pe c tive ly.< Amendedb
<Amended byyA c
Act t
No.6557,
No. 65 57 ,Dec.
Dec .3],
3 1,2001;
200 1;A ActctNo
No..7 006
7006, ,DeDec c .30,
30 ,2003>
20 03 >
(7
(7))T a
Tax xb as
base ef o
forrretirement
r et i
r e me nti nc ome(
income he r e ina
(hereinafterfte rr e fe rr
referrede dttooa asst he“
the r etir
e me
“retirement nti nc o
income met ax
tax
b ase
base”)”)s ha l
shalllbbeet hea
the mo
amount unto bt aine
obtained db yd
by educ
deductingt
ingt her
the etireme
retirement nti nco mea
income mo
amountunta assp re scri
prescribedbe d
inA
in rtic
Article le4 8f
48 r om t
from her
the etir e me
retirement nti nc omea
income mounta
amount assp re s c r
prescribed i
be di nA
in rtic
Article le2 2.
22.
(8
(8))D e let
Deleted.ed.< <bybyA Act c tNo
No..8144,
8 14 4,DeDec c.30,30 ,2 00
2006> 6>
Art i
cle1
Article 5(
15 Orderi
(Order nC
in alculationo
Calculation offTaxA
Tax mount)
Amount)
Exc e
Exceptpta so
as t
he rwi
otherwise seprovided
pro vid e df ori
for nt
in hisA
this c
Act,t
,income
inc ometaxta xo nar
on eside nt
a resident’s ’
sg lo ba
global lincome
inc ome
andr
and etir eme
retirement nti nc o
incomemes ha
shallllbebec a lc ula
calculated teda assf o ll
o ws
follows: :
1.Th
1.111eec a l
c ulate
calculated dt axa
tax mo u
amount n to ng
on lo b
globala linc omea
income ndt
and hec
the alculatedt
calculated axa
tax mo u
amountn to nr
on etire men
retirement t
inc omes
income ha
shalll
lbebec alcul a te
calculated, d ,respectively,
re sp ec tive l
y,bybya pp l
yi
applyingngt heb
the a si
basicct a
taxxr a t
rateet oe
to a c
each ht ax
tax
b as
baseec a l
cul a t
calculatede du nd
underert hep
the r ovi si
provisions onso offArticle
Ar tic l
e1 4
14;;
2.Th
2.111eef in a
finallt a
taxxa mo
amountuntoonng lob
global ali nc o
incomemea ndt
and hefinal
the finaltax
ta xa mo u
amount nto nr
on e t
ire me
retirement ntincome
inc o
me
sha l
shalllbebec alc ul at
calculated, ed,respectively,
re s pe ct i
ve ly,by byt a kingt
taking hed
the ed ucti
o
deduction np res cr i
be
prescribed di nA
in rtic
Articlesles5566
th r
o ug
through h5 9f
59 ro
fromme acho
each offt h
the et a
taxxa mo u
amountsn tsc alc ul
a te
calculateddu n d
undererthe
theprovisions
p rovisio nsooffs u b pa ra g
subparagraphraph
1( he re i
na
1 (hereinafterf
t erreferred
r eferre dt oa
to asst he“
the ta
“taxxc re dit”)
credit”)..In
Ins uc
suchhc a ses
cases, ,w he
When nt he r
thereei issa nyt
any ax
tax
cr edi
credit tf o
forrd ivi de
dividend ndi nc o
incomemeu nd
under erthe
thep rovi sio
provisionsnso offArticle
Ar ticle5 6
56,,the
thea mo unto
amount bt aine
obtained d
bym
by ak
makingingt het
the axc
tax red i
credittunder
u nd erArticles
Ar ticles56-2
5 6- 2a n
andd5577through
th rough5 9for
59 f
o rthe
thea mo u
amountn to bta i
ne
obtained d
b
byym a ki
makingngat a taxaxc redi
credittf o
for rd ivi de
dividend ndi nc omef
income r o
fromm the
thec al
c ul at
e
calculated dt axa
tax mo
amountunto orrthe
the
amo u
amount n tunder
und ert h
theeprovisions
p rovis io nso offs u b para gr
subparagraph aph2o2 offArticle
Ar ticl
e62,
6 2,w hic he
Whicheververisi
slarger
la rge rs ha l
l
shall
b
beet het
the axa
tax mo unt
amount, ,a ndi
and ifft he r
there ei sa
is nyt
any axa
tax mo untreduced
amount reduc edo orre xe mp
exemptedte du nd
undererthe
th e
pr ovi sio
provisions nso offArticle
Ar t i
cle1 3
13,,e a c
eachhf ina
final ltax
ta xa mo unts
amount ha
shallllbe
bec alcula t
calculatededb byyd e d uc t
deductingingi t;
it;
and
and
- 22 -
_22_
3
3..
T heg
The ro s
gross sfi
na
finallt a
taxxa mo unto
amount onng lobali
global ncomea
income ndt
and heg
the ro s
grosssf i
na
final ltaxa
tax mo unto
amount nr
on etirement
retirement
incomes
income hallb
shall beec alculat ed,respectively,
calculated, respecti ve ly,by
bya dd-i
add- ngt
ing hea
the ddi t
iona
additional ltaX
taxp r
e scribe
prescribeddi n
in
A rti
cle8
Article 811oofft hi
thissA c
Actta ndA
and rti
-c
Arti- l
e
cless4 7-2t
47-2 hrough4
through 7-5o
47-5 offtheF
the rame wor
Framework kA c
Actto
onn
N ati
ona
National lT axe
Taxes st ot
to hef
the inalt
final axa
tax mount
amounts sc alculatedu
calculated nde
under rt hep
the r ovi s
ionso
provisions offs ubpa r
a-
subpara-
g r
aph2
graph 2..
Art i
cle1
Article 166(InterestI
(Interest ncome)
Income)
(1
(1))T h
Theei n ter e
intereststi n co
incomemes ha
shallllbbeet h
theef o ll
owi
followingn gi n c o
incomesme sa c c rui
accniing n gd u ri
n
during gt hec
the o rre spo nd
corresponding ing
ye a
year;r:< Amendedb
<Amcnded byyA Actc tNo.
No.6429,
6 42 9,Mar.
Mar .28,
2 8,2001;
2 00 1;A Actc tNo.
No.6557,
65 57 ,Dec.
Dec .3],
31 ,2001;
20 01 ;
Ac
Act tNoNo..7 006
7006, ,Dec.
Dec .30,
30 ,2003;
20 03 ;A Actc tNoNo..8144,
81 44 ,Dec
Dec .30,
3 0,2006;
20 06 ;A ActctNo.
No.8825,
882 5,Dec.
Dec .
31,2007>
3], 2 00 7>
11..
I nt er e
Interest sta ndd
and is counta
discount mounto
amount offa nyb
any ondso
bonds orrs ec urit
securitiesiesi ssue
issued dbby y the
theS tat
Stateeo orrthe
the
loc alg
local ove r
nme
government; nt ;
2
2..I ntere
Interests ta ndd
and is co
discountunta mo
amountunto offa nyb
any ondso
bonds orrs ecur iti
securitiesesi s sue
issued dbbyyad ome s
a domesticticc o r
p ora ti
o
corporation;n;
3
3..I nt er e
Interest sta ndd
and isc ounta
discount mounto
amount offd e pos i
depositsts( inc ludi
(including ngt hei
the ns tal lme
installment nts avi ngs
savings, ,s ec ur i
t
securityy
d epos
deposits,its,d epos
depositsitsa ndp
and os talt
postal r ans f
transfer;er;hereinafter
he r e inaf t ert hes
the a mes
same hal
shallla ppl y)r
apply) ece i
ve
received di n
in
K ore
Korea; a;
4
4..P rofi
Profits tsa cc rui
accruing ngf r om t
from hec
the re di
credit tf ra terni
fraternitytyo orrc re di
credit ti ns tal l me
installments nt sa assp r
e sc ribe
prescribed dbbyyt he
the
Mu t
MutualualS avingsB
Savings anksA
Banks c
Act;t;
5
5..D e l
e te
Deleted; d;< byA
<by c
Act tNo No..8144,
81 44 ,Dec
Dec .30,
30,2006>
2 00 6>
6
6..I nt er
Interestes ta ndd
and isc o
discount unta mo
amountunto offa nyb
any ondso
bonds orrs e cur iti
securitiese si s sue
issued db byyad ome s
a domestic ticb r anc
branch h
o
orrb us ine
business sso ffic
office eo offaf or e
a foreignignc or por at
corporation;i
on;
7
7..I nter e
Interest s ta ndd
and isc ounta
discount mo
amountunto offa nyb
any ondso
bonds orrs ec ur iti
e
securities si ss ue
issued dbbyyaf o reignc
a foreign orpo ra ti
o
corporation; n;
8
8..I nt er e
Interest sto offd e pos
deposits itsr e c eive
received df rom a
from br oad;
abroad;
9
9..Ma rgi
Marginal na lp rofi
profitstsf ro
fromms a l
e
salessooffb o nd
bonds soorrs ec uritie
securities su nd
undere rar ep ur c
ha
a repurchase sea gr eeme
agreement ntp resc ribe
prescribed d
b
byyP r e side nt
Presidential ia lD e c
Decree;ree ;
10
10..Ma rgi
Marginal na lp rofi
profitstso offa nyi
any ns ur anc
insurance eo offn atur
nature eooffs avi ngsp
savings res c ri
prescribedbe db yP
by res i
de nt
Presidentiali
a lDecree;
De c ree;
11
ll..E xce s
Excessives i
ver efundo
refund offa nyw
any or kp
workplacel
a c em utua
mutual la ss o c ia
association t
io np r esc r
prescribedibe db yP
by res i
de nt
Presidentiali
a lDecree;
De c ree;
12
l2..P rofi
Profits tsa c crui
accruingngf rom an
from on-bus
a non-business ine ssl oan;a
loan; nd
and
13
13..I nc ome
Incomes ss imi l
similarart ot
to hos
those eu nde
under rs ubpa r agr
subparagraphs aphs1t hr ough1
1 through 2,wh
12, i
whichchb ea
bearran at ur
a nature eooff
p ric
priceef ol lowi
followingnga nyu
any s
use eo offmo ne
money. y.
(2
(2))T hei
The nte re
intereststi nc o
incomemea mo
amountunts ha
shallllbbeei nc l
ude
included di nt
in het
the o ta
totallg r o
grossssi nco mea
income mo unta
amount ccr ui
accruingng
dur i
duringngt hec
the or re s pondi
corresponding ngy ea
year.r.
(3
(3))Ma tt
Matterse rsn e
c e s s
necessarya ryf o
forrt hei
the nt ere
interest s ti nc omea
income assr e fe rr
referrededt oi
to inne ac
each hs ub- p
sub- ar agr
paragraphapho off
pa r
agr
paragraphaph( 1)a
(1) ndt
and hes
the c o
scopepeo offi nt e re
interest s tincome
i
nc o mea mountunder
amount unde rthe
t
hep ro vis i
o
provisionsnso offparagraph
pa ra gr aph
(2
(2))s hal
shalllbe
b ed e termi
determinedne db byyP res i
d en t
Presidential i
a lD e cre
Decree.e.< Ame
<Amended n de db yA
by Actc tNo.
No .7 0 06
7006, ,Dec.
De c.30,
3 0,2003>
20 03 >
Art i
cle1
Article 7(
17 DividendI
(Dividend ncome)
Income)
- 24 -
_24_
(1
(I))T Thehed ivi de
dividend ndi nc o
income mes h a
shallllbebet hef
the ollo wi
following ngi n co me
incomes sa c cr ui
accruing ngd ur i
ngt
during h
theec o r re sp o
correspondingnd ingy ea
yearir :
11..D ivide
Dividends ndso orrs ha
sharesre so offa nyp
any rof
profits itso orrs ur pl
surplus usr e c e i
receivedve df r om ad
from ome
a domestic s ticc or por at
corporation, i
on,
a ndd
and ivi de
dividends ndso offt hei
the nt e r
interest es td ur
duringi
ngc ons t ruc
construction t
iona assp re s c r
prescribedibe di nA
in r tic
Article le4 63o
463 offthe
t he
C omme
Commercial rc i alAct;
Ac t;
2
2.. D ivi de
Dividends ndso orrs har
shares esr e ce
receivedive df rom a
from anno r gani z at
organization ionc ons ide
considered re da assac or por
a corporation;at ion;
3
3.. Fi ctitiousd
Fictitious ivi de
dividends; nds ;
4
4. .Amounts
Amount sd is pos
disposed e do offa assd ivi de
dividend ndu nde
under rt heC
the or por
Corporate ateT Taxa xA c
Act; t ;
5
5.. P rof
Profitsitsa c cr ui
accruing ngf r
o
frommc o llec
collectivetivei nve s tme
investment nts c heme
schemes sp re sc r
prescribedibe db by yP re side nt
Decree e e
wh
whichic ha r
areer e c e i
receivedve da atth omeo
home orrf r om a
from br oad;
abroad;
6
6.. D ivide
Dividends ndso orrs ha
sharesreso offa nyp
any r of
profitsitso orrs ur pl
surplususr e ce i
receivedve df r om af
from or e
a foreigni gnc or por at
corporation, i
on,
a ndd
and ivi de
dividends ndso offt hei
the nt er
interest estd ur
duringingc ons tr uc
construction tiona assp r e sc r
prescribedibe db byyt hel
the a wso
laws offthe
the
r e l
e va
relevant ntf o re i
foreigngnc o unt
country,ry,a ndd
and ivi de
dividends ndso offs imi l
similar a rn atur
nature et he r e
thereto;to;
6 -2
6-2. .A mountregarded
Amount re gar de da assa llot t
allotted edu nde
under rthe
t hep rovi si
Ar tic l
e1 177o offthe
theA dj us
Adjustmenttme nt
o
offI nt e r nat
InternationalionalT axe
Taxes sA c
Act; t ;
6 -3
6-3. .I nc omea
Income mounta
amount c cr ui
accruing ngf r om the
from t hej oi ntb
joint usine
business ssr e fe r
referredre dt oi
to nA
in Ar-r-t i cl
ticlee4 3t
43 hat
that
i
issd istri but
distributed edt ot
to hej
the o inti
joint nve st
investmentme ntbusiness
bus ine s sp r opr ie t
proprietorsor sa c c o rdi
according ngt ot
to hep
the r o fi
t-a nd-l
profit-and-loss o s s
d is tribut
distribution ionr at
ratioiou nde
under rt hep
the rovi s
provisionsionso offA rtic
Articlele4 433( 1 )
(I); ;a nd
and
7
7.. I nc ome
Incomes ss imi
similarlart ot
to hos
those eu nde
under rs ubpa r agr
subparagraphs aphs1t hr
1 throughough6a 6 andnd6 -2
6-2, ,whwhich i
c hb e
bearara a
n atur
nature eo offp r of
profititd istribut
distribution. ion.
(2
(2))T hef
The ic tit i
ousd
fictitious ivi de
dividend ndr e fe r
referredre dt oi
to innp a ra gr
paragraph aph( 1
(I))3s ha
3 shall llmean
me ant hea
the mountf
amount al ling
falling
unde
under ra nyo
any offt hef
the ol lowi
following ngs ubpar agr
subparagraphs, aphs ,a nds
and hal
shall lbe
bec ons i
de
considered re dt oh
to a veb
have e
beenenp a i
paidd
tot
to her
the e le vants
relevant t oc khol
stockholders,de r s ,e mpl oye
employees esa ndo
and the
otherri nve stor
investorsi s :
11.. Amounto
Amount offmomoney ne yo orrv al
value ueo offo the
other rp r ope
property rtya c qui
acquired re db byyas t
a stock-oc k-h ol de
holder rd uet
due o
to
ar e tire
a retirementme nto offs toc
stockskso orrr e duc
reductiontiono offc api tal
capital, ,oorrb byy a anne mpl o
employee ye eo orri nve s
investor tord ue
due
t
toor e tire me
retirement nto orrw i
thdr
withdrawala wa lf r om ac
from a com-om-p anyo
pany orrr e duct
reduction iono offi nve s tment
investment, ,wh
whichic h
e xc e
exceedsedst hea
the mo
amount untd is
dis--b ur s
bursed edb byyt hes
the to ckho l
de
stockholder, r,e mpl o
employee ye eo orrinvestor
i nve st orfor
f o ra c qui ri
acquiringng
t he s
the t oc
stocks kso orri nve s tme
investment nts ha r
shares; es ;
2
2.. V al
Valueueo offt hes
the toc
stocks kso orri nve s t
investmentme nts har
shares e sa cqui r
acquired e db byyc api taliz
capitalizing ingh heewh wholeol eo orrp ar
part t
o
offt hes
the ur pl
surplus usf undo
fund offac or por
a corporation ati ono orrt hea
the mounto
amount offi nve s tme
investment; nt :Provided,
Pr ovi ded,T hat
That
t hi
thisss ha
shall lln o
notta ppl
apply yt ot
to hec
the as
casese sw he
where r ea nya
any mountf
amount a l
lingu
falling nde
under ra nyo
any offt hef
the ol l
owi
following ng
i temsi
items issc api tal i
capitalized;z ed:
( a)T
(a) hec
The a pi
capitalta lreserve
r es er vef undu
fund nde
under rt hep
the rovi si
provisionsonso offA r ti
Articlec le4 59(
459 1)1
(I) 1,,1 -2
1-2, ,1 -3,2
1-3, 2,,
3a nd3
3 and -2o
3-2 offt heC
the o mme
Commercial r c i
alActAc t( e xc l
udi
(excluding ngt hea
the mounto
amount offt hes
the to cks
stocks, ,e t c
etc..i s s ue
issued d
exc e e
exceedingdi ngt hema
the rke
market tprice
pr ic eo offt her
the e leva
relevant nts toc
stocks,ks ,e t c
etc. .in
inc a
cases ewhwheree ret hes
the toc
stocks,ks ,
etc
etc..a r
areei s s ue
issued di nad
in e bt -e
a debt-equity qui tys wa
swap; p;e xc ludi
excluding ngt hema
the r gi
marginal nalg a i
nsa
gains c c r ui
accruing ngf rom
from
eva lua t
evaluation iono offc o rpo ra ti
corporations o nsu nd e rgo
undergoing ingm er
mergerge roorrfrom
frome va lua
evaluationti
o no offd i
vi di
dividingngc omp a
companiesni e s
unde
under rt hec
the ondi t
conditionsionsa assp re s cr
prescribedibe db byy
- 26 -
_26_
P r e s ide
Presidentialnt ia lDecree;
De c r e e;a ndl
and imi
limitedte dt toot heg
the ainsf
gains r om the
from ther e ti re
retirementme nto offtreasury
tr ea s ur ys toc
stocksks
o
orrt r ea s
treasuryur ys ha r
shares e st ha
that ta r
areec a pi ta li
capitalizedz e da ft
afterertwo
t woy e a
years r sf rom the
from thed a t
dateeo offretirement
r etire me nt
inc
in a s
caseew he
where r et hem
the a r
market ke tprice
p ri ceu nde
under rthe
thep ro vi s
provisionsionso offArticle
Ar ticle5 522( 2
(2))o offthe
theC orp or
Corporateate
T axA
Tax c
Act td oe
does sn ote
not xc
exceedee dt hea
the c qui s
acquisitionitionv al
valueuea attt het
the imeo
time offr e tire me
retirement); nt );a nd
and
( b)R
(b) eva lua
Revaluationtio nr es er
reserve vef undi
fund na
in cc orda
accordance nc ew it
withht heA
the sse
Assets t sR e va
Reval- l
-u a ti
uationonA c
Actt( exc ludi
(excludingng
thea
the mounte
amount qui val
equivalent entt ot
to her
the e va luat
revaluation ione xc
excesses so offl andu
land nde
under rA r t
ic
Article le1 3(
13 1)1
(1) 1
o
offt hes
the ameA
same c
Act); t);
3
3..T
Thehea mo
amountunto offm o
moneyne yo orrv a l
valueueo offo the
other rp ro pe rt
properties i
e sa c quir
acquired edb byyas toc kho
a stockholder,ld e r,a
anne mp l
o
employeeye e,
a
anni nve s
investortoro orram e
a membermbe ro offad i
s s ol
a dissolvedve dc or po ra
corporationtio n( inc l
udi
(including nga nyo
any rga ni za
organization ti
o nc o ns ide
considered red
a
assac or por at
a corporation), ion) ,a assas har
a share eo offt her
the e ma ini
remaining nga s se
assetst so offt hed
the i
s s ol
dissolvedve dc or por at
corporation, ion,
wh
which ic he xc e
exceedse dst hea
the mountd
amount i
s bur
disbursed se df ora
for c qui
acquiringringt hes
the t oc
stocks, ks ,i nve st
investmentme nts ha r
shares,es ,oorr
c a pi
capital t
al :P r ovi
Provided,ded,T hatthe
That t hes ames
same ha
shall lln ota
not ppl
apply yt oc
to as
cases e so offc ha ngi
changing ngs tr uc tur
structures eso off
ad ome
a domestic s ticc or por
corporationat iona ndf
and al lingu
falling nde
under ra nyo
any offt hef
the ol lowi
following ngi te ms
itemsi :
( a)Wh
(a) Wheree reac or por
a corporation a tionc ha nge
changes si t
itsss tr uc tur
structures e su nde
under rt heC
the omme
Commercial rc ialA c
Act; t ;
( b)Wh
(b) Wheree reac or por
a corporation at i ont hatw
that wasase s tabl i
establisheds he db yas
by pe
a specialci a ll aw c
law ha nge
changes si tss
its truc t
ur
structure, e,
d uet
due oa
to me ndme
amendment nto orra nnul
annulmentme nto offs uc
such hs pe c
specialiall a w,t
law, oac
to or por
a corporationat ionu nde
under rt he
the
C omme
Commercial rc ialAct;
Ac t ;a nd
and
( c
(c))Wh Wheree read ome
a domestic st i
cc o rpor
corporationat ionc ha nge
changes si tss
its tr uc tur
structures esa assp re s cri
prescribed be db byyP r es i
de
Presidentialnt ial
D e cr
Decree;e e;
4
4..T
Thehes um o
sum offm o
money ne ya ndv
and a l
valueueo offs to c
stockskso orrinvestment
inve st me nts ha
shares re sa cqui
acquiredre dd uet
due tooame rge
a merger, r,
byas
by toc khol
a stockholder, de r,e mpl
employeeo ye eo orri nve s
investort o ro offac o rpor
a corpora- a-t i
one
tion xt ingui
extinguished s he db byyt heme
the rge
merger, r,
f rom ac
from or por
a corporation at ionc ont inui
continuing ngt too e xi
exist sta fte
after rt heme
the r
mergerge ro orre s tabl is
established he dn e wl
newly yd ue
due
t
toot hem
the er ge
merger, r ,w hi
which c he xc e
exceedse d st hea
the mo
amountuntd i
s bur
disburseds edf o
forra c qui
acquiringri ngt hes
the t oc
stockskso orrinvestment
inve stme nt
s ha
shares re so offt hec
the or por
corporationat ione xt ingui
extinguished she db byyt heme
the rge
merger; r;
5
5..Whe
Where r et her
the at
ratioioo offs t oc khol
stockholding di ngo offs t oc khol
stockholders de r so the
other rt hant
than her
the e levantc
relevant or por a
corporationtion
i
issi nc rea
increaseds edd uet
due ot
to hec
the a pi taliz a
capitalization tionu nde
under re a
eachchi te
itemmo offs ubpa r
subparagrapha gr a ph2i 2 inns uc
such hs ta tus
status
t hatt
that hec
the or por
corporationa t ionr e ta
retainsinst het
the r eas
treasuryur ys t oc
stockskso orrt re as
treasury ur ys har e
shares, s ,t hev
the al
value ueo offthe
t he
s t oc
stocks kse qui val
equivalent e ntt toot hei
the nc r e
increasedas e dr a t
ratioioo offs toc khol
stockholding;di ng;a nd
and
6
6..T
Thehea mo
amountuntb byyw hi
which c ht het
the o ta
total ls um o
sum offprice
pr ic eo offs toc ks
stocks, ,money,
mo ne y,a ndo
and t he
other ra ss
asset e tv alue
values s
( he r eina
(hereinafter fte rr e fe r
referredr edt tooa asst he“
the pr ic
“price eo offd ivis io
division”)n” )w hi
whichc ha r
are eg a ine
gained db yt
by hes
the t oc kho
stockholderlde r
o
offac o rpo r
a corporationa tio nw hi
which c hi issd ivi de
divided dw he
when nac or po
a corporater a ted ivi s
divisioni
o no c cur
occurs s( he r e ina
(hereinafterfte rreferred
ref err ed
t
tooa assa“ di vi
a “divided de dc or por at
corporation”) ion” )o orrb byyt hes
the toc khol
stockholder dero offa ne
an xt ingui
extinguished s he dp ar t
party yo off
ame
a merger r ge rbbyyd i vi s
division,ion,t hr oughd
through ivi s
divisionionf r om ac
from or por
a corporation at ione st abl is
established he da assar es
a resultulto off
d ivi s
division iono orrf rom t
from heo
the t he
other rp ar
party tyo offt heme
the r
merger ge rb byyd i vi
divi- -s ion,e
sion, xc e
exceeds edst hea
the mount
amount
d is bur
disbursed se di na
in cqui
acquiring r
ingt hes
the t oc
stockskso offt he d
the ivi de
divided dc orpo r a
corporationt iono orrthe
thee xt ingui
extinguished she dp a rt
partyy
o
offt heme
the r
mergerge rb by yd ivi
divi- -s ion(
sion limi
(limitedtedt toot hes
the t oc
stockskswh which i
c ha r
are ed ec r eas
decreased e dd uet
due ot
to he
theiri
r
r e ti re me
retirement, nt ,e tc
etc.,.,i ifft hed
the ivi
dividedde dc or por
corporationat ionc ont i
continuesnue st oe
to xi s
exist).t) .
- 28 -
_28_
( 3
(3))T Thehed ivide
dividend ndi nc
incomeomea mounts
amount ha
shalll
lbe
bei nc l
ude
included di nt
in het
the ot
totalalg r os
gross si n-c
in- omea
come mount
amount
a cc rui
accruingngd ur i
ngt
during thehec or r es po
correspondingndi ngy ea
yearir:P rov ide
Provided, d,T ha
That tw he
where ret hed
the ivi de ndsf
dividends allingu
falling nde
under r
a nyo
any offt hef
the ol lowi
subparagraphs aphs a ree
are xc l
ude
excluded df rom t
from hed
the ivi de
dividend ndi nc ome
incomes sr e f
e rre
referred d
t
tooi np
in ar a gr
paragraph a ph( 1
(1) )1t hr ough4
1 through 4,,the
thea mounte
amount qui val
equivalent e ntt too1 1/ 100(
11/100 1 2/ 10
(12/100 0f orad
for ivide
a dividend nd
inc omed
income ur i
duringngJ anuar
January y1 1,,2 009a
2009 ndD
and ece mbe
December r3 1,2
31, 010)o
2010) offthe
thes ai
saiddd ivi de
dividend ndi ncome
incomes s
s hal
shall lbbeea dde
added du up pt ot
to het
the ot
totalalg ros
gross si nc omea
income mounta
amount cc rui
during hec
the or re spondi
corresponding ng
y e a
year:r:< Amendedb
5 03 1,Dec.
Dec .29,
29 ,1995;
19 95 ;A Actc tNo No..5580,
55 80 ,Dec.
Dec .28,
28 ,1998;
19 98 ;
Ac
Act tNoNo..6051,
60 51 ,Dec.
Dec .28,
28 ,1999;
19 99 ;AActc tNo
No..7 3 19
7319, ,Dec.
Dec .31,
3 1,2004;
20 04 ;A Actc tNo.
No.8144,814 4,Dec.
Dec .
3 0,2006;
30, 2 00 6;A Actc tNoNo..8825, 88 25 ,DeDec. c .31,
31 ,2007;
20 07 ;A Actc tNo No..9270,
9 27 0,Dec.
Dec .26,
26 ,2 00
2008> 8>
1
1..Fi c tit i
ousd
Fictitious ivi de
dividend ndr e s ul
resultedtedf rom c
from api tal iz
capitalizingingt hema
the r gi
marginal nalprofit
pr of it from
fr om retirement
r e tire me nt
o
offt r eas
treasuryur ys t oc
stocks kso orrt r eas
treasuryur ys har
sharese su nde
under rp ar
para-a-g raph(
graph 2
(2))2( a
2 (a);) ;
2
2..Fi c titiousd
Fictitious ivi de
dividend ndr es ul t
resultingingf r om c
from api ta lizi
capitalizingngt hema
the rgi
marginal nalp r of
profititf r om r
from eval uat
revaluation ion
o
offl andu
land nde
under rp ar agr
paragraph aph( 2)2(
(2) b)
2 (b); ;
3
3..Fi c titiousd
Fictitious ivi de
dividends ndsu nde
under rt hep
the rovi sionso
paragraph aph( 2)5
(2) 5;;a nd
and
4
4..Whe
Where ret he
thererei issad ivi
a dividendde ndi nc o
incomemef ro
fromm ac orpo r
a corporationa tionp re s c r
prescribedibe db byyP re s ide nt
Presidential i alDecree
De cre e
fr om a
from mongc
among or por at
corporations ionswh whichicha r
arees ubj e
subject ctto toan on-t axat
a non-taxation, ion,e xe mpt
exemption, ion,reduction
r e duc tion
a nde
and xe mpt
exemption, i
o n,i nc omed
income e duc
deductiontiono offthe
thec o rpo
corporatera tet a
taxxt toow hi
which cht hemi
the ni
minimummum tax t axu nde
under r
A rtic
Article le1 3
132 2o offt heR
the e str ic
Restrictionti ono offS pe ci
SpecialalT a xat
Taxation ionA Actc td oe
does sn ota
not ppl
apply y( inc ludi
(including nga a
n on-t a xat
non-taxation, i
on,e xe mpt
exemption, ion,reduction
re duc tiona nde
and xe mpt
exemption, ion,o orri nc omed
income e duc t
deduction ionp ur s ua
pursuant ntt o
to
o the
other rA c
Actstst ha
than nt heR
the e stric
Restrictionti
o nooffS pe ci
SpecialalT axa
Taxationt i
o nA ct
Act),) ,the
thea mo
amountuntw hi
whichc ha r
areec a lcula t
e
calculated d
b
byym ul tiplyi
multiplying ngt hea
the mo
amountunto offt hed
the ivide
dividendndi nc o
incomemeb byyt her
the a t
rateep re s cr i
be
prescribed db byyP re s i
de nt
Presidentiali al
D ec r
Decree. ee .
( 4
(4))I na
In ppl yi
applyingngt thehep ro vi s
provisionsi
onso offparagraph
par agr a ph( 2
(2))1 1,,33,,44a nd6
and 6,,in
inc as
casese swh
where er et hea
the mount
amount
s pe
spentntf o
forra c qui r
acquiringi
ngs t oc
stockskso orri nve stme
investment nts ha r
sharese siissn o
nottc le a
clear,r,t he
theirirpar
pa rvalue
va lueo orrinvestment
inve stme nt
a mo
amountunts hal
shall lbe
bec ons ide
considered reda asst he a
the mo unts
amount pe
spentntf ortheir
for t
he i ra c qui s i
ti
acquisition.on.< Newl
<Newly yI ns er
Insertedted
b
byyA Actc tNo No..6292,
62 92 ,Dec.
Dec .29,
2 9,2000>
20 00 >
( 5
(5))I na
In ppl yi
applying ngt hep
the rovi s
provisionsionso offp aragr
paragraphaph( 2 )
(2),,matters
mat te rsn e c es
necessarysa ryf ort
for hea
the s s e ss
assessmentme nt
o
offt hep
the ric
price eo offs t oc
stocks kso orri nve s tme
investment nts har e
shares ss hal
shall lb beed e
de--t er mi
terminedne db yP
by re s ide nt
Presidential ia lD ec re
Decree. e.
< Newl
<Newly yI ns er
Inserted tedb byyA Act ctNo.
No.5580,558 0,Dec.
Dec .28,
28,1998;
1 99 8;Act
Ac tNo.
No.6051,
6 05 1,Dec.
Dec .28,
28 ,1999>
19 99 >
( 6
(6))Ma tt
Matterse rsn ec e s
necessarys a r yf o
forrt hed
the ivide
dividend ndi nc omeu
income nde
under rt hep
the ro vis
provisionsionso offe a
eachchs ubpa r agr
subparagraph aph
o
offp a ra gr
paragrapha ph( 1
(1))aandndt hes
the c o
scopepeo offd i
vi d e
dividendndi nc o
incomemea mo
amountuntunder
unde rthe
thep ro vis i
provisionso nso offparagraph
p a ragr ap h
( 3
(3))s hal
shall lb beep r es c r
prescribed ibe db byyP re s i
de nt
Presidential ialD e c r
Decree.e e.< Newl
<Newly yI ns er
Inserted tedb yA
by Act ctNoNo..7 006
7006, ,
Dec
Dec. .30,
30 ,2003>
20 03 >
Art i
cle1
Article 8(
18 RealEstate
(Real Es
tateR entalIncome)
Rental I
ncome)
(1)T
(1) her
The ea
reallestater
estate entali
rental ncomes
income hallb
shall et
be hef
the ollowingi
following ncomesa
incomes ccru-i
accru- ngd
ing uringt
during he
the
cor r
espondingy
corresponding ear
year::
- 30 -
_30_
11..
I nc
Incomeomea cc r ui
accruingngf r om al
from eas
a lease eo offa nyr
any eale
real s t a
estateteo orrr ightt
right ot
to her
the ea
realle s t
at e
estate;;
22..
I nc
Incomeomea cc r ui
accruingngf r om al
from eas
a lease eo offaf ac tor
a factory yo orrmi ni
miningngf oundat i
on;a
foundation; nd
and
33..
I nc
Incomeomea cc ruingf
accruing rom al
from e as
a leaseeo offthe
ther ightto
right tomi neb
mine yt
by heo
the wne
owner ro offami ni
a miningngr ight,
right,
p e r
persons onh oldi ngt
holding hemi
the ni
miningngc onc ess
concession ionr ight
right, ,oorrs ubc on-t
subcon- r
ac toro
tractor offmi ning.
mining.
(2
(2))T her
The ea
realles tat
estateer ent
rentala linc o
incomemes hallb
shall et
be hea
the mo
amountuntc alculate
calculated db yd
by e-d
de- uc tingt
ducting hen
the ec
es sar
necessaryy
exp e ns
expenses e sd isbur se
disbursed df ori
for t,f
it, ro
fromm the
thet ota
totallg r os
grosssi nc o
incomemea mo unta
amount ccruingd
accruing ur i
n
duringgt hecorrespond-
the c
o rrespond-
ingy
ing e a
year. r.
(3
(3))T Thehet er
termm“ leas e
“lease””u s
usededi np
in a ragr a
paragraph ph( 1
(1))means
me anst tooe st ablis
establishhar ightto
a right tol ea s
leaseeo nad
on epo si
t
a deposit
ba s
i
basis so orro t
he
otherrright
r i
ghtt or
to e ceivec
receive ons ide ra t
considerationionf o
forri t,a
it, ndt
and oh
to avea
have nothe
another rperson
pe rso nu sea
use nyt hing
anything
o
orrr ight
right, ,oorrb e ne f
benefititf r om i
from t
it,,b yal
by e as
a lease ec ont ra
contract cto orro the
other rwa
way, y,t or
to ec eivec
receive ons ide rati
considerationon
fori
for t.
it.
(4
(4))Ma t
Matterste rsn e c essar
necessary yf o
forrt hes
the co peo
scope offt her
the ea
realle s t
estateater enta
rental lincome,
inc ome ,s ha l
shalllbe
bed etermi ne
detemnined d
byP
by r e side
PresidentialntialD e cre
Decree. e .
Art i
cle1
Article 9(
19 BusinessI
(Business ncome)
Income)
(1)T
(1) heb
The usines
businesssi ncomes
income ha
shallllb
be et hef
the ollo wi
followingngi ncomea
income c c rui
during hec
the orres pondi
correspondingng
ye ar
year; :< Amendedb
<Amended yA
by ActctNoNo..6292,
6 29 2,Dec.
Dec .29,
29 ,2000;
20 00 ;AAct ctNoNo..8144,
81 44 ,Dec.
Dec .30,
30 ,2006;
20 06 ;
Ac
Act tNoNo..8825,
88 25,Dec.
Dec .3],
31,2007>
2 00 7>
1
1..I nco me
Incomes sa ccruingf
accruing ro
fromma gr icul t
agricultureure( exc ludi
(excludingngc a s
cashhc r opsc
crops ultivatingb
cultivating us i
ne ss
business;;hereinafter
he re
ina fte r
t hes
the a mes
same hal
shallla ppl
apply) y)a ndf
and or es
forestrytr yb us ine
business;ss ;
2
2..I nc ome
Incomes sa ccrui ngf
accruing rom the
from t hef is he
fisheryr yb us ine
business;s s ;
3
3..I nc ome
accruing rom the
from t hemi ni
mining ngb us ine
business;s s;
4
4..I nc ome
accruing rom the
from t hema nuf ac
manufacturingtur ingi ndus tr
industry;y;
5
5..I nc ome
Incomes sa ccr uingf
accruing rom t
from hee
the le ct ricit
electricity,y,g asa
gas ndwa
and t
water e rs uppl
supplyyb us
busi-i- nesses;
ne sse s;
6
6..I nc ome
Incomes sa cc ruingf
accruing rom t
from hec
the ons truc
construction tionb us i
ne
businesss s( inc ludi
(including ngs uc
such h s al e
salessb us i
ne
businesss s
o
offn ewl
newlyyc ons truc
constructed tedh ous
houses e sa assp r es cribe
prescribed db byyt heP
the re side nt
De cre e;hereinafter
he reina f
t e r
thes
the ames
same hal
shallla ppl
apply);y);
7
7..I nc ome
accruing rom the
from t hewh ol e
wholesales aleb us ine
business s sa ndr
and etai
retail lb us ine
business;ss;
8
8..I nc ome
accruing rom the
from t her es ta ur
restaurant antb us i
ne
business ssa ndl
and odgi
lodgingngb us ine
business;ss;
9
9..I nc ome
accruing rom the
from t het r ans por ta
transportation tionb us i
ne
businesss sa ndc
and ommuni
communica- ca-t ionb
tion us ines
business;s ;
10
10..I nc ome
accruing rom the
from t heb anki
banking ngb us i
ne
business ssa ndi
and ns ur anc
insurance eb us ines
business; s;
11.
11. I nc ome
accruing rom t
from her
the e ale
real sta
estateteb us ine
business ss( exc l udi
(excluding ngt hei
the n-c
in- ome
comes sa ccr uing
accruing
f rom t
from her
the eale
real st at
estate er ent albusiness
rental bus ine ssa ndt
and her
the eale
real s tat
estate es al
saleeb us ine
business ssaassr efe r
r e
referreddt too
i ns
in ubpar agr aph1
subparagraph 2;h
l2; e re i
naf
hereinafter tert hes
the ames
same hal
shallla ppl y)
apply), ,l e as
lease eb us ine
businessssa nde
and nt erpris
enterprise e
s ervic
serviceeb usine s
business;s;
12.
12. I nc ome
accruing rom the
from ther e
realale s ta
estatetes al
saleeb us i
ne
businessssp r e sc ri
prescribedbe dbbyyP r
e si
de ntia
PresidentiallD ec r
e
Decree;e ;
13
l3..I nc ome
accruing rom the
from t hee duc a ti
educationalonals ervi
serviceceb us ine
business; ss ;
- 32 -
_32_
14.I
l4. nc ome
Incomes sa c c rui
accruing ngf rom the
from theh e alt
healthha nds
and ocialwe
social lf
welfareareb us ine s
business;s;
15.
15. Inc ome
Incomes sa c c rui
accruing ngf rom s
from ervic
serviceeb us i
ne s
businesssr e l
ate
relateddt or
to e creati
on,c
recreation, ultur e
culture,,oorrspor ts
sports, ,public
public
s ervice s
services,,repair
r e pa irs e rvi c
services,es ,o
orrp r i
vates
private er vi ce
services;s;a nd
and
16.I
16. nc ome
Incomes sa c c rui
accruing ngf rom the
from thed ome st
domesticics e rvi
serviceceb usine
business.ss.
(2)B
(2) usine
Businessssi nc o
incomemes hal
shall lb
beet hea
the mo untc
amount al culate
calculated db yd
by eductingt
deducting hen
the ece ss
ar
necessaryye xpe nse
expenses s
dis bur s
disbursed e
df ori
for t,f
it, romt
from het
the ota
totallg r
o s
grosssi ncomea
income mo unta
amount c c
r ui
accruingngd uringt
during hec
the orr es
pondi ngy
corresponding ea r
year..
(3)Ma
(3) t
terster
sn ec e s
necessarysaryf o
forrt hes
the copeo
scope offbusinessi
business ncomes
incorre hallbe
shall bedetermi nedb
deterrrined byyP r esi
dentialDecree.
Presidential De
cree .
Art i
cle2
Article 200(EarnedI
(Earned ncome)
Income)
(1
(1))T hee
The ar ne
earned di nco mes
income ha
shallllbbeet hef
the o llowi
following ngi nc o
incomesme sa cc rui
accruingngd ur
duringi
ng t hec
the o r res po ndi
corresponding ng
y e a
year;r :< Amendedb
<Amended by yAActc tNoNo..5580,
5 58 0,Dec.
Dec .28,
28 ,1998;
19 98 ;AActc tNo
No..8144,81 44 ,Dec.
Dec .30,
30 ,2006;
20 06 ;
Ac
Act tNoNo..9270,92 70 ,Dec.
Dec .26,
2 6,2008>
2 00 8>
11..
C las
Class sA A;:
( a
(a))S al
Salary,ar y,p ay,r
pay, emune ra
remuneration, tion,a nnua
annual la llowanc
allowance, e ,wa
wage,ge ,b onus
bonus, ,a l
l o
allow-w- a nc
ance, e,a ndo
and the
other r
b e ne
benefitsf i
tso offas i
mi
a similarlarn at ur
nature, e ,w hi
which cha r
are er e ce i
receivedve df oro
for f fe r
offeringingl abor
labor; ;
( b)I
(b) nc
Incomeo mer ec ei
ve
received daassab onusb
a bonus yar
by eso lut
a resolutionio na attthe
theg ene
generalralmeet-
me et -i ngso
ings offs t
oc kho lde
stockholders rs
o
orrp a rtne
partners rso offac or por at
a corporation, ion,o orrs imi lard
similar e
de- -l ibe r at
liberativeiveo r gans
organs; ;
( c
(c))A mountc
Amount ons ide
consideredre da assab onusu
a bonus nde
under rt heC
the or por
Corporate at eT TaxaxA c
Act; t;a nd
and
( d)I
(d) nc
Incomeo mer e ceive
received dd uet
due tooar etire me
a retirement, nt ,w hi
whichc hi issnnototi nc lude
included di nt
in her
the e ti
r e me
retirement nti nc o me
income; ;
a nd
and
22..
C las
Class sB B;:
( a
(a))P
Paya yr ec eive
received df rom af
from o re
a foreignigno rga ni zat
organization i
o no orrthe
t
heU ni t
Unitede dN at i
Nationsons Forces
For c e s( e xc ludi
(excluding ng
theU
the ni
United t
e dS tate
States sA r
Armedme dF or c
Forces) es )s tat ione
stationed di nK
in or
Korea;ea ;a nd
and
( b)P
(b) Paya yr ec eive
received df rom an
from o nr esi
a nonresidentde nto orrf or e i
foreigngnc or po rat
corporation ionl oc a
locatedte do ve r
overseasse a s( e xc ludi
(excluding ng
itsb
its ra nc
branch hoorrbusiness
bus ine s so ffi
officecei nK
in ore
Korea);a):Provided,
Pr ovi ded,T ha
That, t
,ininc a lc ul a
calculatingtingt hed
the ome s
domestictic
s o ur
source c ei nc omea
income mo unta
amount c crui
accruingngf ro
fromma nyp
any la
placeceo offbusiness
bus ine s si nK
in o r
Korea eao offan onr e si
a nonresidentde nt
a
assp res cri
prescribedbe di nA
in rtic
Article le1 20(
120 1)a
(l) nd(
and 2
(2))a ndf
and r om a
from nyp
any l ac
place eo offb us ine
business ssi nK
in or
Korea ea
o
offaf or e
a foreignignc or por at
corporation iona assp re s cr
prescribedi
be di nA
in rti
Articlecle9 944( 1
(l))a nd(
and 2
(2))o offthe
t heC or por
Corporatea te
T
Tax a xA c
Act, t,t hata
that ppr opr
appropriatediat eda assn e ces s
necessarya r ye xpe
expensesns e so orrl os s
lossese ss ha
shall llbebee xc lude
excluded. d.
(2
(2))TThehee a r
ne
earned di nc omes
income ha
shallllbbeet hea
the mo
amountuntc a l
c ul a
calculatedte db by yd educ t
deductingi
ngt hea
the mo
amount unta assp resc ribe
prescribed d
inA
in rtic
Article le4 477f rom t
from hei
the nc omea
income mount
amounts sr e fe rr
referred e dt tooi ns
in ubpar agr
subparagraphs aphso offp ar agr
paragraph aph( 1)
(1)
(e xc l
udi
(excluding ngn on-t axabl
non-taxable ei ncome
incomes; s ;h e r einaf
hereinafterte rr e fe r
r
referred e dt tooa ass“ gr
“grossos sp a y”
pay”). ) .< Amended
<Amended
b
byyA ActctNo No..6292,
62 92,Dec.
Dec .29,
2 9,2000>
20 00 >
(3
(3))I nc
In as
cases eswhwheree reaanne mpl oye
employee eo offad ome
a domestic sticc or po r a
corporation, ti
o n,whwho oh a
has sj oi ne
joined da ne
an mpl o ye
employees’ e s’
or gani z at
organization ions atis f
yi
satisfyingngt her
the equi re me
requirements nt sd ete r mi
determined ne db byyP r es ide nt
Presidential ialD e
Decreecr ee( he reina f
(hereinaftert er
re ferre
referred dt tooa ass“ emp l
o
“employeeye es to ckho ld
stockholders’e r
s ’a s s ocia t
io n”
association”), ) ,h a
has sa c quir
acquired eda nys
any toc
stockskso offt hec
the o rpo rati
corporation on
thr ought
through hea
the s soc i
at
association i
ona ndh
and ol
holdsdst hea
the mounto
amount offs toc
stocks ksn ote
not xc e e
exceeding dingt ha
that tprovided
pr ovi de df or
for
inP
in r eside
Presidentialnt ialD e cr
Decreee e( e xc ludi
(excluding ngt hec
the ont rol l
controllingings t
oc khol
stockholder de ro offt her
the e le va
relevant ntc or por at
corporationion
andt
and hes
the toc khol
stockholders der sh avi
havingnga nys
any pe c
specialialrelationship
rela t ions hi pp r es c ri
prescribedbe d
- 34 -
_34_
byP
by residentialD
Presidential ecree;h
Decree; ereinafterreferred
hereinafter r
eferredt oa
to ass“minors
“minor tockholders”),a
stockholders”), nyi
any ncomea
income ccruing
accruing
from t
from hed
the ifferenceb
difference etweent
between hea
the cquisitionv
acquisition alueo
value offsuchs
such tocksa
stocks ndt
and hema
the rketv
market alue
value
o
offsuchs
such tocks,s
stocks, halln
shall otb
not er
be egardeda
regarded assane
an arnedi
earned ncome.<
income. Amendedb
<Amended yA
by ctNo
Act No..
6292,Dec.
6292, Dec.29,
29,2 000>
2000>
(4)Ma
(4) ttersneces
saryfort hes c
opeofe a
rne
din comessha l
lbedeter
-m
h/Iattersneoessaryforfliescopeofeamedirrsonesslnflbedeter- inedbyPr e
s i
dentialDecree
minedbyPresidentialDecree.
Art i
cle2
Article 0-2De
20-2 leted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,De c
Dec..80,
30,2006>
20
06>
Art i
cle2
Article 0-3(
20-3 AnnuityI
(Annuity ncome)
Income)
(1)T
(1) hea
The nnui
t yi
annuity ncomes
income hallb
shall et
be hef
the ollowingi
following ncomesa
incomes ccruingd
accruing uringt
during hec
the orresponding
corresponding
year:<
year: Amendedb
<Amended yA
by ctNo
Act No..6557,
6557,Dec.
Dec.31,
31,2001;
20
01;A ctNo
Act No..7319,Dec.
7819, Dec.31,
31,2004;
20
04;
ActNo
Act No..7837,Dec
7837, Dec
.31,
31
,2005;
20
05;A ctNo
Act No..8144,
8144,Dec.
Dec.80,
30,2006;
20
06;A ctNo.
Act No.8825,
8825,Dec.
Dec.
31,2007;
31, 2
007;A ctNo
Act No..9270,
9270,De c
Dec.26,
26,2008>
20
08>
1
1..
V ariousa
Various nnuitiesr
annuities eceivedu
received ndert
under heN
the ationalPension
National Pe
nsionA ct;
Act;
2
2..
V a
riousa
Various nnuitiesr
annuities eceivedu
received nderthe
under t
heP ublicO
Public ffi
cialsP
Officials ensionA
Pension ct,t
Act, heV
the eterans’Pension
Veterans’ Pe
nsion
Act,t
Act, heP
the ensionf
Pension orPrivate
for Pr
ivateS choolT
School eachersa
Teachers ndS
and taffAct,
Staff Ac
t,oorrthe
theS pecialPost
Special Po
stO ffices
Offices
Act;
Act;
3
3..
Wheret
Where her
the etirementi
retirement nsurancemo
insurance neyd
money eterminedb
determined yP
by residentialD
Presidential ecreei
Decree issreceived
received
int
in hef
the ormo
form offannuity,t
annuity, hea
the nnuitiesr
annuities eceivedb
received yar
by etireea
a retiree assther
the elevanta
relevant nnuity
annuity
o
orrothers
other imilarp
similar ayments;
payments;
4
4..
Incomer
Income eceivedi
received nt
in hef
the ormo
form offannui
t yb
annuity yp
by articipatingi
participating nt
in hep
the en-s
pen- ions
sion avingsp
savings lan
plan
underA
under rticle8
Article 6-2o
86-2 offtheR
the estrictiono
Special axationA
Taxation ct(
Act referringt
(referring ot
to hea
the nnui
t y
annuity
incomec
income omputedb
computed yt
by hef
the or-mu
for- lau
mula nderparagraph
under pa
ragraph( 3)o
(3) offthe
thes ameA
same rt i
c l
e;hereinafter
Article; he
reinafter
thes
the ames
same halla
shall pply);
apply);
4-2.P
4-2. ensionr
Pension eceivedu
received ndert
under heG
the uaranteeo
Guarantee offWorkers’
Workers’Retirement
Re
tirementBenefits
Be
nefitsA cto
Act orrthe
the
KoreaS
Korea cientistsa
Scientists ndE
and ngineersMu
Engineers tual
-Ai dA
Mutual-Aid ssociationA
Association ct;a
Act; nd
and
5
5..
I ncomess
Incomes imilart
similar ot
to hoseu
those nders
under ubparagraphs1t
subparagraphs hrough4a
1 through nd4
4 and -2,wh
4-2, icha
Which rep
are aid
paid
int
in hef
the ormo
form offannuitiesa
annuities assprescribedb
prescribed yP
by residentialD
Presidential ecree.
Decree.
(2)T
(2) hea
The nnui
t yi
annuity ncomeu
income ndert
under hep
the rovisionso
provisions offparagraph
paragraph( 1)1a
(1) nd2s
1 and hallbe
2 shall bethea
the nnuity
annuity
incomer
income eceivedb
received asedo
based ne
on itherthe
either t
hec ontributionst
contributions op
to ensiona
pension nde
and mployerc
employer ontributions
contributions
(includingt
(including hec
the ontributionsb
contributions y t
by heS
the tateo
State orral ocalg
a local overnment;h
government; ereinaftert
hereinafter hes
the ame
same
shalla
shall pply)p
apply) aido
paid no
on orrafterJanuary
after J
anuary11,,2002,o
2002, orrtheo
the ffero
offer offlabormade
labor ma
deo no
on orrafterJanuary
after J
anuary
1
1,,2002,a
2002, ndt
and hea
the nnui
t yi
annuity ncomeu
income ndert
under hep
the rovisionso
paragraph( 1)4-2
(1) 4
-2s hallbe
shall bethe
the
annui
t yi
annuity ncomer
income eceivedb
received asedo
based na
on na
an mountw
amount hich has
Which hasb eend
been eductedu
deducted nderthe
under t
hep rovisions
provisions
o
offArt i
cle5
Article 1-3(
51-3 1)3
(1) 3..<Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2 006>
2006>
- 36 -
_36_
(3
(3))T hea
The nnui
annuitytyi ncomea
income mo unts
amount ha l
shalllbe
bet hea
the mo untc
amount alcula t
e
calculated dbbyyd e
de--d uctingt
ducting hea
the nnui
ty
annuity
inc omea
income mo unt
amounts sr e f
erredt
referred oi
to nA
in rt i
c l
Articlee4 7-2f
47-2 ro
frommt hes
the um o
sum offthei
the nc ome
incomes su nders
under ubparagr a
phs
subparagraphs
o
offp aragra ph(
paragraph 1)(
(1) excludingi
(excluding ncome
incomes st hata
that r
areee xc l
ude
excludeddf ro
fromma nnui t
annuityyi nco meu
income nde
underrparagraph
para gr
aph
(2
(2))a ndn
and on-t axabl
non-taxable ei nc ome
income; ;h er einaft
hereinaftererr efer re
referreddttooa ass“ gr os
“gross sa nnui
annuitytya mount
amount”).”
).
(4)T
(4) hes
The copeo
scope offa nnuityi
annuity nco me
income, ,c al
c ul
a ti
o
calculationnme tho
methodsdso offa nnuit
annuityyi ncomea
income ndo
and thernecessary
other nece ss
ary
ma tte
mattersrss ha l
lb
shall ep
be rescribe
prescribed db byyP r esidenti
PresidentialalD ec re
Decree.e.< Amendedb
<Amended yA
by c
Act tN0.
No.7 83 7
7837,,Dec.
Dec .
3 1,2005>[This
3], 2005>[ Thi sA rti
c l
ArticleeN ewl
Newly yI ns er
te
Inserteddb byyA c
ActtNNo.o.6 29 2
6292,,Dec.
De c.2 9,2
29, 000
2000]]
Art i
cle2
Article 211(Miscel l
aneousI
(Miscellaneous ncomes)
Incomes)
(1
(1))Mi sc ella
Miscellaneousne o usi nc o me
incomes ss ha l
lbe
shall bet hei
the nc o
incomesme so the
other rthan
tha ni nt er e
interests tincome,
inc ome ,d i
vi de
dividendndi nc ome
income, ,
re ale
real st at
estateer ent
rental ali nc ome
income, ,business
bus ine s si nc ome
income, ,e ar ne
earned di nc ome
income, ,a nnui
annuity t yi nc ome
income, ,r e tire me
retirement nt
inc omea
income ndt
and ra ns
transferfe ri nc ome
income, ,wh i
whichc ha r
areep rovi
provided de df ori
for nt
in hef
the ol lowi
following ngs ubpa r agr
subparagraphsi aphs :
1
1..P r i
z
Prize,e ,a war
award, d,r e war
reward, d,c ompe ns
compensation ationf ors
for e rvi c
service, e,o orrs imi
similarlarmo money ne ya ndv
and al uabl
valuables; e s;
2
2..
Mo
Moneyne ya ndo
and the
other rv a lua bl
valuables eso bt ai
ne
obtained dbbyyw inni
winning ngi na
in nyl
any o tte r
lottery,y,pre-
pre -m ium o
rnium orro the
other rtickets;
tic kets ;
3
3..
Fi na nc
Financial ia lp ro fi
profitstso bt a i
obtainedne dbbyyp ar ticipa t
participatingingi na
in nya
any c
actta assp res cr i
prescribedbe db byyt heA
the Actcto nS
on pec
Speciali
a l
C as
Cases e sc onc e r
concerningni ngR egul
Regulationationa ndP
and uni s
Punishment hme nto offS pe c ula
Speculative ti veA c
Acts,t s,e tc
etc;.;
4
4..R efundsr
Refunds ec e i
ve
received db byyap ur chas
a purchaser ero offaha horseor ser a c
racingingt ic ke
ticket tprescribed
pr e s c ribe db byyt heK
the or
Koreanean
R ac
RacingingA s so cia
Association tionA c
Act t( he re i
na f
(hereinafterte rreferred
r e f e r r edt tooa asst he“
the ho r
“horses er ac
racingingt i
c ke t”
ticket”), ),aw inne
a winner r
v o ti
votingngt ic ke
ticket tprescribed
pr es cr ibe db byyt heB
the Bi-i-c yc
cyclel ea andndMo to r
Motorboat bo a tRacing
Ra cingA Act c t( he re ina f
(hereinafterte rreferred
re fe r
re d
t
tooa asst he“
the wi
“win-n-n e
ner rv ot i
votingngt i
c ke t”
ticket”), ),ab ul lfight
a bullfighting i
ngma matchtc hv ot i
votingngt ic ke
ticket tp r es cr i
prescribedbe db byy
t heT
the ra di ti
Traditionalona lBullfighting
Bul lfight ingMaMatch tchA c
Act t( he r eina
(hereinafter fte rreferred
r e fe rre dt tooaass thet he“ bul lfightmatch
“bullfight ma t
c h
v o ti
votingngt i
c ke t
ticket”),”),a ndas
and por
a sports tsp r o mot
promotion io nv o t
voting ingt icke
ticket tprescribed
pr e sc ribe db by yt heN
the atio
Nationalna lS por
Sportsts
P romot
Promotion ionA Actct( he re i
naf
(hereinafter t
e rr e f err
referrede dt tooa asst he“
the s por
“sports t sp romot
promotion i onv ot i
ngt
voting ic ke t
ticket”);”);
5
5..
Mo
Moneyne ya ndo
and the
other rv a lua bl
valuables e sr e ce ive
received db byyap e
a person rso no the
other rthan
t ha nt hea
the ut ho
author, r,s ta
stagegep er for me
performer, r,
p honogr
phonograph aphr e cor
record dma makerke ro orrb roadc as
broadcasting tingb us ine
business sso pe rat
operator, or ,i nc
in ons ide r
considerationationo offaa
t rans
transferfe ro orru s
use eo offt hec
the opyr i
copyrightghto orrn e ighbor
neighboring ingr i ght
rights; s ;
6
6..Mone
Money ya ndo
and the
other rv aluabl
valuables e sr e c eive
received di nc
in ons ide r
consideration at iono offat ra ns
a transfer, fe r,l e as
lease eo orru s
useeo off
a nya
any s s
assete toorrr ighto
right offt hef
the ol l
owi
following ngi te ms
itemsi :
(a)Mo
(a) Movievi ef ilms
films; ;
(b)T
(b) ape
Tapes so orrf i
lmsf
films ort
for her
the adi
radio oa ndt
and e l e vis
television ionb r oadc
broadcast; as t;a nd
and
(c
(c))O the
Others rss imi l
similarart toot hos
those er ef e rr
referrededt tooi ni
in t ems(
items a
(a))a nd(
and b)
(b),,whwhichic ha rep
are r es cr
prescribedibe db byy
P res ide nt
Presidential ia lDecree;
De c re e ;
7
7..
Mo
Money ne ya ndo
and t
he
other rv a lua
valuablesblesr ece i
ve
received di innc ons ide
considerationrat io no offthe
thet ra ns
transfer f ero orrlease
le as eo offmining
mi ning
r ight
rights, s,f is hi
fishingngr ight
rights, s,i ndus t r
industrialialp rope
property r t yr ight
rights sa ndi
and ndus t
industrialrialinformation,
inf or mat ion,industrial
indus tria l
s ec ret
secrets,s,t ra d ema
trademark rkr ight
rights,s ,busi-
b us i-n es
nesssr ight
rights s( inc l
ud
(includingi
ngt her
the ight
rightsst ol
to e as
lease eas to
a storerep res c ri
be
prescribed d
b
byyP r es ide nt
Presidential i
a lD e cr
Decree),ee ),r i
ght
rights si nc ide nt
incidental a lt toop er mi s
permission s i
ont tooc oll e
collectcte ar th,s
earth, anda
sand ndr
and oc ks
rocks, ,
r ight
rights st tood e ve l
developo pa ndu
and useseu nde r gr
undergroundo undw a
water,te r,a ndo
and the
other ra s se
assetstso orrrights
ri
ght ss imi la
similar rthereto;
the reto ;
8
8..Mone
Money ya ndo
and the
other rv aluabl
valuables esr ec ei
ve
received da assr entfor
rent forat e mpor
a temporary ar yl e a
leases eo offa nyg
any oodso
goods orr
p lac
place;e ;
- 38 -
_38_
9
9..Mo
Moneyne ya ndo
and the
other rv a lua
valuablesble sr e c eive
received df o
forre st a bl ishme
establishment nto orrl e as
lease eo offs e rvi t
servitudeudeo orrs upe r fi
c
superficies ies
( inc ludi
(including ngt her
the ight
rights se s tabl is
established he du nde
under rt heg
the roundo
ground orri na
in irs
air pac
space); e);
10
10..O ve
Overduerduec ha
chargergeo orri nde mni
indemnities t iesc aus
caused e db byyab r e
a breachac ho orrc anc e l
l
cancellation at i ono offac ont r
a contract; ac t;
11.
11. I
Innc as
case ew he
where r ea nyc
any o mpe ns
compensation at ioni issp a
paidi
d,o orra nyn
any e
new wo wne r
ownership shi pi issa c qui r
acquired,e d,for
f orfinding
findi ng
a nyl
any os
lostta rtic l
articlese so orrb ur i
buriede dp rope
property, r t
y,s uc
such hc ompe ns
compensation a tiono orra s s e
assets;t s ;
12
12..A s s
Assets et st heo
the wne r
ownership s hi po offwhwhich i
c hi issa c qui
acquired re db byyp os s es
possessings inga anynyo wne
owner- r-l e s
lessst hing;
thing;
13
13..Money
Mone ya ndo
and t he
other rv a luabl
valuables e sr e ce i
receivedve db byyas pe c
a speciallyiall yr e lat
related edp e r
persons onw i
t
with har e s ide
a resident, nt ,
n onr e si
nonresidentde nto orrc o rpo r a
corporation t
ionp re scri
prescribedbe db byyP r e side
Presidentialnt ialD ec r
Decreee ef ro
from mt her
the e le va
relevant ntr es ide
resident,nt ,
n onr e si
nonresidentde nto orrc o rp o ra
corporationt i
ono nt
on her
the e a
reasonso no offs uc
such hs pe ci
special alrelation,
re l
a ti on,w hi
which c ha r
en
are o
not tc o ns ide
considered re d
aassp a
pay,y,ad ivi
a dividendde ndo orrd onat
donation ionb utc
but ons ide
considered r e da assa anne conomyp
economy r of
profit:it:P r o vi
Provided,de d,T ha
That t
w he
where r eam e
a membermbe rooffa anne mpl o
employee ye es t o ckho
stockholders lde r sa ss oci at
association ionh hasasa c qui
acquired r edt hes
the t oc
stocks kso off
t hec
the or por
corporationat ionc onc e
concernedr ne dt hr ought
through hea
the s s oc i
at
association iona ndi
and issami
a minor nors toc khol
stockholder, de r ,the
the
i nc omea
income c c rui
accruing ngf r om t
from hed
the iffe re
differencenc eb e twe
between ent hea
the c qui si
acquisitiontionv al
value uea ndt
and hema
the r
marketke t
v al
valueueo offs uc
such hs toc
stockskss hal
shall lbebee xc l
ude
excluded; d;
14
14..Money
Mone ya ndo
and t he
other rv al ua bl
valuables e sf orp
for r
prizeizew inni
winning ngo orra l
lot me
allotment nto orro the
others r sc or r es pondi
corresponding ng
t
toot he
them m( he re ina
(hereinafter fte rr efe r r
referrede dt tooaass“ pr
“prizei
z emo moneyne ya ndo
and the
other rv al ua
valuables,bl e s,e t c
etc”).
” )r e c e i
ve
received d
byp
by a r tici pa
participatingt ingi na
in c
actstsu s i
usingngs lo
slottmachines
ma c hi ne s( inc ludi
(including ngv ide
video og ame
games) s )a ndc
and oint os
cointossing sing
ma c hi
machines ne sa ndo
and the
other rs imi l
similararmachines
ma c hine sa ndt
and o o
toolsls( he re ina
(hereinafterfterr ef er
referredre dt tooaass“ s lo
“slot tm a c hi
machines,ne s ,
e tc .
etc”);”) ;
15.
15. I nc o
Incomesme sr e c e i
receivedve di nt
in hec
the a pac
capacity i
t yo offthe
theo r igi
originalna la ut horfor
author forc r eat
creativeivew or
works kso offliterature,
lit er a t
ur e ,
a c ade mi
academic, c ,f inea
fine r ts
arts, ,mu s
music,ic ,oorrp hot ogr
photography aphy( in-c
(in- ludi
cludingngt hei
the llus tr at
illustrationsionso orrc ar toons
cartoons
pr int
printede di np
in e rio dic
periodicals a lsu nde
under rt heA
the Actc to nt
on heF
the r ee
Freedomdo mo offNewspapers,
Ne ws pa pe r s,e tc
etc..a ndG
and ua r a
Guarantee nte e
o
offT he
Their irFunctions,
Func tions ,a ndt
and ra ns lat
translationi ono offK o r
Koreane a nc re at
creativeivew or
works kso orrc las si
classicsc si nt
intoof or ei
foreigngn
language
languages so orrmo de
modern r nK or e
Korean) an)t hatf
that al l
fallssu nde
under ra nyo
any offt hef
the ol
fol- -l owi
lowingngi te ms
items: :
( a)Ma
(a) nus
Manuscript c riptf e e
fees;s ;
( b)R
(b) oyal
Royaltiestie st hata
that r
are ep ai
paiddf oru
for uses eo offc opyr i
copyrightedght edma te r i
materials;a ls ;o orr
( c
(c))C os
Costst sr e c e i
receivedve df orc
for re at
creativeivewo works rkso offf inea
fine rts
arts, ,music,
mus i c,o orrp hot
photo- o-g r aphy;
graphy;
16
16..Fee
Fe eo offab r oke
a brokerage r agea asst oa
to nyp
any r ope
property rt yr ight
right; ;
17
17..R e c ompe
Recompense; ns e ;
18.
18. L ump-s
Lump-sum um p ayme
payments nt sr ec e ive
received df ro
frommc a nc e la
cancelation tio no offa c co unto
account offmutual
mut ua la i
df
aid undf
fund o
forrs ma
smallll
c or por at
corporations ionso orrs ma
small lle nt e rpr
enterprisesis esp r e s cr
prescribedibe db byyP r es i
de nt
De c r ee ;
19
19..R e war
Rewards dsr e ce i
receivedve df ort
for e mpor
temporarily ari lyf ur ni s
furnishing hi ngp er s onals
personal e rvi
services c e s( ex-c
(ex- ludi
cludingngt hos
those e
f al lingu
falling nde
under rs ubpar agr
subparagraphs a phs1 5t
15 hr ough1
through 17)7)t ha
that tf al
falllu nde
under ra nyo
any offthe
t hef o llo wi
following ngi tems
items: :
( a)S
(a) e rvi
Servicesc e sl i kel
like e c tur
lectures,e s ,s pe e c
speecheshe so orrs imi
similarlars e rvi c
services,e s ,made
madet omu
to mul-l-t ipl
tipleep e rsons
persons
w i
t houta
without anne mpl oye r -e
employer-employee mpl oye er e lat i
relation,on,for forwh whichichr e wa
rewards r dsa r
areer ec e ive
received; d;
( b)S
(b) er vi
Services cesl ikec
like omme nt
commentation, at ion,e nl ight e
enlightenment,nment ,oorrs cr eeni
screening ngo offperformances,
per for ma nc e s ,e tc
etc..
ont
on her
the a di
radio, o,t e l e vis
television ionb roadc as
broadcasting, ting,e tc
etc. .for
f orr emune
remunerationrat iono orro the
other rr e wa
rewards r dso off
as imi
a similar la rn at ur
nature; e ;
- 40 -
_40_
( c
(c))S e rvi c
Servicesesr e nd e
renderedr e db byyal awye
a lawyer, r ,ce r tif
ie
certifieddp ubl
publicica cco unt
accountant,ant,tax
taxa c
ac--c o unt a
countant,nt,a rchitec
architect,t,
sur ve yor
surveyor, ,p a te
patent ntl a wye
lawyer, r,o orro the
otherrp e rsonh
person avi
havingngp r ofe ssio
professional na lk nowl e
knowledgedgeo orrs pe cia
special l
expe rti
s
expertise eu s i
usingngh i
sc
his o rres po ndi
corresponding ngk no wl edgeo
knowledge orre xp e rti
expertisesef o
forrremuneration
remune ratio noorrc onsid-
consid-
erat ion;a
eration; andnd
( d)S
(d) e rvi ce
Services,s,o the
other rt ha
than nt ho s
those eu nde
under ri te ms(
items a
(a))through
thro ugh( c)
(c),,rendered
rende redw i
tho
withoututa ne
an mp l
o
employ-y-
er-e mpl oye
er-employee er e lat
relationionf ora
for l
l owa
allowancesnc eso orro the
other rs imi l
similararc os ts
costs; ;
20
20..I nc omet
Income ha
thatth asb
has e
beene nd is pos
disposed e do offa
assmi sce llane
miscellaneous ousi nc omep
income urs uantto
pursuant toA rtic
Articlele6 7o
67 off
t heC
the or por
Corporateat eT a
TaxxA c
Act; t;
21.
21. L ump -s
Lump-sum um payments
pa yme nt sf o
forrt e rmi na
terminationtiono offpersonal
pe r
s ona lp e ns i
pensionons avingsd
savings e
de--p osit
positssa assp re scribe
prescribed d
b
by yP r e sident
Decreer e e( inc ludi
(including nga mount
amounts sr ec eive
received di nt
in hef
the or
formmo the
otherrt hana
than nnui t
annuityy
a ft
afterert hema
the t ur
maturity i
tyo offa anni ns tal lme
installment nt payment
pa yme ntc ont r a c
contract);t);
22.
22. G ai
Gainsnsf r
om e
from xe rcis
exercising i nga fte
afterrretirement
r etire me ntt hes
the t oc
stock ko pt ionst
options ha
thatthave
ha veb ee
beenng ra nt
grantede db efor
beforee
r et i
r eme
retirement, nt,o orrf rom e
from xe r cis
exercisingingt hos
those eg rant
grantededwi thouta
without ne
an mpl o ye r
-e mpl
employer-employee oye er e l
ation;
relation;
23
23..B ribe
Bribes; s ;
24
24..Money
Mone ya ndo
and t he
other rv a luabl
valuables e sr e ce ive
received db byyme a
means nso offthe
thea cce ptanc
acceptance eooffproperty
prope r t
yt hr ough
through
me diat
mediation,ion,o orrt hea
the c c ept
acceptancea nc eo offp r ope
propertyrtyt hr oughb
through r eac
breach ho offt rus t
trust;;a nd
and
25
25..I nc omea
Income ccr ui
accruing ngf r o
from mt het
the r ans
transferfero offpaintings,
pai nti ngs ,w r i
t i
ngs
writings, ,a nda
and ntique
antiques sp re scr i
prescribedbedb y
by
P res i
de nt
Presidential i
alD e cr
Decree.e e .≪ Enf or
(Enforcement cementDa t
Dateie:J an.1
fan. 1,,2 01 1≫
2011>>
(2)Mi
(2) sce lla ne
Miscellaneous o usi nc o me
incomes ss ha
shalll
lb beet hea
the mounto
amount bt aine
obtained db byyd educ t
deductingi
ngn ece ss
necessaryar ye xpe ns
expenses,es ,
from t
from het
the ot a
totallg ros
gross si nc omea
income mounta
amount ccrui
accruingngd ur ingt
during hec
the or re spondi
corresponding ngy ear
year. .
(3)T
(3) hed
The eta i
l
e
detailedds c o
scopepeo f
of,,c a lcul at
calculationi
o nme t
methodhodo f
,a
of, ndo
and the
other rn e cess a
necessary r
yma tte
mattersrsf o
forrmiscella-
mi scella-
n eousi
neous nc ome
incomes ss ha
shall l
lbebep re sc ri
prescribedbe db byyP reside nt
Presidential i
alDecree.
De c re e.< Newl
<Newly yI ns er
Insertedtedb yA
by c
Act t
No.8144,
No. 81 44 ,Dec.
Dec .30,
3 0,2006>
2 00 6>
Art i
cle2
Article 222(RetirementI
(Retirement ncome)
Income)
(1)R
(1) e t
ireme n
Retirement ti nco mes
income h al
shalllb et
be hef
the ollowi
followingn gi nc ome
incomes sa ccrui n
accruing gd u rin
duringgt hec
the orres p ond
correspondinging
ye ar
year::< Amendedb
<Amended byyA c
ActtNo.
No.5580,
5 58 0 ,D ec
Dec. .28,
28,1998;
1 99 8 ;Act
Ac tNo.
No.6292,
6 2 92 ,Dec.
Dec .29,
29 ,2000;
200 0;Act
Ac t
No.8144,
No. 8144 ,Dec.
De c .30,
30 ,2006;
20 06;Act
Ac tNo.
No.8825,
882 5 ,Dec.
De c .8],
31 ,2007;
2 007;Act
Ac tNo.
No.9270,
92 70,Dec.
De c .26,
26,2008>
200 8>
1
1..C l
as
ClasssA A2:
(a)L
(a) umps
Lump um p
sum a yme
payments ntsf o
forrretirement
retire me ntp ai
dt
paid oap
to e
rso
a personnh avi
havingngC lassAe
Class a rne
A earned di nc ome
income; ;
(b)H
(b) onor abl
Honorable er e tireme
retirement nta llowanc
allowances esp ai
paiddt op
to ubl i
publicco fficia l
officialssiinnv ariouss
various e rvic e
services,s,a nd
and
teac her
teacherssa nde
and mpl oye
employeese so offp ri
vat
private es chool s
schools; ;
(c)L
(c) umps
Lump um p
sum a yme
payments ntsf ro
frommo uto
out offr e tir
eme
retirementnti nsuranc
insuranceea assp r ovide
provideddf orin
for inP res i
dentia
Presidentiall
D ecre
Decreeet ha
thatta r
areer eceivedb
received byyap erso
a person nh avingC
having l
assAe
Class ar
A eamedne di nco mef
income orh
for i
hissr etireme nt
retirement;;
(d)L
(d) umps
Lump um r
sum e tur
return np a yme nt
payments so orrlumps
lump um d
sum ea t
deathhp ayme nt
payments su nde
under rthe
t
heN a tiona
National lPension
Pens i
on
Ac t
Act; ;
(e)L
(e) umps
Lump um p
sum ayme
paymentsntsp a i
paiddu nde
under rt heP
the ubl
PublicicO ff
icialsP
Officials e ns i
PensiononA ct
Act,,t heV
the e te
rans
Veterans’ ’
P ens i
o
PensionnA ct
Act,,t heP
the ens io
Pensionnf orP
for r
iva t
PrivateeS c
ho
SchoololT each-e
Teach- rsa
ers ndS
and taf
StafffAct,
Ac t,oorrthe
theS pecial
Special
P os
Post tO ffice
OfficessA ct
Act;;a nd
and
- 42 -
_42_
(f)O
(f) therl
Other umps
lump um p
sum aymentss
payments imilart
similar toothoseu
those nderi
under tems(
items a)t
(a) hrough(
through e),wh
(e), ich
Which
arep
are rovidedf
provided ori
for nP
in residentialD
Presidential ecree;a
Decree; nd
and
2
2..
C lassB
Class B1:
Incomep
Income aidt
paid oap
to ersonh
a person avinga
having nyC
any lassB
Class B earnedi
earned ncome,for
income, f
orh isr
his etirement.
retirement.
(2)T
(2) her
The etirementi
retirement ncomeu
income nderparagraph
under p
aragraph( 1)1(
(I) d)a
l (d) nd(
and e)s
(6) hallbe
shall bethel
the umps
lump um payment
sum payment
receivedb
received asedo
based ne
on itherc
either ontributionst
contributions op
to en-s
pen- iono
sion orremployerc
employer ontributionsma
contributions deo
made n
on
o
orrafterJanuary
after J
anuary11,,2002o
2002 orront
on heo
the ffero
offer offlabormade
labor ma
deo no
on orrafterJanuary
after J
anuary11,,2002.<
2002. Newly
<Newly
Insertedb
Inserted yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2 000>
2000>
(3)R
(3) etirementi
Retirement ncomes
income hallb
shall et
be hea
the mounta
amount ddingu
adding pt
up hei
the ncomesa
incomes assreferredt
referred oi
to ne
in ach
each
subparagrapho
subparagraph offparagraph(
paragraph 1).
(I).
(4)T
(4) her
The etirementi
retirement ncomea
income assreferredt
referred tooinp
in aragraph(
paragraph 1)(
(1) excluding i
(excluding ncomeu
income nders
under ubpar
a-
subpara-
graph1(
graph d))s
1 (d)) hallbe
shall belimitedt
limited toother
the etirement i
retirement ncomep
income aidt
paid tooane
an mployeeo
employee offar esident,
a resident,
non-residento
non-resident orrcorporation f
corporation orh
for isa
his ctualr
actual etirement.<
retirement. Amendedb
<Amended yA
by ctNo
Act No..6292,
6292,
Dec
Dec..29,
29,2000>
20
00>
(5)T
(5) hec
The onvertedm
converted oneyo
money offretirement
retirementb enefitso
benefits offemployees,w
employees, hichi
Which isspaidt
paid ot
to heN
the ational
National
PensionF
Pension undb
Fund yt
by hee
the mployersu
employers nderA
under rt i
cle8
Article 8o
88 offtheN
the ationalP
National ensionA
Pension ct,s
Act, hallb
shall bee
consideredt
considered ob
to ei
be ncludedi
included nt
in her
the etirementbenefits
retirement be
nefitsaassprescribedi
prescribed np
in aragraph(
paragraph 1)1(
(1) a).
1 (a).
Ins
In uchc
such ases,t
cases, hec
the onvertedmo
converted neyo
money offretirementb
retirement enefitss
benefits hallbe
shall beconsideredt
considered ob
to e
be
paidt
paid ot
to her
the elevante
relevant mployeea
employee attthet
the imeo
time offhis
hisa ctualretirement.
actual r
etirement.< Amendedb
<Amended yA
by ct
Act
No.8144,
No. 81
44,Dec.
Dec.30,
30,2006;
2
006;A ctNo
Act No..854],
8541,J ul
Jul..23,
23,2 007>
2007>
(6)T
(6) hes
The copeo
scope offretirementi
retirement ncome,m
income, ethodso
methods offcalculationa
calculation ndo
and thernec-
other ne
c-e ssaryma
essary tters
matters
shallb
shall ep
be rescribedb
prescribed yP
by residentialD
Presidential ecree.<
Decree. Amendedb
<Amended yA
by ctNo.
Act No.7837
7837, c
,Dec
De.3],
31,2005>
2
005>
Art i
cle2
Article 3D
23 eleted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
Art i
cle2
Article 4(
24 Calculationo
(Calculation offTotalG
Total rossI
Gross ncomeA
Income mount)
Amount)
(1)T
(1) het
The otalo
total offeachi
each ncomeo
income offa
aresidents
resident hallb
shall ec
be alculatedb
calculated ys
by ummingu
summing pt
up hea
the mounts
amounts
receivedo
received orrtob
to er
be eceivedi
received nt
in hec
the orrespondingy
corresponding ear.
year.
(2)I
(2) nt
In hec
the aseo
case offparagraph(
paragraph 1),i
(1), iffthoseo
those thert
other hanm
than oneya
money rer
are ecei
ve d
received,thei
the ncomea
income mount
amount
shallbe
shall b
ec alculatedb
calculated yt
by hev
the aluea
value attthe
thet imeo
time offthe
thet ransaction.
transaction.
(3)I
(3) nt
In hec
the alculationo
calculation offthet
the otalg
total rossi
gross ncomea
income mount,t
amount, hem
the attersn
matters ec-e
nec- ssaryf
essary ort
for he
the
scope,c
scope, alculationa
calculation ndd
and eterminationd
determination ateo
date offthe
thea mountreceived
amount r
eceivedoorrto
tob er
be eceived,s
received, hall
shall
bed
be eterminedb
determined yP
by residentialDe-
Presidential De
-c ree.
cree.
Art i
cle2
Article 5(
25 SpecialC
(Special asef
Case orC
for alculationo
Calculation offTotalG
Total rossI
Gross ncomeA
Income mount)
Amount)
- 44 -
_44_
(1
(1))I Iffar e s i
de
a resident ntl endsa
lends nyr
any e a
real le stat
estatee( e xc l
udi
(excludingngh ous
housesesa ndl
and a nda
land ppur tena
appurtenant ntt he ret
thereto,o,
w hi
whichc ha rep
are res c ri
prescribedbe dbby yP r es ide nt
Presidential ia lD ecr e
Decree;e ;h ereaf t
hereaftererint
in hisA
this rt ic l
e
Article,,t hes
the a mes
same ha l
shallla pp l
y)
apply)
o
orra nyr
any ightt
right os
to uc
such hr ea
realle s ta t
estate,e,a ndr
and ecei ve
receives st heg
the uar ant
guaranteee emo ne
money, y,s ec ur i
securityt
ymo ne
money yf or
for
lea s
lease eo nad
on epo
a deposit sitbasis,
ba s is,oorro the
other rm o ne
money yo offas i
mi l
a similararn at ure
nature, ,the
thea mo
amountuntc alcul at
calculatededu nde
underr
P re si dent
Decreee es ha
shallllbbeec ount
counted edi nt
in het
the otalg
total rossi
gross nc omea
income mo
amountunti nt
in hec
the alc ul ati
calculationon
o
offt her
the ea
realle sta t
estateer e nt
rentala linc o
incomemea mo unt
amount. .< Amendedb
<Amended yA
by c
Act tNo.
No.6557,
6 5 5 7,Dec.
Dec .31,
31 ,2001>
20 01 >
(2
(2))E ve
Even nt houghar
though e side
a residentntc ons ume
consumes sa nyi
any nve ntor
inventory ya ss e
assetstsoorrt r ee
treessf o
forrh i
hissd o me s
domestic t icu se
use
o
orrp a
paysyst he
them mt oh
to i
hisse mpl oye
employees e so orro the
otherrp ersons
persons, ,the
the a mounte
amount qui va l
equivalente ntt ot
to hev
the alue
value
the r e
thereof ofaattt het
the i meo
time offc ons umpt
consumption iono orr payment
pa yme nts ha
shalll
lbe
bec o unt
countededi nt
in het
the o ta
totallg ro
grossssi nc ome
income
amo
amountunti nt
in hec
the alcu-l
calcu- a ti
ono
lation offt heb
the us i
ne
businessssi nco mea
income mo unto
amount orrmiscellaneous
mis c e l
la ne o usi nc omea
income mo
amountunt
int
in hey
the e
yearart owh
to i
whichcht hec
the ons umpt
consumption iond at
dateeoorrp ayme
payment ntd at
dateeb elongs
belongs. .< Amendedb
<Amended y
by
Ac
Act tNo No..8144,
81 44 ,Dec.
Dec .30,
30,2006>
2 00 6>
Art i
cle2
Article 6(
26 Non-Inclusioni
(Non-Inclusion nT
in otalG
Total rossI
Gross ncomeA
Income mount)
Amount)
(1
(1))T Thehea mo
amount unta p p ro pria
appropriated t
e df o
forro the
other rt a
taxxa mo unt
amounts, s,a mo
amongngt hei
the nc o
incomemet axa
tax mo unto
amount orr
re si d
residente ntt a
taXxa mo untt
amount ha
thatth a
hassb ee
been nr efund
refunded e do orris
i st toob er
be e fund
refunded,ed ,s ha
shallllnot
no tbebec ount
counteded
int
in h
the et o t
a
totallg ro
grosss si n c o
incomemea mo
amountun ti nt
in hec
the a lc ula
calculation ti
ono offthe
t heincome
inc omea mo
amountun ta c cru i
accruingngd uring
during
th
theec or re sp o
year. r.
(2
(2))T Thehea mo
amount unta p p ro pri
appropriateda t
e df orm
for ak
makingi
ngu upps uc
such hd ef i
c
deficititc a rr i
e d-o
carried-overve raassp res crib
prescribed e db y
by
th
theeP res iden
Presidentialt i
a lDecree,
De c re e,a mo
amongn gt h
theev a lu
valueeo offaanynya ss e
assetstsre-
re-c e
ive
ceived dg r
a tu ito u
gratuitouslyslyb byya res ident
a resident,,
andt
and hed
the e bta
debt mo untreduced
amount red uce db byye x-e
ex- mp
emptiont i
o no orre xt ingui shme
extinguishment ntooffhis
hi so bliga t i
obligation,on,s hall
shall
n o
nottbeb ec o un t
counted edi nt
in h
theet ota
totallg ro
gross ssi nc o
incomemea mo
amountun tinint hec
the a l
c ula t
i
calculationo no offthe
theincome
in co mea mo unt
amount
ac c r ui
accruing ngd ur
duringi
ngt hec
the o rres po nd
corresponding ingy ea
year.r.
(3
(3))I nc
In alc ul at
calculating i
ngt her
the e a
realle s ta
estateter e nta
rental li nc
incomeomeo orrt heb
the us i
ne
businesss si nc o
incomemeo offar eside nt
a resident, ,the
the
inc o
income mea mo
amountuntbrought
b ro ughtf or wa
forward rdf r o
fromm the
th ep re c ed
preceding ing yearye ars ha
shalll
lnot
no tbe
bec o unt
countede diinnt he
the
to ta
total lg r o
grosss si nc o
incomemea mo unti
amount nt
in h
theec a l
c u-l
calcu- atio
lation no offthe
thei nc omea
income mo
amountunta c cr ui
accruingngd uring
during
th
theec or re sp o
year. r.< Amendedb
<Amended byyA Act ctNo No..8144,
814 4,Dec.
Dec .80,
3 0,2006>
200 6>
(4)Wh
(4) When enar e si
d e
a residentntw hoe
who nga ge
engages si nt
in hea
the gr ic ult
agriculture,ur e,forestry,
for estry,fishery,
f
is he r
y,mining
mi ni ngo orrmanufacturing
ma nufa ctur i
ng
indus
industry,try,h a
hassu se
useddt hea
the gr icultur
agricultural a lproducts,
pr oduc t s ,prize,
p riz e,l ive s to
livestockckp r oduc
products,t
s,forest
fo restproducts,
p ro duc ts,marine
ma ri
ne
pr oduc
products, ts ,m ini
mining ngp r od
prod- -u cts
ucts,,e a rt
earth,h,s anda
sand ndr
and o c
rockkw hi
which chw e
wererem ine
mined,d,c a ught
caught, ,bred,
br ed,c ultiva t
ed
cultivated
o
orrc ol le c
collectedtedb byyh im,o
him, orrh asu
has s
used edp roduc
products t sma nuf a
manufacturedc t
ur e db byyh i
m,a
him, assr a
raww ma ter i
a
materials lsoorr
fue
fuel lf orma
for nuf ac
manufacturet ur eo offo t
he
otherrp roduc
products tsp r oduc
produced edb yh
by im,t
him, hea
the mounte
amount qui val
equivalente ntto
t ot he
the
us e
used dp o rtio
portionnt he reo
thereof fs ha l
shallln otbe
not bec o unt
countededi nt
in het
the o t
a
total lg ros
gross si nc o
incomemea mo
amountuntinint hec
the alcul ati
o
calculationn
o
offt hei
the nc omea
income mounta
amount cc ruingd
accruing ur i
duringngt hec
the orr e spo
correspondingndi ngy ea
year.r.< Amendedb
<Amended yA
by c
Act tNo.
No.
8 14
8144, 4,Dec.
Dec .30,
30 ,2 00
2006> 6>
(5
(5))I Iffar e si de
a resident ntc ar ryi
carrying ngo onnt hec
the ons t ruc
construction tionb us ine
business, s s,has
hasu se
useddt he g
the oodsp
goods roduc
produceded
byh
by i
himma assma te ri
materialsal sf orac
for ons truc
a construction tionwo work rkc ont rac
contracted te db yh
by im,the
him, thea mounte
amount qui val e
equivalentnt
tot
to heu
the se
useddp o rti
portionons ha l
shallln o
nottbe
bec o unt
countede di nt
in het
the ota
total lg ro
grossssi nco mea
income mo
amountuntinint hec
the alcul ati
o
calculationn
o
offt hei
the nc omea
income mounta
amount c crui
accruingngd ur i
ngt
during hec
the or re s pondi
year. .
- 46 -
_46_
( 6
(6))IIffar eside
a resident ntc ar r yi
carrying ngo nt
on hee
the le ct r ic
electricity,ity,g a
gasso orrw at
water ers uppl
supply yb us
busi-i-n e s
ness,s,h asu
has se
used d
thee
the lec tr ic
it
electricity, y,g gasaso orrwa t
watere rp roduc
produced e db byyh i
mf
him ort
for he p
the owe
power,r,f ue
fuel loorrwawaterte
rf oro
for the
other r
b us i
ne
business ssp ur pos
purposes e sc ar ri
carriededo onnb byyh im,t
him, hea
the mounte
amount qui va
equivalentlentt ot
to heu
the s
usededp or t
ions
portion hal
shall l
n otb
not beec ount
countede di innt het
the ot alg
total ros
gross si nc omea
income mounti
amount nt
in hec
the alcul ationo
calculation offt hei
the nc omea
income mo unt
amount
a ccrui
accruingngd ur ingt
during hec
the or r espondi
corresponding ngy e a
year. r .
( 7
(7))TThehei ndivi dua
individual lc ons umpt
consumption i
ont ax,l
tax, iquort
liquor ax,a
tax, ndt
and raf fi
c
traffic,,e ner
energygya nde
and nvi ronme
environment nttax
tax
p ai
paiddo orrttoobbeep ai
paid db byyar e side
a resident ntwh who oi issl iablet
liable op
to ays
pay uc
suchhi ndi vi dualconsumption
individual cons umpt iont ax,
tax,
liquort
liquor ax,a
tax, ndt
and r a f f
traffic,ic ,e ne r
energygya nde
and nvi
envi- -r onme
ronment nttax
taxi mpos
imposede do onnt hea
the mounte
amount ar ne
earned do orr
tob
to ee
be ar ne
earned da assh hisist ot alg
total ros
gross si nc omea
income mount
amount, ,s hal
shall ln otbe
not bec ount
counted edi nt
in het
the otalgross
total gr os s
inc ome a
income mo unti
amount nt
in hec
the a lcul ati
calculationo no offt hei
the nc omea
income mo unta
amount ccrui ngd
accruing ur i
duringngt hec
the or respo ndi
corresponding ng
y ear
year,,e xce
except ptf ora
for nyt
any a
taxxa mo
amountuntt ob
to beeb or
borne nei np
in urc has
purchasing,ing,importing
i
mp o rti
ngo orrusing
us ingr aw materials,
raw ma t
eria l
s ,
fue
fuello
orro t he
otherrg oo
goods.ds .< Amendedb
<Amended byyA Act ctNo.No.8144,
8 14 4 ,Dec.
Dec .30,
30 ,2006;
2 00 6 ;Act
Ac tNo.
No.8825,
8 82 5 ,Dec.
Dec .
3 1,2007>
31, 2 00 7>
( 8)A
(8) ddi t i
onalp
Additional a yme
payments nt so nr
on e fundo
refund offn at ionaltaxes
national taxe su nde
under rArticle
Ar tic l
e5 2o
52 offthe
t heF rame wor
Framework k
A
ActctoonnN ationalT
National axe
Taxes, s ,i nt eres
interest toonnr ef undu
refund nde
under rA r ti
Articlec le4 6o
46 offthe
theL oc
Local alT a
TaxxA c
Act, t
,a nd
and
inte res
interest tooffrefund
r efundo offe rr one
erroneousousp ayme
payments nt ss hal
shallln otb
not be ec ount e
counted di nt
in het
the ot
totalalg ros
grosssi ncome
income
a mounti
amount innc alc ul a
calculation ti ono offt hei
the nc omea
income mounta
amount cc rui
during hec
the or re s pondi
year. .
< Amendedb
8 82 5,Dec.
Dec .31,3 1,2007>
200 7>
( 9)T
(9) Thehes ale
salesst a
taxxa mo
amount unto offthe
thev alue -a
value-added dde dt a
taxxs ha
shall l
lnot
no tbe
bec ount
counted e di nt
in het
the ot a
totallgross
gr os s
inc omea
income mount
amount, ,i nc
in a lc ulat
calculationiono offt hei
the nc
incomeomea mounta
amount cc r
ui
accruingngd ur
duringingt hec
the or res pondi
corresponding ng
y ea
year.r
.
Art i
cle2
Article 7(
27 Calculation o
(Calculation offNecessaryE
Necessary xpenses)
Expenses)
(1)T
(1) hea
The mountt
amount ob
to ec
be ount
counted edi nt
in hen
the ece ssa
necessary rye xpe nse
expenses si nt
in hec
the alcul a-t
calcula- i
ono
tion offthe
ther ea
reall
est at
estateer ent
rentalali ncomea
income mount
amount, ,b us ine
business ssi nc omea
income mounto
amount orrmi scellane ousi
miscellaneous nc omea
income mount
amounts, s,
sha l
shalllbe
beasa sumum t o t
alo
total offt hee
the xpe ns
expenses eswh i
whichchc or respo
correspond ndt ot
to het
the ot a
totallg r os
grosssi nc omea
income mo unt
amount
acc rui
accruingngd ur
duringingt hec
the or res pondi
corresponding ngy e ara
year nda
and reg
are ene rall
ya
generally dmitte
admitted.d.< Amendedb
<Amended yA
by c
Actt
No.5031,
No. 50 31 ,Dec.
Dec .29,
29 ,1995'
19 95 :AActc tNo
No..5580,
5 58 0,Dec.
Dec .28,
28 ,1998;
199 8;A c
Act tNo
No..8144,
8 14 4,Dec.
Dec .30,
30,
200
2006>6>
(2)T
(2) hee
The xpe
expenses nse swh ic
which hc orr es pondt
correspond ot
to het
the ot alg
total ros
grosssi nc omea
income mountin
amount int hep
the re c
e ding
preceding
yea
yearra ndi
and issf ina l
finallyl
yd etermi
determinedne di nt
in hec
the o rres pondi
yearrs ha l
shalllbe
bec o unt
countededi nt
in hen
the e
c ess a
necessaryry
expe ns
expenses esi nt
in hec
the or res pondi
year,,e x-c
ex- eptfor
cept fort hea
the mountthat
amount t ha thas
ha sb e e
beennc ount
countededi n
in
then
the ec ess
necessary ar ye xpe ns
expenses e s i nt
in hep
the rece di
precedingngy ear
year. .
(3)Ma
(3) t
te
Matters r sn ec ess
necessaryar yf orc
for al cul ati
calculatingngt hen
the ece ssar
necessary ye xpe nse
expenses, s
,s hal
shalllb ed
be e ter
mi ne
determined db byy
theP
the re side nt
Presidential i
alD ec re
Decree.e .
Art i
cle2
Article 8(
28 Calculation o
(Calculation offAl l
owancef
Allowance orB
for adDe
Bad btsa
Debts assNecessaryE
Necessary xpenses)
Expenses)
- 48 -
_48_
(1
(1))I Iffar es i
de
a residentnth a vinga
having nyr
any eale
real stater
estate e nt
rentalali nc omeo
income orrb us ine
businessssi ncome(
income her ei
na fte
(hereinafterrr eferred
referred
toa
to asst he“
the bus ine ss ma
“businessman”) n”)a ppr opr ia
appropriatest
esa assn ec es sa
necessaryrye xpe ns
expenses est hea
the llowa nc
allowance ef orbad
for badd ebts
debts
w it
withhr es pe
respect ctt tooa nyc
any redita
credit cc o unt
account, ,o ut st andi
outstanding nga mo unta
amount ndo
and the
other rc redi t
sc
credits orre spondi
corresponding ng
the re
thereto,to ,s uc
suchha llow-a
allow- nc
anceef orbad
for ba dd ebt
debtsss ha
shalll
lbebec ount
countede di nt
in hen
the ece ssar
necessary ye xpe ns
expenses esi nt
in he
the
ca lcul a
calculationtio no offt hei
the nc o
incomemea mo unta
amount ccr ui
accruingngd ur ingt
during hec
the o rres pondi
yearrw ithi
withinnt hes
the cope
scope
a
assd e t e rmi
determined ne db yt
by heP
the reside nti
Presidentiala lD ecre
Decree.e .< Amendedb
<Amended yA
by c
Act tNo.
No.8144,
8 14 4,Dec.
Dec .30,
30,2006>
2 00 6>
(2
(2))T Theheb ala nc
balance eoofft hea
the ll
owanc
allowance ef orb
for add
bad ebt
debtssa ppr opr iat
appropriated eda assn ec es
neces- -s a r
saryye xpe ns
expenseses
u nde
under rp ara gr
paragraphaph( 1)
(1),,s ha l
shalllbbeec ount
counted edi nt
in het
the o ta
lg
total ros
grosssi nc omea
income mounti
amount nt
in hec
the alcula t
ion
calculation
o
offt hei
the nc omea
income mounti
amount nt
in hef
the ollowi ngy
following ear
year..
(3
(3))Ma t
Matterst ersn ec es s
necessarya ryf ord
for eal i
dealingngwi t
withht hea
the llowanc
allowance ef orbad
for badd ebtss
debts hal
shalllbe
bed et
e rmi ne
determined d
b
byyt heP
the re side nt
Decree.e .
Art i
cle2
Article 9(
29 Calculationo
(Calculation offAl l
owancef
Allowance orR
for etirementB
Retirement enefitsa
Benefits assNecessaryE
Necessary xpenses)
Expenses)
(1)I
(1) Iffab us iness
a businessmanmana ccount
accounts st hea
the llowa nc
allowance eooffr etireme ntb
retirement e nef i
t
benefitsst too t her
the etireme
retirementnt
bene fi
benefitst
so offe mploye
employeesesaassn eces sar
necessary ye xpe ns e
expenses, s,s uc
such ha llow-a
allow- nc
ance eooffr e ti
re me
retirementntb ene f
it
benefitss
sha l
lb
shall ec
be o unte
counteddi nt
in hen
the ece ssar
necessaryye xpens e
expensessi nt
in hec
the a lculatio
calculationnoofft hei
the nc omea
income mo unta
amount ccruing
accruing
dur i
ngt
during hec
the o rr
esp ond-i
correspond- ngy
ing ear,w
year, it
hins
within uchl
such imi
limittaassd etermi ne
determined db byyt heP
the residenti
Presidentiala
lDecree.
De c r
e e
.
(2)Ma
(2) tt
Matters ersn eces sar
necessaryyf ord
for eal i
ngwi
dealing t
withht hea
the llowa
allowancenc ef orr
for e t
ireme
retirementntb ene f
its
benefits,,s ha l
lb
shall bee
det er mi
determinedne db yt
by heP
the r e
s i
de ntialD
Presidential ecre
Decree.e.
Art i
cle3
Article 0De
30 leted.<
Deleted. byA
<by ctNo
Act No..5532,
5532,Apr.
Apr.10,
10,1998>
1
998>
Ar ticl
Article e3 311( Cal cul at
(Calculation ion o off G ai
Gain n from
f rom Insurance
I ns ur anc eS e t tl e
Settlementme nt Used
Use d for
for Ac-
Ac -
qui siti
quisitionono offF ixe
Fixed dA s se
Assets tsa assN ece s
Necessary sar yE xpe
Expenses) ns es)
(1
(1))IIffa re sid
a resident en ta c q uir
acquiresest h
thees amekinds
same k in dso offfixed
fi xe da s s e
assetstsa sa
as as ub s t
itu
substitutetefor
fo ra n
anyyd estro ye
destroyed d
as set
assets,s,w i
withtht h
theei ns u ran
insurance cemoney
mo n e
yr ec e i
ve
received df o
forrd e stru
destruc- c -t io
tionno orrd ama
damagegeo offthe
thefixed
f i
xe da s se t
assets,s ,
o
orri mp r
improvesove st hef
the ixe
fixedda s set
assets sa cq uir
acquirede da sas
as ubs t
a substituteitut eoorrd a ma
damaged ge da ss e t
assets,s ,the
theg ai
nf
gain r o
fromm
ins ur a
insurancenc es et tl
e me
settlement ntrequired
requi r edf o
forrs uc
such ha c qui s i
acquisition tio no orrimprovement
imp ro ve me nto offthe
t hef i xe
fixedda ss e t
assets,s ,
m
mayayb beea pp r o pri
appropriateda teda sn
as e ces s
necessarya rye xp e ns
expenses esi nt
in hec
the a lcul at
calculationio no offthe
t
hei nco me a
income mo unt
amount
ac c r
ui
accruingngd ur i
duringngt hey
the ea
yearrt ow
to hi
whichc ht hed
the a
day yh heer ec eive
receives st hei
the ns ur
insur- -a nc
ance em one
money yb e longs
belongs, ,
u nd
undere rt hec
the o nd itio
conditions nsa assp re sc ri
prescribedbedb yt
by h
theeP re si
Presiden-d en-t ia
tiallDecree.
De c ree.
(2
(2))IIffi itti si
is mp o s s
impossibleibl et oa
to cq ui
acquirer eoorri mp r
improveovet hef
the ixe
fixedda ss
assetse tsu nd e
under rp aragr a
paragraphph( 1)in
(1) in
th
theey e
yeara rt ow
to hi
whichc ht hed
the a
dayyh heer e c
e ive
receives st hei
the ns ur
insuranceanc em o
moneyne yb elongs
belongs, ,the
t hep rovi si
o
provisionsnso off
pa ragr
paragrapha p h( 1
(1))s h al
shalllbe
b ea pplic ab
applicable l
em ut a
mutatisti
sm mu-u-t a ndi
tcmdis so nl
onlyyt ot
to ho s
those ea c qui
acquiredredoorri mpr ove
improved d
w ithi
within nt woy
two e a
yearsrsf ro
frommt heb
the e
be--g i
nni ngo
ginning offt hey
the e arf
year ol l
owi
followingngt hec
the or r e spondi
year. r.
(3
(3))AAnynyp e rso
person nw hod
who esirest
desires oa
to p prop ri
appropriatea
tet heg
the a
gaininf ro
frommi ns ur a
insurance nc es ettleme
settlement ntaassn ece ssa
necessary ry
expe ns
expenses e su nde
under rp ar agr
paragraphaph( 2),s
(2), hal
shallls ubmi
submit tau
a use s ep la
plannf orthe
for t
hei ns uranc
insurance emo ne
money yr ec eive
received d
tot
to hec
the hi
chiefefo offat axo
a tax ff
ic
officeeh avi ngj
having ur is di ct
jurisdictionio no ve
over rt hep
the la c
place eo offtax
taxp a yme
payment,nt ,under
unde rt he
the
co ndi tio
conditions nsa assp res cribe
the res ide nt
Presidential i alD e cr
Decree. ee .
- 50 -
_50_
(4)I
(4) Iffap ers
a persononwwhohoa ppr op riat
appropriatesest hei
the ns ur anc
insurance eg a i
gainnaassn ecess a
necessaryrye x-p
ex- ens e
pensessu nd e
under rparagraph
p aragra ph
(2)
(2),,f al l
su
falls nde
underra nyo
any offt hef
the ollowi ngs
following ubpa ra
subpara- -g r aphs
graphs, ,iitts ha
shalll
lbbeec ount
countede
di nt
in het
the ot al
total
gr os
gross si nc omea
income mounti
amount nt
in hey
the earwh
year whene nt hec
the aus
cause et he r
e
thereofofh ast
has ake
takennp l
ac e
placei:
1
1.. Whe
Where reh ef
he ailst
fails ou
to s
use et hei
the ns ura nc
insurance eg ainw
gain i
t hi
within nt het
the imel
time imitto
limit t oa c-q
ac- uireo
quire orrimprove
impr ove
thef
the ixe
fixedda s se
assetst
sa assr efe rr
referrededt oi
to np
in aragr aph(
paragraph 1);a
(1); nd
and
2
2.. Whe
Where r eh ed
he i
s cont i
nue
discontinues st heb
the us ine
business ssw i
thint
within hep
the er io
periodda assr efe r
r e
referreddt oi
to np
in ar agr
paragraphaph( 2).
(2).
Ar ticl
Articlee3 322( Cal c ul a
(Calculation t iono offValue
Val ueo offAssets
As s e tsf orBusiness
for Bus ine s sA cqui
Acquired re dw it
with hN at i
NationalonalS ubs i
Subsidiesdie s
a
assN ec e s
Necessarys ar yE xpe
Expenses)ns es )
(1
(1))TThehea mo
amount unto offa nys
any ubs i
subsidy dya assp r e s c
prescribed ribe db byyt heA
the c
Act toonnt heB
the udge t
Budgetinginga ndMa
and na ge
Management me nt
o
offS ubs i
Subsidiesdi es( he r e i
naf
(hereinafter te rr e f err
referred e dt oa
to ass“ na tionals
“national ubs idy”
subsidy”), ),w hic
which har e side
a resident ntr e c eive
receives sf o
for r
thep
the ur pos
purpose eo offa c qui r
acquiring ingo orri mpr
improv- ov-i nga
ing nya
any s se
assets tsf orb
for us ine
business, ss,a ndd
and i
s bur
disburses s e sf ors
for uc
such h
p ur pos
purpose, e ,ma
may yb beea ppr opr
appropriatediat e da assn e c e
necessary s sar ye xpe
expensesnse si nt
in hec
the alcul at
calculationiono offthethei nc ome
income
amounta
amount c c rui
accruing ngd ur i
duringngt hey
the e
yearart toow hi
which c ht hed
the ayh
day er
he e c ei
receivesve st hen
the a-t
na- ionals
tional ubs
subsidy idy
b e l
ongs
belongs, ,under
unde rt hec
the ondi ti
conditionsonsa assp r e s c
prescribed ribe db yt
by heP
the r es
Presi- i-d e nt
dentiali
alD ec re
Decree. e .< Amended
<Amended
b
byyA Act ctNo No..8144,
81 44 ,Dec.
Dec .30,
3 0,2006>
20 06 >
(2
(2))I Iffiittiissi mpos
impossibles ibl et oa
to c qui
acquire reo orri mpr
improve ovet hea
the s s e
assetst sf orb
for us ine
business ssa assr e f e r
referredre dt oi
to n
in
p aragr
paragraph aph( 1
(1))i nt
in hey
the eart
year owh
to whichi c ht hed
the ayh
day heer e ce ive
receives st hen
the ationa
national ls ubs
subsidy i dyb elongs
belongs, ,
thep
the rovi s
provisionsionso offp ar agr
paragraph aph( 1)s
(1) ha
shall lla ppl
apply ymu mu- -t a ti
tatissmu tandi
mutandis so nl
onlyyt ot
to hos
those ea c qui
acquired re d
o
orri mpr
improvedove db byyt hee
the ndo
end offt hey
the e
year arf ol lowi
following ngt hec
the or re s pondi
year. .I nt
In hi
this sc as
case,e ,i iff
n a t
io na
national ls ubs idi
subsidies esc a
can-n-n o
nottbebeu s e
used dw it
within hi naf ixe
a fixed dp erio
period dd uet
due toou na vo i
da
unavoidable blec ir c ums t
circumstancesa nc e s
thata
that rep
are re s cr
prescribedibe db byyP res ide
Presidentialnt ia lDecree
De c re es uc
such ha assd ela
delay yo offa ppr ovalo
approval orra u-t
au- hor iz at
thorization ion
onc
on o ns tr uc
construction tionw o r
works,ks ,t hel
the as
lasttd a
dayyo offthethet axa t
taxationi
o np e rio
period,d ,to
tow hi
whichcht hed
the a
dayyo offthe
t hec ir cums
circumstanceta nc e
conc e
concernedrne de nde
ended db e long,s
belong, hal
shall lbebet hep
the e r iod.<
period. Amendedb
<Amended byyA ActctNo.
No.8825,88 25 ,Dec.
Dec .3],
31 ,
2 00
2007> 7>
(3
(3))A Anynyp e r
personsonwh who od e s ir
desirese st oa
to ppr opr
appropriate iat et hen
the at ionals
national ubs
subsidyidya assn e c es
necessarys ar ye xpe
expensesns e s
u nde
under rp ar agr
paragraph aph( 2 )
(2), ,s hal
shall ls ubmi
submit tt heu
the s
use ep l
anf
plan ort
for hen
the a tio
nationalnals ubs i
subsidydyr e c e i
receivedve dt toot he
the
chi e
chieffo offat a
a taxxo f fi
officec eh avi
havingngj ur is di c
jurisdictiont io no ve
over rthe
t hep l
a
placec eo offtax
taxp a yme
payment,nt ,under
unde rthethec ondi ti
conditionsons
a
assp re s c r
prescribedibe db byyt heP
the re s i
de nt
Decree. re e .
(4
(4))I Ifft her
the e s ide
resident ntw whohoh a
has sa ppr opr
appropriated iat e dt hen
the at ionals
national ubs
subsidyi
dya assn ec e
neces- s-s ar
sary ye xpe ns
expenses e s
u nd
undererparagraph
p a ra gr a ph( 1
(1))o orr( 2 )
,falls
(2), fal lsu nd
undere ra nyo
any offt hef
the o l
lo wi
following ngs ubp a ragr
subparagraphs,a phs ,it
i ts ha
shall llbebec o unt
counted e d
int
in het
the ot a
total lg ros
gross si nc omea
income mounti
amount nt
in hey
the e
yeararwh when e nt hec
the aus
cause et he re
thereofofhashast ake
taken np la c
place:e :
1
1..Whe
Where r eh heef ai
failslst ou
to s
use et hen
the a tiona
national ls ubs
subsidyidyf orthe
for thea c qui sit
acquisitioniono orrimprovement
impr ove me nto offthe
the
a s se
assets t sf orb
for us i
businessne s swi t
withinhi nt het
the imel
time imi
limit ta assr e
re--f e rr
ferrede dt oi
to np
in a ra gr
paragraphaph( 1);a
(1); nd
and
2
2..Whe
Where r eh heed is c ont
discontinuesinue st heb
the us i
ne
business s sw ithi
within nt hep
the e rio
period da assr e ferr
referrededt oi
to np
in ar agr
paragraph aph( 2 )
(2). .
Art i
cle3
Article 3(
33 Non-Inclusion o
(Non-Inclusion offNecessaryE
Necessary xpenses)
Expenses)
- 52 -
_52_
(1
(1))T hea
The mountp
amount ai
paiddo orrt ob
to beep a
paididb by yar e s i
a residentde nti nt
in hec
the or r e spondi
year, ,whwhichi
chf alls
falls
u nde
under ra nyo
any offt hef
the ollo wi
following ngs ubp ar agr
subparagraphs, a phs ,s ha
shalllln otb
not beec ount
counted edi nt
in hen
the e ce s
necessarysa rye xpe ns
expenses e s
i
in the calculation of the real estate rental income amount, business income amount, orr
nt h ec al cu la t io no f th er e al es ta ter en ta l in c o mea mo u n t, b u s ine s si n c o mea mo un t, o
mi sc el lane
miscellaneous ousi n-c
in- omea
come mount
amount; :
11..
I nc omet
Income axa
tax ndr
and es ide
resident ntt axo
tax nap
on ropor
a proportional tionalbasisba s iso offi nc omet
income ax;
tax;
22..
Fi
Finenea ndp
and e na
penalty l ty( inc ludi
(including ngt hea
the mounte
amount qui va
equivalent le nttot ot hef
the i
neo
fine orrpen-
pen-a lt
altyyb byyan o t i
c
a noticed ed
d is pos it
disposition),ion) ,a ndf
and ine
fines sf orn
for e gl ige
negligence; nc e ;
33..
Addi t
Additionalionald ue
dues sa ndd
and is pos i
dispositiontionf ee
fees sf ora
for r re ar
arrears sa assp re s cr
prescribed ibe db yt
by heN
the ationa
National lTax
Ta x
C ol le c
Collection ti
onA Act c ta ndo
and the
other rA c
Acts tsr e lat
related e dt toot a xe
taxes; s;
4
4. .
T
Taxaxa mount(
amount inc l
udi
(including ngt hea
the ddi t iona
additional ld ue
dues) s)p a
paid ido orrtotob be ep ai
paiddd uet
due toon onpe r for
nonperformancema nc e
o ft h el ia b il ityf o rc o l
le cti o na sp r e sc r ib
of the liability for collection as prescribed by Acts related to taxes;edb yA c tsr e l a te dt ot a x e s ;
55..
Expe
Expenses ns esf ors
for uc
such hd ome s
domestic tica ffa i
affairsrsa assp re sc r
the re s ide
Presidentialnt i
a lDecree,
De c re e,a ndt
and ho
thoses e
re la
relatedte dt he r
thereto;e t o;
66..
Amount
Amounts se xc e
exceedingedi ngt hed
the e pr e ci
depreciationat ionc os
cost to offs uc
such hd e pr e c
depreciable iabl ea s set
assets,s ,a ppr opr
appropriatediatedf or
for
e ac
each hy ea
year,r ,a ndc
and a lc ula
calculatedtedu nde
under rthe
thec ondi t
conditionsi
o nsa assp re s cr
prescribedi
be db byyt heP
the r es ide
Presidentialnt ialDecree;
De c re e;
77..
Los
Loss sf rom t
from hed
the if fer enc
difference eo offv al uat
valuation i ono onna ss
assetset so t he
other rt hant
than hea
the s s
assetset sa assp r escr ibe
prescribed d
byt
by heP
the r es i de
Presidential nt ia lDecree,
De cre e,s uc
such ha asst hei
the nve nt
inventory o r ya ss e
assets;ts :Provided,
Pr ovi ded,That
Tha tthe
thel os
losssf rom
from
thed
the iffer e
differencenc eo offv alua t
valuationionb etwe
between e nt hen
the or ma
normal lvalue
va luea ndt
and heb
the o
bookokv al
valueueo offs uc
such hf ixe
fixed d
a ss e tsa sp r e s cr ib edb yt h eP re s id e nt
assets as prescribed by the Presidential Decree, shall be excluded;ia l D e cr e e, s h a ll b ee x c lude d ;
88..
Amounti
Amount na
in rr ea
arrears rso offt hei
the ndi vi dua
individual lc ons umpt
consumption iont ax,l
tax, iquort
liquor ax,o
tax, orrt raf fi
traffic,c,e ne r
energygy
a nde
and nvi r onme
environment ntt a
taxxo onnt hep
the roduc
products tsc ar r
carriedi
e do ut
out, ,bbututn notots ol d:Provided,
sold; Pr ovi ded,T hati
That n
in
c as
cases e swhWheree rea anna mounte
amount qui va
equivalent le ntt os
to uc
such ht a
taxxa mounti
amount issa dde
added dt ot
to hev
the a l
valueueo offs uc
such h
pr oduc
products, ts,t hi
this ss ha
shalllln ota
not ppl
apply; y;
99..
P ur c
Purchasehas et a
tax xa mounto
amount offv a lue -adde
value-added dt ax:Provided
taxi Pr ovi dedT hat
That, ,for
f ort hev
the al ue -adde
value-added dt ax
tax
pa i
paid db byyap e
a personr s o ne xe mpt
exempted edf rom s
from uc
such ht a
taxxo orro the
others rsa assp re sc r
the r e si
de nt
Presidential ial
D e c
Decree,re e ,a ndf
and ort
for hev
the alue -a
value-added dde dt axp
tax ai
paid db by yap e r
a persons one ligi
eligiblebl ef ors
for impl i
simplifiedfie dt axat ion,
taxation,
thi
thisss hal
shall ln ota
not ppl
apply;y;
10
10..I nte r
Interest es toofft hea
the mo
amountunto offal o
a loan,an,a pp ro pr
appropriated ia t
e df o
for rs uc
such hc o ns t
r uc
construction tio n funds
fundsa assp r esc ribe
prescribed d
byt
by heP
the re s ide
Presidential nt ialD ec r
Decree;e e ;
11
11..I nt e
Interestre sto offa nyl
any oant
loan hec
the r e di
creditor toro offw hi
Which chi isso bs c ur
obscure; e;
12
12..P ubl
Public i
cc ha r
charges ge so orri mpos
imposts tst ha
that ta r
areen nototmandatory
ma nda to r yu nde
under rActs
Ac tsa nds
and ubor di
subordinatenat es ta tut
statutese s
o
orrt ho
thoses ei mpo
imposed s e df o
forrn o n-pe rfor
non-performance ma nc eo offd ut i
dutiese so orrviolation
vi o la t io no offprohibited
p rohi bi t edo orrrestricted
re strict ed
a ct
acts su nde
under rA Actsc tsa nds
and ubor
subordi- di - n at
nate es tat ut
statutes;e s ;
13
13..Amo
Amount unto offt hee
the xpe ns
expenses e sd i s bur
disbursed s edi ne
in a c
each hy e
year,ar ,wh
Whichic hi issd ee me
deemed dn ott
not ob
to beec onne c
connectedt ed
d ire c tlyt ot h eb
directly to the businesses, u sin es se s, u n
underd er th
the ec o n d iti
conditionso nsa assp r es c r
prescribedib e db byyt h
theeP r e sid en
Presidential tial D ec re
Decree; e;
14
14..P re pai
Prepaid de xpe
expenses;ns e s;a nd
and
15
15..C ompe
Compensationns at io nf ord
for a mage
damages st ob
to beep ai
paid db by yi nf r ingi
infringing nga no t
another he rperson’s
pe rs on’sr ighto
right onnp ur po
purpose s e
o
orrb byyn e gl i ge
negligence nc ei nc
in onne c
connection tionwi With tht heb
the us ine
business. s s .
(2
(2))WhWhere eret hep
the r ovi s
provisionsionsu nde
under rp ar agr
paragraph aph( 1)5
(I) 5,,1 0
10,,1 111a nd1
and 133a r
areea p-p
ap- lic abl
plicable eaattt he
the
sa met
same i me
time, ,t he
they ys ha
shall llbe
bea pp lie
applied da cc or
accordingdi ngt toot heo
the rde
order rprovided
pr o vi de di nt
in heP
the r es ide nt
De c re e.
- 54 -
_54_
(3)Ma
(3) ttersn
Matters ecessaryf
necessary ort
for hen
the on-inclusioni
non-inclusion nn
in ecessarye
necessary xpensesa
expenses assreferredt
referred oi
to np
in aragraph
paragraph
(1),s
(1), hallb
shall ed
be eterminedb
determined yt
by heP
the residentialD
Presidential ecree.
Decree.
Art i
cle3
Article 4(
34 Non-Inclusion o
(Non-Inclusion offDonationsi
Donations nNe
in cessaryE
Necessary xpenses)
Expenses)
(1)T
(1) hea
The mounti
amount ne
in xcesso
excess offthef
the ollowings
following ubparagraphs(
subparagraphs herei
na fterreferred
(hereinafter r
eferredttooa
ass“minimum
“minimum
amountt
amount ob
to ec
be ountedi
counted nn
in ecessarye
necessary xpenses” in
expenses” int hisA
this rt i
c l
e),from
Article), f
rom amongt
among hed
the onation
donation
amountprescribed
amount pr
escribedb yP
by resi
-d
Presi- entialD
dential ecreei
Decree nc
in onsiderationo
consideration offpublici
public nterestss
interests ucha
such ass
socialwe
social lfare,c
welfare, ulture,a
culture, rts,e
arts, ducation,r
education, eligion,c
religion, harityo
charity orrsuch(
such hereinafterr
referred o
to
a
assa“ designatedd
a “designated onation”),a
donation”), ndad
and onationo
a donation therthan
other t
hans uchd
such esi
g-n
desig- atedd
nated onations,s
donations, hall
shall
notb
not ec
be ountedi
counted nt
in hen
the ecessarye
necessary xpensesi
expenses nt
in hec
the orrespondingy
corresponding eari
year nc
in alculationo
calculation off
incomea
income mounto
amount offab usinesso
a business wners:<
ownersi Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
1
1..
D onationt
Donation or
to eligiouso
religious rganizations:
organizationsi
Minimum a
Minimum mountt
amount ob
to ec
be ountedi
counted nn
in ecessarye
necessary xpenses=[
expenses Income a
: [Income mounti
amount nt
in he
the
correspondingy
corresponding ear(
year incomea
(income mountb
amount eforea
before ddingt
adding hed
the onationsp
donations ursuantto
pursuant t
op aragraph
paragraph
(2)a
(2) ndd
and esignatedd
designated onationsi
donations nton
into ecessarye
necessary xpenses)-d
expenses) onationa
- donation mountsc
amounts ounted
counted
inn
in ecessarye
necessary x-p
ex- ensesp
penses ursuantt
pursuant op
to aragraph(
paragraph 2),a
(2), ndd
and eficitc
deficit arried-over(
carried-over hereafter
(hereafter
“statutoryd
“statutory onations”i
donations” nt
in hisA
this rt i
c l
e)]×1
Article)] 0/100+[
X 10/100 smallera
+ [smaller mountbetween
amount be
tween( income
(income
amounti
amount nt
in hec
the orrespondingy
corresponding ear-s
year tatutoryd
- statutory o-n
do- ations)×1
nations) 0/100(
>< 10/100 5/100,for
(5/100, f
ord onations
donations
madeu
made ntilD
until ecember3
December 1,2
31, 009)a
2009) nda
and alll
ldonationsm
donations adee
made xceptf
except ort
for or
to eligiouso
religious rganizations;
organizations;
o
orr
2
2..
C asesn
Cases otf
not allingu
falling nderi
under tem1
item 1;;
Minimum a
Minimum mountt
amount ob
to ec
be ountedi
counted nn
in ecessarye
necessary xpenses=(
expenses income a
: (income mounti
amount nt
in he
the
correspondingy
corresponding ear-s
year tatutoryd
- statutory onations)×2
donations) 0/100(
>< 20/100 15/100,for
(15/100, f
ord onationsma
donations deu
made ntil
until
December3
December 1,2
31, 009).
2009).
(2)T
(2) hep
The rovisionso
provisions offparagraph(
paragraph 1)s
(1) halln
shall otbe
not beapplicablet
applicable ot
to hed
the ona-t
dona- ionf
tion allingu
falling nder
under
anyo
any offthef
the ollowings
following ubparagraphs:Provided,
subparagraphsi Pr
ovided,T hat wh
That eret
where hes
the um o
sum offthed
the onations
donations
fallingu
falling ndera
under nyo
any offthef
the ollowings
following ub-p
sub- aragraphse
paragraphs xceedst
exceeds hea
the mounto
amount btainedb
obtained yd
by educting
deducting
thed
the eficitc
deficit ar-r
car- ied-overa
ried-over assprescribedi
prescribed nt
in hep
the rovisionso
provisions offArt i
cle4
Article 5f
45 rom t
from hei
the ncome
income
amounta
amount ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ear,t
year, hee
the xcessa
excess mounts
amount halln
shall otb
not beecounted
counted
inn
in ecessarye
necessary xpensesi
expenses nt
in hec
the alculationo
calculation offthe
thei ncomea
income mounta
amount ccr
ui ngd
accniing uringt
during hecorrespond-
the c
orrespond-
ingy
ing ear:
yeari
1
1..
Moneya
Money ndo
and therv
other aluablesd
valuables onatedg
donated ratuitouslyt
gratuitously ot
to heS
the tateo
State orrlocalg
local overnments
governments
(includingl
(including ocalg
local overnmentsa
governments ssociations;hereinafter
associations; he
reinafter the
thes ames
same halla
shall pply)
apply)3:Provided
Provided,
Thatt
That hemo
the neya
money ndo
and therv
other aluablest
valuables owh
to icht
which heD
the onationsC
Donations ollectiona
Collection ndT
and heir
Their
UseA
Use cti
Act issapplicables
applicable hallbe
shall belimitedt
limited ot
to hoser
those eceivedu
received nderthe
under t
hep rovisionso
provisions offArticle
Art i
cle
5( 2)o
5 (2) offthes
the ameA
same ct;
Act;
- 56 -
_56_
2
2..Nat ionald
National e fe
defensens ed onat
donation iona ndc
and ons ol at
consolatory or ymo moneyne ya ndg
and oods
goods; ;
3
3..V a l
Value ueo offt her
the e l
i e
relieffmoney
mone ya ndg
and o odsf
goods o
forrs uf fe re
sufferers r sf r o
fromma nyn
any atur
natural a ld is as
disaster te ra ndo
and the
other r
re a s o nsa sp r es c ri be db yt h eP r es
reasons as prescribed by the Presidential Decree, etc.; i
d en tial D e c r e e , etc .;
3-2
3-2.. V a l
ueo
Value offav olunt
a voluntary arys er vi
servicec et ha
that tisisr e nde
renderedre df o
forrthe
t her e s t
o ra t
restorationiono offa nys
any pe c
specialiald is as
disasterter
a r
areaeau nde
under rt heF
the rameWo
Frame Work rkA c
Act to onnt heMa
the na
Manage- ge -me ment nto offDisasters
Di s a s ter sa ndS
and afe t
Safety.y.InIn
s uc
such hc as
case,e,matters
mat t e rsn e c es
necessarys aryf ort
for heme
the thodo
method offc omput
computationat ione tc
etc. .o offs e rvi
servicesc ess hal
shalll
b
beep r es cr i
prescribedbe db by yt heP
the r es ide nt
Decree; ee;
4
4..Mone
Money yo orro the
other rv a luabl
valuables esd onat
donated edt owe
to lfar
welfare ef ac il i
t
facilities iesp re s cribe
the re s ide nt
Presidential ial
D e cr
Decree, ee,w hi
whichc ha r
areea vai l
abl
available ef orp
for ubl
public icu s
useef re
freeeo off c ha r
chargesge so orra attp r ac t
practicalica lcharges
char ge s
fr om a
from mongw
among e lf
welfarear ef ac iliti
facilitiesesi ns tal
installedl edu nde
under rt heS
the oc
Sociali
alWe lf
Welfarea r eS e r vi
Services c esA c
Act;t ;
5 .Mo n e yo r o th er v a lu a b lesd o n ate dt on ee dyn ei g h b o
5. Money or other valuables donated to needy neighbors through institutions establishedrst hro u g hi n stitu t io n se st ab lis he d
tof
to ac i
litat
facilitateet hef
the or ma
formation tiono offrelationship
re lat ions hi pb e twe
between e nc itiz e
citizens nsa ndn
and e e
needy dyn e ighbo
neighbors, rs,wh i
whichc h
a r
are ep r
e s c ri
prescribedbe db byyt heP
the r es ide
Presiden- n-t i a
tiallD ec r
Decree;e e ;
6
6..D ona t
Donationsionsp ai
paid dt ot
to hes
the c hool
schools, s,e tc
etc..under
unde re ac
each ho offt hef
the ollowi
following ngi te msa
items asst hef
the ac i l
it i
e
facilities s
e xpe ns
expenses, es ,e duc at i
educational ona le xpe ns
expenses, es ,s c hol ar
scholarshipsshi pso orrr e
re--s ea r
searchc he xpe ns
expenses; e s :
(a)P
(a) ri
vat
Private es c hool
schools su nde
under rt heP
the riva
Private t eS c hoolA
School c
Act; t;
(b)N
(b) on-pr
Non-profitof ite duc a ti
educationalona lf oundat
foundation ion( limi te
(limited dt ot
to hen
the o n-pr
non-profitof itju-
j u-r idi c
ridical a lf oundat
foundation ion
es t
a bl i
s he
established df o
forrt hep
the ur po
purpose s eooffana newewc o ns tr
construc-uc -t io n,e
tion, xte ns io
extension,n,e xpa ns
expansion i
o no offfacilities
fa ciliti
e s
an do th e ri mp r ov e me n tso fe d u c a tion a l e n v
and other improvements of educational environment of private schools); ir o n me n to fp riv a tes c h o ols );
(c ) P olyt e
(c) Polytechnicchni cc ol l
e
collegesge su nde
under rt heP
the ol yt ec
Polytechnichni cC ol
CollegelegeA c
Act;t ;
(d)L
(d) if
e longe
Lifelong duc at
educationalionalf ac il
itie
facilities si innt hef
the or
form mo offac ybe
a cyber rc ollegeu
college nde
under rt heL
the ife long
Lifelong
E duc at
Education ionA Actct( he r einaf
(hereinafter terr e fe r
referredre dt tooa assa“ c
a “cyberybe rc ol l
e ge
college”);” );
(e
(e))N at iona
National luniversity-affiliated
uni ve r s ity-af filiate dh os pi
hospitalstalsu nde
under rt heA
the Actcto onnt heE
the s
Es- -t a bl is hme
tablishment nto off
N at iona
National lUniversity-affiliated
Uni ve rs ity-af filiate dH os pi
Hospitals;tals ;
(f)S
(f) eoulN
Seoul at iona
National lUniversity
Uni ve r sityH os pi
Hospital t alunder
unde rt heE
the s tabl is hme
Establishment nto off S e
SeouloulN at i
ona
National l
U ni ve r
UniversitysityH os pi
Hospital ta lAct;
Ac t;
(g ) S eo u l N at ion a l
(g) Seoul National University U n iv e rs ityD e nt
Dental alH os pi
Hospital ta lunder
unde rt heE
the s t
abl i
Establish-s h- ment me nto offS e oul
Seoul
N at iona
National lUniversity
Uni ve rs ityD e nt
Dental alH os pi
Hospital ta lAct;
Ac t ;
(h)F
(h) ore i
Foreigngne duc at i
educationalonali ns titut i
institutionsonsu nde
under rt heS
the pe
Specialc ialAct
Ac to nE
on s t
Estab-ab-l is hme
lishment nta nd
and
O pe ra t
Operationiono offForeign
For e ignE duc a ti
Educationalo na lInstitutions
I ns t
itut ionsi nt
in heF
the re
Free eE c o no
Economic mi cZ one
Zones sa ndJ
and eju
Jeju
Inte rnat iona
International lF r
Freee eC it
City;y;
(i)I
(i) ndus tr y-a ca
Industry-academic de mi cc oo p er a
cooperationtiong r oup
groups su nde
under rthe
t heP romo
Promotion tiono offIn-
I n-d us tr
dustriali alEducation
Educ ation
andI
and ndus try-Ac
Industry-Academic ade mi cC oope r
Cooperationa t ionA c
Act;t ;a nd
and
(j)K
(j) or
Koreae aA dva nc
Advanced e dI ns titut
Institute eo offS c i enc
Science ea ndT
and e c hnol
Technology ogyu nde
under rthe
t he K or
Korea e aA dva
Advancednc ed
Institut
Instituteeo offS cie nc
Science ea ndT
and ec hno
Technologylo gyA c
Act,t,G wa
Gwangju ngj uI ns t i
tut
Instituteeo offS c ienc
Science ea ndT
and e chno
Technologylo gy
u nde
under rt heG
the wa
Gwangjungj uI ns titut
Institute eo offS c ienc
Science ea ndT
and e c hno
Technology l ogyA c
Actta ndD
and a e gu-kye
Daegu-kyeongbuk ongbuk
Inst i
t ut
Institute eooffS cie
Sciencenc ea ndT
and ec hno
Technologylo gyu nde
under rthetheD a e gu-kye
Daegu-kyeongbuk o ngbukI ns ti t
ut
Institute eo offS c i
e nc
Science e
andT
and e chnol
Technology ogyA c
Act; t;
7
7..D onat
Donationsionsma madedet ot
to heC
the ommuni
Community t yC he
Chest sto offK or
Korea e au nde
under rt heC
the om-mu
Com- ni
munity tyC he
Chests t
o
offK or
Koreae aA c
Act;t;a nd
and
8
8..D onat
Donationsionsma madedet toot heK
the or
Koreanea nN at ionalRed
National Re dC r
Crossos su nde
under rt heO
the r
Orga-ga-n i z at
nization i
ono offthe
the
K or
Koreane anN a tiona
National lR e
Red dC r os
Cross sA c
Act. t.
- 58 -
_58_
(3)A
(3) Anna mount(
amount e xc ludi
(excluding ngt hea
the mo untd
amount e duc
deductedtedwh
whenenag l oba
a global li nco met
income a
tax xr etur
return ni issfiled
filed
unde
under rA rtic
Articlele5 522( 6)a
(6) nd5
and 544( 2)
(2)))w hic
whichhi issd onat e
donated d iinne xc es
excess so offt hel
the imi
limit to offi nc l
us i
inclusionon
o
offd e si
gna
designatedtedd onat i
donationsonsi nn
in e c ess
necessaryarye xpe ns
expenses esa ndt
and hatis
that i sn otc
not ount
countede di innan e ce
a necessaryssar y
expe ns
expense eu nde
under rp ara
para- -g ra ph(
graph 1)may,
(1) ma y,under
unde rthe
thec ondi ti
o nsa
conditions assp res cribe
prescribed db
by yt heP
the r esi dent
Presidential ial
D e cre
Decree, e
,b ec
be ar rie
carried do ve
overrt tooe ac
eachht a xabl
taxable ep eriodwh
period i
whichche ndswi
ends thi
withinnt hre
threeey e a
years rsf rom the
from the
comme nc
commencementeme ntd a t
dateeo offat a xabl
a taxable ep e r
io
perioddf ollowi ngt
following hec
the or
cor--r es po ndi
responding ngt a xa
taxablebl ep e ri
periodo da nd
and
count
countededi nan
in ec es
a necessarys arye xpe ns
expense. e.< Amendedb
<Amended yA
by c
Act tNo
No..5580,
55 80 ,Dec.
Dec .28,
28 ,1998;
1 99 8;A c
Actt
No.6
No. 2 76
6276, ,O ct
Oct. .23,
2 3,2000;
200 0;A Actc tNo
No..8825,
88 25 ,De c
Dec. .31,
31 ,2007>
20 07 >
(4)D
(4) ona ti
Donationsonsmamade deb byyab us ine
a business sso wne
owner rf allingA
falling rti
c
Articlele5500( 1)2o
(l) 2 orr3( b)
3 (b), ,iiffp ar agr
paragraphsaphs
(1)a
(1) nd(
and 2)a
(2) rea
are pp l
ie
applied d( e xc ludi
(excludingngo net
one toow ho
whom ma no the
anotherrresident’s
r
eside nt’sb as i
basiccd e duc t
deductioni oni issa p pl
ied)
applied)
sha l
shalllb ec
be o unt
countede di nd
in ona t i
onsma
donations madedeb byyt heb
the us i
ne s
business so wne
owner. r.< Newl
<Newly yI ns er
Inserted tedb byyA c
Actt
No.8825,
No. 88 25 ,Dec.
Dec .31,
3 1,2007>
200 7>
Ar ticl
Articlee3 355( Non-I nc
(Non-Inclusionlusiono offE nt e r tainme
Entertainment ntE xpe ns
Expenses e si nN
in e ce ss
Necessary ar yE xpe
Expenses)ns es )
(1
(1))WhWhereer et hea
the mo unto
amount offe nt erta inme
entertainment nte xpe ns
expenses e s( no
(not ti nc ludi
including ngt hep
the o r
por- -t ionn
tion o
not tc ount
countede d
inan
in ec es
a necessarysa r ye xp ens
expense eu nd
undererparagraph
par a gr ap h( 2))d
(2)) i
s bur s
disbursed e db byyab us ines
a businessmn s ma ni nt
in hec
the or res pond
corresponding ing
ta xa bl
taxable ep e rio
period, d,e xc e e
exceedsdst hes
the um o
sum offt hea
the mo unt
amounts sf allingu
falling nde
under re ac
eachho offthe
thef ollo wi
followingngs ubpa
subpara-ra-
g raphs
graphs, ,iitts hal
shall ln otbe
not bec ount
counted edi nan
in ece s
a necessary s a rye xpe
expensens ei nt
in hec
the al culat
calculation iono offthe
thei ncome
income
amounta
amount c cr ui
accruing ngd uringt
during hec
the or re s pondi
corresponding ngt a xa bl
taxable ep e riod:<
periodi Amendedb
<Amended by yA ActctN0.
No.5031,
50 3 1,
De
Dec. c.29,
29 ,1995;
19 95 ;AActctNoNo..5191,
51 91 ,Dec.
Dec .30,
30 ,1996;
19 96 ;A ActctNoNo..5580,
55 80 ,Dec.
Dec .28,
28,1998;
199 8;A Actct
No.6
No. 0 51
6051, ,Dec.
Dec .28,
28,1999>
199 9>
11..A mo
Amountuntc a l
c ula t
calculatededb ym
by ultip l
yi
multiplying ngt we lvem
twelve illi
o
million nw wono n( e ight e
(eighteen enm i
l
mil--l io
lion nw wononi nt
in hec
the a s
casee
o
offs ma
small l
la ndm
and edium e
medium nte rp ri
enterprisess esd e t
e rmi
determined ne db byyt heP
the re side nt
Presidential i
a lD e
c r
Decree)ee )b yt
by hen
the umbe
number r
o
offm o nt
months hso offt hec
the or res po ndi
corresponding ngt a xa bl
taxable ep er i
o
period,d,thethet o ta
total looffw hi
whichchi issd ivide
divided db byy1 2
12;;
22..D e l
e te
Deleted; d;a nd<
and byA
<by ActctNoNo..5580,
55 80 ,Dec.
Dec .28,
2 8,1998>
19 98 >
3
3..Amounto
Amount bt aine
obtained dbbyymu ltipl
multiplyingyi ngt hes
the um o
sum offthe
t her eve
revenuenuea mount (
amount limi t
(limitededt toos uc
such h
re ve nuea
revenue mo
amountunta assd eter mi
determinedne db yt
by heP
the re side nt
Decree)e e)a c c rui
accruingngf r o
from mt her
the e l
eva
relevantnt
b us ine
business ssd ur ingt
during hec
the or res pond-i
correspond- ngt
ing a xabl
taxable ep e ri
period,od,b by yt hea
the ppl ica
applicablebl er atep
rate re s c
r ibe
prescribed d
b
byyt hef
the ol lowi
following ngc har
chart t:P rovi ded,T
Provided, hatwi
That t
with hr e s pe
respect c tttoot her
the eve nuea
revenue mo
amountunta ccrui
accruingng
fro
frommt rans a ct
transactionsionswi t
withhp ers onsw
persons whohoa r
areei ns
in pe c
specialialr elat i
ond
relation e te rmi
determinedne db byyP res ident
Presidential ial
D e cre
Decree, e ,iitts ha l
shalllbe
bet hea
the mo
amountunte q uiva l
e
equivalent nttoto2 0/10
20/100 0o offthe
thea mo untcalculated
amount calcul ate db ym
by ul t
ipl
yi
multiplyingng
s uc
such hr eve
revenuenuea mountb
amount byyt hea
the ppl icabl
applicable er at
rateeu nde
under rt hef
the oll owi
followingngc har
chart:t:
RevenueA
Revenue mount
Amount ApplicableR
Applicable ate
Rate
Under1
Under 100billionwo
billion n
won 20/10,000
20/10,000
Over1
Over 0b
10 illionw
billion on
won 20m
20 illionw
million on+1
won 0/10,000o
+ 10/10,000 offthea
the mounte
amount xceeding
exceeding
Under5
Under 0b
50 illionw
billion on
won 10b
10 il
lionw
billion on
won
Over5
Over 0b
50 illionw
billion on
won 60m
60 illionw
million on+3
won /10,00
+ 3/10,0000ooffthe
thea mountexceeding
amount e
xceeding
50b
50 illionw
billion on
won
- 60 -
(2
(2))T Thehee nt e rtainme
entertainment nte xpe ns
expenses eswh i
whichc he xc
exceede edt hea
the mountd
amount et e rmi
determined ne d by byP r es i
de nt
Presidential ial
D e cr
Decree e ef r om a
from mongt
among hee
the nt e rta i
entertainmentnme nte xpe
expensesns esd isbur
disburseds edb byyab us
a businessi
ne ssp ropr iet
proprietororf or
for
onet
one imeo
time offe nte rtai nme
entertainment nta ndd
and doon o
not tf al
falllu nde
under ra nyo
any offt hef
the o llowi
following ngs ubpa r a gr
subparagraphs, a phs ,s hal
shall l
n otb
not beec ount
counted e di nn
in ec e s
necessarysar ye xpe ns
expenses esi nt
in hec
the al cul at
calculationiono offthe
thei nc omea
income mounta
amount ccr ui
accruing ng
dur inge
during a
eachc ht a xa bl
taxable ep erio
periodid :P r o v i
Provided,de d,T ha
That tt hes
the ames
same ha
shalllln o
notta p p
applylyt oc
to a s
cases eso offt hee
the nte rtain-
entertain-
me
mentnte xpe ns
expenses e sd i sbur
disburseds e di nt
in her
the egi o
regionsnso uto
out offK or
Koreaeaa assp r es c ri
prescribedbe db yP
by r es ide
PresidentialntialD e cr
Decree e e
w he
where rei ittiissd ifficul
difficult tt oh
to avee
have vi de
evidencesnc esp rovi
provided de df ori
for na
in nyo
any offt hef
the ollowi
subparagraphsa phs
andf
and orwh
for which ic ht hef
the a c
fact to offd i s bur s
disbursement eme nti isso bje ctive
objectively lyo bvi ous
obvious: :< Newl
<Newly yI ns er
Inserted tedb byy
Ac
Dec .28,
28 ,1998;
19 98 ;A ActctNoNo..6292,62 92 ,Dec
Dec .29,
2 9,2000;
20 00 ;AActc tNo.
No.7 83
7887,7,Dec.
Dec .
31,2005;
3], 2 00 5;A Act ctNoNo..8144,
81 44 ,DeDec. c .30,
30 ,2006;
20 06 ;A Actc tNo
No..9270,
9 27 0,Dec.
Dec .26,
26 ,2 00
2008> 8>
11..Ent e r t ai
Entertainmentnme nte xpe ns
expenses esd is bur
disbursed se db byyu s i
nga
using nyo
any offthe
thef ol lowi
following ngi t ems(
items he re i
naf
(hereinafterte r
re fe r
referredre dt tooa ass“ cr e di
“credit tc a r
cards,ds ,e tc .
” )
etc.”)3:
(a)C
(a) re
Creditdi tc ar
cardsdsu nde
under rt heS
the pe c ial
Specializediz edC re
CreditditF ina nc
Financial ialB us ine
Business ssA Actc t( inc ludi
(including ngt hos
those e
s imi
similarla rt ot
to hec
the r edi
credit tc a r
cards dsa assd e te rmi
determined ne db byyP re side nt
Presidential ialD e c re
Decree); e );a nd
and
(b)C
(b) as
Cash hr e ce ipt
receipts su nde
under rA r ti
Articlec le1 2 6-3(
126-3 4
(4))o offthe
theR e str ic
Restrictiontiono offS pe c
Special ia lTaxation
Taxa tionA Actct
( he r einaf
(hereinafter te rr e fe rr
referrede dt tooa ass“ cas
“cash hr e ce ipt
receipts”);s”) ;a nd
and
2
2.. Ent e rt a i
Entertainmentnme nte xpe ns
expenses e sd is bur
disbursed se da f te
after rr ec eivi
receiving nga na
an c c ounts
account ta teme
statement ntu nde
under rA r tic
Article le
1 6
1633o offt hi
thissA c
Act to orrArticle
Ar t
i cle1 2
1211o offthe
theC or po
Corporate rateT TaxaxA Actcto orrat
a taxa xi nvo
invoiceic eu nde
under rArticle
Ar tic le
1
166o offt heV
the alue -Adde
Value-Added dT Taxa xA c
Act,t,oorra ft e
after rissuing
iss uingap ur cha s er
a purchaser-issued-i ss ue dt a
taxxi nvoi
invoicec eu nde
under r
A rtic
Article le1 2 6-4(
126-4 1)o
(1) offt heR
the e st r i
Restrictionctiono offS pe ci
Speciala lT axa
TaxationtionA Actcto orrawi t hhol
a withholding dingr ec ei
receiptpt
p re s cr
prescribedibe db byyP re si de nt
Presidential ialD ec
Decree.ree .
(3
(3))D ele t
Deleted.e d.< byA
<by Actc tNoNo..6 55
6557, 7,De Dec.c .8],
31 ,2 00
200]>1>
(4
(4))T het
The e
termrm“ ent e r tainme
“entertainment nte xpe ns
expenses” es”i np
in a ra gr
paragraphsaphs( 1)a
(1) nd(
and 2)me
(2) a
means nst hee
the nte rtainme
entertainment nt
expe ns
expenses, e s ,s oc i
sociala le xpe ns
expenses, e s,recompense,
re c ompe ns e ,a ndo
and the
other re xpe ns
expenses eso offas imi
a similar larnature
nat ur er e ga rdle
regardless s s
o
offt hep
the re t
pretext extt he r e
thereof,of ,wh
whichicha r
areed is bur
disburseds e db byyab us ine
a business s sp ropr i
proprietoretori nc
in onne c
connectiontionwiwithth
h i
hissb us ine
business ss( inc l
udi
(including ngt hee
the xpe
expenses ns e sf orw
for e lf
welfarear ef ac ilitie
facilities,s ,aassp r e scr
prescribedibe db byyP r es i
de nt
Presidential ial
D e cr
Decree,e e,t ha
that ta r
areed i sbur
disbursed s e db by yab us i
a businessne s sp ropr i
e
proprietortort ot
to hea
the ss oc iat
association iono orro r
ga niz at
organizationi on
for me
formed db byye mpl oye
employees). es ).< Amendedb
<Amended byyA Act c tNo.
No.508],
5 03 1,Dec.
Dec .29,
2 9,1995;
199 5;ActAc tNo.
No.5580,
55 80 ,
De
Dec c.28,
28 ,1 9 98
1998; ;A Act ctNoNo..6557,
6 55 7,Dec.
Dec .8],
3 1,2001>
2 00 1>
(5
(5))I na
In ppl yi
applying ngp a ragr
paragraph aph( 2
(2) )1 1,,t hea
the mountd
amount isbur
disburseds edwi withths a
salesl
e ss lips
slips, ,e tc
etc, ,issued
iss ue di n
in
then
the ameo
name offap a rt ic i
pa
a participating tings t o
storer ef orc
for re di
credit tc a rds
cards, ,e tc
etc..o the
other rthan
tha nt heo
the net
one ha
that thas
ha sa ctua
actuallyll
y
of fer
offerededt hec
the or res pondi
corresponding ngg oodso
goods orrs e r
ser- -v i c
vicese ss ha
shalllln otbe
not bei nc lude
included di nt
in hee
the nt e rtainme
entertainment nt
expe ns
expenses e su nde
under rt he s
the ames
same ubpar
subparagraphagr apho offthe
thes a mep
same aragr
paragraph.aph.< Newl
<Newly yI ns er
Insertedtedb byy
Ac
Act tNoNo..6292,62 92 ,Dec
Dec .29,
2 9,2000>
2 00 0>
(6
(6))TThehes c o
scope peo offe nt er tainme
entertainment nte xpe
expensens ea ndma
and tte
mattersr sn e ce ss
necessaryar yf o
forrp re se rva
preservation tio no offe vid enc
evidence e
o
offe xpe ndi
expenditure, t
ur e ,e tc
etc. .s hal
shall lbbeep r e s cri
prescribedbe db by yP re side nt
Presidential i
a lD e c r
Decree.ee .< Newl
<Newly yI ns er
Inserted tedb byy
Ac
Act tNoNo..9270,92 70 ,Dec
Dec .26,
2 6,2008>
2 00 8>
- 62 -
_62_
Art i
cle3
Article 6D
36 eleted.<
Deleted. byA
<by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998>
1
998>
Art i
cle3
Article 7(
37 Calculationo
Necessary xpensesi
Expenses nMi
in scel l
aneousI
Miscellaneous ncome)
Income)
Inc
In alculatingt
calculating hem
the iscellaneousi
income mounts,t
amounts, hea
the mountto
amount t
obe
be countedi
counted nn
in ecessary
necessary
expenseso
expenses offa
aresidenti
resident nt
in hec
the orrespondingy
corresponding ears
year hallbe
shall b
ea sfollows:
as f
ollows:< Amendedb
<Amended yA
by ct
Act
No.6292,
No. 6
292,Dec.
Dec.29,
29,2000;
2
000;Act
Ac
tNo.
No.8144,
8144,Dec
Dec
.30,
3
0,2006;
2
006;Act
Ac
tNo.
No.853],
8531,jul.
Jul.19,
19,2007>
2
007>
1
1..
I nc
In aseso
cases offther
the efundp
refund ayablet
payable oap
to urchasero
a purchaser offah orser
a horse acingt
racing icket,wi
ticket, nnerv
winner oting
voting
ticket,b
ticket, ullfi
ghtingma
bullfighting tchv
match otingt
voting icketo
ticket orrsportsp
sports ro-m
pro- otionv
motion otingt
voting icketa
ticket assprescribed
prescribed
inA
in rt i
cle2
Article 211(1)4
(l) 4,,thes
the um o
sum offtheu
the nitv
unit otinga
voting mounto
amount offthe
ther elevanthorse
relevant hor
ser acing
racing
ticket,w
ticket, innerv
winner otingt
voting icket,bullfighting
ticket, bul
lfi
ghtingma tchv
match otingt
voting icket,o
ticket, orrsportsp
sports romotionv
promotion oting
voting
ticketpurchased
ticket p
urchasedb yt
by hew
the innero
winner offsucht
such icketss
tickets hallbe
shall becountedi
counted nt
in hen
the ecessarye
necessary xpenses;
expenses;
1-2.I
1-2. nc
In aseso
cases offprize
prizemo neya
money ndv
and aluables,e
valuables, tc.under
etc. unde
rA rt i
cle2
Article 211(1)1
(I) 4,the
14, t
hea mounts
amounts
puti
put ntos
into lotma
slot chines,e
machines, tc.a
etc. attthe
thet imeo
time offwinnings
winning uchp
such rizemo
prize neya
money ndv
and aluables,
valuables,
etc.s
etc. hallbe
shall becountedi
counted nt
in hen
the ecessarye
necessary xpenses;a
expenses; nd
and
2
2..
I nc
In aseswh
cases eret
where hep
the rovisionso
provisions offsubparagraphs1a
subparagraphs nd1
l and -2,a
1-2, ndA
and rt i
cle2
Article 7(
27 3)a
(3) re
are
nota
not pplicable,t
applicable, hes
the um o
sum offthee
the xpensesc
expenses orrespondingt
corresponding ot
to het
the otalg
total rossi
gross ncomea
income mount
amount
accruingd
accruing uringt
during hec
the orresponding y
corresponding ears
year hallb
shall ec
be ountedi
counted nt
in hen
the ecessarye
necessary xpenses.
expenses.
Art i
cle3
Article 8De
38 leted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,Dec.
Dec.80,
30,2006>
2
006>
Article3
Article 9(
39 Year,e
(Year, tc.f
etc. orwh
for ichT
which otalG
Total rossI
Gross ncomeA
Income mounta
Amount ndN
and eces-s
Neces- aryE
sary xpenses
Expenses
areI
are ncluded)
Included)
(1)T
(1) hey
The eard
year uringwh
during icht
which het
the otalg
total rossi
gross ncomea
income mounta
amount ndn
and ecessarye
necessary xpenseso
expenses off
ar esidenti
a resident ne
in achy
each ear,a
year, rec
are alculated,s
calculated, hallb
shall et
be hey
the eart
year owh
to icht
which hed
the ays
day ucht
such otal
total
grossi
gross ncomea
income mounta
amount ndn
and ecessarye
necessary xpensesb
expenses ecomed
become efiniteb
definite elongs.
belongs.
(2)T
(2) hea
The cquisitionv
acquisition alueo
value offanya
any ssetsw
assets hichar
which esidenth
a resident asa
has cquiredb
acquired yp
by urchase,ma
purchase, nu-
manu-
facture,e
facture, tc.
,s
etc, hallb
shall et
be hea
the mounto
amount btainedb
obtained ya
by ddingt
adding hei
the ncidentale
incidental xpensest
expenses ot
to hep
the urchasing
purchasing
valueo
value orrmanufacturingc
manufacturing osto
cost offsucha
such ssets.
assets.
(3)I
(3) Iffar esidenth
a resident as,i
has, nc
in alculatingt
calculating hei
the ncomea
income mounto
amount offeacht
each axablep
taxable eriod,continuously
period, c
ontinuously
appliedt
applied hec
the orporatea
corporate ccountings
accounting tandardso
standards orrpractices
prac- ticeswh icha
which red
are eemedg
deemed enerally
generally
faira
fair ndp
and ropera
proper asstot
to hey
the eard
year uringwh
during icht
which het
the otalg
total rossi
gross ncomea
income mounta
amount ndn
and ecessary
necessary
expensesa
expenses rec
are al
-c
cal- ulatedo
culated orrthea
the cquisitiono
acquisition orrevaluationo
evaluation offanya
any ssetsa
assets ndo
and bligation,
obligation,
i
ittshallbe
shall besubjectt
subject os
to uchc
such orporatea
corporate ccountings
accounting tandardso
standards orrpractices
practicese x-c
ex- eptin
cept i
nc ases
cases
wheret
where hisA
this cto
Act orrtheR
the estrictiono
Special axationA
Taxation cts
Act tipulateso
stipulates therwise.<
otherwise. Amended
<Amended
byA
by ctNo.
Act No.519],
5191,Dec.
Dec.30,
30,1996;
1
996;Act
Ac
tNo.
No.5580,
5580,Dec
Dec
.28,
28
,1998;
1
998;Act
Ac
tNo.
No.8144,
8144,Dec
Dec
.
30,2006>
30, 2
006>
- 64 -
_64_
(4
(4))Ma tte r
sn
Matters ece s
s ar
necessaryyf ort
for hey
the eard
year uringwh
during ic
whichht het
the otalg
total r os
grosssi ncome a
income mounta
amount nd
and
ne c essa
necessaryrye xpe ns
expensese
sa rec
are alc ul
ated,a
calculated, assr eferredt
referred oi
to np
in ara
para--g r a
graphph( 1),a
(1), ndt
and hec
the alculation
calculation
o
offt hea
the cqui si
tionv
acquisition a l
ueo
value orrv al
ua t
iono
valuation offass ets
,o
assets, bliga ti
o n,e
obligation, tc .
,a
etc., assrefe rr
edt
referred oi
to np
in aragra ph
paragraph
(2 )
(2),,s hallb
shall ed
be eter-mi
deter- ne
mined db yt
by heP
the r esidentialD
Presidential ec re
Decree.e.
Art i
cle4
Article 0(
40 Yearf
(Year orwh
for ichDi
which videndI
Dividend ncome,e
Income, tc.i
etc. issIncluded)
Included)
(1
(1))T Thehey ea
yearrf o
forrw hi
whichc ha nyd
any ivi de
dividend, nd ,bonus
bo nusa ndr
and eti re me
retirement ntbenefit
be ne fitw hi
which char e s i
a residentd e ntreceives
rec eives
byt
by hed
the ispos
disposal a lo offa nys
any ur pl
surplus,us ,a r
areei nc lude
included, d,s hal
shall lbebet hey
the e
yeara rt owh
to whichic ht hed
the aywh
day whenen
ag e ne
a general ra lmeeting
me e tingo offs toc khol
stockholders de r so orr p a r tne
partners r so offthe
thec or por at
corporation ionc onc e
concerned rne do orras i mi
a similarl
ar
de libe ra
deliberativeti
veo rga
organ nc o
cor-r-r e s po ndi
responding ngt he re
theretotoh a
hassp as
passedse dar e so lut
a resolution ionf ors
for uc
such hd is po
disposal,sa l,belongsi
be longs :
P r ovi
Provided,ded,T Thatha tt hey
the e
yeara rf o
forrw hi
which c ht hed
the ivide
dividend ndi nc
incomeomeu nde
under rthe
thep rovi
provi- -s i o
sionsnso offArticle
Ar ticl
e
17(
17 1
(1))6 -3i
6-3 issi nc lude
included ds ha
shall llb beet hey
the ea
year rd ur i
duringngw hi
which ch t het
the ot alg
total ros
gross si nc omea
income mount
amount
andn
and e c ess
necessary a r ye xpe ns
expenses e so offt her
the e levantjoint
relevant j ointbusiness
bus ine s sa r
areec a lc ulat
calculated e di na
in c c or
accordancedanc ewi t
h
with
thep
the rovi si
provisionsonso offA Ar-r-t ic
ticlele3 9.<
39. Amendedb
<Amended byyA Act c tNo
No..8144,8 14 4,Dec.
Dec .30,
30 ,2006>
20 06 >
(2
(2))T Thehey e
yeararf orwh
for i
which c ht hef
the ict i t
fictitiousiousd ivi de
dividend nda assp r es cr
prescribed i
be di nA
in r tic
Articlele1 177( 2
(2))1 1,,2a nd
2 and
5i
5 issi nc lude
included, d,s ha
shall llbbeet hey
the e
yearart toow hi
whichcht hed
the a
day ywhwhen e nag e ne
a general r a lme et
meetingingo offs toc khol
stockholders de r
s
o
orrp ar t ne
partners, rs ,o orrs imi l
similara rd e libe r
deliberativeat i ve o r gan,d
organ, ec ide
decides st hewr
the iting-of
writing-off fo offs toc
stocks,ks ,reduction
re duc tion
o
offc a pi t
capital,al,oorrt r ans
transferfe ro offs ur pl
surplus ust tooc a pit
capitala loorrinvestment,
inve s tme nt ,oorrheher e t
ir e
retires so orrw ithdr
withdraws awsf ro
fromm
thec
the or por at
corporation, ion,b e longs
belongs. .
(3
(3))T Thehey e
yeararf orwh
for i
which c ht hef
the i ct i t
fictitiousi ousd ivi de
dividend nda assp r e sc r
prescribedibe di innA r t i
c
Article le1 177( 2
(2))3 3,,44,,a nd
and
6i
6 issi nc l
ud e
included,d,s ha
shallllbe
bet hey
the e
yeararf a ll i
fallingngu nde
under ra nyo
any offthe
t hef o llowi
following ngs ubp a ragr
subparagraphsia phs :< Ame
<Amended nde d
b
byyA Act c tNoNo..5580,
55 80 ,Dec.
Dec .28,
2 8,1998>
19 98 >
11..I
Iffac or po r
a corporationatione xt ingui
extinguishes s he sb byyam e r
a merger,ge r,the
t hey e
yeara rt owh
to whichic ht heme
the r
merger ge rr e gi str at
registrationion
d
dayayb elongs
belongs; ;
2
2.. I
Ifft hec
the or por at
corporation ione xt ingui
extinguishes s he sb byyad iss ol ut
a dissolution, ion,t hey
the ea
year rininwh i
whichc h thethed ayt
day hev
the alue
value
o
offt her
the e mai
remaining ni ngp rope
property rtyb e c
becomesome sd ef ini
definite,te ,iissi n-c
in- lude
cluded; d;a nd
and
33..I
Iffac or por
a corporationati onu nde r
undergoinggo ingc or por
corporate at ed ivi si
divisionono orrt heo
the t he
other re xt i
extin-n-g uis
guishedhe dp a r
partytyo offa
a
c o rp o
corporateratemerger
me rge rbbyyd ivis i
division,on,i isse xt i
ngui
extinguishedshe do orrc o nt inue
continues st oe
to xi
existsta assar es
a resultul to offcorporate
c orp o rate
d ivi si
division,on,t hey
the ea
year rt ow
to hi
whichc ht hed
the at
dateeo offregistration
r egi s tra t io no offt hec
the orpo r
corporatea ted ivi s
divisionio nb el ongs
belongs. .
(4
(4))I Innd eter mi
determiningni ngt hei
the nc
incomeomea mounto
amount offac or po ra
a corporation t i
ona c cr ui
accruing ngd ur i
duringngt hec
the or r es pondi
corresponding ng
fi
s ca
fiscal ly e a
year,r,t hey
the e
yeararf orw
for hi
which cha nyi
any nc o
incomemec o ns id e
consideredr eda assab o nusp
a bonus ai
paiddt oo
to ffic e
officers,r s ,s toc kho lde
stockholders, rs,
pa r
t ne
partners rso orro t he
other ri nve s t
investors or so offthe
thec or por a
corporationtio ni issi nc lude
included, d,s ha
shallllbebet hef
the i
s c
fiscala lyear
ye a rin
inw hi
whichch
thec
the or por
corpora- a-t ionma
tion makeske sas e ttl e
a settlement me nto offa c count
accounts. s .In
Int hi
thissc a s
case,e ,if
i
fthe
t hec alc ul a
calculation tiono offthe
the
m ont
monthly hlya ve r
averageagea mo
amountunti issm a
maded et hr o
throughught woy
two ea r
years,s,i itts ha
shallllb e l
o
belongngt oe
to ac
each hy e a
year, r,r e sp ec tive
respectively.ly.
Art i
cle4
Article 411(Calculation i
(Calculation nC
in aseo
Case offWrongfulAc
Wrongful t)
Act)
(1)I
(1) Iffi
itti
issd e e
me
deemeddt ha
thatta nya
any cto
act orrcalculat i
ono
calculation offar es i
de nthaving
a resident havi nga nyd
any ivide ndi
dividend nc ome
income
(appl ic
a bl
(applicable et ot
to hed
the ivide ndi
dividend ncomeo
income nlya
only assreferre
referreddt oi
to nA
in r
t i
cle1
Article 7(
17 1)6
(1) -3)
6-3),,real
r e
a le state
estate
renta
rentallinc o me
income, ,b usi
ne s
businesssi ncomeo
income orrmi sce l
la neousi
miscellaneous nc ome
incomes sr educ
reduceeu nre asona bl
unreasonably yt heb
the ur de
burdenn
- 66 -
_66_
o
offt axo
tax ns
on uc
suchhi nc omeb
income yat
by rans ac
a transactiont
ionw i t
Withhap er s
onh
a person avingas
having pe ci
a specialalrelationship
re l
a tionshipw i
th
With
ther
the es i
de nt
resident,,t heC
the o mmi ssi
o
Commissionernero offt hec
the ompe te
competentntR egiona
RegionallT a
Tax xO ffi
c
Officeeo orrt hec
the hie
chieffo
offat ax
a tax
offic
officeeh avi ngj
having ur isdic ti
o
jurisdictionno ve
over rt hep
the lac
placeeo
offtax
t axp ayme
paymentntmay
ma yc a l
c ulat
calculate et hei
the nc omea
income mount
amount
ac cruingd
accruing uri
ngt
during hec
the orrespo ndi
corrwpondingngy ea
yearrregardless
regar dlessooffsucha
such cto
act orrc alcul atio
calculationno offthe
t
her esident
resident..
< Amendedb
<Amended byyA c
Act tNoNo..503],
50 31 ,DeDec.c .29,
29 ,1 995
1995;;A c
ActtNo
No..8144,
8 14 4 ,Dec.
Dec .30,
30 ,2006>
2 006>
(2
(2))T hes
The copeo
scope offt hos
thoseeh avi ngt
having hes
the pecialrelationship
special r
e l
ations hipaassr efe rre
referreddt oi
to np
in ar agraph(
paragraph 1),
(1),
ando
and the
otherrma tte
mattersr sn e cessar
necessaryyf ort
for hec
the alcul at
ionb
calculation yw
by r
ong-f
wrong- ula
ful ct,s
act, hal
shalllbe
bed e
termi ne
determinedd
byt
by heP
the r
e si
de nt
PresidentialialD e c
re e
Decree..< Newl
<Newly yI ns er t
Insertededb byyA c
ActtNoNo..503],
5 031,Dec.
Dec .29,
29 ,1995>
1995 >
Ar ti
c l
Articlee4 422( Spe ci
(SpecialalC as
Case eo offC alcula ti
Calculationono offI nc omeA
Income mountA
Amount c c r
Accruinguingf rom Trade
from Tr adewi t
Withh
N onr e s i
Nonresident,de nt ,e tc.)
etc.)
(1)I
(1) nt
In hee
the ve ntt
event ha
that ta na
an gr e eme
agreement nti issma
made dew i
Witht
ht heo
the the
other rc ount
country ryo offat r
e at
a treatyyc onc lude
concluded d
b
byyt heR
the e publ
Republic i
co offK or
Koreae at toop r
e ve
preventntad oubl
a double et axa-t
taxa- i
on(
tion he r eina
(hereinafterf
te rr efe rr
referrededt oa
to assthe
the
“taxt
“tax re at y”
treaty”) )a cc or di
according ngt toot hep
the rovi
provi--s i onsc
sions onc erningt
concerning hemu
the tuala
mutual gr ee me
agreement ntooffthe
thet a
taxx
tre at
treaty,y,c ompe
competenttenta u-t
au- hor i
thoritiestiesa gr e e
agreeingingo nt
on hea
the mounto
amount offat r adema
a trade madedeb yar
by es i
de
a residentnt
w it
Withhan onr e si
a nonresidentde ntl ivinga
living br o
abroad adoorrf o reignc
foreign orpo rat
ion,the
corporation, t heC ommi s s
Commissioner i
one ro offt hec
the omp et
competentent
R egi onalT
Regional axO
Tax ff i
Officeceo orrt hec
the hiefo
chief offat
a taxaxo fficeh
office avingj
having u-r
ju- is di cti
risdictionono ve
over rt hep
the l
ac
placeeooff
taxp
tax a yme
payment ntmamay ya djus
adjust ta ndc
and alcul at
calculate et he income
the i
nc o mea mo unto
amount offthe
ther es identi
resident ne
in acht
each axa bl
taxablee
p eriod,i
period, na
in ccor da
accordancenc ewiWith ths uc
suchha gr ee me
agreement. nt .
(2)Ma
(2) t
Matterst
e rsn e ces s
necessaryar yf ort
for hea
the ppl i
c at
applicationionf orthe
for thea djus t
me
adjustment nto offthe
ther e s
res--i de nt’
si
ident’s ncome
income
a mounta
amount assr efe rre
referred dt oi
to np
in a ra gr
paragraphaph( 1),a
(I), ndo
and the
otherra d-j
ad- us tme
justment,nt ,s hal
shalllbe
bed etermi ne
determined dbbyy
theP
the re side
Presidentialnt i
alD e cr
Decree.ee .
Ar ticl
Articlee4 3(
43 Spe c
(SpecialialC as
Cases e so offC alc ula
Calculationt io no offI nc omeA
Income mountAccruing
Amount Ac crui ng from f
r om Joint
Jo intBusiness)
Bus ine ss
)
( 1
(1))I nt
In hec
the a
cases eoofft hej
the o i
ntb
joint usi ne
business s sw he
whereinre inab us ine
a business ssf ro
frommw hi
Which c ht her
the e a
real le s tat
estateer e nta
rentall
i ncomeo
income orrt heb
the us i
businessne s si nc omea
income c c
accrueruei issj oint l
jointlyyr una
run ndt
and hep
the rof i
profitst sa ndl
and os se
losses st he r e
of
thereof
a r
arees h a
sharedred[ inc l
ud i
[includingngt hej
the o i
ntbusinesses
joint bus ine s s esw hi
Which chh a vej
have ointbusinessmen
joint bus i ne ssme nw Whohod doon o
nottparticipate
pa rt
ic i
p at
e
i
innma nage
management me ntb bututmamake kei nve s tme
investment nta assp res cr i
prescribedbe dbbyyt heP
the r e side nt
Presidential ialD ec
Decreeree( he rei
(herein-n-
a fte
afterrr efe r
referredre dt tooa asst he“
the joi nti
“joint nve st
investment me ntbusinessmen”)],
bus ine s sme n” ) ],the
thei nc ome a
income mounts
amount ha l
shalllbe
be
c alcul a
calculated tedb yt
by hej
the o i
jointntbusiness
bus i
ne s sp la c
places e sb yc
by o nside r
consideringingt hep
the l
a c
place ew he
Where ret her
the e leva
relevantntbusiness
bus iness
i
issm a na
managed ge d( he r ei
na
(hereinafterfterr efe r
r e
referreddt tooa asst he“
the jo intb
“joint us ine
business ssp lac e
place”)”)aasso ner
one e side
residentnt.< Ame
<Amended nde d
b
by yAAct ctNoNo..8144,81 44 ,Dec.
Dec .30,
3 0,2006>
20 06 >
( 2
(2))TThe hea mo
amount unto offi nco
incomemea c crui
accruingngf ro
frommt hej
the ointb
joint us ines
business su nd
under erthe
thep ro visio
provisions nso offparagraph
pa ragr aph
( 1
(1))s ha
shall llb
be ed i
s tri
but
distributed edt ot
to her
the esp e ct
respective ivej o intb
joint us i
ne ssme
businessmen na c co rd
accordingi
ngt ot
to hei
the nc o
incomemed istribut e
distributedd,
o
orrt ob
to be ed is tribut
distributed,ed,based
bas edo nt
on hep
the r of it-a nd
profit-and-loss -l ossd istr i
but i
o
distributionnr a t
ratioi
oa gr e
agreed e da mo
amongngt her
the es pec ti
ve
respective
r eside
residents ntsr unni
running ngt her
the eleva
relevant ntjoint
j o i
ntb us i
ne
business s s( inc ludi
(includingngt hej
the ointi
joint nve s t
investmentme ntbusinessmen;
bus ine s sme n;
h erei na
hereinafterfterreferred
re fe rredt tooaasst he“
the jointb
“joint us ine ss
businessmen”)me n”)( whe
(Whererennooa gr e
agreed e
dp r of i
t-a nd -l
profit-and-loss os sd istri
but i
o
distributionn
r ati
ratiooi issa va il
a bl
available, e,referring
re ferr ingt ot
to hes
the ha
share rer a ti
ratio;o;hereinafter
he re ina fterreferred
refe r redt oa
to asst he“
the pr o f
it-a nd-l
“profit-and-loss oss
d istr ibut
distribution io nr at io”
ratio”).) .< Amendedb
<Amended byyA ActctNo No..8144,
8 1 44 ,Dec.
Dec .30,
3 0,2006>
2 0 0 6 >
- 68 -
_68_
(3)I
(3) Iffo ner
one es i
de nta
resident ndap
and e rs
a persononh avi ngas
having pe c
a specialialrelationship
relationshipwi t
withhh i
m,a
him, assp r es cribe
prescribed d
byP
by re side nt
Presidential ialDecree
De c reea rei
are nc lude
included di nt
in hej
the ointbusinessman,
joint busi nes sman,a ndf
and al l
fallssu nde
under rac aus
a cause,e,
suc
suchha assaf al
a falsesed ete rmi nat
determination iono offt hep
the r of i
t -and-l
profit-and-loss os sd istri
but i
onr
distribution atio,a
ratio, assp resc ribe
prescribed db y
by
Pre si de nt
Presidential ialD ecr
Decreee
et hei
the nc omea
income mounto
amount offt hep
the e r s
persononh avings
having uc
such hs pe c
speciali
a lr elations hi
relationshipp
shallb
shall beea dde
added du uppt ot
to hei
the nc omea
income mounto
amount offt hej
the ointb
joint usine ss manh
businessman avi
havingngt hel
the arge
largerr
profi t-a nd-l
profit-and-loss os sd i
s tr i
but i
distributiononr atio(
ratio whe
(whereret hep
the rofit -and-l
profit-and-lossos sd istr i
but
distributionionr a ti
osa
ratios r
areet he
the
same
same, ,t hep
the e r
s
personona assp re scribe
prescribed db byyP res ide nt
Decree;ee;hereinafter
he reinaf terr efe rr
referrededt oa
to asst he
the
“maj
“majoror joint
j oi nt businessman”),
busi ne s sman” ),n otwi t hs tandi
notwithstanding ng the the p rovisions o
provisions off paragraph
par agr aph ( 2).
(2).
< Amendedb
<Amended byyA c
Act tNoNo..5191,
5 19 1,Dec.
Dec .30,
3 0,1996;
1 99 6;A ActctNo
No..7 319
7819, ,Dec.
Dec .31,
3 1,2004;
20 04 ;A c
Act t
No.8144,
No. 81 44 ,Dec.
Dec .80,
30 ,2006><This
2 006><Thi sp a ra gr
paragraphaphwa wassa me nde
amended dbbyyA Actc
tN No.o.8411,
8411 ,Dec.
De c.30,
30,
200 6
2006,,d uet
due ot
to hed
the ec isiono
decision nu
on nc ons tit
ut io na
unconstitutionality li
t ymamadedeo nA
on pr
Apr..2 7
27,,2 0 0
20066( thep
(the revio
previoususp ro-
pro-
vis i
onb
vision efor
before et hea
the me ndme
amendment ntmamade debbyyA c
Act tN o.7
No. 3 1
7319,9,Dec.
De c.31,
31,2 004
2004)>)>
Art i
cle4
Article 4(
44 SeparateC
(Separate alculation o
Calculation offIncomeAmo
Income unti
Amount nC
in aseo
Case offInheritance)
Inheritance)
A nyi
Any ncomet
income axo
tax nt
on hei
the ncomea
income mounto
amount offthep
the r edece
ssort
predecessor hati
that isstob
to beeleviedo
levied nt
on he
the
inheri t
or,s
inheritor, ha l
shalllbe
bec alcula te
calculateddseparatelyf
separately rom the
from thei ncomet
income axo
tax nt
on hei
the ncomea
income mounto
amount off
thei
the nhe r i
tor
.
inheritor.
Art i
cle4
Article 5(
45 Deduction o
(Deduction offDeficiency a
Deficiency ndC
and arryovero
Carryover offDeficits)
Deficits)
( 1
(1))A Anynyd efic i
deficiententa mo unt(
amount whe
(when nt hen
the e ces s
necessary arye xpe ns
expenses e sa c crui
accruingngd ur i
duringngt hec
the o r re s p
correspondingo nding
y ea
year re xc e
exceede dt hea
the ggr e
aggregatega ter eve nuea
revenue mo
amount unta c c rui
accruing ng d ur i
duringngt hes
the a mec
same or respo
correspondingndi ngy ea r
year,,
i
ittrefers
re fer sttoos uc
suchhe xc
excesses sa mo unt
amount; ;h er eina f
the a mes
same ha l
shallla p ply)r
apply) es ultingf
resulting ro
frommt hec
the al cul at
calculationion
o
offa nyb
any us ine
business s si nc o
incomemea mo
amountunta cc r ui
accruingngd ur i
ngt
during hec
the orr es po ndi
yearrbased
ba s edo onnt heb
the oo
booksks
e nte r
entered eda ndk
and eptb
kept yar
by e s ide
a resident nthaving
havi ngt heb
the us ine
business s si nc omes
income hal
shall lbe
bed e duc
deductedt e df r om his
from his
r ea
realle stat
estate er e nt
rentalali nc o me
income, ,e arne
earned di nc ome
income, ,a nnui
annuity t yi nc ome
income, ,mi sce llane
miscellaneous ousi nc ome
income, ,i nt e re
interestst
inc ome
income, ,a ndd
and ivi de
dividend ndi nc ome
income, ,i nt
in ha
that to rde
order,r,i nc
in alc ula t
calculatingi
ngh i
hissg lobali
global nc omet
income axb
tax a
bases ei n
in
t hec
the orr e s pondi
year. .< Amendedb
<Amended byyA Actc tNo.
No.5081,
5 031 ,Dec.
Dec .29,
29 ,1995;
19 9 5 ;Act
Ac tNo.No.6292,6 2 92 ,
Dec
Dec. .29,
2 9 ,2000;
2 0 00;A Actc tNoNo..6557,
65 5 7,Dec.
Dec .31,
3 1 ,2001
20 0 1;A
; ActctNoNo..8144,
81 4 4 ,Dec.
Dec .80,
30 ,2006>
2 0 0 6>
( 2
(2))T Thehed efic ie
deficientnta mountr
amount es ultingf
resulting rom t
from hec
the a l
c ul at
calculationiono offa nyi
any nc omea
income mounta
amount c cr ui
accruing ng
d ur i
duringngt hec
the or r es po
correspondingndi ngy e
yeara rb as
basededo onnt heb
the oo
books ksk e
pta
kept nde
and nte r
enterede db byyar es ide
a resident nth a ving
having
a nyr
any e a
real le s ta
estateter e nt
rental ali ncome
income, ,a ndt
and hed
the efic ie
deficientnta mo
amountuntw hi
which chr e sul
resultstsf r om t
from hec
the a l
c ul a
calculationti
o n
o
offt heb
the us ine
business s si nc omea
income mounta
amount ndi
and issl e f
left ta fte
after rt hed
the e duc
deductiontioni nt
in hec
the al cul at
the
g l
obali
global nc omet
income axb
tax as
base ef ort
for hec
the or r e spondi
corresponding ngy e
yeararu nde
under rt hep
the r ovi s i
provisionsonso offp ar a gr
paragraph aph
( 1
(1))( he r e inaf
(hereinafter te rr efe rr
referred e dt tooaasst he“
the de fici
“deficit tc a rr ie d-o ve
carried-over”), r” ),s hal
shall lbebed e duct
deducted edf r om e
from ac
eachh
r elevanti
relevant nc omei
income nc
in ons ec
consecutiveutiveo r de
order rbeginning
be gi nni ngwi t
withht hed
the e fici
deficittcarried-over
ca rrie d-o ve rin int hey
the ea
yearr
o
offf ir s
firstto cc ur re
occurrence nc ei nt
in hec
the a l
c
calcu-u-l a t i
ono
lation offthe
t hei nc omea
income mounta
amount cc rui
accruingngd ur i
duringngt het
the axabl
taxable e
pe rio
period dwhwhichic hi isst e rmi na
terminated te dwi thi
withinnt e
tenny e a
yearsr sf r om t
from hee
the ndo
end offthe
they e
yeararwhwhen ent her
the e l
e vant
relevant
d efic
deficititc a r ried-o
carried-over ve ra c c rue
accrues. s.< Amendedb
<Amended yA
by Actc tNoNo..8144,
8 14 4,Dec.
Dec .30,
3 0,2006;
20 06 ;A Actc tNoNo..
9 27
9270,0,Dec.
Dec .26,
26 ,2 00
2008> 8>
- 70 -
_70_
(3)T
(3) hep
The rovisionso
paragraph( 2)s
(2) halln
shall otbe
not beapplicablew
applicable hena
When na
an dditionala
additional ssessment
assessment
ont
on hei
the ncomea
income mountd
amount uringt
during hec
the orrespondingy
corresponding eari
year issreported(
reported referringt
(referring oar
to eport
a report
notm
not adeb
made yt
by hea
the ccountingb
accounting ooksa
books nde
and videntiald
evidential ocumentsf
documents urnisheda
furnished ndr
and ecordedp
recorded ursuant
pursuant
toA
to rt i
c l
es1
Articles 60a
160 nd1
and 61;h
161; ereinaftert
hereinafter hes
the ames
same halla
shall pply),o
apply), orrad ecisiono
a decision offadditional
additional
assessmentpursuant
assessment pur
suantttoothep
the rovisot
proviso tooArt i
cle8
Article 800(3)is
(3) i
sma de:Provided,
madei Pr
ovided,That
Thatthe
thes ame
same
shalln
shall ota
not pplywh
apply eres
where uchr
such eporto
report orrdecisiono
decision offadditionala
additional ssessmentis
assessment i
sma ded
made uet
due o
to
destructiono
destruction orrlosso
loss offaccountingb
accounting ooksa
books ndo
and there
other videntiald
evidential ocumentsb
documents yan
by aturald
a natural isaster
disaster
o
orrotherf
other orcema
force jeure.<
majeure. Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
(4)D
(4) eleted.<
Deleted. byA
<by ctNo
Act No..6781,De
678], c
Dec.18,2
18, 002>
2002>
(5)I
(5) Ifftheree
there xistsa
exists nyd
any ividendi
dividend ncomeo
income orranyi
any nterestincome
interest i
ncomewh ichi
Which isssubjectto
subject t
ot he
the
globalt
global axationu
taxation nderA
under rt i
cle1
Article 4i
14 nt
in hec
the alculationo
calculation offthe
thet axa
tax mountunder
amount unde
rA rt i
cle6
Article 2,
62,
thep
the ortionso
portions offthed
the ividendi
dividend ncomeo
income orrthe
thei nterestincome
interest i
ncomew hicha
Which res
are ubjectto
subject t
ot hea
the pplication
application
o
offthewi
the thholdingt
Withholding axr
tax ates
rate hallb
shall ee
be xcludedf
excluded rom t
from hed
the eductiono
deduction offthed
the eficiencya
deficiency nd
and
thed
the eficitc
deficit arried-overp
carried-over ursuantt
pursuant toothep
the rovisionso
provisions offparagraphs(
paragraphs 1)a
(1) nd(
and 2),a
(2), ndt
and he
the
portionso
portions offthed
the ividendi
dividend ncomeo
income orrthei
the nterestincome
interest i
ncomew hicha
Which res
are ubjectto
subject t
ot hea
the pplication
application
o
offtheb
the asict
basic axr
tax ate,at
rate, axpayerma
a taxpayer yd
may eter-mi
deter- new
mine hethert
Whether hed
the eductioni
deduction issmadeo
made orr
nota
not ndt
and hea
the mounto
amount offdeductionw
deduction ithint
Within hel
the imito
limit offthea
the mounto
amount offhisi
his ncome.<
income. Newly
<Newly
Insertedb
Inserted yA
by ctNo
Act No..605],
6051,Dec.
Dec.28,
28,1 999>
1999>
(6)I
(6) nd
In eductingt
deducting hed
the eficiencya
deficiency ndt
and hed
the eficitc
deficit arried-overu
carried-over nderp
under ar-a
par- graphs(
agraphs 1)a
(1) nd
and
(2),w
(2), herea
where nyd
any eficiencyo
deficiency ccursa
occurs ndt
and heree
there xistsa
exists nyd
any eficitc
deficit arried-overin
carried-over i
nt hec
the orresponding
corresponding
year,t
year, hed
the ef
iciencyf
deficiency ort
for hec
the or-r
cor- espondingy
responding ears
year hallb
shall ef
be irstd
first eductedf
deducted rom t
from hea
the mount
amount
o
offincome.<
income. NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..6557,Dec.
6557, Dec.3],
31,2001>
2
001>
Article4
Article 6(
46 SpecialC
(Special asesf
Cases orC
for alculationo
Calculation offIncomeA
Income mountAccruing
Amount Ac
cruingf rom Bonds
from Bondsa nd
and
Submissiono
Submission offPaymentR
Payment ecords,e
Records, tc.)
etc.)
(1)Wi
(1) thr
VVltl’l espectt
respect oa
to nyi
any nterest,d
interest, iscounta
discount mounta
amount ndp
and rofitfrom
profit f
rom collectivei
collective nvestment
investment
scheme(
scheme hereafterr
(hereafter eferredt
referred oa
to ass“interest,e
“interest, tc.”i
etc.” nt
in hisA
this rt i
c l
e)a
Article) ccruingf
accruing rom the
from theb onds
bonds
o
orrsecuritiesa
securities assprescribedf
prescribed ori
for nA
in rt i
cle1
Article 6(
16 1)1
(1) 1,,2
2,,6
6a nd7
and 7,,o
orrfrom s
from uchs
such ecurities
securities
alienablet
alienable oa
to notherp
another erson,a
person, assprescribedb
prescribed yP
by residentialDecree
Presidential De
cree( hereafterr
(hereafter eferredt
referred o
to
a
ass“bonds,e
“bonds, tc.”i
etc.” nt
in hisA
this rt i
c l
e),t
Article), hei
the ncomea
income mounts
amount hallb
shall beecalculatedd
calculated eemingt
deeming hatt
that he
the
amounte
amount quivalentt
equivalent oi
to nterest,e
interest, tc.f
etc. ort
for heh
the oldingp
holding eriodwo
period uldb
would ea
be ttributedr
attributed espectively
respectively
toar
to esidento
a resident orrnonresident(
nonresident hereafterr
(hereafter eferredt
referred oa
to assthe“
the resident,e
“resident, tc.”i
etc.” nt
in hisA
this rt i
c l
e)
Article)
whoh
who ash
has elds
held uchb
such onds,e
bonds, tc.d
etc. uringt
during her
the elevantperiod
relevant p
eriodooffthe
ther edemptiont
redemption hereof.<
thereof. Amended
<Amended
byA
by ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
20
08>
- 72 -
_72_
( 2
(2))I Iffar e side
a resident, nt ,e tc
etc. .r e ce i
ve
receives st hei
the nt e r
interest,es t,e tc
etc. .oonnb onds
bonds, ,e tc
etc. .( inc ludi
(including ngr ec ei
receiptpto offs t oc
stocks ks
f ro
frommc onve r
conversions iono orre xc ha
exchange ngeo offc onve rt
convertible ibl eo orre xc ha
exchange- nge -a bl
ableeb onds
bonds; ;hereinafter
he r e ina ft erthe
thes ame
same
s hal
shall la ppl
apply) y)f rom ac
from or por at
a corporation ioni s s ui
issuing ngt he
them mo orra nyo
any t he
other rc or por
corporationat ionp r esc ri
prescribed be db byy
P res ide
Presidential nt i alD ec
Decree r e e( he re
(here- -a fte
afterrr ef
e r r
referrede dt tooa assa n“
an is s ui
“issuingngc or po ra
corporation,tio n,e tc
etc.”.”i nt
in hi
thissA rtic l
Article),e )
,
o
orri iffar e side
a resident, nt ,e t c
etc.,.,b e for
before et her
the e c e
receiptipto offinterest,
int e r es t,e tc
etc..o ns
on uc
such hb onds
bonds, ,e t
c .
etc.,,s el
sellslst he
them m
( inc ludi
(including ngc as
cases e so offc ha nge
changes si nt
in heo
the wne
ownershiprs hi po offbonds,
bonds ,e tc
etc..o orri nt
in her
the ight
rights st or
to e c ei
receive ve
t hei
the nt e r
interest es tt he re
thereon, on,s uc
such ha assd ona t
io
donation, n,r e pa yme
repayment, nt ,a ndc
and o nt ribut
contribution, i on,a ndc
and a s
cases eswhwheree ret he
theirir
s al
sale ei isse nt r us
entrusted, t
e d,mediated
me di a tedo orra rrange
arranged, d,butbute xc ludi
excluding ngc as
casese sp re s c r
prescribedibe db byyP re s ide nt
Presidential ial
D e c
Decree,r e e ,s uc
such ha asst hes
the ale
sales so offrepurchase
repur c ha s ea gr ee me
agreements; nt s;hereafter
he re af te rt hes
the ames
same hal
shall la ppl
apply yi n
in
t hi
thissA r tic
Article) le)t toot hei
the s sui
issuingngc or por at
corporation, ion,e tc
etc.,.,t het
the axa
tax mounts
amount hal
shall lbbeec ol lec
collectedt edp ur s uant
pursuant
t
tooA rt i
Articlesc le s1 2
127 7t hr ough1
through 31
131,,1 3
133,3,1 5 6
156, ,1 64
164, ,a nd1
and 6 4
164-2-2b yr
by e ga rdi
regarding, ng,a asst hei
the nte re
intereststincome
i
nc ome
o
orrd ivi
dividendde ndi nc omeu
income nde
under rA rtic
Articlesles1 166a nd1
and 7
17, ,t hea
the mounte
amount qui val
equivalent e ntt tooi nt er e
interest,s t,e tc
etc..f or
for
thep
the e r
periodio dc a lc ul
calculateda te db byyt hem
the e tho
methods dsa asss tip ula
stipulatedte db byyP re s i de nt
Presidential ia lDecree
De c re e( he rea
(hereafterfterreferred
r efe rr e d
t
tooa ass“ t a
“taxxw ithhol
withholding di ngp eri od”i
period” nt
in hi
thissA rt icl
Article),e ),treating
tre at ingt hei
the s s ui
issuing ngd a
datet eo offs uc
such hb onds
bonds, ,
e tc
etc. .o orrt hei
the mme
immediatelydi at elyp re c edi
preceding ngd at
date eo offtax
taxwi t
hhol
withholdingdi nga asst heb
the e gi nni
beginning ngd a
datetea ndt
and he
the
p ayme
payment ntd a t
date eo offt hei
the nt e res
interest, t,e tc
etc..oorrt hes
the a l
saleed at
date eo offthe
theb onds
bonds, ,e tc
etc. .a asst hee
the ndi
endingngd at
date,e,
b
byyh avi
having ngt hei
the s s ui
issuing ngc or por at
corporation,ion,e t
etc.c.a assawi t hhol
a withholding dinga ge
agent,nt ,a ndb
and byyt re ati
treating ngt hed
the a
datet e
s tipul
stipulatedat e db byyP r e s ide
Decree,e e,s uc
such ha asst hep
the ayme
payment ntd at
dateeo offthe
t hei nt e r
interest,est ,e tc
etc. .oorrt he
the
s al
sale ed a
dateteo offt heb
the onds
bonds, ,e tc .
etc.,,aasst het
the i meo
time offt het
the a
taxxwi thhol
withholding. di ng.< Amendedb
<Amended byyA Actc t
No.8825,
No. 88 25 ,Dec.
Dec .3],
3 1,2007;
200 7;A Actc tNo
No..9270,92 70 ,DeDec. c .26,26 ,2008>
20 08 >
( 3
(3))I Innc a lc ula
calculationtio no offt hei
the nc o
incomemea mo untu
amount nd
undere rp a r agr a
paragraphs p hs( 1
(1))a nd(
and 2 )
(2),,iifft her
the e l
e va
relevantntr e side
resident,nt,
e tc
etc. .f a il
failsst op
to r
proveovet heh
the oldingp
holding e r i
o
perioddo offs uc
such h bonds,
bo nds ,e t
c
etc..d ur i
duringngt het
the a
taxxw i thho
withholdingldingp er i
periodo d
unde
under rc ondi t
conditionsi onsp r e sc r
prescribedibe db byyP r
es i de nt
Decree,e e,t hei
the nc
incomeo mea mo
amount unts ha
shall llbbeec a lc ul a
calculatedt e d
c o ns ide
considering r ingt ha
that tt hea
the mo unte
amount qui va l
equivalententto t oi nt er es
interest, t,e tc
etc. .for
forthethet a
taxxw ithho
withholdingldi ngp e ri
periodo dw oul
would d
bei
be mput
imputed e dt toot her
the e leva
relevant ntr e side
resident,nt,e t c
etc. .< Amendedb
<Amended yA
by Act c tNo.
No.9270,9 2 7 0 ,Dec.
Dec .26,
2 6 ,2008>
20 0 8 >
( 4
(4))D e le
Deleted. te d.< <bybyA Actc tNo
No..8825,
8 82 5,Dec.
Dec .3],
31 ,2 00
2007> 7>
( 5
(5))T h eme th o do fc a l
c ulatin gt h eh ol
Thenethodofcalculatingthelpldingperiodofthebmfls,dingp er iodo ft h eb on d s,et c
etc..a n dt h ea mo u n te q u i
v a
arrithearmmtequivalenttointaest,len tt oi n ter es t
,
e tc
etc..f o
forrt h
theet a
taxxw it h h o
withholdingldin gp er i
o
paiod da n
anddt h
theenethod
me th odo offproving
pr o vingt h
theeholding
ho ld in gp er i
periododu n d
undere rparagraphs
p ar agr a p h s
( 1
(1))t h r o
throughugh( 3
(3) )a n
and do the
Othfl‘rmatters
ma tter sn ece s s
neoessarya ryf o
forrtax
ta xw i
th h o l
d
withholdingin gs h a
shallllbe
b ep res c ri
prescribedb e dby
b yP re sid en
Presideitialtial
D ecr
Decree.e e .< Ame nd e
<AmcndedbyActN0. db yAc tNo .8825,
88 25 ,D Dece c.8],
3 1,2007;ActN0.
2 00 7 ;Ac tNo .9270,
9 2 7 0,Dec
De c .23,
2 6 ,2308>
20 0 8>
Ar t
icle4
Article 6-2(
46-2 Sp eci
a
(SpeciallC a s
Casese
sf orC
for alcu l
ati
o
Calculation nooffInterest
InterestIncorre
I
nc omeArrmnt
Amo untd ueto
due toP rema tu
Pranaurrer eT ermi nati
Termination)on)
Inc
In ase
casessw he
where reaanynyd epos i
depositto orrtrust
t rustc ont ra
contract ctis
ist e rmi nat
terminated edp r ema t ur
prematurelyelya ftert
after het
the axb
tax as
basee
o
offg loba
globalli nc omei
income issr eturne
returneddd efi
ni te
ly,a
definitely, ndt
and heinterest
the inter esti nc omea
income mountf
amount ort
for het
the a xa
taxableblep e ri
od
period
wh i
whichc hh asa
has lreadye
already lapsedi
elapsed isst he rebyr
thereby educ e
reduced,d,the
ther e duc
reducededi nter es
interesttincome
incomea mo
amountuntmay
ma y
bed
be educ t
deducted e di nc
in a l
c ul at
i
calculatingngt hei
the nte r
es
interestti nc omea
income mount
amount, ,f rom t
from hati
that nc lude
included di nt
in heg
the lobal
global
inc o
incomemea mountf
amount o
forrt het
the axa bl
taxable ep eri
o
perioddi nw
in hic
whichht hed
the a
dayyo offpremature
p r
e ma t
ur et er mina ti
o
tennination ni issi nclude
includedd:
Pr ovi ded,T
Provided, ha
That tt hes
the ames
same ha
shalllln ota
not ppl
apply yw her
where et her
the e ctifi
c ationo
rectification offthe
t het a
taxxb as
base ea ndt
and ax
tax
a mo
amountunti issr e que s
requestedte du nde
underrA rtic
Articlele4 5 -2o
45-2 offtheF
the rame wo
Framework rkAActcto nN
on a t
iona
National lTaxes.
Ta xe s.
- 74 -
_74_
Art i
cle4
Article 7(
47 EarnedI
(Earned ncomeD
Income eduction)
Deduction)
(1)T
(1) hef
The ollowinga
following mo unts
amount hallb
shall ed
be educ t
e
deducteddf romt
from heg
the rossp
gross ayo
pay offar esidentw
a resident itha
with ny
any
ear ne
earneddi nco met
income ha
thatth asb
has eene
been a rne
earneddd uringt
during hec
the orrespondingy
corresponding ear:<
year: Amendedb
<Amended byyA ct
Act
No.9270,
No. 9270 ,Dec.
Dec .26,
2 6,2008>
2 00 8>
<Grossp
<Gross ay>
pay> <Amountt
<Amount ob
to beededucted>
deducted>
N otmo
Not r
moreet han5mi
than ll
ionw
5 million on
won 80/100o
80/100 offgr os
gross sp ay
pay
Mo r
More et han5m
than i
llionw
5 million onb
won utn
but otmore
not moret han1
than 5
15 4m ill
io
4 millionnw on＋
won 5 0/10
+ 50/100 0o
offthe
thea mountexceeding
amount e
xc eeding
millionw
million on
won 5mi l
lionw
5 million on
won
Mo r
More et han1
than 5mi
15 ll
ionw
million onb
won utn
but otmo
not ret
more han3
than 0
30 9m ill
io
9 millionnw on＋
won + 1 5/10
15/1000o
offthe
thea mountexceeding
amount e
xc eeding
millionw
million on
won 15m
15 il
lionw
million on
won
Mo r
More et han3
than 0mi
30 ll
ionw
million onb
won utn
but otmo
not ret
more han4
than 5
45 11.25m
11.25 il
lionw
million o
wonn＋+ 1 0 /
100o
10/100 offt hea
the mounte
amount xceeding
exceeding
millionw
million on
won 30m
30 il
lionw
million wonon
Mo r
More et han4
than 5mi
45 ll
ionw
million on
won 12.75m
12.75 i
lli
onw
million o
wonn＋+ 5 /10
5/1000oofft hea
the mounte
amount xceeding
exceeding
45m
45 il
lionw
million wonon
(2
(2))N ot wi ths ta
Notwithstandingndi ngt hep
the rovi si
provisionso nso offparagraph
pa ra gr aph( 1 )
(1), ,for
f orad a ily-pa
a daily-paid i
dw o rke
worker, r ,the
thea mo
amountunt
o
offd e duc
deductiontions ha l
lbe
shall beo neh
one undr
hundred e dt ho us
thousand a ndw o
won np e
perrd a y.<
day. Amendedb
<Amended byyA ActctN0.
No.6557,
65 57 ,
Dec
Dec. .3],
31 ,2001;
20 01 ;A Actc tNoNo..678],
6 78 1,Dec.
Dec .18,
1 8,2002;
200 2;A c
Act tNo
No..9270,
92 70 ,Dec.
Dec .26,
26,2008>
20 08 >
(3
(3))I Ifft hes
the um o
sum offwa ge
wages so offar es i
a residentde nth avi
having nga nye
any ar ne
earned di nc omea
income cc r ui
during he
the
cor r e spondi
corresponding ngy e
yearari isss hor
short toofft hea
the mounto
amount offd educ t
deductioniona ass r e f
e rr
referred edt oi
to np
in ar agr
paragraphaph( 1)
(1)
o
orr( 2 )
(2),,t hes
the um o
sum offh i
swa
his wagesge ss hal
shall lbebet hea
the mounto
amount offd educ t
deduction.ion.
(4
(4))T Thehed educ ti
deductionona assr e fer r
referrede dt tooi np
in ar agr
paragraphs aphs( 1)t
(1) hr ough(
through 3)s
(3) hal
shalllb beer e ferr
referrededt tooa ass
“e ar ne
“earned di nc omed
income e duc ti
on”
deduction”. .< Amendedb
<Amended yA
by ActctNoNo..8825,
88 25 ,Dec.
Dec .3],
3 1,2007>
20 07 >
(5
(5))I nc
In as
casesesu nde
under rparagraph
par agr aph( 1 )
(1),,i iffap e rs
a person, on,o the
other rthan
t ha nad aily-pai
a daily-paid dw or ke
worker, r,receives
re ce ive s
w a ge
wages sf romt
from woo
two orrm o
morerep er so ns
persons, ,the
thee arne
earned di nc omed
income e
de--d uc tio
ductionsnsa assr efe rre
referred dt oi
to np
in ara gr a
paragraph ph
(1
(1))f ort
for hes
the um o
sum offh hisi
swa ge
wages ss hal
shall lb beet ake
taken nf rom t
from hea
the mounto
amount offwa ge
wages sa attthe
thep rinc i
pal
principal
w o rkpl
workplace,a ce ,under
unde rc o ndi tio
conditionsnsp r e sc ri
prescribedbe db byyP re sident
Presidentialia lDecree:
De c ree :Provided,
Pr ov ide d,That
Tha tififthe
thew age
wages s
o
offt hep
the ri
nc ipalwo
principal rkpl
workplace ac ea r
arees ho
short rto offt hee
the arne
earned di nc omed
income e duc ti
deductions,ons ,t hee
the ar ne
earned di nc ome
income
de duc t
deductionsionsf ort
for hep
the ortione
portion xc e e
exceedingdi ngt hewa
the ge
wages ss hal
shall lbe
bet ake
taken nf rom the
from thewa ge
wages sa attt he
the
subor di
subordinate nat ewo rkpl ac
workplace. e.
(6
(6))T Thehep rinc ipalwo
principal rkpl
workplace ac ea assr e fe r
referredr edt oi
to np
in ara gr
paragraphaph( 5
(5))s hal
shall lbe
be o ner
one epo rt
reported edu nde
under r
Ar tic
Article le1 4 2
1422:Provided,
Pr ovi ded,T hati
That iffnnoor e por
report tiissma de
made, ,t hew
the orkpl
workplacea c ew he
whereret hel
the ar ge
largeststwa
wagesge s
ar
areep ai
paidds hal
shalllbe
bet hep
the r inc ipalwo
principal work-rk-p l ac
place.e .
Art i
cle4
Article 7-2(
47-2 AnnuityI
(Annuity ncomeD
Income eduction)
Deduction)
(1)F
(1) orar
For e
sidenth
a resident avinga
having nya
any nnui
annuitytyi ncome
income,,t hea
the mountp
amount r ovide
provided df ori
for nt
in hef
the ollowing
following
T a bl
Table es hallbe
shall bed educ t
deductededf rom h
from ist
his otala
total nnuityi
annuity nc omer
income ece i
ve
received dd uringt
during hec
the or
r espo ndi
ng
corresponding
y ear
yeari :Provided,
Provi ded,T hati
That nc
in ase
casesswh e
wherer e
thed
the educ te
deductedda mo unte
amount xc e e
exceedsds9mi lli
onw
9 million on,9mi
won, ll
ionw
9 million ons
won hallbe
shall bed e
de--d ucted:<
ducted: Ame nde
<Amended d
b
byyA c
ActtNo
No..7 837,Dec.
7837, Dec .3],
31 ,2005>
20 05 >
- 76 -
_76_
< Tot
ala
<Total nnuit
annuityyamount>
amount> <Amountto
<Amount tob beededucted>
deducted>
3.5mi
3.5 llionwo
million no
won orrless
less Totala
Total nnuitya
annuity mount
amount
O ve
Overr 3 .5 million
3.5 milli
on w on but
won but not
not 3.5 mi
3.5 l
lion w
million on +
won 40
+ 40/100/100 ooff the
the
m or
moreethan7mi
than lli
onw
7 million on
won amounte
amount xc ee
ding3
exceeding .5mi
3.5 llionw
million on
won
O ve
Overr 7 7 mi ll
ion w
million on but
won but not
not more
more 4.9 mi
4.9 l
lion w
million on +
won + 2 0/100 o
20/100 off the
the
than1
than 4mi
14 ll
ionw
million on
won amounte
amount xc ee
ding7mi
exceeding l
lionw
7 million on
won
O ve
Overr14mi
14 l
lionw
million on
won 6.3 million
6.3 mi l
lion w on +
won + 1 0/100 o
10/100 off the
the
amounte
amount xc ee
ding1
exceeding 4mi
14 llionw
million on
won
(2)T
(2) hed
The eductionu
deduction nderp
under aragraph(
paragraph 1)s
(1) hallbe
shall bereferredt
referred tooa
ass“annuity income
“annuity incomed eduction”.
deduction”.
Art i
cle4
Article 8(
48 RetirementI
(Retirement ncomeDe
Income duction)
Deduction)
(1
(1))F o
For rar esi
de nth
a resident a vinga
having nyr
any etireme nti
retirement ncome
income, ,t hef
the ollowi
followingnga mo unt
amounts ss ha
shalll
lb beed educte
deducted d
inc
in o nse cuti
consecutiveveo r de
order rf ro
frommt her
the e tireme
retirementntbenefit
be ne f ita mo unta
amount ccr uingd
accruing uri
ngt
during hec
the o rre spo ndi
corresponding ng
y e
yearar( inc
(in aseo
case offC l
a
ClassssAAr e t
ir eme
retirement ntb ene fi
benefits,ts,iitti nc lude
includesst heh
the o no ra
honorablebleretire me
retirement nta llowa nc
allowanceses
andt
and hei
the ns ur
insur--a nc
ance emo ne
money yf ort
for hec
the olle ct i
ver
collective etir eme
retirement ntinsurance;
ins ur anc e;her e ina f
the ame
same
shal
shallla ppl y)
apply)::< Amendedb
No.5580,
55 80 ,Dec.
Dec .28,
28 ,1998;
19 98 ;AActc tNo.
No.6292,
62 92 ,Dec.
Dec .29,
29 ,
2 00
2000;0;A ActctNoNo..6557,
65 57 ,Dec.
Dec .3],
3 1,2001;
20 01 ;AAct ctNoNo..7 83 7,Dec.
7837, Dec .3],
31 ,2005>
20 05 >
11..Ana
An mounte
amount qui va
equivalentlentt o4
to 5/ 10
45/100 0o offt her
the e ti
r e me
retirement ntb e ne f
benefitita mount
amount; ;a nd
and
22..T hef
The ollowi nga
following mountd
amount e ter mi
determinedne dbbyyt hen
the umbe
number rooffs e rvic
service ey ea
yearsr
s( its
(it ha l
shalllbe
bet reate
treatedd
a
asso ney
one ea
yearri iffhheer etire
retiressb efor
before eo ney
one eare
year laps es
elapses, ,a ndi
and nt
in hec
the aseo
case offArticle
Ar ti
c le2 2(
22 1)
(1)
1( d)a
1 (d) nd(
and e),i
(e), itts ha l
shalllm e
meanant hen
the umbe
number ro offy e a
yearsrsc alc ulate
calculated dbbyyt heme
the tho
method da assp res cri
be
prescribed d
byP
by r esident
Presidentiali
alDecree;
De cre e;h e re i
naf
hereinaftertert hes
the ames
same hal
shallla ppl y)
apply)3 :
<Numbero
<Number offservicey
service ears>
years> <Amountto
<Amount t
obbeededucted>
deducted>
notmo
not ret
more han5y
than ears
5 years 300,000w
300,000 on×n
won umbero
X number offservicey
service ears
years
mo r
et
more han5b
than utn
5 but otmo
not ret
more han1
than 0
10 1.5mi
1.5 llionw
million on+5
won 00,000wo
+ 500,000 n×(
won number
X (number
years
years o
offs ervi c
serviceey ears－
years — 55y ears
years))
m or
et
more han1
than 0b
10 utn
but otm
not oret
more han2
than 0
20 4mi llionw
4 million on+8
won 00,000w
+ 800,000 on×(
won number
X (number
years
years o
offservic
serviceey e
ars－
years —1100y ears)
years)
over2
over 0y
20 ears
years 1
122m i
llionw
million on+1
won .2m
+ 1.2 illionw
million on×(
won numbero
X (number offservicey
service ears
years
－—2200y ears)
years)
(2)I
(2) Iffther
the etire
me
retirementntb ene
benefitfita mounta
amount c cruingd
accruing ur i
duringngt hec
the orre spondi
corresponding ngy e
yearari isss hor
shortto off
thed
the eductio
deductionna mounta
amount assr e fer r
referrededt oi
to ne
in ac
eachhs ubpa ra gr
subparagraph a pho offp aragr a
paragraphph( 1)
(1),,the
ther e tireme
retirement nt
be ne f
benefitita mounts
amount hal
shall lbe
bet hed
the e duc ti
deductionona mount
amount. .
(3)T
(3) hed
The e
d uc t
io
na
deduction assr ef erre
referreddt tooinp
in ar agr ap
paragraphshs( 1)a
(1) nd(
and 2)s
(2) hallb
shall beer e-f
re- erredt
ferred tooaass“ retireme
“retirementnt
inc omed
income e
duc ti
on”
deduction”. .
(4)I
(4) Iffar eside nth
a resident a vi
havingnga nyr
any et
ireme
retirementnti nco meh
income hasasr e ce ive
received dr etireme
retirementntb ene f
benefitsi
t sbby yr etiring
retiring
twoo
two orrm or
moreet imesi
times nt
in hec
the or r
e spondi
year,,ther
the etir eme
retirement nti nc omed
income educ ti
o nss
deductions ha
shalll lb
beet a ke
taken n
onl
onlyyo ncef
once romt
from hes
the um o
sum offt her
the e t
ire me
retirementntbenefits
bene fitsa cc rui
accruing ngd uringt
during hec
the orr espo ndi
year. .
- 78 -
_78_
(5)T
(5) hep
The r
ovis i
onso
Ar ti
cle4477(5)s
(5) halla
shall ppl
applyymutatism
mutatis utandist
mutandis toother
the etirementi
retirement ncome
income
deductiona
deduction assr eferre
referreddt oi
to np
in aragr a
ph(
paragraph 1)2
(1) 2..
Art i
cle4
Article 9De
49 leted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
Art i
cle5
Article 500(BasicD
(Basic eduction)
Deduction)
(1)F
(1) o
For rar e s id
a residente nt( limi
(limitedtedt tooan a t ur
a natural alp e rs
person) on)h a vi
havingn ga nyg
any lo b
globala li n-c
in- o me
come, ,t hea
the mo u
amount nt
cal culat
calculatede db byym u ltip l
yi
multiplying n gt h
theen u mb
number ero offfamily
fa mi lym emb
members er sfalling
f a l
lin gu nd
undere ra n
anyyo offthe
th efollowing
fo llowi n g
su bp a ra gr
subparagraphs, a phs ,bbyy1 .5million
1.5 mi llio nw won onp e
perrc ap
capita i
taay ea
a year, r ,s h a
shalll lbe
b ed e duc
deductedt edf ro
fromm the
th eresident’s
re sid en t
’s
glo ba
global li nc
incomeomea mo
amountunta c c rui
accruing ngd ur
duringi
ngt hec
the o r re sp o
year2r:
1
1..T
Theher e leva
relevant ntr es ide
resident; nt ;
2
2..T
Thehes p ou
spouse s eo offt h
theeresident
r esid en th avi
having ngn oa
no nn
annual ua lincome,
in c ome ,oorrhaving
h a vingt h
theetotal
to tala nnu
annuala lincome
in co me
n o
not te xc e e
exceeding dingo nem
one illi
o
millionnw o
won;n;a nd
and
3
3..A
Anynyd ep e nd
dependent e ntf al li
fallingngu nde
under ra nyo
any offthethef o l
lo wi
following ngi t ems
items, ,a ndl
and ivi ngt
living o ge the
together rw it
withh
t h
theeresident
r e s ide n t( in clu d
(including ingh iss
his po u
spouse;s e ;hereafter
he re a fte rthe
t h es ames
same h al
shallla pp l
applyyi nt
in h i
ss
this u b pa ra gr
subparagraph), aph ),
a ndh
and hasa st het
the o ta
total la nnua
annual li nc o
income men o
not te xc e e
exceedingdi ngo nem
one illi
milliononw won:o n:Provided,
Pr ovi ded,ThatThatif if
t heh
the a ndi c
handicappedappe dp e rs
personsonsa assp r e s cr
prescribedibe di nA
in r tic
Articlele5 511( 1
(1))2s ha
2 shalll lnot
notbe bes ubj e
subject cttotot he
the
a gel
age imi
limit:t:
(a)A
(a) Any nyl ine a
lineal la s ce nda
ascendant nto offt her
the e si
d e
residentnt( inc
(in a s
casesesw he
wherereal ine a
a lineal la s ce nda
ascendant nth a
hassr ema rri
remarried,ed,
i nc ludi
including ngt hel
the i ne
linealala s c endant
ascendant’s ’
ss pous
spouse ep r es cri
prescribedbe db yP
by re s ide
Presidentialnt ialD e cre
Decree),e) ,wh
who o
i
isss ixt
sixty yy e ar
years so l
olddo orro l
de
older;r ;
(b)A
(b) Any nyl ine
linealald e s c endanto
descendant offar es ide
a resident ntp r e s cr
prescribedi
be db byyP r es ide nt
De cr eeo orra ny
any
a d o
adopteepte ep r e sc ri
prescribedbe db byyP re side
Presidentialnt i
alDecree,
De cr ee ,l ivi ngt
living o ge the
together rw i
t
withht her
the esid e
resident nt( he re i
na ft
(hereinafterer
r e f e
referredrre dt tooa assa an n“ adopt e
“adoptee”),e ” ),a ndi
and isst we
twentynt yy ear
years so l
do
old orry ounge
younger. r.InIns uc
suchhc as es
cases, ,
i
ifft her
the ele va
relevant ntl ine ald
lineal e s ce nda
descendant nta ndh
and i
hisss pous
spouse, e ,oorrt hea
the do pt
adoptee e ec onc er
concernedne da ndh
and is
his
s po
spouseus eb o
botht ha r
areeh a ndi c a
handicapped ppe dp e rs o
persons nsp ur sua
pursuant nttotoA r t
ic
Articlele5511( 1
(1))2 2,,the
thes pous
spouse es hall
shall
b
beei nc l
ude
included; d;
(c
(c))AAny nyb r othe
brother ro orrs iste
sisterro offthe
t
her eside nt
resident, ,w hoi
who isst we nt
twenty yy ea
yearsrso l
olddo orryounger,
yo unge r,oorrs i
xt
sixtyy
y e
yearsa rso ldo
old orro l de
older;r ;
(d)A
(d) Any nyp er s
persono ne ligi bl
eligible ef o
forra s s
is ta
assistancenc ep r e s c
prescribedribe db byyP res ide nt
De cr eeu nde
under rthe
theN a tiona
National l
B a
Basic s i
cL ivi
LivingngS e cur
Security ityA c
Act;t;a nd
and
(e
(e))AAny nyc hil
childdp re sc r
prescribedibe db byyP re s ident
Decree, ee ,w hoi
who issr ea r
rearede dt hr o
through ught hef
the os t
fostererh o me
home
s ys
systemte mu nde
under rt heC
the hi
ChildldWe lf
Welfarea reA Act ct( he re inaf
referrededt tooa assa“ fos
a “foster terc hild”
child”).).
(2)T
(2) hed
The e duc
deductiontio na assr e fer
referredredt tooi np
in aragr
paragraph aph( 1
(1))s ha l
shalllbbeer efe rr
referrede dttooa ass“ ba s
“basicicd e duc tio
deduction”.n” .
(3)I
(3) nc
In a s
cases e sw he
where reas po
a spouse us eo orrd e p ende
dependent nto offar e side
a resident ntfalls
fallsu nde
under rthe
thed e pende
dependent nto offa not he
another r
resi de nt
resident, ,t hed
the e duc
deductionstionss hal
shall lbebet ake
taken nf rom the
from theg lobalincome
global inc omea mounto
amount offo ner
one e side
residentnt
onl y,u
only, nde
under rc ondi ti
conditionsonsp re sc ri
prescribed be db byyP r e side
Presidential nt ialD ec re
Decree. e .
- 80 -
_80_
Art i
cle5
Article 511(AdditionalDeduction)
(Additional De
duction)
(1
(1))I Iffa nyo
anyone new whohob e c
becomes o me ss ubj ec
subject tt oab
to as
a basic icd e duc
deductiontion( her eina f
(hereinafterte rr e-f
re- erre
ferreddt oa
to ass
a“ p e
a “personr so ns ubj e
subject ctt oab
to a basica sicd ed uc t
io
deduction”)n” )aassp r esc ri
prescribedbe di nA
in Ar-r
-t ic l
ticlee5 500f allsu
falls nde
underra ny
any
o
offt hef
the o llo wi
following ngs ubp a r
subparagraphs,agr ap hs,t hea
the mo unts
amount t i
p ula t
stipulatede di nt
in her
the es p ec
respectiveti
ves ubp a ragr
subparagraph a ph
sh a
shallllbeb ed e d u
deductedcte df ro
from mt h
the er esid e
n t’
resident’ssg lo ba
globalli nc omea
incorm mo
amountun ta c c r
accruingui
n gd u ri
n
during gt hec
the orres pon d
correspondinging
ye a
year, r,i na
in d d it
additionio nt ot
to heb
the a s
basici
cd ed uc ti
deductiono naassp re sc ri
prescribedbe di nA
in r t
Article i
cle5 0
502 :< Amendedb
<Amended yA
by Actct
No.7
No. 319
7319, ,Dec.
Dec .3],
3 1,2004;
2 00 4;A ActctNoNo..7 8 37
7837, ,Dec.
Dec .3],
31 ,2005;
20 05 ;AActc tNoNo..8825,
882 5,Dec
Dec .3],
31 ,
200
2007; 7;A Actc tNo No..9270,
92 70 ,Dec.Dec .26,
26,2008>
2008 >
11.. Whe
Where ret hep
the er s
persononi iss7 700y ear
yearsso l
do
old orro lde
olderr( he re ina f
(hereinafterterreferred
r e ferre dt tooaassa“ s enior
a “senior”),”) ,o ne
one
mi lli
milliononwo wonnp e
perrc a
capitapi taay ear
a year; ;
2
2.. Whe
Where ret hep
the ers
persono ni issah andi cappe
a handicapped dp ers o
personnp resc ribe
prescribed db yP
by reside nt
Presidential i alDecree
De cre e( he rei
na ft
(hereinafterer
re f err
referred edt oa
to assa“ handi
a “handicapped cappe dp er son”
person”),),two
twomi llionw
million won onp e
per rc api
capitataay e
a year;ar ;
3
3.. Whe
Where ret her
the es ide
resident nti issawo ma
a woman nh a vi
havingngn noos pous
spouse ea ndi
and issah e
a heada do offthe
t
hef ami
family l
yh avi
havingng
d e pe nde
dependents ntsu nde
under rt hep
the rovi sio
provisionsnso offA rti
c
Articlele5 0(
50 1)3
(l) 3,,oorri issawo
a woman ma nh avi
havingngas pous
a spouse, e,
fi veh
five undr
hundred e dt hous
thousand a ndwo won np e
per rc a pit
capitaaay ea
a year; r;
4
4. .Where
Whe ret hep
the e rs
persononi issal i
ne a
a linealld esc endant
descendant, ,a dopt
adopteee eo orrf os
fosterterc hi l
child,d,whwhooi isss ixy
six e ar
yearss
o l
olddo orry ounge
younger, r,o nemi
one ll
ionwo
million won np erc
per api
capitataay ea
a year; r;a nd
and
5
5.. Wh
Where er et hep
the ers
persono ni issal inea
a lineal lde s cenda
descendant ntw how
who a
was sb or
born,n,oorra na
an do p
adopteeteew howa
who wassr epo rte
reportedd
a
assa dopt
adopted, ed,i nt
in her
the ele vantt
relevant axabl
taxable ep e riod,two
period, t womi llionwo
million won np e
per rc apit
capita aay ear
a year. .
(2
(2))T Thehed educ t
deduction i
o na assr e f e
referredrre dttooinp
in a r
a gra
paragraphph( 1)s
(1) ha l
shalllbbeer ef er r
referred edttooa ass“ a dditi
o na
“additional lde duc ti
o n”
deduction”. .
(3
(3))a nd(
and 4
(4))D elet
Deleted.ed.< <by byA ActctNo
No..5155,
51 55 ,Aug.
Aug.14, 14 ,1 99
1996>6>
Art i
cle5
Article 1-2(
51-2 AdditionalDeduction
(Additional De
ductionf orP
for ersonswi
Persons thMa
with nyC
Many hildren)
Children)
(1
(1))I nc
In a se
casessw her
whereea ar es i
d e
residentn th avi
havingnga n
anyye arne
eamed di n comeo
income orrb u s ine
business ssi n-c
in- o
comeme( exclud in
(excludingg
a n
anyyd a il
y -pa
daily-paididw ork e
worker) r)h ast
has woc
two h ildre
childrennw h
whooa r
arees u b j
e
subjectc tto
t oa b a
a basicsicd educt i
o
deduction, n,500
500thousand
thousa nd
w
wononp e
perry ea
year rs ha l
shalllbe
bea dd itiona l
additionallylyd e ducte
deducted df ro
fromm the
ther es ide nt
resident’s ’
se a r
ne
earneddi nc omea
income mo unt
amount
o
orrbusiness
bu sin essi n comea
income mo
amountu nta ccru i
accruingn gd u ri
n
duringgt h
theec o rre spon d
correspondingin gy e a
year,r,a ndw
and h
whereerethe
th eresident
reside n
t
h a
hasst hr e
threeeoorrm or
moreec hi ldr
childrene nw hoa
who r
arees ub j
e c
subjectttotoab as
a basicicd e duc t
deduction,ion,a na
an mo
amountunto bta i
ne
obtainedd
b
byya dd i
ng5
adding 50000t ho us
thousanda ndw wonona nd1m
and ill
io
1 millionnw o
won np er year
per ye arf o
forre achp
each e rs
person one xceed i
exceedingng
th
theet wos
two hallbe
shall bea dd itio na
additionallyl
lyd ed uc t
deductede d from
fromt h
theeresident’s
res ide nt’
se arne
eamed di nco mea
income mo
amountu ntoorrbusiness
business
inc omea
income mo unta
amount cc rui
accruingngd ur i
ngt
during hec
the o rre
s p ond
corresponding i
ngy e a
yearrin
ina d d it
i
additiono nt ot
to heb
the asi
basiccd educ
deduc- -
tionu
tion n d
undererth
the eprovisions
p rovis ion so offArticle
Ar tic l
e50,50,respectively
respe ctive ly( h ereina ft
e
(hereinafterrreferred
r e ferredt oa
to assthe
the“ addi
tion a
“additionall
d educ t
deductionionf o
for rp ers o
personsnsw it
withhm a
manynyc h il
d r
en” )
children”)..
(2
(2))TTheheb as
basici
cd ed uc ti
deduction onu nd
underert hep
the rovisio
provisionsnso offA r t
icl
Articlee5 0,t
50, hea
the ddi-t
addi- io na
tionalld educ tio
deductionn
und
underert hep
the r ovisio
Ar ticle5 511a ndt
and hea
the d d itio
additionalna ld e duc t
deductionio nf o
forrpersons
pe rs o nsw it
withhm a
manyny
c hil
d re
children ns ha
shalll
lbe
b er e fer r
referred edt oa
to ass“ p ers ona
“personal ld e duc t
io
deductions”.ns ”.
(3
(3))I nc
In a se
casessw her
whereet h
theea ggr ega
aggregate teo offp e r
s ona
personal ld edu ct
deductionsionsu n de
underrt h
theep r
ovi sio
provisionsn sooffp aragra p
paragraphh
(2
(2))e xc
exwdsee dst h
theeg lob a
global li n comea
income mo u
amount, nt,s uche
such x c e
excessssa mo u
amount nts hal
shall lbbeet reateda
treated sn
as o n- e
xis t
e
non-existentnt.
[ Thi
[This sA rtic
ArticleleWh ol
Wholly l yA mendedb
Amended byyA c
ActtNoNo..8144,
81 44 ,Dec.
Dec .30,30,2006]
2006 ]
- 82 -
_82_
Art i
cle5
Article 1-3(
51-3 PensionI
(Pension nsuranceP
Insurance remium Deduction)
Premium Deduction)
( 1
(1))Wh e
Wherer ear e sid e
a residentnth avi
havingnga nyg
any l
o ba
global li nc o
incomemeh a
hassp ai
paiddi ns ur a
insurancenc ep re
pre- -m i
um,e
mium, tc
etc..t ha
thatt
fa ll
fallssu nd
undere ra nyo
any offt hef
the o ll
o wi
following ngs ub p a r
a gr
subparagraphs,a phs ,the
theinsurance
i ns ur a nc epremium
p re mi um,e t c
etc..paid
paidd ur i
duringng
th
theec o rre sp ondi
yearrs ha
shallllbe
bef ull
fullyyd ed uc
deductedtedf ro
fromm his
hi sg lo b
globala lincome
inc o mea c cr ui
accruingngd ur i
ng
during
thec
the o rres po nd
corresponding ingy ea
year:r:< Amendedb
<Amended byyAActc tNo.
No.7 8 37
7837, ,Dec.
Dec .31,
31,2005;
2 00 5;Act
Ac tNo.
No.8144,81 4 4,
De
Dec. c.30,
30,2006;
20 06 ;AAct ctNo
No..9270,
927 0,Dec.
Dec .26,
2 6,2008>
200 8>
1
l..P ens i
onp
Pension remi
premium,um,e tc
etc..p aya
payablebleu nde
under rt heN
the atio nalP
National e ns
PensionionA Actct( e xc l
udi
(excluding ngt hep
the or tio
portion n
p ai
paiddbby ye mpl oye
employers);rs);
2
2..C ont ribut i
Contributionsonso orrs har
sharesesp a ya
payablebl ebby yaanne mpl oye
employee eu nde
under rt heP
the ubl
PublicicO Of-f-f ic ia
lsP
ficials e ns
Pensionion
A c
Act,t,t heV
the e ter ans
Veterans’ ’Pension
Pe ns i
onA c
Act, t,t heP
the ens
Pensioni
onf orP
for riva
Privatet eS choolT
School eac he
Teachers rsa ndS
and t
a f
Stafff
A c
Act,t,oorrt heS
the pe ci
SpecialalP os
Post tO ffic
Offices e sA c
Act;t;a nd
and
3
3..S ha r
Sharese
st ob
to eb
be o rneb
borne byya ne
an mp lo
employee ye eu nd
undere rthe
theG ua ra
Guaranteente eo offWorkers’
Wo r ke rs ’R etire me
Retirement ntB ene fi
Benefitsts
A
Actctoorrt heK
the or
Korea eaS cie nt i
s
Scientists tsa ndE
and ngi ne
Engineerse rsMu tual
Mutual-Aid -Ai dA s soc i
Associationat ionA c
Acti t:Provided,
Pr ovi ded,
T hati
That nc
in as e
casesswh e
where ret hea
the ggr e
aggregategat eo offthe
ther e leva
relevant nta mounta
amount ndt
and hes
the avi ngsp
savings a yme
payment nt
a mo un t u nd ert h ep ro v i
sio n so f A rtic le8 6 -2o f t h eR e str
amount under the provisions of Article 86-2 of the Restriction of Special Taxationi ctio no f S pe c ial T ax a tion
A
Actcte xc e
exceede dt hr e
three emi l li
onw
million on,s
won, uc
such he xc e
excess ssa mounts
amount ha
shall llbe
bet r ea t
treated eda assn on-e xi st
non-existent.e nt.
(
(22)TThehed edu cti
o
deductionnu n de
underrp ara gr
paragrapha
p h( 1)s
(1) ha l
shalllbe
b ereferred
r
e f
erredtotoaass“ p en si
“pensiononi nsu ra n
insurance cepremium
p remi u md e du cti
dedmtim”.on”.
vvv
(
(33)WhWheree
r et het
the ot ala
total mounto
amount offp e ns
pensionioni ns uranc
insurance ep re mi
premium um d educ
deductiont ionu nde
under rp ar agr
paragraph aph
(
(11)e xc e e
exceedsdst heg
the lo ba
global linc o
incomemea mo unt
amount, ,s uc
suchhe xc es
excesssa mo
amountunts ha
shallllbebet re a t
treatededa assn on-e xi st
non-existent.ent.
(
(44)D elet
Deleted.ed.< byA
<by c
Act tNoNo..8144,
8 14 4,De Dec c.30,
30 ,2006>
20 06 >
v
( 5
(5))Ma tt
e
Matters rsn ec es s
necessaryaryf ort
for hec
the alc ulat
calculationionme thod,e
method, t
c
etc..ooffthe
t hep e ns
pensionioni ns ur anc
insurance ep remi
premium um
d e duc
deductiont
ionu nde
under rt hep
the r ovi si
onso
paragraphsaphs( 1)t
(1) hr ough(
through 3)s
(3) hal
shall lbebep r esc ribe
prescribed db y
by
P r eside nt
Presidentialia c r
lDecree.
De ee .< Newl
<Newly yI ns er
Inserted tedb yA
by c
ActtNo.
No.7 8 3
7887,7 ,Dec.
Dec .31,
31 ,2005;
2 0 05 ;Act
Ac tNo.
No.8144,
81 4 4,
De
Dec. c.30,
30,2006;
20 06 ;AAct ctNo
No..8825,
882 5,Dec.
Dec .31,
3 1,2007>
200 7>
[ Thi
[This sA rtic
Article leNeNewlywlyI ns er
Insertedt edb yA
by c
Act tNoNo..6292,
6 29 2,Dec.
Dec .29,
2 9,2000]
2 00 0]
Ar ti
c l
Articlee5 1-4(
51-4 In teres
(InteresttExpense
Exp en s eD edu c t
Deductioni
o nf o
forrR e ve r
ReverseseMortgage-Backed
Mo rtgage -Ba cke dR e t
ir eme
Retirement n tPension
Pen sionS yst
em)
System)
(1
(1))Wh e
Wherer ear eside
a resident nth avi
havingnga nya
any nnui
annuityt yi nc omeh
income asb
has ee
been np ai
paiddb ene f
benefitsitsf rom r
from evers
reversee
mo r tgage -bac
mortgage-backed ke dr etireme
retirement ntpension
pe ns ions ys t
systemem that
thatmeets
me etst her
the e qui r e me
requirements nt sp res cribe
prescribed db y
by
P re side nt
Presidentialia lD ec re
Decree,e ,a na
an mounte
amount quiva l
e
equivalent nttotot hei
the nt ere
intereststo nt
on hel
the oant
loan ha
thattc or r
e sponds
corresponds
tot
to heb
the ene fi
benefitst sf ort
for her
the e levantyear
relevant ye ars ha l
shalllbe
bed e duc t
deductededf r om the
from t hea nnui
annuity t
yi nc omea
income mount
amount
a ccr ui
accruingngd ur i
duringngt her
the e l
e va
relevant ntyear
ye a r( here ina ft
(hereinaftererr ef erre
dt
referred tooaasst he“
the int er e
“interestste xpe ns
expense ed educti
o
deductionn
fo
forrreverse
re vers em o rtga ge -ba
mortgage-backed c ke dr eti reme
retirement ntp e ns i
pensionons yst
e m”
system”). ).In
I
ns uc
suchhc as
cases,e
s ,w he
wherer et hea
the mount
amount
equi va l
e
equivalent ntt ot
to hei
the nt eres
interest tt ob
to ed
be e duc
deductedtede xc e
exceedsedst womi
two lli
onw
million on,t
won, womi
two ll
ionwo
million wonns ha l
l
shall
b
beed e duc te
deducted,d,a ndwh
and e
wherer ei itte xce e
exceeds dst hea
the nnui
annuity tyi ncomea
income mount
amount, ,s uc
suchhe xc e
excess ssa mounts
amount ha l
l
shall
b
beet re ate
treatedda assn on-e
non- xis t e
existent.nt .
(2
(2))T hei
The nt e re
interests te xpe ns
expense ed educ t
deductionionf orr
for e ve r
reversesemo rtga ge -bac
mortgage-backed ke dr etire
retire--mementntp ension
pension
s ys t
systemems hal
shall la ppl
applyywhwhene nt her
the e levantr
relevant es ide
resident nta ppl ie
appliess therefor.
the re for.
(3 )A pp l
ica tio nf o r th ei n t eres t ex p ens ed e du ct i
onf or
(3) Application for the interest expense deduction for reverse mortgage- rev ersemo rtg a ge -b a cke
backed dr et
ireme nt
retirement
p ens i
pensionons ys te
system,m,method
me tho dttooc o nfi
confirmrm thet
hea mo
amountunte qui v-a
equiv- l
e ntto
alent t oi nt eres
interest ta ndo
and t
he
other rnecessary
nec es
sar y
ma t t
matterserss hal
shall lbebep res cr i
prescribed bedb byyP res ide nt
Presidential i
a lDecree.
De c
ree .
[ Thi
[This sA r ti
Articlec leNeNewlywl yI ns er
Insertedt edb yA
by Actc tNo
No..8144,
814 4,Dec.
Dec .30,
3 0,2006]
200 6]
- 84 -
_84_
Art i
cle5
Article 522(SpecialDeduction)
(Special De
duction)
(1)T
(1) h
Theea mo
amount u n tf a l
lin
falling gu n d
under e ra anyn yo offt h
theef o llowi
following n gs u b p ar a
subparagraphsgr ap h st h a
that ti sp
is a
paididb byyar e sid
a residentent
ha vinga
having nye
any arne
earned di nc
income o me( e xc ludi
(excluding ngd a ily-p
daily-paid a idw o r k
workers) er s)inint h
theec o r r es po
corresponding nd ingy ea
year,r,
sh al
shalllbe
bed e d uc
deducted tedf ro
frommt h
the ee ar
earnedne di nc o
incomemea mo
amount unta cc r u
accruingin gd u ringt
during hec
the o rr e s p
correspondingon d in gy ea
year:r:
< Amendedb
<Amended byyA Actc tNo No..5031,5 03 1,Dec.
Dec .29,
2 9,1995;
1 99 5;A Actc tNoNo..5191,
51 91 ,Dec.
Dec .30,
3 0,1996;
19 96 ;A Actc t
No.5424,
No. 5 42 4,Dec.Dec .13,
1 3,1997;
19 97 ;A Act c tNoNo..5580,
558 0,Dec.Dec .28,
2 8,1998;
19 98 ;A c
Act tNo No..5994,
5 99 4,Aug.
Aug.31, 31 ,
199 9;A
1999; ActctNo.No.6276,62 76 ,O Octc t.23,
23 ,2000;
20 00 ;A Act ctNo No..6292,
6 29 2,Dec.
Dec .29,
29,2000;
2 00 0;A Act c tNo.No.6557,
65 57 ,
Dec
Dec. .31,
31 ,2001;
20 01 ;A Actc tNo No..6781,67 81 ,Dec.
Dec .18,
18 ,2002;
20 02 ;A Actc tNoNo..7 006
7006, ,Dec.
Dec .30,
3 0,2003;
2 00 3;A Actc t
No.7
No. 12
7120,0,Jan.
Ja n.29,29 ,2004;
2 00 4;A Act c tNoNo..7 3 19
7319, ,Dec.
Dec .31,
31 ,2004;
2 00 4;A ActctNo No..7 8 37
7837, ,Dec.
Dec .31,
31 ,
200 5;A
2005; c
Act tNo.No.8144,
81 44 ,Dec.
Dec .30,
30 ,2006;
20 06 ;AAct c tNo.No.8825,8 82 5,Dec.
Dec .31,
31,2007;
2 00 7;A Act c tNo.No.9270,
92 70 ,
Dec
Dec. .26,
26 ,2008;
20 08 ;AActc tNo No..9485, 9 48 5,Mar.
Mar .18,
1 8,2009>
200 9>
1
l..P remi umsb
Premiums o
bomerneb byya anne mp l
employeeo ye eu nd e
under rthe
t heN at i
o
Nationalna lH e al
Healtht hI ns ur anc
Insurance eA c
Act,t ,t heE
the mp lo yme
Employment nt
Ins ur a
Insurancenc eA c
Act,t,oorrt heL
the ong-Te
Long-Term r mC ar
Care eI ns ur
Insuranceanc ef ort
for heA
the ge
Aged dA Act;ct ;
2
2..P remi
Premiumsumsp ai
paiddf ort
for hei
the ns ur
insurer eru nde
under ra anni ns ur anc
insurance ec ont r
contractactt hei
the ns ur
insured e do offwhwhichichi iss
thos
those es ubj
subject ec tt ot
to heb
the as
basic icd e duc
deductiontiona assp r e s c r
prescribedibe di nA
in rtic
Articlele5 500( 1 )
(l),,b byyw hi
whichc ht he
the
ma tur
maturityit yr e pa yme
repayment ntd oe
does sn notote xc e
exceed edt hep
the aid-i
paid-in np re mi
premiums,ums ,a ndwh
and whichic hi issp r e
s c ri
prescribedbe d
byP
by r es i
de nt
De c r e e .IInns uc
such hc as e
cases,s ,iifft hes
the um o
sum offt hep
the re miumse
premiums xc e
exceedse dso nemi
one lli
o
million n
wo
won np e
per ry e a
year,r,s uc
such he xc
excesse s sa mounts
amount hal
shall lbebet re a
treatedte da assn on-e xi s
non-existent; te nt ;
2 -2
2-2. .P re mi
Premiums umsp ai
paiddf ort
for hei
the ns ur
insurer eru nde
under ra anni ns ur
insuranceanc ec ont rac
contract tt ha
that ti issp r o vi
providedde df o
forrin
in
P re side nt
Presidential i
a lD ec r
Decreee e( he re a
(hereafterf t e rr e fe rr
referrede dttooa assa“ guar
a “guaranty- ant y-n at ur
nature ei ns ur
insuranceanc ee xc l
us i
exclusivelyve ly
forh
for a ndi c
handicappedappe dp e r s
persons” o ns ”i nt
in hi
thissArticle)
Ar tic l
e )a mo
among ngi ns ur a
insurance nc ec ont ra
contractsc tsi nwh
in which ic hah a ndi
a handi- -
c appe
capped dp e rs
person ons ubj
subject e c tto
t ot heb
the a s
basic i
cd educ
deductiont ionu nde
under rArticle
Ar tic l
e5 0(
50 1
(l))isisn a me
named dt hei
the ns ur
insured ed
o
orrb e ne fic
beneficiary ia ry( l imi
(limited t e dt toot hos
those ewh os
whose et hema
the tur
maturity ityr e payme
repayment ntd oe
does sn notote xc e
exceed edt he
the
pai d-i
paid-in np r e mi ums
premiums). ) .I ns
In uc
such hc a s e
cases,s ,w he
where ret hes
the um o
sum offt hep
the remi umse
premiums xc e
exceeds e dso nem
one illi
o
million n
w
wononp e
perry e
year,ar,s uc
such he xc
excesses sa mounts
amount hal
shall lbebet re a
treatedte da assn on-e xi s
non-existent;te nt ;
3
3..T hea
The mount
amounts so bt a
obtainedine db by ya ddi
adding ngu uppt hos
those ef a llingu
falling nde
under re ac
each ho offt hef
the ol lowi
following ngi t ems
items, ,
w hi
whichc ha ret
are heme
the di
medical c ale xpe
expenses ns esp re s cr i
prescribedbe db byyP r
Pre-e -s ide nt i
sidentiala lD e c
Decree re ewhwhich ic hh aveb
have e e
been n
pa i
paiddf o
forrap e r
a personso ns ubj
subject ec tt toot heb
the a si
basiccd e duc
deductionti on( no
(not ts ubj
subjectec tto
t
oa nya
any gelimit
age limi ta ndi
and nc o
incomeme
limi t)
limit): :
(a)Me
(a) di
Medical cale xpe ns
expenses e sp ai
paid df ort
for her
the e l
e vantresident,
relevant re s i de nt ,a nyp
any ers
persononwh who oi iss6 655y ea
yearsr so ld
old
o
orro lde
older raassa attt hee
the ndo
end offtaxable
ta xabl ep e ri
period oda nda
and nyh
any andi cappe
handicapped dp e rs
personi on:Provided,
Pr ovi ded,
T hati
That ifft hea
the mounto
amount offme di
medical ca le xpe ns
expenses esf ort
for hos
those es ubj e
subjectc ttotoi te
itemm( b)falls
(b) fall
ss hor
short t
o
offt hea
the mountc
amount al c ul
calculatedat e db byymu lt ipl
multiplying yi ngt het
the ot
totala lw agea
wage mountb
amount by y3 /100,s
3/100, uc
such h
de fi cie
deficient nta mounts
amount hal
shall lbe bed educ t
deducted;e d;
(b)T
(b) hea
The mounte
amount xc e
exceeding edi ngt hos
those ec a lcul a
calculatedt e db by ymu ltipl
multiplyingyingt het
the ot alwa
total wage gea mountb
amount byy
3/ 1 0
3/100, 0,whwhichicha areret heme
the medicaldi c ale xpe
expensesns e sp ai
paid df or the
for thep ers
personons ubj
subjecte c ttotot heb
the asi
basic c
de duc
deductiont ionwi withtht hee
the xc lus
exclusion i
ono off
thos
those es ubj e
subjectc tt tooi te
itemm( a
(a)3) :Provided,
Pr ovi ded,T hatif
That ifthe
ther e l
e va
relevantnta mounte
amount xc e
exceedsedss e ve
seven n
mi lli
milliononwo won np e
per ry e ar
year, ,i itts hal
shall lbbees eve
seven nmi lli
milliononw wononp e
perry e ar
year; ;
- 86 -
_86_
4
4..T hea
The mo
amountuntc a l
c ul a
calculatedte db ya
by ddi
adding ngu uppe duc a t
educational io na le xpe ns
expenses e sp a
paididf o
forrthe
ther e le va
relevant ntresident
r e s ide nt
andt
and hep
the e rs
person ons ubj
subjecte c tttoot heb
the a s
basic i cd e duc
deduction t io n( no
(not ts ubj
subject e c tt oa
to nya
any gel
age i mi
limit), t ) ,s uc
such ha ass
sc ho
schoolo lt uitio n,e
tuition, nt r a
entrancenc ef e e
fees,s,c hi ldc
childcare a ree xpe ns
expenses, es ,l ec tur
lecture ef e
feesesa ndo
and the
other rregular
r egul a rpayments
p a yme nt s
fo
forrs c hoo
school l( he reaf t
(hereafter erreferred
r efe rr edt tooa ass“ e duc at
“educational io na le xpe ns
expenses” e s ”in
int hi
thisss ubp ar agr
subparagraph). aph) .InIns uc
such h
ca se
cases,s ,e duc ationale
educational xpe ns
expenses e sf ore
for l eme
elementary nt a r ya ndmi
and ddl
middle es c hoolchildren
school c hildr ens ha
shall llinclude
inc lude
thec
the ha rge
charges sf ors
for chooll
school unc
lunch hp ai
paid dt os
to c ho
schools ol st ha
that tp rovi
provide des choo
school llunch
lunc hp ur s
pursuant ua ntt o
to
theS
the c ho
School olMe
Mealsal
sA c
Act,t,e xp e ns
expenses e sf o
forrt ext b
textbookso oksp ur c ha
purchased se db by ys c ho o
schools,ls ,e xp e ns
expenses esf o
forrp ur c h
purchas- as-
ings
ing c hoo
school luniforms
unifor ms( limi t
(limitede dt toomi ddl
middle es c hoola
school ndh
and ighs
high c ho
school ols tude nt
students, s,a ndt
and hel
the imi
limitt
sha l
shalllbebe5 0
5000t ho us
thousanda ndw wono np e
perra nnum for
annum f oras tude
a student) nt )a nda
and ft er -s c
after-school ho olc ha r
chargesge sp re s cr
prescribed ibe d
b
byyP r es ide nt
Presidential ialDecreei
De c ree :P ro vi
Provided,ded,T ha
That te duc a
educationaltiona le xpe ns
expenses, e s ,w hi
whichc ha r
areee xe mp
exempted te df ro
fromm
inc omet
income a
taxxo orrd o na
donationti ont a
taxxa assp r es c
prescribedr ibe db by yP r es ide
Presidentialnt ia lDecree,
De c r ee ,s ha
shallllbe bed e duc
deducted ted:
(a)T
(a) o t
Totalale duc atio
educational na le xpe ns
expenses e si nt
in hef
the o llowi
followings, ngs ,w hi
whichc hh a
haveveb ee
been np ai
paiddf o
forrs po us
spouse, e ,lineal
line a l
de s cende
descendent, nt,b r o the
brother, r,s ist e
sister,r ,a do pt
adoptee e eo orrfoster
f o s terc hi
childl
dw whohoi isss ubj e
subjectc tto
t ob a
basics icd e duc
deductionition:
P r ovi ded,T
Provided, ha
That te xpe
expensesns e sp a
paididt toog ra dua
graduate t es c ho
schoolsol ss ha
shall llbebee xc lude
excluded, d,a andndt hel
the imi
limitsts
sha
shallllbe
ben inem
nine illi
milliono nw onp
won e
perrc a pi
capita t aaya year,e a r,ininc a s
casese so offc o ll
e
collegeges t ude
students,nt s ,a ndt
and hre
three e
m il
lio
million nw wononp pererc a pi
capitat aay e
a year, a r ,i nc
in a s
cases eso offc hi ldr
childrene nn o t-ye
not-yet- t-e nr o ll
enrollede di ne
in l e me nt
elementary ar y
sc ho o
schools,ls,a nds
and t ude
students nt se nr o
enrolledlle di inne le me nt
elementary a rys cho o
schools, ls ,middle
mi ddl es cho o
schools,ls ,oorrhigh
hi ghs c ho o
schools:l s:
(
( ⅰ) Ed u cati
o
i )Educational na le xp e n
expensess e sp a
paididt toos c h o
schoolso lsu n d
under erthe
th eE a r
Early lyC h i
Child-ld-h oo
hood dE du c
Educationat io nA c
kt, t,the
t
h e
El eme n
Elenmtarytarya n
anddS e co nd
Secondarya r yE d u ca
Education tio nA c
Act, t,t heH
the i
g h
Higher erE d uc a
Education tionA c
Act toorro th
othere rs p e c
specialia lA ct
Acts;s;
( ⅱ)
(ii )E duc ati
o
Educational na le xpe ns
expenses e sp a
paidi
dt oc
to ybe
cyber rc o ll
e ge
colleges su nde
under rt heL
the ife
Life--l o ngE
long duc
Education a tionA c
Act,t,
a nde
and duc a tio
educationalna le xpe ns
expenses e sp a
paididf o
forre du-c
edu- a tiona
cational lc our
coursess esp re sc ri
be
prescribed db by yP r e sid e
Presidentialnti al
D e c
Decreereef r o
from ma mo
among ngt hec
the o ur
courses s e su nde
under rt heA
the Actc to nR
on ec ogni
Recognitiont i
o no offC r e di
Credits, ts ,e t c
etc..
o
orrt h
theeA c
Actto nt
on h
theeAcquisition
Ac q u isitio no offAcadanic
Ac a d e mi cDegrees
De gr e e sthrough
thr o u ghS elf
Self--E d uc a
Education tio n( h e re af
(hereafterter
re fe rr
referrededt tooa ass“ c o ur
“coursess e st tooo bt
obtaina inad egr
a degree” ee ”i nt
in hi
thisss ubpa ra gr
subparagraph); aph) ;
( ⅲ)E
(iii) duc ati
o
Educationalna le xp e ns
expenses e spaid
p aidt tooa anno ve r
overseasse a se d uc a ti
educationalo na linsti-
ins ti-t ut
tutee( limi t
(limited e dt toos tud e
studentsnts
p re s cri
be
prescribed db yP
by r e side
Decree, e e ,i iffar e s ide
a resident ntw whohop ayse
pays duc ati
educationalo na le xpe
expensesns e s
fo
forrs t
ude nt
students se nr o l
enrolledle di na
in anno ve r
overseass e a se duc a tio
educational na linstitute
ins t itut ew o r
worksksi innK o r
Korea);e a) ;a nd
and
( ⅳ)
(iv Educ ati
)Educationalonale xpe ns
expenses e sp ai
paid dt tooc hi ldc
childcare a rec e nt
centerse r su nde
under rt heI
the n-f
In- antC
fant ar
Care eA c
Act,t,
pr ivat
private et e ac hi
teaching ngi ns tit ut
institutes e su nde
under rt heA
the c
Act to nt
on heE
the st abl is
Establishmenthme nta andndO pe rat
Operation ion
o
offP ri
va
PrivateteT e a c
Teachinghi ngI ns
Insti-ti-t ut
tutese sa ndE
and xt r ac ur r
Extracurriculari
c ul a rlessons,
Le s so ns ,oorrs po
sports r tsf a c iliti
e
facilities s
pr e s cri
prescribedbe db byyP r es ide
Presidential nt ialD e c
Decree re ef orc
for hi l dr
children e nn ot -ye t-e
not-yet-enrollednr olle di inne le me
elementarynt ar y
s chool
schools s( limi
(limitedt edt ot
to hea
the mountprescribed
amount pr e s c ri
be db by yP re s ide
Presidential nt ialD e c r
Decree,e e ,i nc
in a s
cases e so off
pa yme
payment ntt op
to riva
private tet e ac
teachinghi ngi ns t it
institutesut eso orrs por
sports tsf ac ilities
facilities); );
(b)T
(b) ot
Totalale duc at iona
educational le xpe ns
expenses e sa assf ol l
ows
follows, ,paid
pai df ort
for her
the e le va
relevant ntr e s i
de
resident: nt :
(
( ⅰ) Educ at
i )Educationalionale xpe
expensesns e sp ur s
pursuantuantt tooi te
itemm( a
(a))( ( ⅰ)i ),,( ⅱ)
(ii), ,a nd(
and ⅲ)
(iii );;
( ⅱ)
(ii Educ ati
)Educationalona le xpe
expensesns e sp a
paidi df o
for re duc a
educationalt i
ona lc o ur
courses se sc or re spond-i
correspond- ngt
ing oo
to neo
one orr
mor
more es e me s
semesters te rso offac ol
a collegel e ge( inc l udi
(including ngac ybe
a cyber rc ol le
college gea ndc
and our
courses s e st oo
to bt ai
obtain n
ad egr
a degree) ee )o orrag raduat
a graduate es c hool
school, ,a andndp a
paididt oe
to nr ol
enroll laannh our -bas
hour-based e dp rogr
program am
unde
under rA r ti
Articlecle3 366o offt heH
the ighe
Higher rE duc
Education at ionA c
Act; t;a nd
and
- 88 -
_88_
(ⅲ)
(iii Lec t
uref
)Iecture eesp
fees aidf
paid orv
for ocationale
vocational ducationc
education onductedb
conducted yt
by hev
the ocationalinstitutes
vocational i
nstitutes
underA
under rt i
cle2o
Article 2 offtheA
the cto
Act nt
on heD
the evelop-me
Develop- nto
ment offOccupationalA
Occupational bilit i
es
Abilities
o
offWorkers;a
Workers; nd
and
(c)E
(c) xpensesf
Expenses ors
for peciale
special ducat
io n,prwcribed
education pres
cr i
bedb yP
Presidential De
cree,for
f
orthe
t
heh andicapped
handicapped
whoa
who res
are ubjectto
subject t
ob asicd
basic eduction(
deduction nol
(no imitationf
limitation ora
for mounto
amount offincome),p
income), aidt
paid o
to
thep
the ersonsa
persons assfollows
follows:
(
( ⅰ) Socialwe
i )Social lfaref
welfare acilitieso
facilities orrnon-profito
non-profit rganizations,wh
organizations, icha
which rep
are rescribedb
prescribed y
by
PresidentialDecree;
Presidential De
cree;oorr
(ⅱ)
(ii Overseasf
)Overseas acilitieso
facilities orrorganizationss
organizations imilart
similar ot
to hoser
those eferredt
referred oi
to ns
in ubitem(
subitem i);
(i);
4-2.D
4-2. eleted
Deleted
5
5..
D eleted;a
Deleted; nd<
and byA
<by ctNo
Act No..8825,
8825,Dec
Dec
.3],
3
1,2007>
20
07>
6
6..
D eleted.<
Deleted. byA
<by ctNo
Act No..6276,O
6276, ct
Oct.23,
23,2000>
2
000>
(2)Wh
(2) erear
Where esident(
a resident excludinga
(excluding nyd
any ai
l y-paidwo
daily-paid rker),wh
worker), oi
who isstheh
the eado
head offaf amily
a family
prescribedb
prescribed yP
Presidential De
cree( hereafterr
(hereafter eferredt
referred tooa
assa“ family”i
a “family” np
in aragraph(
paragraph 3))
(3))
thatd
that oesn
does oto
not wnah
own ousea
a house assa
attthe
thel astd
last ayo
day offtaxable
taxablep eriod,a
period, ndh
and ase
has arnedi
earned ncome
income
andal
and ong-terms
a long-term avingsa
savings ccountfor
account f
orp urchasingah
purchasing ouse,rented
a house, r
entedah ouses
a house mallert
smaller han
than
thea
the reap
area rescribedb
prescribed yP
Presidential De
cree( includingt
(including hel
the anda
land ttachedt
attached os
to uchh
such ouse;
house;
wheret
where hea
the reao
area offsucha
such ttachedl
attached ande
land xceedst
exceeds hea
the reac
area omputedb
computed yr
by egionb
region ymu
by ltiplying
multiplying
themu
the ltipler
multiple atess
rates etb
set yP
by residentialD
Presidential ecreeb
Decree yt
by hes
the izeo
size offareawh
area eret
where heb
the uildingi
building iss
constructed,t
constructed, her
the elevanth
relevant ouses
house hallb
shall ee
be xcluded;hereafter
excluded; he
reafterr eferredt
referred oa
to assa“ houseo
a “house off
then
the ationalh
national ousings
housing cale”i
scale” nt
in hisA
this rt i
c l
e),r
Article), eceivedal
received oanf
a loan orh
for ouser
house entp
rent rescribedb
prescribed y
by
PresidentialDecree
Presidential De
creef rom af
from inancialinstitution
a financial i
nstitutionp rescribedb
prescribed yP
Presidential De
cree,a ndt
and hen
then
mader
made epaymentt
repayment owardst
towards hep
the rincipala
principal ndi
and nterest,t
interest, hea
the mounte
amount quivalentt
equivalent o4
to 0/100o
40/100 off
thea
the mounto
amount offrepaymentss
repayments hallb
shall ed
be eductedf
deducted rom t
from hea
the mounto
amount offearnedi
earned ncomea
income ccruing
accruing
duringt
during her
the elevantt
relevant axationy
taxation ear.<
year. Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.3],
31,2007;
20
07;A ct
Act
No.9270,
No. 92
70,Dec.
Dec.26,
26,2008>
2
008>
(3)Wh
(3) erear
Where esident(
a resident excludinga
(excluding nyd
any ai
l y-paidwo
daily-paid rker),wh
worker), oi
who isstheh
the eado
head offaf amily
a family
thatd
that oesn
does oto
not wnah
own ouse,a
a house, ndh
and asa
has nye
any arnedi
earned ncome(
income refer-r
(refer- ingt
ring oaf
to amilyme
a family mber
member
whoh
who asa
has nye
any arnedi
earned ncomew
income heret
where heh
the eado
head offthef
the amilyi
family issnots
not ubjectt
subject ot
to hed
the eduction
deduction
pursuantt
pursuant tooparagraph(
paragraph 2)o
(2) offthis
thisA r ti
c l
e,Article
Article, Ar
ticle8877(2)o
(2) offtheR
the estrictiono
Restriction offSpecialTaxation
Special Ta
xation
Act,a
Act, ndt
and hisp
this aragraph)r
paragraph) edeemst
redeems hei
the nteresto
interest nal
on ong-term mo
a long-term rtgagel
mortgage oan(
loan including
(including
thel
the ong-term mortgage
long-term mortgagel oani
loan nheritedb
inherited ya
by cquisitiono
acquisition offthe
theh ouseo
house offnational
nationalhousing
hous
ing
scale;h
scale; ereafterr
hereafter eferredt
referred tooa
ass“long-term mortgage
“long-term mortgagel oan”i
loan” nt
in hisA
this rt i
c l
e)prescribed
Article) pr
escribedb y
by
PresidentialD
Presidential ecreet
Decree hath
that eh
he ast
has akenf
taken rom af
from inancialinstitution
a financial i
nstitutionoorrthe
theN ationalHousing
National Hous
ing
Funde
Fund stablishedu
established ndert
under heH
the ousingA
Housing ctto
Act t
oa cquiret
acquire heh
the ouseo
house offnational
nationalhousing
hous
ings cale
scale
witht
with hes
the tandardma
standard rketp
market riceu
price ndert
under hep
the rovisionso
provisions offArt i
cle9
Article 999(1)
(1)
- 90 -
_90_
note
not xc ee di
exceeding ngt hr
three e eh undr
hundred edmi l l
i
milliononwo won na attthe
t het imeo
time offa c qui s i
t
acquisition i
ona ft
aftere rhaving
havi ngs e ttle
settled d
amo rt
a mortgagega geo onns uc
such hh ous
house, e ,the
thea mounto
amount offinterest
int e r es trepaid
re pa idd ur i
ngt
during hec
the or re s pondi
year r
s
shall be deducted from the amount of the earned income accruing during the relevantt
h all b ed e du c t e df r o m th ea mo u n to f t h ee a rn edi n c o mea c cr uin gd u r i
n gt h er e le v an
ye a
yearir :P rovi
Provided,ded,T ha
That twhwheree r et her
the e s ide
resident, nt ,a nde
and ac
each hme mbe
member ro offh i
hissh ous e
household,hol d,b e c ome
becomes s
too
to wnt
own woo
two orrmore
mo reh o us
houses e so onnt hel
the a
laststd a
day yo offthe
thet axa t
taxation i
o np eriodo
period orrat e
a term rmo offo wne r
ownerships hi p
o
offt woo
two orrmomorer eh ous
houses e se xc e
exceeds e dst hr
three eemo nt
months hsd ur i
duringngt her
the e levantt
relevant axat
taxation ionp e ri
period,od,t he
the
amo
amountunto offi nte r e
interest s tr e pa
repaid idd ur
duringingt het
the a xabl
taxable ey e
yeararw he
wheretore tot her
the eleva
relevant ntp os s e
possessing ss ingp e ri
periodod
be l
ongss
belongs ha
shall l
lnnototbe bed educ
deducted tedf rom t
from hea
the mounto
amount offthe
thee ar ne
earned di nc ome
income. .< Newl
<Newly yI ns e
Insertedr ted
b
byyA Actc tNo.
No.6 2
6276,7 6,O c
Oct. t.23,
2 3 ,2000;
2 00 0 ;ActAc tNo.
No.6916, 69 1 6 ,May
Ma y2 29,9 ,2003;
2 0 03 ;Act
Ac tNo.No.7 0 0
7006,6,Dec.
Dec .
30
30, ,2003;
20 0 3 ;A Actc tNo No..7 83
7837, 7 ,Dec.
Dec .31,
3 1 ,2005;
20 0 5 ;A Act c tNoNo..8825,88 25 ,DeDec.c .31,
31 ,2007>
20 07 >
(4
(4))T Thehei nc omed
income e duc
deduction tionr e fe r
referred r
e dt tooi np
in ar agr
paragraph a ph( 3
(3))s hal
shall lbbeeb as
basede do on nt hes
the t andar
standards ds
fal l
ingu
falling nde
under re a
eachc ho offt hef
the o ll
o wi
following ngs ubpar a gr
subparagraphsi aphs :< Ne
<Newly wl yI ns er
Insertedt edb byyA Act c tNo.
No.6276,6 2 7 6 ,
O c
Oct.t .23,
2 3,2000;
20 00 ;A Act c tNoNo..6852, 6 85 2,Dec.
Dec .30,
30 ,2002;
20 02 ;A Act c tNoNo..6916,691 6,May
Ma y2 29,9 ,2003;
20 03 ;A Actc t
No.7
No. 0 06
7006, ,Dec.
Dec .30,3 0,2003;
2 00 3;A Act c tNoNo..7 8 37
7837, ,Dec.
Dec .31,31 ,2005;
20 05 ;AActctNo No..8144,8 14 4,Dec.
Dec .30,
30 ,
200
2006;6;A Actc tNoNo..8825, 88 25 ,DecDec .31,3 1,2007>
20 07 >
11..
F
Fororar e side
a resident, nt ,t hep
the r ovi s
provisionsio nso offp ar agr
paragraph a ph( 3
(3))s ha
shalllla pp
applylyt oh
to i
himm regardless
r ega rdl e s so offw he t
whetherhe r
h
heea c tual
actually lyr e s
resideside so orrn oti
not ns
in uc
such hh ous
housei e:P r
Pro- o-v i ded,T
vided, ha
That twh e
where reh heei issn ott
not heh
the ead
head
o
offaf ami
a family, l
y,i itts hal
shall lbe
bel imi
limitedte dt toot hec
the as
case ewhwhere e reh heea ct ual
actually lyr e side
resides si ns
in uc
such hh ous
house; e ;
2 .D ele
2. Deleted;te d ; <
<byb yA Actc tNo No. . 7 8 3
7837, 7 , De
Dec. c. 3 1
31, , 2 0
2005>05 >
3
3.. Whe
Where ret heh
the e
head ado offaf a mi
a family lywhwho od o e
does sn othave
not ha veh iso
his wnh
own ous
house eg ai
gains nsar ightwh
a right whichic h
i
issp r ic
pricede da att3 3000 0mi lli
milliononw wonono orrl e s
less sa assp r e s cr
prescribed ibe db byyP r es ide nt
De c r eea ndwh
and whichic h
i
issar ight(
a right he re
(hereafter a ft eri nt
in hi
this ss ubpar
subparagraphagr aphr e fe r
the r i
ghtt
“right toop ur c
purchasehas ea a
h ous
house”) e ”)e nabl
enabling ingh i
himmt oa
to cqui
acquire r eah ous
a house eo offn a tionalh
national ous
housing i
ngs cal
scale ewh which ichi issc on-
con-
s truc
structedte db yo
by bt ai
obtaining ni ngt hea
the ppr o
approval va lfor
forap roj
a projecte c tplan
pl anu nde
under rthe
theH o us
Housing ingA Actc t( inc ludi
(including ng
a nyh
any ous
house ea c qui
acquired r edb byya nym
any e mbe
member ro offah o us
a housing i nga ss o c i
a
associationtione s ta bl
establishedi
s he du nde
under rt he
the
H ous
Housing ingA Actc ta nda
and nyme
any membermbe ro offac ons o lida
a consolidation ti
o np ro je
project c ta ss oc ia t
associationio ne st abl i
establisheds he du nde
under r
t he Act
the Ac to nt
on he Maintenance
the Mai nt e nanc ea nd Improvement
and Impr ove me nto offU rban Areas
Urban Ar e as a andnd Dwelling
Dwe lling
C ondi
Conditionstionsf orR
for es i
de
Residents nt so orra nyh
any ous
house ea c qui
acquired re dt hr oughs
through uc
suchha s soc iat
associations; ions ;hereafter
he re af t
e r
t hes
the a
samemei nt
in hi
this ss ubpa r a
subparagraph gr a phs ha
shall lla pp l
y)
apply), ,a ndg
and e
gets tsal o
a loana nf ro
fromm af ina nc
a financial ialinstitution
ins titut io n
o
orrt heN
the at ionalH
National ous
Housing i ngF undu
Fund nde
under rt heH
the ous
Housing ingA Actc tt oa
to cqui
acquire ret her
the e le vanth
relevant ous
house e
o
onnc ondi t
conditioniont ha
that tt hel
the oans
loan hal
shall lbe bec onve
converted r te dt tooal ong-t
a long-term e rm mortgage
mor t ga gel oa
loan na attt he
the
t imewh
time when ent hec
the ons tr uc
construction ti ono offs a
saididh ous
house ei issc ompl
completede t ed( inc ludi
(including ngt hec
the as
cases eswh whereer e
t heb
the or rowi
borrowing ngc ondi t
conditionsionso offt her
the e le va
relevant ntl oa
loan na r
are ec hange
changed db ef or
before et hec
the ompl e
completion tiono off
t hec
the ons truc
construction t iono offs a
saididh ous
house ei nt
into ot hec
the ondi t
conditionsi onst hatt
that hel
the oans
loan hal
shall lbebec onve
converted rte d
t
tooal ong-t
a long-term e r m mo rtgagel
mortgage oana
loan attt het
the imew
time he
when nt hec
the ons truc
construction tiono offs a i
saiddh ous
house ei iss
c ompl e
completed),t ed) ,t her
the e l eva
relevant ntl oa
loan ns hal
shall lbe
bed ee me
deemed dal ong-t
a long-term e rm mortgage
mor t gagel oanf
loan rom the
from the
b or r owi
borrowing ngd a
date tet he r
thereofeof( whe
(where r et heb
the or ro
borrowingwi ngc ondi t
conditionsio nsa ren
are ewl
newly yc ha nge
changed, d,t hed
the a t
date e
o
offc hanget
change he r
thereof) eof )t toot hed
the a
dateteo offr e gi st rat
registration i onf orp
for re s e rvat
preservation iono offo wne
ownership rs hi po offt he
the
r ele va
relevant nth o us
house, e ,a ndt
and hep
the r o vi s
provisionsio nso offparagraph
pa ra gr a ph( 3
(3) )s ha
shall l
la ppl
apply yttoot hea
the mo
amount unto offinter-
int er -
e s
esttr e de eme
redeemedi d:P r ovi
Provided, de d,T ha
That tw he
where r et her
the e s ide
resident ntc o me
comes st op
to os se
possess s st woo
two orrmomore r er ight
rights s
t
toop ur c has
purchase eah ous
a house, e ,t hes
the ames
same hal
shall ln ota
not ppl
apply yd ur i
duringngt het
the axat
taxationiony e
yeararwh e
wheretor et ot he
the
r ele vantp
relevant os s e
possessing ss ingp e r
periodiodb e longs
belongs; ;a nd
and
- 92 -
_92_
4
4..Whe
Where rea anni ndi vi
individualdua lo orrc ol le c
collectivetiveh ous
house ei issf ina nc
financed e db e f
or
before et he
theirirval-
va l-u uesesa r
areep ubl ic
publiclyly
n ot if
notifiediedu nde
under rP ubl
Publici cN ot
Noticeic eo offV al ue
Values sa ndA
and ppr ai
Appraisal s alo offReal
Re a lEstate
Es ta t eA c
Act,t ,the
thev alue
value
f irst no ti fie di np u b licu n d e rt hes a meA c t
, af te
first notified in public under the same Act, after the day such loan was made, shallrt h ed a ys u c hl oa nw a sma de , sh a ll
b
beed e eme
deemed dt hev
the al
valueueo offt her
the e le va
relevant nth ous
house. e .
(5
(5))I nt
In hea
the p pl ica
application tio no offparagraphs
p a ra gr a p hs( 2
(2))a nd(
and 3 )
(3), ,w he
where ret het
the o ta
total looffa mo unt
amounts su nde
under rparagraphs
pa ragr a p hs
(2
(2))a nd(
and 3)
(3),,a ndA
and r tic
Article le8 877( 2)o
(2) offt heR
the e s tr i
Restrictionctiono offS pe c
Speciali alT axa t
Taxation ionA c
Act te xc e
exceedsedst e
tenn
m il
lio
million nw wonon( fif te
(fifteen e nm i
llio
million nw wono ni innc as
casese st hel
the o ng-t
long-terme rm mortgage
mo r t
ga gel oa
loannm ee
meets tst her
the eq uireme
requirements nts
p re s cri
prescribedbe dbby yP re
Presi- si-d e nt
dentialialD e c
Decree)re e )p e
per ry e
year,ar,s uc
such he xc e
excess ssa mounts
amount ha
shallllbebed e eme
deemed dt o
to
b
been one xis
nonexistent,te nt ,a ndwh
and et
whetherhe rar es i
a residentde nti issaha headeado offaf a mi
a family lyo orrn ots
not hal
shall lbbeed e te rmi
determinedne d
ta ki
takingngc ir
c ums
circumstancest a nc e sa assa attt hee
the ndo
end offthe
t het axabl
taxable ep e ri
period odi nt
intooa c count
account: :P rovi
Provided,ded,That
Tha t
wh ent h et o t a l o f amo u n tsu n d e rp a ra g r a p h( 2 ) a
when the total of amounts under paragraph (2) and Article 87 (2) of the Restriction ofn dA rtic le8 7( 2) o f th eR e str ictiono f
S pe c
Specialia lT a xat
Taxation ionA Actcte xc e
exceeds edst hr e
three emi ll
millionionwo won np e
per ry e ar
year, ,s uc
such he xc
excesse ssa mounts
amount hal
shall l
b
beed e eme
deemed dt ob
to be en on-e
non- xi s te
existent. nt .< Newl
<Newly yI ns er
Inserted t edb byyA Actc tNo.
No.6276,
62 76 ,O c
Oct.t .23,
2 3,2000;
20 00 ;
Ac
Act tNoNo..678],
67 81 ,Dec.
Dec .18,
18 ,2002;
20 02 ;A Actc tNoNo..7 006
7006, ,Dec.
Dec .30,
3 0,2003;
20 03 ;AActc tNo.No.8825,882 5,Dec.
Dec .
3 1,2007;
3], 200 7;A Act c tNo No..9270,
92 70 ,DeDec. c .26,
26 ,2008>
20 08 >
(6
(6))A An na mo
amountunts ubt rac
subtractingtingd o na
donationstionsa c c ount
accounted e
da assn ec e s
necessarys ar ye xpe ns
expenses esi nt
in hec
the al culat
calculationio n
o
offa nyb
any us ine
income ndr
and e
reala le s tat
estate er e nt
rental alincome
inc omef rom the
from thea ggr e
aggregatega t eo offd onat i
donationsons
fa llingu
falling nde
under rt hef
the ol l
owi
following ngs ubpa r agr
subparagraphs, aphs ,wh i
whichc ha r
are emamade deb yar
by e s ide
a resident nt[ inc ludi
[includingnga a
d o na tio nma d eb yt h o s ewh of a llsu n d e rA r t
ic
donation made by those who falls under Article 50 (1) 2 and 3 (b) (excluding one tol
e5 0( 1 )2a n d3( b )( ex c lu d in go net o
wh
whom om t heb
the as
basic icd e duc
deductiontiono offa not
anotherhe rr e s ide
resident ntwawassa ppl ie
applied)]d) ]d ur i
duringngt hec
the or re spondi
corresponding ng
y e ar
year, ,s hal
shall lbebed e duc
deducted te df rom t
from heg
the lobalincome
global inc omea mounts
amount ubj
subjectec ttotot hec
the ompr e he
comprehensive ns ive
ta xa ti
taxationond ur ingt
during hec
the orr es po ndi
year r( whe
(where red ona tio
donationsnsa r
areea c c ount
accounted e da assn ec es s
necessarya rye xp ens
expenses es
int
in hec
the a l
c ul at
calculation iono offa nyb
any us i
businessne s si nc omea
income nda
and nyr
any e
reala le st at
estate er e nt
rentalalincome,
inc ome ,the
theg l
oba
global l
inc omea
income mounts
amount ha
shallllbe
beb as
based eda f
t
afterers uc
such hd onat
donationsionsa arerea cc ount
accounted eda asss uc
such he xpe ns
expenses esa nd
and
shal
shall ln oti
not nc ludea
include nyi
any nt er
interestes ti nc omea
income ndd
and i vide
dividend ndi nc omes
income ubj e
subject cttotot hea
the ppl icat
application iono off
w ithho l
withholdingdi ngt a
taxxr a t
ratesesu nde
under rArticle
Ar t ic le6 2)
62). .In
I ns uc
such hc a se
cases,s ,w he
where ret hed
the ona t
donationio no offs ubpa ragr
subparagraph aph
1a ndt
1 and hed
the o na t
donationio no offs ubp ar a
subparagraphgr a p h2a2 arer em madea des imul ta ne o
simultaneously, us ly,the
thed ona ti
donationo no offs ubpa ra gr
subparagraph ap h
1s ha
1 shall l
lbe bef ir s
first td e duc t
deductedi e d:< Newl
<Newly yI ns er
Inserted tedb byyA Act c tNoNo..6276,627 6,O c
Oct. t.23,
23 ,2000;
20 00 ;A Actct
No.8825,
No. 88 25 ,Dec.
Dec .3],
31,2007>
2 00 7>
1
1..T
Thehed ona t
donationsionsd e s cr
describedibe di nA
in r tic
Article le3 344( 2
(2);)
;a nd
and
2
2..T
Thehed es igna
designated t e dd onat
donationsionsu nde
under rArticle
Ar t ic le3 34 4( 1 )
(1)..In
Ins uc
such hc as
cases,es ,the
thel imi
limit to offthe
t
hea mount
amount
o
offs uc
such hd e s i gnat
designated edd ona t
donations ionss hal
shall lbebea assf ol lows
followsi :
( a)I
(a) Iffs uc
such hd ona
donationstionswe were r ema madedef orr
for e l igiouso
religious rga ni zat
organizations: ions :
A mountl
Amount imi t
limited ed=[ r ef e r
: [referringr ingt toot hea
the mountd
amount e duc
deductingtingd ona t
donationiona mo
amount untp ur suantt
pursuant o
to
s ubpa r agr
subparagraph aph1f r
1 fromom g lobali
global nc ome(
income i
(innc a s
casese so offb us
busi- i-n es
ness si nc omeo
income orrr ea
real le stat
estate e
r ent
rentalali nc ome
income, ,t hes
the t anda
standard rds hal
shall lb beei nc omeb
income e for
before ea ddi
addingngd onat
donation iona mounti
amount nt
intoo
n e ces s
necessary a rye xp ens
expenses, e s ,a ndi
and nt e re
interest sti nc
incomeomeo orrd i
vi de
dividend ndi nc o
incomemet ow
to hi
which cht hew
the ithho l
di
withholding ng
t a
taxxr at
rateei issa ppl ica
applicablebl ep ur s
pursuant ua ntto toA rti
Articlec le6622s ha
shallllbebee xc lude
excluded); d) ;hereinafter
he re ina f te rreferred
refe rre d
t
tooaass“ i nc
“income o mea mo unt
amount”] ”]×1 0/
>< 10/1001 00+[ sma
+ [smaller ll
e ra mo
amount untb etwe
between en1 0/ 10
10/100 0o offi nc o
incomemea mo unt
amount
( 5/10
(5/100, 0 ,f ord
for ona t
donationsionsma made deu nt
untili lDecember
De c e mbe r3 1
31, ,2 009
2009) )a ndd
and onat
donationsionsma made dee xc e
except pt
f or t
for hos
those et or
to e ligi ouso
religious rgani z at
organizations]; i ons ] ;oorr
- 94 -
_94_
(b)C
(b) asesn
Cases otf
not allingu
falling nderi
under tem(
item a)
(a)3:
Amountl
Amount imited=2
limited 0/100o
: 20/100 offincomea
income mount(
amount 5/100,f
(5/100, ord
for onationsm
donations adeu
made ntilD
until ecember
December
31,2
31, 009)
2009)
(7)D
(7) eleted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,De c
Dec.30,
30,2 006>
2006>
(8)I
(8) na
In ppl
yi ngt
applying hep
the rovisionso
paragraph 1),if
(1), i
fa nya
any mounti
amount issalreadyp
already aidf
paid ora
for n
an
ex-spouse,d
ex-spouse, ependantf
dependant amilyme
family mber,handicapped
member, ha
ndicappedp ersono
person orrap ersonw
a person hoi
who iss65y
65 ears
years
oldo
old orroldera
older assa
attthel
the astd
last ayo
day offtaxablep
taxable eriod,wh
period, oh
who asc
has omen
come otto
not t
of allunder
fall unde
rap erson
a person
subjectt
subject oab
to asicd
a basic eductiond
deduction uet
due os
to uchc
such ausesa
causes assmarr i
age,d
marriage, ivorce,s
divorce, eparation,e
separation, mployment,
employment,
etc.before
etc. be
foret hee
the ndo
end offthet
the axabley
taxable ear,the
year, t
hea mountp
amount aidu
paid ntilt
until hed
the ateo
date nw
on hicht
which her
the elevant
relevant
causesh
causes aveo
have ccurreds
occurred hallbe
shall bedeductedf
deducted rom the
from thee arnedi
earned ncomea
income mounta
amount ccruingd
accruing uring
during
ther
the elevanty
relevant ear.<
year. NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.7006,Dec.
7006, Dec.30,
30,2003;
2
003;Act
Ac
tNo.
No.8144,
8144,
Dec
Dec..30,
30,2006;
20
06;A ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
2
008>
(9)D
(9) eleted.<
Deleted. byA
<by ctNo
Act No..9270,
9270,De c
Dec.26,
26,2008>
20
08>
(10)T
(10) hed
The eductionr
deduction eferredt
referred tooinp
in aragraphs(
paragraphs 1)t
(1) hrough(
through 8)s
(8) hallb
shall bee madewh
made ena
when a
residentf
resident ilesa
files na
an pplicationt
application hereforunder
therefor unde
rc onditionsp
conditions rescribedb
prescribed yP
Presidential De
cree.
Wheret
Where hea
the mounto
amount offsuchd
such eductione
deduction xceedsh
exceeds isg
his lobalincome
global i
ncomewh ichi
which isssubjectt
subject o
to
thec
the omprehensivet
comprehensive axationi
taxation nt
in hec
the orrespondingy
corresponding ear,s
year, uche
such xcessa
excess mounts
amount hallbe
shall bedeemed
deemed
tob
to en
be onexistent:P
nonexistent: rovided,T
Provided, hati
That nc
in aseso
cases offab usinessp
a business roprietorw
proprietor hoh
who asa
has nyb
any usiness
business
incomeo
income orranyr
any eale
real stater
estate entali
rental ncome,wh
income, ent
when hed
the esignatedd
designated onationsa
donations rei
are ncludedi
included n
in
thee
the xcessa
excess mount,h
amount, ema
he yc
may arryo
carry vers
over uchd
such esi
g-n
desig- atedd
nated onationst
donations oi
to ncludei
include nn
in ecessary
necessary
expensesp
expenses ursuantt
pursuant toothep
the rovisionso
Art i
cle3344(3).<
(3). NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..
6276,O
6276, ct
Oct..23,
23,2000;
20
00;A ctNo.
Act No.7006,Dec
7006, Dec
.30,
30
,2003;
20
03;A ctNo.
Act No.8825,
8825,Dec.
Dec.31,
31,2007;
2
007;
ActNo
Act No..9270,
9270,Dec
Dec
.26,
2
6,2008>
2
008>
(11)F
(11) orar
For esidenth
a resident avinga
having nye
any arnedi
earned ncomewh
income oh
who asn
has otf
not iledt
filed hea
the p-p
ap- licationa
plication ass
referredt
referred oi
to nt
in hema
the ins
main entenceo
sentence offparagraph(
paragraph 10)o
(10) orrab usi
-n
a busi- essmanwh
nessman ome
who etst
meets he
the
requirementsp
requirements rescribedb
prescribed yP
Presidential De
cree( hereinafterr
referred oa
to assa“ business
a “business
proprietoro
proprietor offsinceri
t y”),s
sincerity”), ucha
such assopening,reporting,
opening, r
eporting,e tc.ab
etc. usinessa
a business ccountunder
account unde
rt he
the
provisionso
Art i
cle1 60-5(
160-5 3),o
(3), nemi
one llionwo
million np
won ery
per ears
year hallbe
shall bededucted,a
deducted, ndf
and ora
for a
residenth
resident avingn
having oe
no arnedi
earned ncomeb
income uta
but nyg
any lobali
global ncome,s
income, ixh
six undredt
hundred housandwo
thousand np
won er
per
years
year hallbe
shall bededucted(
deducted hereinafterr
referred tooa
assthe“
the standardd
“standard educ
tion”):Provided,
deduction”) Pr
ovided,
Thatwh
That eret
where heg
the lobali
global ncomea
income mountwh
amount ichi
which isssubjectt
subject ot
to hec
the omprehensivet
comprehensive axation
taxation
int
in hec
the orrespondingy
corresponding eari
year issshorto
short offthe
thed eductions,s
deductions, aidg
said lobalincome
global i
ncomea mounts
amount hall
shall
b
beethed
the eductiona
deduction mount.<
amount. Amendedb
<Amended yA
by ctNo.
Act No.7319,Dec.
7319, Dec.31,
31,2004;
2
004;Act
Ac
tNo.
No.8144,
8144,
Dec
Dec..30,
30,2006>
20
06>
- 96 -
_96_
( 12
(12))TThehed educ ti
deductiononma deu
made nde
underrparagraphs
pa r
a gr a
phs( 1)through
(1) through( 8),(
(8), 10
(10))a nd(
and 11
(11))shal
shalllbe
ber efe rre
referredd
t
tooa
ass“ s pe ci
a
“special ld e duc ti
on”
deduction”. .< Amendedb
<Amended byyA c
ActtNo.
No.6276,
6 276 ,O ct
Oct .23,
23 ,2000;
2 00 0;Act
Ac tNo.
No.7 0 06
7006, ,
De c. 3 0 , 20 03 ;A c tNo . 8 82 5, De c. 3 1, 2 00 7;A c tNo
Dec. 30, 2003; Act No. 8825, Dec. 31, 2007; Act No. 9270, Dec. 26, 2008> . 92 70 , De c
. 26 , 2 00 8>
( 13
)O
(13) the
Other rm atte
mattersrsn ece ssa
necessaryryf ort
for hes
the pecia
speciallde duc ti
o
deduction nr ef err
referrededt oi
to np
in a ragra phs(
paragraphs 1)through
(1) thro ugh
( 8)
,(
(8), 10
(10))a nd(
and 11
(11))s hal
shalllbbeed e t
e rmine
determined db yP
by re sidenti
PresidentialalD ec r
Decree.ee .< Amendedb
<Amended yA
by ActctNo.
No.
6 27
6276,6,O c
Oct.t.23,
23,2000;
2000 ;A c
Act tNo.
No.7 00 6,Dec.
7006, Dec .30,
30 ,2003;
20 03 ;AAct ctNo.
No.8825,
8 82 5,Dec.
Dec .31,
31 ,2007;
2 00 7;
Ac
Act tNoNo..9270,
9270 ,Dec.
Dec .26,
26,2008>
200 8>
( 14
(14))I nc
In ase
casesswh e
Wherereb ot
bothht hep
the r
ovi sionso
provisions offp aragr aph(
paragraph 1)2a
(1) nd2
2 and -2a
2-2 rea
are pplic abl
applicable e
s i
mul ta ne ous
simultaneously lyt ot
to hei
the ns ure
insureddu nde
underrag ua r
ant y-nat
a guaranty-nature urei n-s
in- ur ancee
surance xclus ive
exclusivelylyf ort
for he
the
h andi cappe
handicapped, d,o neo
one offthe
themms hal
shalllbe
bes e l
e c
te
selectedda nda
and ppl ied.<
applied. Newl
<Newly yI ns ert
Insertededb byyA c
Act tNo.
No.
5 42 4 , De c .1 3 , 1 997 ;A ct No . 59 94 ,A u g. 31 ,1 99 9; A ct No
5424, Dec. 13, 1997; Act No. 5994, Aug. 31, 1999; Act No. 6292, Dec. 29, 2000; . 6 2 92 , De c . 2 9, 2 0 00;
Ac
Act tNoNo..6557,
6557 ,Dec.
Dec .31,
31,2001;
200 1;A c
Act tNo
No..7 0 06
7006, ,De c
Dec. .30,
30 ,2003>
20 03 >
Ar t
ic l
e5
Article 533( Sc o
(Scopep eo offDepaqdmts
De p e nd e n tsliving
Livin gT o ge t
Togetherh erwWithi
thR e si
d e
Residait n ta n
and dT i
Timemeo offDeterrrinaiim
De termi na tio nT he reo
Thereof)f)
(1
(1))A nyd
Any e pe nde
dependent ntl ivi
livingngt oge the
together rwiWiththar es i
de
a resident nta assp r e s cr
prescribedi be di innA r ti
c
Articlele5 500s hal
shall lbe
be
af ami
a familyl yme mbe
member rl ivi
livingngt oge t
he
together rwi t
With ht her
the e side
resident ntunder
unde rt her
the es ide
resident ntr egi st rat
registration ionc ar d,
card,
anda
and ctua l
actuallylyl ivi ngt
living o ge
togetherthe rw it
ht
With her
the e side
residentnta attthe
ther es i
d ent
resident’s ’sd omi c
domicileileo orrtemporary
tempo ra ryd omi ci
l
domicileie:
P r o
v ide
Provided, d,T ha
That tt hes
the a
samemes ha
shalll
ln o
not ta pp
applylyt oa
to nyl
any ine a
lineal ld es ce
descendant nda nta nda
and do pte
adoptee.e .< Ame
<Amended nded
b yA c tNo . 9 2 7 0 ,
by Act No. 9270, Dec. 26, 2008> De c . 26 , 2 0 0 8 >
(2
(2))E ve
Even nt ho ughar
though e s i
a residentde nto orraf ami
a family l
ym embe
member rl ivi ngt
living o ge t
together he rwWithi
tht her
the e si
de
residentnt( exc ludi
(excludingng
al i
ne ald
a lineal e sc e nda
descendant nta andnda dopt e
adoptee) e )l e ave
leaves st e mpor
temporarilyar i l
yh i
his so r i
gi nald
original omi c
domicileileo orrt e mpor
temporary ar y
d omi c
domicilei
l et tooe nt
entere rs c hoolo
school orrr e ce i
receivevea nyme
any di
medical ca ltreatment
tre a t me ntf orad
for ise as
a disease, e,o orru nde
under ra ny
any
circums t
a nc
circumstances eso offs ervi
servicesc eso orrbusiness,
bus ine ss ,but
butfalls
fall
su nde
under rs uc
suchhc a us
causes esa assp r es crib
prescribed edbbyyP res i
de nti
Presidentialal
D e c
r e
Decree,e,t hef
the a mi
family lym embe
member rs ha l
shalllb ec
be o ns ide
considered reda assap e r
a persons o nl ivingt
living o ge the
together rw it
Withht her
the es ide
residentnt
a
assr e fe rr
referrede dt tooi np
in a r agr
paragraph aph( 1 )
(1)..< Amendedb
<Amended byyA Actc tNo No..9270,9 27 0,Dec.
Dec .26,
26 ,2008>
20 08 >
(3
(3))N ot wi ths t
Notwithstanding andi ngt hep
the rovi sionso
paragraph a ph( 1 )
(1),,iiffal ine
a lineal ala s ce
ascen-n-d anto
dant offar es ide
a resident nt
(inclu din gh i
ss p o u se ) am o n gh i
sd ep en d e ntsi sl iv ings e
(including his spouse) among his dependents is living separately under a residential p a ra t elyu n d er ar es i
d en tia l situa tion,
situation,
thel
the ine a
lineal la s c endants
ascendant hal
shall lbebec ons ide
considered re da assap er
a personsonl ivi
livingngt oge t
togetherhe rwi t
withht her
the eside
residentnt
a
assp res c r
prescribedibe di n A
in r t
Articlei
c l e5 0
50..< Amendedb
<Amended byyA Actc tNoNo..9270, 92 70 ,Dec.
Dec .26,
2 6,2008>
2 00 8>
(4
(4))T hed
The e ter mi
determinationna tiona asst owh
to e t
Whetherhe ras pous
a spouse, e ,d e pe nde
dependent, nt ,h a ndi c appe
handicapped dp er s
personono orrs e nior
senior
p ersoni
person isss ubj
subjectec tt oad
to e duc
a deduction tiona assp re sc ri
prescribedbe di nA
in r ti c
Articles le s5 0,51
50, 51a nd5
and 1-2s
51-2 hal
shall ld e pe
dependnd
u po
uponnt hes
the itua ti
situationo na assa attt hee
the ndo
end offt het
the a xa bl
taxable ep eri
periododo offt hec
the o r re spo
correspondingndi ngy e a
yeari r:Provided
Pr ovi ded,
T ha
That tw he
Where reap e r
a persons oni issd e
deadado orrah a ndi cappe
a handicapped dp er s
person oni issh eal
healed edb efor
before et hee
the ndo
end offthe
the
ta xabl
taxable ep e r i
od,s
period, uc
such hd et e rmi
determinationnat ions hal
shall ld epe
depend ndu pont
upon hes
the it
uat
situationiono nt
on hed
the ayp
day rec edi
preceding ng
thed
the ayo
day offd e at
death ho orrh eal i
healing. ng.< AmendedbyAc
<Amended by Act tNo.65
No. 6557,57 ,Dec
Dec. .3131,,2 00
2001; 1;A ActctNo.
No.
8 144,Dec.
8144, Dec .30,
30 ,2 00
2006> 6>
( 5)No
(5) t wi t
Notwithstandinghst andi ng t he provisions
the provi si ons o offt he main
the mai ns ent
sentenceence o offp ara-
para-
g raph(
graph 4 )
(4),,i nc
in a s
casese sw he
Where r et hea
the ppl ica
applicablebl ea gei
age issd et er mi
determined ne du nde
under rthe
t hep rovi sionso
Ar t i
c l
e s
5
500( 1
(1))3 3,,5 511( 1
(1))4a 4 andnd5 1 -2
51-2, ,a nda
and nyp
any e r
s
personona tta i
attainsnst hea
the ppl ica
applicablebl ea gei
age nt
in het
the a xabl
taxable e
pe ri
o
perioddoofft hec
the or re sp o
correspondingndi ngy ear
year,,s uc
such hp ers
personons ha
shall l
lbe
bec o ns id
considered e r edt ob
to bees ubj e
subjectctto
toad e duc ti
a deduction.on.
< Amendedb
<Amended byyA Actc tNo No..5031,503 1,Dec.
Dec .29,
2 9,1995;
1 99 5;A Actc tNo No..8144,
81 44 ,Dec.
Dec .30,
3 0,2006>
20 06 >
- 98 -
_98_
Art i
cle5
Article 4(
54 Exclusiono
(Exclusion offGlobalIncome
Global I
ncomeD eduction)
Deduction)
(1
(1))F o
Forrap ers
a persononh a vingo
having nl
onlyyt hei
the nter es
interestti nc o me
income, ,d ivid endi
dividend ncome
income, ,a n-n
an- uit
nuityyi ncome
income, ,
o
orrm iscellaneo
miscellaneoususi ncomes
income ub j
e c
subjecttt os
to epa rat
separateetaxation,
tax at
io n,the
th ebasic
b asicd ed uct
io
deduction n,a d diti
o n
additionalald e ductio
deductionn ,
add it i
ona
additional ld e
d uc t
deductionionf o
forrp e rsonsw
persons it
hm
with a
manynyc hi ldr e
children,n,o orrs pe c i
specialald ed uc t
deductionio ns ha l
shalllnot
no tbe
be
ap plie
applied.d.< Amendedb
<Amended yA
by c
Act tNo.
No.5155,
515 5,Aug.
Aug.1 4,1996;
14, 1 9 96 ;Act
Ac tNo.
No.6292,
62 92 ,Dec.
Dec .29,
2 9,2000;
20 00 ;
Ac
Act tNoNo..8825,
8825 ,Dec.
Dec .31,
3 1,2007>
2 00 7>
(2
(2))IIffap ers
a persononl iabl
liableef orma
for ki
making ngt hef
the inalr
final etur
returnno onnt axb
tax a s
base eu nde
under rt hep
the rovi s i
onso
provisions off
A rtic
Articlel
e7 0(
70 1)o
(1) orr7744f ail
failsst of
to i
let
file hed
the oc ume
documentsntsaassp re sc ribe
prescribed di nA
in rt i
cle7
Article 700( 4)1
(4) 1,,the
theb a si
basicc
d educ t
i
deductiononf oro
for nl
only yt her
the eside nth
resident ims e
himselfl
fa ndt
and hes
the tandar
standard dd e duc ti
deductionons ha
shallllbbeea llowabl
allowableie :
P rovi ded,T
Provided, ha
That twh e
whereres uc
suchhd oc ume
documents ntsa res
are ubmi t
submittedtedl aterr
later ega rdle
regardlesss so offt hef
the ina
finallt ax
tax
b as
baseer et urn,t
return, hes
the a mes
same hal
shallln ota
not ppl y.<
apply. Amendedb
<Amended yA
by ActctNo.
No.5155,
51 55 ,Aug.
Aug.14, 14,1996;
19 96 ;
Ac
Act tNoNo..5191,
5191 ,Dec.
Dec .30,
3 0,1996;
1 99 6;A ActctNo
No..8144,
8144 ,De
Dec c .80,
30,2006>
20 06 >
(3
(3))I nc
In as e
casesswh e
where rea no
an cc as i
onala
occasional sses sme
assessment nti issd e termi
determinednedu nde
under rA rtic
Articlele8 2
82,,the
theb as i
basicc
d educ t
i
deductiononf oro
for nl
only yt her
the es identh
resident i
ms e
himselflfs ha l
shalllbbeea llowabl
allowable.e.
Art i
cle5
Article 4-2(
54-2 SpecialC
(Special asesf
Cases orI
for ncomeDe
Income duction f
Deduction orJ
for ointB
Joint usiness)
Business)
I
Innc a s
e
cases swh e
where ret hei
the nc omed
income e duct
deductionioni issa llowabl
allowable eu nde
under rArticle
Ar ticle5 1-3o
51-3 orr52
52( 6)
(6),,oorrunder
unde r
t heR
the e
s tri
c ti
o
Restriction no offS pe ci
SpecialalT axa t
TaxationionA c
Act,t ,i
iffa nya
any mo unti
amount issd isbur se
disbursed, d,paid,invested,
paid, i
nve ste d,contributed
c ont ri
but ed,
e tc
etc..b yap
by er s
a persononh a vingas
having pe c
r elat ions hi pwh os
whose ei nc omea
income mountis
amount isa dde
added du pt
up ot
to he
the
i ncomea
income mounto
amount offt hema
the jorj
major ointb
joint us ine
business s sp ropr ie
proprietort orf ort
for axa tionu
taxation nde
under rt hep
the rovi sions
provisions
o
offArticle
Ar t
ic l
e4 433( 3),s
(3), uc
suchha mo unts
amount hal
shalllbbeed e eme
deemed da na
an mo
amountuntd i
s bur se
disbursed,d,paid,
pai
d ,invested,
inve s
t ed,contributed,
c o ntributed,
e tc
etc..b yt
by hema
the j
majororjoint
joi ntb us ine
business ssp r opr i
e
proprietor t
orw ithi
withinnt hee
the xt e
extentnto offthei
the nc omea
income mo untwh
amount i
c
whichh
i
issa dde
addeddu uppt ot
to hei
the nc omeo
income offt hem
the a j
majoro rjoint
j
o intbusiness
bus ines sp ro priet
proprietororfor
fortaxation
taxa ti
o na ndt
and hei
the nc ome
income
d e
duc ti
deduction onma mayyb beea vai labl
availableea attthe
thet imeo
time offc alculat i
calculatingngt heg
the lobalincome
global i
nc omea mounto
amount offthe
the
ma j
majororj ointb
joint us i ne
business ssp ropr ie t
proprietororwh i
whichc hi isss ubj e
subjectc tt oas
to ummi
a summing ngu uppt axat ion.
taxation.
Art i
cle5
Article 555(Tax Rates)
(Tax Rates)
(1)I
(1) ncomet
Income axo
tax nt
on heg
the l
obali
global ncomeo
income offar e
s idents
a resident hal
shall lbe
bea na
an mountcalculated
amount cal
cul atedb y
by
app l
yingt
applying axr
tax at
esi
rates nt
in hef
the ollowings
following ubparagr a
p hst
subparagraphs ot
to het
the axb
tax a s
baseeooffg loba
globallincome
incomea ccruing
accruing
dur i
ngt
during hec
the orrespondi
r(
year he r
e-i
(here- naf t
e
inafterrr eferredt
referred oa
to ass“ calc ula t
e
“calculated dg lobalincome
global i
nc ome
taxa
tax mount ”)
amount”)2:< Amendedb
<Amended yA
by c
ActtNo
No..9270,
9270,DeDec.c.26,
26 ,2008>
20 08 >
1
1..Incomea
Income ccruingb
accruing e
twe
betweenenJ anuar
Januaryy11,,2009a
2009 ndD
and ece mbe
December r3 1,2
31, 009:
20092
TaxB
Tax aseo
Base offGlobalIncome
Global I
ncome TaxR
Tax ates
Rates
Notmo
Not ret
more han1
than 122millionwo
million n
won 6/100o
6/100 offtaxb
tax ase
base
Mor
Moreet han1
than 122mi llionwo
million nb
won ut not
but notmo re 720,000
more 720,000wo n+1
won 6/100o
+ 16/100 offt he
the
than4
than 6mi
46 llionwo
million won n amounte
amount xceeding1
exceeding 122millionw
million on
won
Moret
More han4
than 6mi
46 llionwo
million nb
won ut not
but notmo re 6.16
more 6.16 million
mil
lion w on +
won + 25/100o
25/100 off the a
the mount
amount
88mi
88 llionwo
million wonn exc ee
ding4
exceeding 6mi
46 llion
million
Over8
Over 8mi
88 llionw
million on
won 16.66 million
16.66 mil
lion w o
won n+ 35/100o
+ 35/100 off the
the amount
amount
exc eedi
ng8
exceeding 8mi
88 llionwo
million n
won
- 100 -
-100-
2
2..Incomea
Income ccruinga
accruing fterJ
after anuary1
January 1,,2010
20102:
TaxB
Tax aseo
Base offGlobalIncome
Global I
ncome TaxR
Tax ates
Rates
Notmo
Not ret
more han1
than 122millionwo
million n
won 6/100o
6/100 offtaxb
tax ase
base
Mo r
Moreet han1
than 122mi llionwo
million nb
won ut not
but notmo re 720,000
more 720,000wo n+1
won 5/100o
+ 15/100 offt he
the
than4
than 6mi
46 llionwo
million won n amounte
amount xceeding1
exceeding 122millionw
million on
won
Mo r
et
More han4
than 6mi
46 llionwo
million nb
won ut not
but notmo re 5.82
more 5.82 million
mil
lion w on +
won + 24/100o
24/100 off the a
the mount
amount
88mi
88 llionwo
million wonn exc ee
ding4
exceeding 6mi
46 llion
million
Over8
Over 8mi
88 llionw
million on
won 15.90 million
15.90 mil
lion w o
won n+ 33/100o
+ 33/100 off the
the amount
amount
exc eedi
ng8
exceeding 8mi
88 llionwo
million n
won
(2)T
(2) hei
The ncomet
income axo
tax na
on nyr
any etirementi
retirement ncomeo
income offar esidents
a resident hallb
shall et
be hea
the mountc
amount alculated
calculated
bymu
by ltiplyingt
multiplying hea
the mountc
amount alculatedb
calculated ya
by pplying the
applying thet axr
tax atea
rate assreferredt
referred oi
to np
in aragraph
paragraph
(1)t
(1) ot
to hea
the mounto
amount btainedb
obtained yd
by ividingt
dividing het
the axb
tax aseo
base offretirement
retirementincome
i
ncomea ccruingd
accruing uring
during
thec
the orrespondingy
corresponding earb
year yt
by hen
the umbero
number offyearso
years offwork,b
work, yt
by hen
the umbero
number offyearso
years offwork
work
(hereinafterr
referred tooa
assthe“
the calculatedr
“calculated etirementi
retirement ncomet
income axa
tax mount”).
amount”).
(3)D
(3) eleted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,De c
Dec..30,
30,2006>
2
006>
Art i
cle5
Article 6(
56 TaxC
(Tax reditsf
Credits orD
for ividendI
Dividend ncome)
Income)
(1)I
(1) Iffanyd
any ividendi
dividend ncomea
income mount,to
amount, t
ow hicht
which hep
the rovisot
proviso oA
to rt i
cle1
Article 177(3)is
(3) i
sa pplicable,
applicable,
isa
is ddedt
added ot
to heg
the lobali
global ncomea
income mounto
amount offa resident,under
a resident, u
nderthe
t
heproviso
p
rovisoto
t
ot hes
the ameparagraph
same p
aragraph
o
offthes
the ameA
same rt i
c l
e,t
Article, hea
the mounte
amount qui
v-a
equiv- lentto
alent t
ot hea
the mounta
amount ddedt
added ot
to het
the otalg
total ross
gross
incomea
income mounta
amount ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ears
year hallbe
shall b
ed eductedf
deducted rom the
from thecalculated
c
alculated
globali
global ncomet
income axa
tax mount.<
amount. Amendedb
<Amended yA
by ctNo
Act No..5081,
5031,Dec.
Dec.29,
29,1995;
1
995;A ctNo
Act No..
5580,Dec.
5580, Dec.28,
28,1 998;A
1998; ctNo
Act No..6051,
6051,Dec.
Dec.28,
28,1999>
1
999>
(2)T
(2) hed
The eductionma
deduction deu
made nderp
under aragraph(
paragraph 1)s
(1) hallbe
shall bereferredt
referred tooa
assthe“
the taxc
“tax reditfor
credit f
or
dividendi
dividend ncome”.
income”.
(3)D
(3) eleted.<
Deleted. byA
<by ctNo
Act No..7006,De
7006, c
Dec..30,
30,2 003>
2008>
(4)I
(4) nt
In hea
the pplicationo
application offthep
the rovisionso
paragraph 1),the
(1), t
hed ividendi
dividend ncomea
income mount
amount
whichi
which isssubjectt
subject ot
to het
the axc
tax redits
credit hallb
shall et
be hati
that ncludedi
included nt
in het
the axb
tax asef
base org
for lobali
global ncome
income
a
assprescribedi
prescribed nA
in rt i
cle1
Article 4(
14 2),a
(2), nd e
and xceedingt
exceeding hes
the tandarda
standard mounto
amount offglobaltaxation
global t
axation
ona
on nyi
any nteresti
interest n-c
in- ome,e
come, tc.<
etc. Amendedb
<Amended yA
by ctNo
Act No..7006,Dec.
7006, Dec.30,
30,2003>
20
03>
(5)D
(5) eleted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,De c
Dec..30,
30,2 006>
2006>
(6)Ma
(6) ttersn
Matters ecessaryf
necessary ort
for hec
the alculation,e
calculation, tc.o
etc. offthe
thea mounto
amount offtax
taxc reditf
credit ord
for ividend
dividend
incomes
income hallbe
shall beprescribedb
prescribed yP
Presidential De
cree.< Amendedb
<Amended yA
by ctNo.
Act No.5580,
5580,Dec.
Dec.
28,1998;
28, 1
998;A ctNo
Act No..8144,
8144,De c
Dec..30,
30,2006>
20
06>
- 102 -
-102-
Art i
cle5
Article 6-2(
56-2 TaxC
(Tax reditf
Credit orB
for ook-Keeping)
Book-Keeping)
( 1
(1) )I Iffap ers
a person o ns ubj e
subject ctt os
to imp
simple leb o ok ke
bookkeeping epi ngu nd
under erthe
thep r
o vi s i
o
provisions nso off Article
Ar tic l
e1 6
1600( 3)
(3)
c a lc ul
calculatesat esh isi
his nc omea
income mo
amountunto onnt heb
the a s
basis i
so offt heb
the o
booko kk e p
keptta nde
and nter
entered eda nds
and ubmi
submits ts
t hed
the o cume
documents nt sp ur s ua
pursuant ntt ot
to hep
the ro vi s
provisions i
o nso offA r tic
Article le7700( 4
(4))3i
3 innf ilingaf
filing ina
a final lr e tu
returnrnf in a
final l
r e tu
return rno nt
on axb
tax as
baseep ur
pur- -s u an
suant tt ot
to h
the ep ro vis i
o
provisions nso offA rtic
Article l
e7 700oorr7 4
74,,a na
an mo
amount unte q ui va l
equivalente nt
t
too1 0
10/ /1 0
1000[ 2 0 /1
[20/1000 0i nc
in a
casesew he
where reb o o
books ksa r
areek e
keptp tb byyd o ubl
double ee nt
entryrya ndi
and nc o
incomemea mo
amountunt
i
issc a lcul a
calculatedte di na
in cc o r d
accordance anc ew i
withtht heb
the o o ks
books] ]o offt h
the ea mo
amountuntc a l
cal--c ula t
culatededb byym ul t
ip l
multiplyingyi ng
t hec
the a l
c ula
calculatedtedg lo ba
global li nc o
incomemet a
taxxa mo
amount un tb byyt her
the a t
ratioioo offt h
thees u
summo offt h
theer e
reala le sta
estatet er e nt
rentala l
i nc o
income mea mo
amountunta ndt
and heb
the us
busi-i-n e
s
ness si nc o
incomemea mo
amount untc a lcul a
calculatedt
e dp ur s ua
pursuant ntt toot her
the ele va
relevant nt
b o
book okt ot
to he g
the l
o b
globala li n co
income mea mo
amountun ts ha
shallllbbeed e d uc
deducted t edf r o
frommt hec
the a lcu la
calculatedte dg l
oba
global li n
in—-c ome
come
t a
tax xa mo unt
amounti :P rov ided,T
Provided, ha
That twh
whereeret hea
the mounto
amount offt a
taxxc redi
credit te x- c
ex- e edso
ceeds nemi
one lli
milliononwo won,n,
o nemi
one llionwo
million won ns ha
shallllbebed educ
deducted.ted.< Amendedb
No.8144,
8 1 44 ,Dec.
Dec .30,
30 ,2006;
2 0 06 ;Act
Ac t
No.8825,
No. 88 25 ,Dec.
Dec .3],
3 1,2007>
2 00 7>
( 2
(2) )C as
Casese sf allingu
falling nde
under re a c
eachho offthe
thef o ll owi
following ngs ubpa ra gr
subparagraphs a phss ha l
shalllnot
no tbebes ubj e
subject ctto
tot a
taxxc re di
creditt
( he r e ina
(hereinafter fterr ef err
referrede dt tooa asst he“
the ta
“taxxc r edi
credit tf orb
for ook-k
book- ee ping”
keeping”) )p urs ua
pursuant ntt toop a ra gr
paragraph aph( 1 )
(1)3:
11..I
Iff2 0 / 1
20/10000o orrmo
morer eo offt hei
the nc omea
income mo
amount untl iabl
liable ef orreturn
for r etur no onnt heb
the a
ba--s i
sisso offthe
thee nt r i
entrieses
i
innt heb
the ookk
book epta
kept nde
and nt er
enterede di issn otr
not et ur ne
returned; d;a nd
and
22..I
Iffbooks
boo ksa nds
and uppor
supportingtingd oc ume
documents nt sc onc e r
concerningni ngt het
the a
taxxc re di
credittf orb
for ookke
bookkeepingepi nga r
areen o
nott
p r es er
preservedve df orap
for e r
a periodiodo offf i
vey
five e
yearsa rsf r om t
from hef
the ina
final ld at
dateeo offthe
thep e rio
perioddf oraf
for ina
a final lreturn
ret ur n
f ina
final lreturn
retur no onnt a
taxxb a s
base: e:P r ovi ded,T
Provided, hatif
That ifin
inc as
case eo offforce
forc ema j
eur
majeure, e,t hes
the a mes
same hal
shall l
n
notota pply.
apply.
( 3
(3) )Ma tt
Mattersersn e c ess
necessary aryf o
forrt het
the a
taxxc r e
creditdi tf o
forrb o o kke
bookkeepinge pings ha
shallllbe
bed ete rmi
detenninedne db yP
by r e si
de nt
Presidential i
a l
D e c re e.
Decree.[This[Thi sA rtic
ArticleleN e wl
Newly yI ns ert
Insertede db byyA c
Act tN No.o.5 58
5580,0,Dec.
De c .2 8
28, ,1 998
1998] ]
Art i
cle5
Article 7(
57 Tax C
(Tax reditf
Credit orP
for aymentsi
Payments nF
in oreign C
Foreign ountry)
Country)
(1
(1))I nc
In asesw
cases he
where r ea nyf
any or e i
foreigngns our
sourcecei nc o
incomemei issa dde
added dt ot
to heg
the loba
global li n-c
in- omeo
come orrretirement
retir e me nt
inc omea
income mo unto
amount offar eside
a rwident, nt ,iiffthe
thef o rei
gni
foreign nco
incomemet axa
tax mo
amount unto ns
on uc
such hf oreigns
foreign o urc
sourceei nco
incomeme
a
assd ete rmine
determined db yt
by h
theeP re s
Presi-i-d e nti
dentialalDecree
De cr eeisi
spaid
p aido orrpayable
paya b l
eini
naf o rei
a foreigngnc ount ry,the
country, t
her e s i
d e
resident nt
m
mayayc ho o
choosesea nyo
any neo
one offt hef
the ollowi
followingngm et ho
methods dsa ndh
and avei
have itta p pli
e
appliedd:< Amendedb
<Amended yA
by Actc tNo.
No.
5 5 8
5580,0 ,D ec
Dec. .28,
28 ,1998;
1 9 98;A Act c tNoNo..8144,
81 44 ,D ec
Dec. .80,
3 0 ,2006;
2 00 6;A c
ActtNoNo..8825,
88 25,Dec.
Dec .3],
31,2007>
2 0 0 7>
1
1..
BByyd educ ti
deductingngt hef
the or e
foreignigni nc omet
income axa
tax mountf
amount rom the
from thec al c ul
calculatedate d g l obalincome
global inc ome
taxa
tax mounto
amount orrt hec
the a lc ul at
calculated e dr e t
ir eme
retirement nti nc omet
income ax a
tax mounti
amount nt
in hec
the or re spondi
corresponding ng
y ea
year,r,w ithi
withinnt hel
the imi
limitto offt hea
the mo
amountuntc alcula t
calculatede db ymu
by lti
plyi
multiplying ngt heg
the loba
globallincome
inc o mea mo
amount unt
o
orrretirement
re t
ireme nti nc o
income mea mo
amountunta cc ruingd
accruing uri ngt
during hec
the o rr e sp o
correspondingndingt axa bl
taxable ep erio
period,d,ca lc ula
calculatedte d
u nde
under rA rtic
Articlele5 5
55,,by
byt her
the atio(
ratio ther
(the at i
od
ratio et ermi
determinedne db byyP re s ide
Presidentialnt i
alDecree
De c reei nc
in as e
cases s
s ubj e
subjectctt oe
to xe mpt
exemption iono orrreduction
re duc tiono offtax
taxp ur s ua
pursuant ntto
tot heR
the e str ic t
Restrictioni
o no offS pe c
Speciali
alT a xa
Taxationtio n
A
Actctoorro the
other rActs)
Ac ts)o offt hef
the ore igns
foreign o ur
sourcecei nc omet
income ot
to heg
the loba
globallincome
inc o mea mounta
amount c c rui
accruing ng
d ur i
duringngt hec
the or r es pondi
corresponding ngt axa bl
taxable ep e ri
periodod( he r eaft
(hereaftere rr e ferr
referrededt tooa ass“ cre di
“credittl imi t
”i
limit” nt
in hi
thiss
A rticle
Article););a nd
and
- 104 -
-104-
2
2..
B yi
By ncludingt
including hef
the oreigni
foreign ncomet
income axo
tax nt
on hef
the oreigns
foreign ourcei
source ncome paid
income paidoorrpayable
payable
inaf
in oreignc
a foreign ountry,i
country, nt
in hen
the ecessarye
necessary xpensesi
expenses n the
in thec alculationo
calculation offthei
the ncome
income
amounta
amount ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ear.
year.
(2)I
(2) Iffanyf
any oreigni
foreign ncomet
income axa
tax mountp
amount aido
paid orrpayablet
payable oaf
to oreigng
a foreign overn-m
govern- ent,i
ment, nc
in alculating
calculating
globali
global ncomea
income mountpursuant
amount pur
suantt op
to aragraph(
paragraph 1),e
(1), xceedst
exceeds hec
the reditlimit,
credit l
imit,s uche
such xcess
excess
amountma
amount yb
may ec
be arriedf
carried orwardt
forward ot
to het
the axablep
taxable eriodt
period ob
to et
be erminatedwi
terminated thinf
within ivey
five ears
years
from t
from het
the axablep
taxable eriodf
period ollowingt
following hec
the orrespondingt
corresponding axablep
taxable eriod,a
period, ndc
and reditedwi
credited thin
within
thec
the reditl
credit imitf
limit ort
for het
the axablep
taxable eriodt
period owh
to ichi
which itti
isscarriedf
carried orward.<
forward. Amendedb
<Amended y
by
ActNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
(3)T
(3) hea
The mounte
amount quivalentto
equivalent t
ot het
the axo
tax nt
on hef
the oreigns
foreign ourcei
source ncomeo
income offar esidentw
a resident hich
which
i
issexemptedo
exempted orrreducedb
reduced yac
by ount
r yw
a country hichi
which issam embero
a member offthe
thet axt
tax reaty,s
treaty, hallbe
shall beconsidered
considered
a
assaf oreigni
a foreign ncomet
income axa
tax mount wh
amount ichi
which isseligiblef
eligible orthe
for t
het axc
tax redito
credit orrinclusioni
inclusion nt
in he
the
necessarye
necessary xpensesa
expenses assreferredt
referred oi
to np
in aragraph(
paragraph 1),wi
(1), thins
within uchl
such imita
limit assdeterminedb
determined y
by
thet
the axt
tax reaty.
treaty.
(4)Ma
(4) ttersn
Matters ecessaryf
necessary ort
for het
the axc
tax redito
credit orrinclusioni
inclusion nn
in ecessarye
necessary x- penses
ex- pensesaassreferred
referred
t
tooinp
in aragraph(
paragraph 1),s
(1), hallbe
shall bedeterminedb
determined yP
by residentialD
Presidential ecree.
Decree.
Art i
cle5
Article 8(
58 Tax C
(Tax reditf
Credit orC
for asualtyL
Casualty osses)
Losses)
(1)I
(1) Iffab usinessp
a business roprietori
proprietor issexpectedt
expected oh
to aved
have ifficultyp
difficulty ayingt
paying axes,d
taxes, uet
due ot
to hel
the oss
loss
inh
in isa
his ssets,by
assets, byan aturald
a natural isastero
disaster orrothera
other ccidents(
accidents hereinafterr
referred tooa
ass“disasters”),
“disasters”),
equivalentt
equivalent o2
to 0/100o
20/100 orrmoreo
more offthet
the otala
total ssetsa
assets assprescribedb
prescribed yP
Presidential De
cree
int
in hec
the orrespondingy
corresponding ear,the
year, t
hea mountc
amount alculatedi
calculated np
in roportiont
proportion ot
to hel
the osst
loss hereof(
thereof the
(the
amounts
amount halln
shall ote
not xceedt
exceed hev
the alueo
value offthe
thel osta
lost sset)s
asset) hallbe
shall bemultipliedb
multiplied yt
by hei
the ncome
income
taxa
tax mountf
amount allingu
falling ndere
under acho
each offthe
thef ollowings
following ubparagraphs(
subparagraphs referringt
(referring ot
to hei
the ncome
income
taxa
tax mounto
amount na
on nyr
any eale
real stater
estate entalincome
rental i
ncomeoorranyb
any usinessi
business ncome;h
income; ereaftert
hereafter hes
the ame
same
shalla
shall pplyi
apply nt
in hisA
this rt i
c l
e),a
Article), ndt
and hend
then eductedf
deducted rom t
from axa
tax mount.I
amount. ns
In uchc
such ases,the
cases, t
hev alue
value
o
offassetss
assets halln
shall oti
not ncludet
include hev
the alueo
value offland:<
land Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.3],
31,
2007;A
2007; ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
20
08>
1
1..
T hei
The ncomet
income axa
tax mount(
amount includinga
(including nya
any dditionald
additional ues)t
dues) ob
to ep
be aid,w
paid, hichwa
which wasslevied
levied
o
orri
isst
toob
beelevieda
levied assa
attthed
the ateo
date offoccurrenceo
occurrence offsuchd
such isaster;a
disaster; nd
and
2
2..
T hei
The ncomet
income axa
tax mountf
amount ort
for het
the axablep
taxable eriods
period uchd
such isastero
disaster ccurred.
occurred.
(2)I
(2) nc
In asesu
cases nderp
under aragraph(
paragraph 1),the
(1), t
het axa
tax mountfrom
amount f
rom whicha
which nyt
any axa
tax mountis
amount i
sd educted
deducted
underA
under rt i
c l
es5
Articles 6,5
56, 6-2a
56-2 nd5
and 7s
57 hallbe
shall bethei
the ncomet
income axa
tax mountto
amount t
owh icht
which hep
the rovisions
provisions
o
offparagraph(
paragraph 1)s
(1) halla
shall pply.<
apply. Amendedb
<Amended yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998>
1
998>
(3)T
(3) hed
The eductionma
deduction deu
made nderp
under aragraph(
paragraph 1)s
(1) hallbe
shall bereferredt
referred tooa
ass“taxc
“tax reditf
credit or
for
casual
t yl
casualty osses”.
losses”.
- 106 -
-106-
( 4
(4))A Anynyp e rsonwh
person who od esire
desiresst oo
to bt ai
obtainnt het
the axc
tax reditf
credit orc
for as ualt
casualtyyl os s e
losses,s,s hal
shalllfile
fil
ea n
an
a pp li
c a t
applicationionttoot hec
the hi
chiefefo offthec
the omp e
competenttentt axo
tax ffi
ce
office, unde
,underrc onditi
o nsp
conditions resc ri
be
prescribed db yP
by residentia
Presidentiall
D ec r
Decree.e e .
( 5
(5))T Thehec hie
chieffo offt hec
the o mpe t
competententt a
taxxo ff
ic
officees ha ll
shall, upo
,upon nr e ce i
vingt
receiving hea
the p plic at
io
applicationna assr eferred
referred
t
tooi np
in aragr a
paragraphp h( 4),d
(4), et ermi
determine net het
the axa
tax mo untto
amount t
ob beed educ te
deducted,d,a ndn
and oti
fyi
notify ittto
tot hea
the pplicant
applicant..
( 6
(6))T Thehep ro visio
provisionsnso offparagraph
pa ragr aph( 1
(I))s ha l
shalllbbeea pp li
c abl
applicableee ve
even nw he
When nnnooa p plicatio
applicationnaassr efe r
red
referred
t
tooi np
in ar agr aph(
paragraph 4
(4))i issma de
made. .
( 7
(7))I Ifft he r
thereeo c cur
occurs sac o l
lecti
a collectivevec a s ualt
casualty, y,t hep
the rovi sionso
paragr aph( 1)s
(1) hal
shalllbe
bea pplicable
applicable
inp
in r opor
proportionti
ont ot
to hel
the os
losssooffa s se
assetstsa assi nve s ti
ga
investigatedteda ndd
and eter mi ne
determined db yt
by hec
the hi e
chieffooffthe
the
c omp e
competent tentt axo
tax ffic
office,e,u nde
underrc ondi ti
onsp
conditions r escribe
prescribed db yP
by resi
de nt
Presidentiali
alD e cr
Decree.ee.
( 8
(8))Ma tt
Matterse rsn ec es
necessarysa r yf ort
for het
the axc
tax r edi
credit tfor
forc as ual
t
casualtyyl osse s
losses,,s ha l
shalllbe
bed e-t
de- er mi ne
termined db y
by
P re s ide nt
Decree.e e.
Art i
cle5
Article 9(
59 Tax C
(Tax reditf
Credit orE
for arnedI
Earned ncome)
Income)
(1)F
(1) o
For rar esidenth
a resident avi nga
having nye
any arnedi
earned ncome
income,,t hef
the ollowinga
following mountss
amounts hallb
shall ed
be educte
deducteddf rom
from
thec
the alcul at
calculatededg lobali
global nco met
income axa
tax mounto
amount nt
on hee
the ar ne
earneddi nc ome
income::Provided,
Pr ovided,T ha
Thattin
inc as e
casess
w her
where et hed
the educ te
deducteddt axa
tax mo unte
amount xcee dsf
exceeds iveh
five undr e
hundreddt hous andwo
thousand n,s
won, uc
suchhe xces
excesssa mo unt
amount
shallbe
shall bet reateda
treated assn on-e
non- xiste nt
existent :< Amendedb
<Amended yA
by c
ActtNo.
No.5155,
5 155 ,Aug.
Aug.14,14 ,1996;
19 96;Act
Ac t
No.519],
N0. 51 91 ,Dec.
Dec .30,
3 0,1996;
1 996;A c
Act tNo
No..6292,
62 92,Dec.
Dec .29,
29,2000;
20 00;A c
Act tNo
No..6557,
6 557,Dec.
Dec .3],
31,
200 1;A
2001; ActctNo
No..6958,
69 58 ,Jul.
Jul .30,
30 ,2003>
20 03 >
<Calculatedg
<Calculated lo ba
globallincomet
income a
xa
tax mounto
amount n
on <Amounto
<Amount offt axt
tax ob
to beed educted>
deducted>
ear ne
earneddi nc ome
income> >
Notmo
Not r
more et han5
than 00,
000wo
500,000 n
won 55p
55 ercento
percent offthec
the alcula t
e
calculateddt axa
tax mount
amount
27 ,
5000wo
275,000 wonn+ 30 /10
+ 30/1000o offt he
the
Mor
Moreet han5
than 00,000w
500,000 on
won amounte
amount xc eeding5
exceeding 00 ,
0
500,00000w on
won
(2)D
(2) ele te
Deleted.d.< byA
<by ActctNo
No..5580,
558 0,De c
Dec..28,
28 ,1 998>
J998>
(3)I
(3) nc
In a
cases
eooffcollectingw
collecting ithho l
dingt
Withholding axesu
taxes nd e
under e1
rArticle
Ar ti
cl 34(
134 3)f
(3) ro
fromm ad a il
y-paidw
a daily-paid orker’s
worker’s
ear ne
earned di ncome
income, ,thea
the mounte
amount quivale ntt
equivalent o5
to 5/100o
55/100 offt hec
the alc ulat
calculatede
dt axa
tax mounto
amount nt
on he
the
ear ne
earned di ncomec
income onc e rne
concerned ds hal
lbe
shall bed educte
deducteddf roms
from uc
suchhc alcul at
calculatede
dt axa
tax mo unt
amount. .< Amended
<Amended
byA
by c
ActtNo N0..519],
5191 ,Dec.
Dec .30,
30,1996;
19 96;A c
ActtNo
No..7 00 6,Dec.
7006, Dec .30,
30 ,2003>
20 03 >
Art i
cle5
Article 9-2D
59-2 eleted.<
Deleted. byA
<by ctNo
Act No..6292,De
6292, c
Dec. 29,2000>
.29, 20
00>
Art i
cle6
Article 0(
60 Order,e
(Order, tc.Applicable
etc. Ap
plicablet oR
to eductiono
Reduction Exemptiono
orrExemption offTaxo
Tax orrTax
TaxC redit)
Credit)
(1)I
(1) na
In pp l
icationo
application offt heA
the ctsr
Acts el
atedt
related ot
to axes,i
taxes, iffthep
the rovisionsc
provisions o ncer
concern-n-i ngt
ing her
the edu c
tio
reductionn
o
orre xe mp ti
exemptiononooffthei
the n comet
income axa
tax ndt
and hos
thoseec once rn i
n
concerninggt hetax
the taxc redita
credit rea
are ppliedc
applied oncurrently,
concurrently,
theo
the rdero
order offa ppl
ica tio
applicationns ha l
lbe
shall beaassf o l
lows
follows: :
1. Re d uct
iono re xemp ti
o no ft
h ein comet axo nt hein
1.Relmmq@<mrfimofdefimmtaxmflefimmannmgmjrgdnirgflecmaporfi- comea mo un ta cc
ru ingd ur
ingt h ec orr
espond-
ingt
ing axa bl
ep
taxable e
r i
o d;
period;
- 108 -
-108-
2
2..T
Taxaxc r edi
credit tf orw
for hi
whichc ht hed
the educt i
o
deductionnc ar ri
e
carrieddf orwa
forward rdi issn otr
not ec ogni z
recognized;ed;a nd
and
3
3..T
Taxaxc r edi
credit tf orw
for hi
whichc ht hed
the educ t
io
deductionnc arriedf
carried o rwa
forward r
di issr ecogni z
recognized.e d.I nt
In hi
thissc a s
case,e,iiffthe
therere
i
issat axc
a tax re di
credit ta mounta
amount ccruingd
accruing ur i
ngt
during hec
the or r
e
corre- -s pondi
sponding ngt axa bl
taxable ep e rioda
period ndt
and he
the
a mountn
amount o
nottd e duc t
deducted ediissc arri
edf
carried or
for--w ar
warddf r o
fromm the
thep re ce
precedingdi
ngt axa bl
taxable ep e rio
periodda attthe
t
hes a
sameme
t ime
time,,t hea
the mo
amountuntn otd
not e duc
deductedt
eda ndc
and ar ri
e
carrieddf or war
forward ds hal
shalllb ed
be educ
deductedtedp re fe re ntia
preferentially. lly.
(2)I
(2) Iffthes
the um o
sum offt hea
the mount
amounts sooffreduction,
re duc t
ion,e xe mpt
exemptioni ona ndt
and axc
tax redi
creditta assr e fe rr
referrede dttooi n
in
par agr a
paragraphph( 1)1a
(1) nd2e
1 and xce
2 exceedsedst hep
the a ya bl
payable et axa
tax mo unt(
amount e xc ludi
(excluding ngt hea
the ddit iona
additional lt ax)
tax), ,s uc
such h
exc e
excesss sa mounts
amount hal
shalllbebec ons ider
considerededn ott
not oe
to xis
exist.t.
(3)I
(3) na
In ppl ica t
applicationiono offt hep
the rovi si
onso
paragr aph( 2)to
(2) tot het
the a
taxxc redi
credittfor
forc as ual
casualty t yl os
losss
pur s uantt
pursuant oA
to r t
ic
Article le5 8
58, ,thep
the ayablei
payable nc omet
income a
taxxa mounts
amount ha
shalll
linclude
inc ludet hea
the ddi tiona
additional ltax
tax
amount .[Thi
amount.[This sA r tic
ArticleleWh ol
Wholly lyA me nde
Amended db byyAActctN o.5031,
No. 5 0 31 ,Dec.
De c .2 9,1
29, 99 5
1995] ]
Art i
cle6
Article 611Deleted.<
Deleted. byA
<by ctNo
Act No..6781,Dec.
678], Dec.18,2002>
18, 2
002>
<ThisArticle
<This Arti
clel osti
lost tse
its ffectd
effect uet
due ot
to hed
the ecisiono
decision offunconstitutionality
unconst
it utional
it ym adeb
made yt
by heC
the onstitutional
Constitutional
Courto nA u gus t2 9, 2
Court on August 29, 2002>00 2>
Ar ticl
Articlee6 2(
62 Spe c
(Speciali
a lC a
Case sei nC
in a lcula t
Calculationiono offTTaxaxA mo
Amount untin inC as
Caseeo offG lo ba
Global lT a xa
Taxationtiono nI
on nt er e
Interestst
Inc ome
Income, ,e tc.
etc.))
I
Iffa nyi
any nt e r
interestesti nc omea
income ndd
and ivi de
dividendndi nc omewh
income whichic ha r
are ei nc lude
included di nt
in he g
the l
oba
global lincome
inc o met a
taxx
b
base of a resident (hereafter in this Article referred to as the “interest income, etc”) exceedss
a seo f ar esid e n t ( h e re af t
e r int h i
sA r ticler e fe rre dt oa st he“ in teres t in c ome , etc .”) e xc e e d
thes
the tanda
standard rda mounto
amount offg lo ba
global lt a xa t
taxationiono na
on nyi
any nt ere
interest s tincome,
inco me ,e tc.a
etc. assp re sc ri
prescribedbe di nA
in r tic
Articlele
1
144( 3
(3))44( he rea ft
(hereafter e ri nt
in hi
thissA r ti
c
Articleler e fe r
the s tandar
“standard da mounto
amount offg lobaltaxation”),
global ta xa tion” ),
thec
the alc ul at
calculated e dg lobali
global nc omet
income axa
tax mounto
amount offthe
t her ele va
relevant ntresi-
r es i-d e
dentnts hal
shall lbebet hea
the mount
amount
fal lingu
falling nde
under ra nyo
any offf ol lowi
subparagraphs, aphs ,wh ic he
whichever ve risi
sl ar ge
larger,r ,a ndi
and iffs uc
such hi nc ome
incomes s
d
doon notote xc e
exceed edt hes
the tandar
standard da mounto
amount offg lobalt
global axat i
taxation,on,t hec
the a lcul at
calculated e dg lobalincome
global i
nc omet ax
tax
a mo
amount unts ha l
shalllbbeet hea
the mo
amount untfalling
falli
ngu nd
under e rs ubp a ra
subparagraph gr aph2 2..In
I
nt hi
this sc as
case,e ,a nyd
any i
vi de
dividend ndi nc ome
income
u nde
under rt hep
the rovi si
Ar ticle1 177( 1)6-3
(1) 6-3s hal
shall ln otbe
not bed e eme
deemed da asst hei
the nt e r
intereste stincome,
inc ome ,
e tc.
etc.::< Amendedb
<Amended byyA Act ctNoNo..7 3 19
7319, ,Dec
Dec .3],
31 ,2004;
20 04 ;A c
ActtNo No..8144,
8 14 4,Dec.
Dec .30,
30 ,2006>
20 06 >
1
1..Amounto
Amount bt ai
obtained ne db byya ddi
addingngu uppt het
the axa
tax mountf
amount al l
ingu
falling nde
under re ac
each ho offt hef
the ol lowi
following ng
ite ms
items: :
( a)T
(a) Taxaxa mounto
amount nt
on hea
the mo untc
amount a lc ula
calculatedte db ya
by ddi
adding ngu uppt hea
the mo
amountunto offinterest
int e re stincome,
inc o me ,
e tc
etc..e xc e e
exceedingdi ngt hes
the ta nda
standardr da mo
amount unto offg lo ba
global lt a xa t
i
taxationona ndt
and heg
the lo ba
global lincome
i
nc o mea mo
amountunt
e xc l
udi
excluding ngt hea
the mounto
amount offi nt e r
intereste sti nc ome
income, ,e tc .
;a
etc.; nd
and
( b)T
(b) Taxaxa mountc
amount al c ulat
calculated e db byya ppl yi
applying ngt het
the axr
tax at
rateer e fe r
referredredt tooi n Article
in Ar t ic l
e1 2
1299( 1)
(1)
1(
1 (c)c)t toot hes
the t andar
standard da mounto
amount offg lobalt
global axat i
on;a
taxation; nd
and
2
2..Amounto
Amount bt ai
addingngu uppt het
the axa
tax mountf
amount al l
ingu
falling nde
under re ac
each ho offt hef
the ol lowi
following ng
ite ms
items: :
( a)T
(a) Taxaxa mountc
amount a lc ulat
calculated e db ya
by ppl yi
applying ngt het
the axr
tax at
rateer e fe rr
referrede dt tooi n A
in rt ic
Article l
e1 2
1299( 1)
(1)
1t
1 toot hei
the nt e re
interest s ti nc o me
income, ,e tc
etc.:.:Provided,
Pr ovi ded,T ha
That tw it
with hr es pe
respect c ttotot hei
the nc o
income met owh
to whichich
Ar tic
Article l
e1 2
127 7d o
doese sn o
not ta ppl
apply,y,i itts ha
shallllbe
bec a lcul at
calculated e db ya
by ppl yi
applying ngt het
the axr
tax at
rate er e fe rr
referred ed
t
tooi nA
in r t
Articleicl e1 29(
129 1
(1))1( c)
1 (c); ;a nd
and
( b)C
(b) alcul a
Calculated te dt a
taxxa mounto
amount nt
on heg
the loba
global li nc o
income mea mo
amountunte xc ludi
excluding ngt hei
the nt e re
interest stincome,
inc o me ,
e tc
etc::P rov
Provided,ided,T ha
That ti nc
in a s
caseew he
where ret her
the e le va
relevant nttaxt
a xa mo
amountuntis iss ho
short rto offaanna ggr e
aggregate ga te
a mounto
amount offt het
the a
taxxa mo
amountuntc a l
c ul a
calculatedt edb by ya ppl yi
applying ngt het
the a
taxxr a t
rate er e ferr
referred e dt tooiinnA r tic
Articlele
1 2
129 9( 1)1(
(1) 1 (c)c )t toot hed
the ivi de
dividendndi nc omeu
income nde
under rt hep
the rovi s i
provisionsonso offArticle
Ar ti cle1 177( 1
(1))6 -3
6-3,,
a ndt
and hec
the al c ul a
calculated t
e dt axa
tax mounto
amount nt
on heg
the lobalincome
global inc omea mount
amount
- 110 -
-110-
excludingt
excluding hei
the ntere s
interestti ncome
income, ,e t c
etc..a ndt
and hed
the ividendi
dividend ncomeu
income nde
underrt hep
the rovisionso
Ar tic
le
1
177(1)6
(1) -3(
6-3 hereina fte
refer
re dt tooaasst he“
the compa r
a t
iveg
“comparative lobalincome
global i
ncomet axa
tax mo unt”
)
amount”), ,it
its hall
shall
b
beethec
the ompar
compar- -a tiveg
ative lobali
global nc omet
income axa
tax mount
amount. .
[ThisA
[This r
t i
cleWh
Article ol
Wholly l
yA me nde
Amended db byyA c
ActtNNo.o.7006,
7006,Dec.
Dec.30,
30,2 003]
2003]
A rtic
Articlele6633( Spe c
(Special ialC as
Caseei nC
in alc ul a
Calculationtiono offTTaxaxA mounto
Amount onnE xce
Excesss sR e
f undo
Refund offWorkplace
Wor kpla c e
Mut
Mutual ualAidAi dA s s oc ia
Association) tion)
T
Thehec alculat e
calculated dt a
taxxa mo unto
amount onna nye
any xc e
excessssr efundo
refund offthe
thewo r kpl
workplace acemu
mu- -t ua
tualla ida
aid ss o ci
a t
associationion
a
assp res cribe
prescribed di nA
in r ti
cle1
Article 16 6( 1)1
(1) 1,s
11, hal
shalllbebet hea
the mountc
amount al c ul
calculatedatedb ymu
by ltiplying,by
multiplying, byt he
the
n umbe
number rooffy ear
years si nwh
in ic
which hp ay-me
pay- nt
ments sa r
areema
made,de,the
thet axa
tax mountc
amount al c
ul at
calculatededb ya
by ppl yi
applyingng
th eb a si
ct a x ra tesa sp re s cr ib edi nA r ticl
e5 5( 1 )t ot h ea
the basic tax rates as prescribed in Article 55 (1) to the amount obtained by dividing, mo un to bt ai
n e db yd iv i
d in g,
b
byyt hen
the umbe
number ro offy ea r
yearssi innwhwhichi
c hp ayme
payments nt sa rema
are made de( ifi
(if ittiissles
lessst han ay
than ea
a year,r,iitts hal
shall l
b
beeo ney
one ear
year; ;t hes
the amea
same ppl
appliesi
e sh ere after
hereafter),) ,the
thea mo
amountunte xc eedi
exceedingngt hep
the aid-i
paid-in np r i
nc ipa
principall( he reaf t
(hereafterer
int
in hisA
this rtic
Article,le ,r e ferre
referreddt oa
to ass“ e xc es s
“excessivei ver efundo
refund offt hewo
the rkpl
workplace acemu tuala
mutual ida
aid ss oc iation”
association”) )
from wh
from ic
whichht hea
the mountf
amount a llingu
falling nde
under rt hef
the oll
o wi
followingngs ubpa ra gr
subparagraphs aphsi isss uc ces sive
successively lyd educ t
deducted, ed,
fro m amo ngt her efun do fc o mp et en ta ss oci ationwh ic hi sr
from among the refund of competent association which is received from the mutual aid e cei
v edf r
o m themu t
u al a i
d
soc ie
societytyoorra s soc ia
associationti
on( he r eina
(hereinafterfte rre-
r e-f erre
ferreddttooaass“ wor kpl
“workplacea c emu t
ua
mutual la i
aidda s soc iat
ion”
association”) )c on-
con-
s titute
stituteddo offe mpl oye
employees ese ngagi
engaging ngi nt
in hes
the amewo
same rkpl ac
workplace eo orro ccupat i
occupation,on,e tc .
etc.3:
1
1..A mounte
Amount qui val
equivalententt o5
to 0 / 1
50/10000o offthe
thee xc e ss
excessivei
ver efundo
refund offthe
t hewo r
work-k- place
pl acemu t
uala
mutual i
d
aid
a ssoc iation;a
association; nd
and
2 .T hef ollo
2. The followingwi n ga mountb
amount byyt hen
the umbe
number rooffy e ar
yearssi nwh
in i
which chp ayme
paymentsntsa r
areema de
made3 :
<Numbe
<Numberrooffyearsi
years nw
in hich
which
<Amounto
<Amount offdeductions>
deductions>
paymentsa
payments rem
are ade
made>>
300,000 wo
300,000 won n× X
5o
5 orrlessye
less ars
ears . .
y numbero
number offy ear
years siinn wh i
which ch payments
payment sa r
ema
are made de
Ove
Overr5y ear
5 yearsst o
to 1,500,000wo
1,500,000 won n+5 00, 000wo
+ 500,000 won n×X ( numbero
(number offy ear
yearssiinnwh ich
which
10y
10 ears
years payment
payments sa rema
are de－
made 5year
— 5years) s)
Ove
Overr10y
10 earst
years too 4,000,000wo
4,000,000 won n+8 00, 000wo
+ 800,000 won n×X ( numbero
(number offy ear
yearssiinnwh ich
which
20y
20 ears
years payment
payments sa rema
are de－
made — 1100y ear s)
years)
Ove
Overr20y
20 ears
years 12,000,000wo
12,000,000 wonn+1 ,200, 000wo
+ 1,200,000 wonn×( numbero
X (number offy ear
si
years nwh
in ich
which
payment
payments sa rema
are de－
made — 2200y ear s)
years)
Art icl
Articlee6 644( Spe c
(Specialia lC a s
Cases e sf orC
for alc ulat
Calculation i
ono offT a
TaxxA mountf
Amount orR
for e
RealalEstate
Es tateB roke
Broker)r )
(1
(1))T hec
The alc ula
calculatedtedg lo ba
global li nc omet
income axa
tax mo
amountuntfor
fo rar es i
de
a resident nto pe r a
operatingt
ingar ea
a realle stat
estateet ra ding
trading
bus ine
business ss( he re ina f
(hereinafterte rr efe rr
referred edt tooaassa“ r e
a “reala le stat
estate eb roke
broker”)r” )wh
whoseos eg lobalincome
global inc omea mount
amount
cont ai
containsnsama r gi
a marginal na lprofit
pr ofitfrom
from trading
tradingt heh
the ous i
housingngo orrl andf
land a llingu
falling nde
under ra nyo
any offArticle
Ar ticl
e
10
1044( 1)2
(1) -3t
2-3 hr o ugh2
through -7 a
2-7 nd3(
and he reaft
3 (hereafter erreferred
referre dttooaasst he“
the ma rgi
“marginalna lprofits
profitsf rom trading
from tra ding
hous i
ng,e
housing, tc.
etc.””i nt
in hisA
this rt
i c
Article)le)s hal
shall lbe
bet het
the a
taxxa mountf
amount a l
lingu
falling nde
under re ac
eachhoofft hef
the ollowi
followingng
subpa ragr
subparagraphs,aphs ,wh iche
whichever ve ri issl ar ge
largerir:< Amendedb
<Amended byyA c
Act tNo.
No.8144,
8 14 4 ,Dec.
Dec .30,
30 ,2006;
2 00 6 ;Act
Ac t
No.8825,
No. 88 25 ,Dec.
Dec .3],
3 1,2007;
2 00 7;A Actc tNo
No..9270,
92 70 ,De c
Dec. .26,
26 ,2008>
20 08 >
11..
T
Thehec alc ula
calculated t
e dg l
o ba
global li nc o
incomemet a
taxxa mo
amountuntunder
unde rthe
thep r ovis i
provisionso nso offAr-
Ar -t icle5
ticle 5(
55 1 )
;a
(1); nd
and
2
2..T het
The ot alo
total offt het
the axa
tax mount
amounts sf al l
i ngu
falling nde
under rt hef
the oll owi
followingngi tems
items: :
( a)T
(a) ot
Totalalo offt het
the a
taxxa mount
amounts sc alcul at
calculated edb ya
by ppl yi
applyingngt het
the axr
tax ateu
rate nde
underrthe
t
hep ro vis ions
provisions
o
offA rtic
Article le1 0
1044t ot
to hema
the rginalprofits
marginal pr of i
tsf rom trading
from tradi ngh ous
housing,i
ng,e tc.
etc;;a nd
and
- 112 -
-112-
(b)T
(b) axa
Tax mountc
amount alculatedb
calculated ya
by pplyingt
applying het
the axr
taX ateu
rate ndert
under hep
the rovi
-s
provi- ionso
sions offArt i
cle
Article
55t
55 ot
to het
the axb
tax asewh
base ichi
Which isscalculatedb
calculated yd
by educt
-i
deduct- ngt
ing het
the otalo
total offthep
the ortiono
portion off
thema
the rginalprofits
marginal pr
ofitsf rom t
from radingh
trading ousing,e
housing, tc.d
etc. uringt
during her
the elevanty
relevant earf
year rom t
from he
the
globali
global ncomet
income axb
tax ase.
base.
(2)Ma
(2) ttersn
Matters ecessaryf
necessary orthe
for t
hec alculationo
calculation offthe
thema rginalprofits
marginal pr
ofitsf rom trading
from tradingh ousing,
housing,
etc.b
etc. ya
by nyr
any esidento
resident peratingar
operating eale
a real statet
estate radingb
trading usi
-n
busi- essu
ness nderp
under aragraph(
paragraph 1),a
(1), nd
and
thec
the alculationo
calculation offotherg
other lobali
global ncomet
income axa
taX mounts
amount hallbe
shall beprescribedb
prescribed yP
Presidential De
cree.
<Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..7006,Dec.
7006, Dec.30,
30,2003]
2
003]
Art i
cle6
Article 5(
65 Interim Prepayment)
(Interim Prepayment)
(1)T
(1) hec
The hiefo
chief offat axo
a taX fficeh
office avingj
having urisdictiono
jurisdiction vert
over hep
the laceo
place offtaxp
taX ay-m
pay- ents
ment hall,
shall,
byN
by ovember3
November 0(
30 byJ
(by anuary1
January 4o
14 offthe
thes ucceedingy
succeeding earin
year i
nc aset
case hep
the artialpayment
partial p
aymentis
i
s
madeu
made nderArticle
under Ar
t i
cle7 7),c
77), ollecta
collect na
an mounte
amount quivalentto
equivalent t
o1 /2o
1/2 offthe
thei ncomet
income axp
taX aido
paid orr
payableo
payable nt
on heg
the lobali
global ncomef
income orthe
for t
hepreceding
p
recedingy ear(
year hereinafterreferred
(hereinafter r
eferredt oa
to ass“interim
“interim
prepaidt
prepaid ax base”)
taX base”)f rom ar
from esidenthaving
a resident ha
vingt heg
the lobalincome
global i
ncome( excludingt
(excluding hoseh
those aving
having
thei
the ncomep
income rovidedf
provided ori
for nt
in heP
the residentialDecree
Presidential De
creea ndt
and hep
the ersonw
person ho
Who
hass
has tarteda
started atradeo
trade orrbusiness
businessa newi
anew nt
in hec
the orrespondingt
corresponding axableyear
taxable ye
ara mongt
among hosew
those ho
Who
weren
were otab
not usinesso
a business peratora
operator so
as offthe
theb eginningd
beginning ate
date
o
offthec
the orrespondingt
corresponding axy
taX ear;h
year; ereafterthe
hereafter t
hes ames
same halla
shall pplyi
apply nt
in hisAr-
this Ar
-t icle)by
ticle) bytreating
treating
thes
the amea
same st
as hep
the ayablet
payable axa
tax mounta
amount ndt
and hep
the eriod ranging
period rangingf rom January
from January1t oJ
1 to une
June
30a
30 st
as hei
the nterim prepayment
interim prepaymentperiod.
p
eriod.In
I
nt hisc
this ase,the
case, t
hec hiefo
chief offsaidt
said axo
taX ffices
office hallissue
shall i
ssue
at axn
a taX oticew
notice i
t hint
Within hep
the eriodr
period angingf
ranging rom November
from November1t o1
1 to 5,to
15, t
ot her
the esidentliable
resident l
iablet o
to
payt
pay het
the axa
taX mountf
amount ori
for nterim prepayment.
interim prepayment.
(2)I
(2) Ifftheresident
the r
esidentl iablet
liable opay
to p
ayt hetax
the t
axa mountfor
amount f
orinterim
i
nterim prepayment
prepaymentnotified
n
otifieda sprovided
as p
rovided
inp
in aragraph(
paragraph 1)f
(1) ailst
fails op
to ayt
pay hew
the holeo
Whole orrpart
partooffit
itby
byNovember30,
November 3
0,it
i
ts hallbe
shall b
ed eemed
deemed
thatn
that ot
no axn
taX oticeh
notice asb
has eeni
been s-s
is— uedf
sued orthe
for t
hep ortiono
portion offthe
thet axp
taX ayablei
payable ni
in nstallments
installments
pursuantt
pursuant ot
to heprovisions
the p
rovisionsooffArticle
Art i
cle7 7,a
77, ndt
and hec
the hiefo
chief offat axo
a taX fficehaving
office ha
vingj urisdiction
jurisdiction
overt
over heplaoe
the p
laceoofftaxp
tax ay
ments
paynmt halli
shall ssuea
issue taxn
a taX oticefor
notice f
orthe
t
hetax
t
axa mountpayable
amount p
ayablein
i
ninstallnmts
i
nstal
lments
withint
Within hep
the eriodr
period angingf
ranging rom December
from December1 6t
16 o3
to 1.
31.
(3)Wh
(3) eret
Where hei
the ncomet
income axo
tax nt
on heg
the lobali
global ncomeo
income offar esidenth
a resident avingt
having heg
the lobali
global ncome
income
a
asso
offthec
the loseo
close offthei
interim prepaymentperiod
p
eriod( herei
n- afterreferred
(herein-after r
eferredt oa
to assthe
the“ estimated
“estirmted
amountf
amount ori
for nterim prepayment”)
interim prepayment”)iisslessthan
less t
han3 0/100o
30/100 offthe
thes tandarda
standard mountfor
amount f
orinterim
i
nterim
prepayment,h
prepayment, emay
he ma
yf ilear
file eturnw
a return itht
with hec
the hiefo
chief offthe
thetaX
t
axo fficehaving
office h
avingj urisdictiono
jurisdiction ver
over
theplace
the p
laceoofftaxp
tax ayment,t
payment, reatingt
treating hee
the stimateda
estimated mountfor
amount f
orinterim
i
nterim prepay-
prepay-m enta
ment assthe
the
taxa
taX mountf
amount ori
for nterim prepayment,
interim prepayment,w ithint
Within heperiod
the p
eriodr ang-i
rang- ngf
ing rom November
from November1t o3
1 to 0
30
asp
as rovidedf
provided ori
for nt
in heP
the residentialDecree.
Presidential De
cree.
- 114 -
-114-
(4)Wh
(4) e
Where r ear es i
a residentde nth avi
having ngt heg
the loba
global li nc omef
income i le
filessar e
a returntur nu nde
under rp a r
para-a -g r aph(
graph 3)
(3),,the
the
d e t
e rmi nat
determination i
ono offt het
the a
taxxa mountf
amount ori
for nt e
interimrimp r e pa
prepaymentyme ntp ur s uantt
pursuant op
to ar agr
paragraph a ph( 1
(1))s hal
shall l
b
beed e eme
deemed da assn on-e xi s
non-existent. te nt .
(5
(5))Wh e
Where r ear e side
a resident, nt ,whwho od idn
did oth
not avet
have hes
the ta ndar
standard da mountf
amount ori
for nt e r
interimimp re payme
prepayment, nt ,
co me
comes st oe
to a
eamrna nyg
any lo ba
global li nc o
incomemed ur i
duringngt hei
the nt er
interim im pre-
pr e-p ayme
payment ntperiod
p erio do offthe
thec o rr es p o
correspondingndi ng
y e a
year,r,hhees ha
shallllf il
ear
file e t
a returnur nwi t
withht hec
the hie
chief fo offthe
thet axo
tax ffi
officec eh avi
havingngj ur is dic
jurisdictiontiono ve
over rt he
the
pl ac
place eoofft axp
tax ayme
payment, nt ,t re at
treatingingt hee
the st imat
estimated e da mountf
amount ori
for nte r
interimi
mp re payme
prepayment nta asst het
the ax
tax
amountf
amount ori
for nt e
interimr
imp re payme
prepayment, nt ,wi thi
within nt hep
the e r i
periododr angi
ranging ngf rom N
from ove
November mbe r1t1 to o3 0a
30 ass
pr ovi de
provided df ori
for innt heP
the r e s i
de
Presidentialnt i
alDecree.
De c re e .< Amendedb
<Amended byyA Act ctNo.
No.7 8 3
7837, 7,Dec.
Dec .3],
31 ,2005>
2 005 >
(6
(6))T her
The es ide
resident ntwhwhoof filed
il edar e t
a returnur np ur s ua
pursuant ntt toop a ra gr
paragraph aph( 3
(3))o orr( 5
(5) )s hal
shalllp ayt
pay het
the ax
tax
amountf
amount ori
for nt e
interimrimp r epayme
prepayment ntt ot
to het
the axo
tax f fi
officec eh avi
having ngj u-r
ju- i
s di ct
risdictioniono ve
over rt hep
the l ac
place eo off
ta
taxxp a yme
payment, nt ,t heB
the anko
Bank offK or
Korea e a( inc ludi
(including ngi tsa
its ge nt
agents; s ;hereinafter
he r ei
naf te rthe
thes ames
same hal
shall la ppl y)
apply)
o
orrap os
a postalt ala ge
agencync yb by yN No-o-v embe
vember r3 0
30..
(7
(7))T hes
The tandar
standard da mountf
amount ori
for nt er
interim imp re payme
prepayment ntu nde
under rp ara gr
paragraphaph( 1)s
(1) hal
shall lb beet het
the ot al
total
sum o
sum offthet
the a
tax xa mo untf
amount a llingu
falling nde
under ra nyt
any hef
the o llo wi
following ngs ubpa ra gr
subparagraphs a phsl e s
lessst het
the a
tax xa mount
amount
re fundabl
refundable ep ur s
pursuant uantt tooA rti
Articlecle8 855( inc ludi
(including ngt hea
the mountr
amount e f
le ct
reflectingingad e te rmi
a determinationna tionb a s
basede d
onac
on or r e c
a correctiont ionr e que
request, st,i iffa ny,ma
any, made dep ur s
pursuantua ntt oA
to rt i
c
Article le4 5 -2o
45-2 offt heF
the r ame
Framework wor kA Actct
onN
on at i
onalT
National axe
Taxes)2 s ):< Amendedb
<Amended byyA Actc tNoNo..8144,8 14 4,Dec Dec .30,
30 ,2 00
2006> 6>
1l..T het
The axa
tax mountf
amount ori
for nt er
interimim prepayment
pr epa yme ntd ur
duringingt hep
the rec edi
preceding ngy ea
year; r;
22..T het
The axa
tax mountv
amount olunt
voluntarilyar ilyp a
paididb yaf
by ina
a final lreturn
re tur np ur s
pursuantua ntt tooA r
Ar- -t i cl
ticlee7 6;
76;
33..T hea
The ddi ti
additional ona lt axa
tax mountpaid
amount pa i du nde
under rA rti
Articlec le8 855( inc ludi
(including ngt hea
the d-d
ad- itionald
ditional ue
dues, s,if
if
any)
any); ;a nd
and
4
4.. T het
The a
tax xa mountpaid
amount pa idb byyar e tur
a return nf ileda
filed ft
after erthethet imel
time imi
limitte xpi r
expires e sp ur s ua
pursuant ntt tooA rtic
Articlele
45-3o
45-3 offt heF
the rame
Framework wor kA c
Act to offNational
Nat iona lT axe
Taxes s( inc ludi
(including ngt hea
the ddi tiona
additional ld ue
dues, s ,ififa ny)
any)
andt
and hea
the dd itio
additionalna lt a
taxxv o lun-t
volun- ar il
tarilyyp ai
paiddp ur sua
pursuant nttot oA rti
Articlecle4 6o
46 offthe
thes a meA
same Actc t( inc ludi
(including ng
thea
the d-d
ad- itiona
ditional ld ue
dues, s ,i iffa ny)
any). .
(8
(8))T hee
The s timat
estimated eda mo
amount untfor fo ri nt er
interim imp re pa yme
prepayment ntu nde
under rp a ragr
paragraph a ph( 3
(3))s ha
shallllbbeec omput
computed e d
ac cor di
accordingngt ot
to heo
the r de
order rg i ve
given ni nt
in hef
the ol l
owi
following ngf or mul
formulasi as :< Amendedb
No.8825, 88 25 ,
De
Dec.c .3],
3 1,2007>
2 00 7>
11..G loba
Global li nc o
income met a
taxxb as
base e= :( glo bali
(global nc omef
income o
for ri nt e r
pr e payme ntpe-pe -r io
riodd×2X 2))- —( de fic
(deficitit
car rie d-ove
carried-over r-g lobali
- global nc omed
income educ t i
deduction);on) ;
22..C alcul at
Calculated e dg lobali
global nc omet
income axa
tax mount=g
amount: lobalincome
global inc omet axb
tax as
base e×b as
>< basic ict axr
tax at
rate;e ;a nd
and
(the r
(the e duce
reduced do orr e xempt
exempteded taxtax
amo unto
amount ng
on loba
globallincome,
inco me,tax
taxc r edi
t
credit
3
3..Estimated
Es ti
ma t
e d calculated
calculate global
dgl obal amo un
amount,t, calc ulate
calculateddt a
taxxa mo u
amountn t on
on
amountf
amount or
for iincome
ncomet tax
axaamount
mount g ai
nsf
gains r om trading
from tradi ngooffland,
l
and,e tc.by
etc. by
interim
interim ＝(
= )
－— ap rovisionalretum,
a provisional r
e t
ur n,a ndt
and axa
tax mo unt
amount
prepa yme
prepaymentnt 2
2 im-p
im* os e
poseddoonno cc asi
o nso
occasions orrc ol
lec t
e
collectedd
a
attsourc
souroeeb yn
by otlater
not l
a t
erthan
tha nt hee
the nd
end
o
offinte ri
interimmp repaymentp
prepayment er iod)
period)
- 116 -
-116-
( 9
(9) )TTheheh e
heada do offad is t
a districtr ictt axo
tax ff i
officeceh avi
having ngj ur isdi c t
jurisdictioniono ve
over rt hep
the lac
place eo offtax
taxp ayme
payment nt
ma
may ye ithe
either rc or r
correctec to orrd et e
determinermi net het
the axa
tax mountf
amount ori
for nt er
interim i
mp re pa yme
prepayment ntwh e
where reh e/she
he/she
h asf
has oundo
found mi s
omissionssionso orrmistakes
mi s t ake si nr
in etur
returnsnsf ile
fileddp ur s ua
pursuant ntto top ara gr
paragrapha p h( 3
(3))oorr( 5
(5))oorrw he
wherere
thep
the ers
persono nl i abl
liable et tooffile
i
lear e
a returnt ur np ur suantto
pursuant top a ra gr
paragraph aph( 5
(5))fails
fai lst tood doos o.In
so. I ns uc
such hc a se
cases,s,
t hec
the or re c
correctedte do orrd ete rmi
determined ne dt a
taxxa mounts
amount ha
shallllbbeec omput
computed e db byymu ta
mutatis tismu ta ndi
mutandis sa ppl yi
applyingng
theme
the t
methodho do offc omput
computing ingt hee
the s ti
ma
estimated teda mountfor
amount forinterim
int e r im prepayment
pr epayme ntunder
unde rp ara gr
paragraphaph
( 8
(8).).
( 1 0
(10))Wh Whereer ear e
a reala le s t
estateat eb r oke
broker ru nde
under rA rt
ic
Articlele6 699f ile
filessap r ovi s
a provisionalionalre- re -t ur
turn no ng
on a i
ns
gains
f rom s
from al
sale eo offl ando
land orrb ui ldi
buildings ngss ol
sold dd ur ingt
during hei
the nt e r
pr e pa yme ntperiod
pe rioda ndp
and ayst
pays he
the
t a
tax xo onns uc
such hg ains
gains, ,t het
the axa
tax mountfor
amount fori nt eri
interimm prepayment
pr e payme nts hal
shall lbebe1 /2o
1/2 offthe
thes tanda
standard rd
a mo
amount untf o
forri nt e r
pr e pa yme ntu nde
under rp a ra gra
paragraph ph( 1)l
(1) e s
lessst hea
the mo
amountuntp ai
paiddb yap
by rovi s io
a provisionalna l
r e tur
return. n.I nt
In hi
thissc as
case,e,i ifft het
the a
taxxa mounto
amount onns uc
such hg ai
gainsnsf rom s
from al
saleeo offl and,e
land, tc
etc..paid
paidb ya
by a
p r ovi s i
o
provisional na lreturn
r et ur ne xc e
exceedse dst hea
the mo
amountunte qui va l
e
equivalent nttoto1 /
1/22o offthe
thes ta nda
standard r da mo
amountuntforforinterim
int erim
pr epa yme
prepayment, nt ,t het
the axa
tax mountf
amount ori
for nte r
interimimp repa yme
prepayment nts hal
shall lbebed e eme
deemed daassn on-e xis t
non-existent.ent .
( 1 1
(11))N ot wi ths t
Notwithstandinga ndi ngp ar agr
paragraphs aphs( 1)through
(1) thr ough( 5)
(5),,the
t heh e
headado offad ist r
a districti cttax
taxo ffic
officeeh a ving
having
j ur is dic
over rt hep
the lac
place eo offtax
ta xp ayme
payment ntmay
ma yd e te
deter-r-mi minenet het
the axa
tax mountfor
amount forinterim
int erim
pr epa yme
prepayment ntd ur
duringingt hec
the or re spondi
corresponding ngy e
yeararwi thi
within nt hee
the xt e
extentntn ote
not xc eedi
exceeding ngt hea
the mount
amount
f a ll
ingu
falling nde
under ra nyo
any offt hef
the ol lowi
subparagraphs a phsu nde
under rt hec
the ondi ti
conditionsonsa assp res cri
prescribedbe dbbyy
P r es i
de
De cr ee ,w he
where r et heC
the ommi s
Commissioners ione ro offNational
Nat ionalT TaxaxS er vi
Service cer ec ogni
recognizesz est he r
theree
e xi
exists turgent
ur ge ntn ee
needs dsf ort
for hen
the at i
onaltreasury
national tre as ur yb ec aus
because eo offas e ri
a seriousousd ome
domestics tico orro ve rse
overseas as
t roubl
trouble, e ,e tc .
etc.1 :< Amendedb
<Amended by yA Actc tNoNo..8825,
88 25 ,DeDec. c .3],
31 ,2007>
20 07 >
11..Whe
Where rei nt e
interimrimp re pa
prepaymentyme ntiissmamade dep ur sua
pursuant nttotop ar a gr
paragraph a ph( 1 )
(1),,the
thes tanda
standard rda mount
amount
fori
for nt e r
interim i
m prepayment;
pr epa yme nt ;a nd
and
22..Whe
Where rei nt e
interimrimp re pa
prepaymentyme ntiissmamade dep ur sua
pursuant ntto t
op ar a gr
paragraphsa phs( 3)a
(3) nd(
and 5)
(5),,twice
twi ceo offthe
the
e stima
estimated te da mountf
amount ori
for nt er
pr epa yme ntu nde
under rp a ra gr
paragraph aph( 8)
(8)..
[ Thi
[This sA rt
Articleic leWh Whollyol l yA mendedb
Amended yA
by Actc tNoNo..6292,
62 92 ,Dec.
Dec .29,
29 ,2000]
20 00 ]
Art i
cles6
Articles 6D
66 eleted.
Deleted.
Art i
cles6
Articles 7D
67 eleted.<
Deleted. byA
<by ctNo
Act No..6292,Dec.
6292, Dec.29,
29,2000>
2
000>
Ar ti
c l
Articlee6 8(
68 Spe cia
(SpeciallC a
s e
Casessf orI
for nte ri
m Prepayment
Interim Pr epayme ntbbyyMe mbe
Member rooffTaxA
Tax s
As--s oc i
ation)
sociation)
(1)Wh
(1) When ena nyt
any axa
tax ssoc i
at ionh
association asc
has ol l
ecte
collecteddandp
and aide
paid achmo
each nt
monthht hei
the n-c
in- omet
come axes
taxes
o
onni tsme
its mbe
members’r
s’i ncome
incomessu nde
under rA rti
cl
Articlee1 50d
150 uringt
during hei
interim pr
epayme ntp e
riod,s
period, uch
such
inc ome
incomes ss halln
shall otb
not es
be ubje c
subject tt ot
to hei
the nterimp
interim re payme nt
prepayment. .
(2)D
(2) e l
e t
ed.
Deleted.
(3)D
(3) e l
e t
ed.<
Deleted. byA
<by ctNo
Act N0..519],
51 91 ,Dec
Dec .30,
30,1 996
J996>>
- 118 -
-118-
Ar ticl
Article e6 9(
69 Pr o vi sio
(Provisional na lReturn
Re tur no nG
on a i
GainsnsA c c rui
Accruing ngf ro
from mT ra
Tradingdingo offLand,
La nd,e t c
etc..a ndV
and olunt
Voluntaryar y
P ayme
Payment ntb byyR e
RealalEstate
Es tat eB roke
Broker) r)
(1
(1))A Anynyr ea
real le sta
estateteb ro ke
broker rs ha l
shalllreturn
retur nt heg
the ainsf
gains r o
fromm trading
t ra dingl ando
land orrbuildings
bui l dings( he re i
na ft
(hereinaftere r
re fe r
referredre dttooa ass“ land,e
“land, tc
etc”).
” )a ndt
and het
the a
taXxa mo
amountuntthereon
the re ont toot heh
the ea
head dooffad is tr
a districticttax
ta xo ff ic
office e
h avi
having ngj ur is di c
over rt hep
the lac
place eo offtaX
taxp ayme
payment ntwi t
withinhi nt womo
two nt
months hsf rom t
from hee
the ndo
end off
themo
the monthnt ht ow
to hi
which c ht het
the radi ngd
trading at
date eb elongsu
belongs nde
under rc ondi t
conditionsionsp r es cr i
prescribedbe db byyP re sident
Presidential ial
D e c r
Decree. e e.TThehes ames
same hal
shall la ls
alsooa ppl
apply yt oc
to as
caseseswh e
where r et he
there r
ee xi st
exists sn noog ai
gainsnsf rom trading
from tradi ng
land,e
land, tc
etc..o orrt he
therereo c c ur
occurs sa nyl
any o s
lossso onnt r adi ng.<
trading. Amendedb
<Amended byyA Act ctNo.
No.503], 5 03 1,Dec.
Dec .29,
29 ,
1 99
1995; 5;A Actc tNoNo..8144,81 44 ,Dec.
Dec .30,
3 0,2006>
20 06 >
(2)T
(2) her
The et ur
return na assr e fe rr
referred edt oi
to np
in a ragr
paragraph aph( 1)s
(1) hal
shall lbbe er ef er r
referrede dt oa
to ass“ pr ovi si
onalreturn
“provisional re
t ur n
o
onng ai
gainsnsf r om t
from r adi
tradingngo offl and,e
land, tc
etc”..”.
(3
(3))T Thehec al cul a
calculated te dt axa
tax mounto
amount onnar e
a realale s tat
estate eb r oke
brokers r’sg a i
gainsnsa cc rui
accruing ngf r om trading
from tradi ngo off
land,e
land, tc
etc..s ha l
shall lbe
bet hea
the mo
amountuntc a lcul a
calculated te db byymu ltipl yi
multiplying ngt hea
the mo
amount unto bt ai
obtainedne db byyd e duc ti
deducting ng
then
the ec es
necessarys arye xpe ns
expenses e sc alcula t
calculatede db byya ppl yi
applying ngmu ta
mutatis tismu tandi
mutandis st hep
the r o vis
Ar tic le
9 7,f
97, r o
from mt he v
the al
valueueo offt r ade
trade, ,by
byt het
the a
taXxr ate
ratessa assp re s c
prescribedr i
be di ns
in ubpa r agr
subparagraphs a phso offArticle
Ar tic le
1 0
1044( 1)
(1)2 :P rovi
Provided,ded,T hatt
That heh
the oldi
holdingngp e ri
periododo offl and,e
land, t
etc.c .is
isl e s
less st hant
than woy
two ears
years, ,it
its hal
shall l
b
beea anna mo
amountunto bt a i
ne
obtained db byymu ltiplyi
multiplying ngb byyt het
the a
taxxr a t
rateei nA
in rtic
Articlele1 0
1044( 1
(1))1n ot wi ths ta
1 notwithstandingndi ng
A rt i
Articlec le1 04(
104 1)2a
(1) 2 andnd2 -2
2-2. .< Amendedb
<Amended byyA Actc tNoNo..9270, 92 70 ,Dec.
Dec .26,
2 6,2008>
200 8>
(4
(4))I Iffar e
a reala le s tat
estate eb r oke
broker rh a
hassv ol unt a
voluntarilyr ilyp ai
paiddt het
the axa
taX mounto
amount onng a i
gainsnsf rom t
from radi ng
trading
o
offl a nd,e
land, tc
etc. .by
byt hep
the ro vi sio
provisionalna lreturn
r etur np ur s ua
pursuant nttotop a ra
para- -g ra
graphph( 1 )
(1),,the
thea mounte
amount qui vale
equivalent nt
to1
to 0 /
10/10010 0o offt her
the e tur ne
returned da ndp
and a
paididt a
taxxa mounto
amount onnt heg
the ai
gainsnsf r
om trading
from t ra di ngl and,e
land, tc
etc,.,shal
shall l
b
beed e duc
deducted t edf rom s
from uc
such hc alc ulat
calculated edt a
taXxa mount(
amount he re ina
(hereinafter fterr e ferr
referred e dt tooa ass“ t
a
“taxxc r edi
credittf or
for
thep
the ro-v
pro- isi ona
visional lreturn
ret ur no ng
on a i
nsf
gains r om t
from ra di
tradingngo offl and,e
land, tc .”
etc”). ).
(5
(5))T Thehep ro vi si
provisionso nso offA rticl
Articleses1 0
1077a nd1
and 1
1144s ha
shalllla ppl
apply ym uta
mutatistismu tandi
mutandis st ot
to hec
the a lcul a
ti o
calculation, n,
d ete r mi nat
determination iona ndr
and e as s e ss
reassessment me nto offthe
thec al cul a
calculatedte dt axa
taX mounto
amount onnt heg
the a i
gainsnsf rom trading
from tradi ng
o
offl a nd,e
land, tc
etc. .< Amendedb
<Amended byyA ActctNo No..7 83
7837,7,Dec.
Dec .3],
31 ,2005>
20 05 >
(6
(6))Ma tt
Matterse rsn ec e s
necessarysar yf ort
for hec
the a lc ul at
calculation iono offt heg
the ai
gainsnsf r om trading
from tradi ngl and,e
land, tc.a
etc. ndt
and ax
tax
a mountt
amount he r e
thereon,on,a ndt
and hep
the roc e dur
procedure ef ort
for het
the a
taXxp a yme
payment ntb byyap r
ovi s
a provisionalionalr etur
return ns hal
shalllb bee
d ete r mi
determined ne db yt
by heP
the r es ide nt
Presidential i
alD e cr
Decree.ee .< Amendedb
<Amended by yA c
Act tNo.
No.503],
5 0 3 1 ,Dec.
Dec .29,
2 9 ,1995>
1995 >
Ar t i
c
Articlele7 700( FinalR
(Final e t
ur
Return nf final
inalr etur
returnno nt
on axb
tax as
baseeo offG lobalI
Global nc ome
Income) )
( 1)A
(1) nyr
Any e si
de nth
resident avi nga
having nyg
any lobalincome
global inc omea mounta
amount cc rui
accruingngd ur i
duringngt hec
the orr espondi
correspondingng
y ea
year, r,s ha l
shalllreturn
retur nt het
the axb
tax as
base eooffs uc
suchhg l
oba
global lincome
inc omet ot
to hec
the hie
chief fooffat a
a taX xo f
ficeh
office avi ng
having
j ur i
s dic t
i
jurisdictionono ve
overrt hep
the lac
placeeo offt axp
tax ayment,
payme nt ,from
fr
om May
Ma y1t oMa
1 to May y3 311i nt
in hey
the e a
yearrfollowing
foll
owi ng
t hec
the or respondi
corresponding ng year,
ye ar,under
unde rt hec
the ondi tionsa
conditions assp r
es cr ibe
prescribed dbbyyt heP
the re s i
dent
PresidentialialD ec re
Decree.e .
( 2)T
(2) hep
The rovi sionso
par a gr aph( 1
(1))s halla
shall l s
alsoob ea
be ppl ica bl
applicable ei nac
in as
a case e wh e
whereret her
thereei iss
n
no ot axb
tax as
base ei nt
in hec
the or res pondi
corresponding ngy e
ar
year,,oorrt her
thereeiissa nyl
any oss
loss..
( 3)T
(3) her
The etur
return naassr efe rre
referreddt tooi np
in ar agr aph(
paragraph 1)s
(1) hal
shalllbe
ber e fer
r e
referreddt tooaass“ finalreturn
“final re t
ur nf inal
final
r et ur
return no nt
on axb
tax as
baseeo offg lobali
global nc ome
income”. ” .
- 120 -
-120-
(4
(4))T The hew r i
t
written te nf i na
final lreturn
re tur nf ina
final lreturn
r et ur no onnt axb
tax a
bases eooffg l
o balincome
global inc o me s ha
shalll lbe
bef ile
fileddw i
withth
thec
the hi
chief e fo offat a taxaxo ffi
officec eh avi
having ngj ur i sdi c
jurisdictionti ono ve
over rthe
thep lac
place eo offtax
taxp ayme
payment nttogether
toge the rwi t
with h
thed
the oc ume
documents nt sf al li
fallingngu nde
under ra nyo
any offt hef
the ol lowi
following ngs ubpar a gr
subparagraphs. aphs .I Innt hi
thissc as
case,e ,wh
when e na ny
any
pe rs
person ons ubj
subjecte c tt toob ookke
bookkeeping e pi ngb by yd oubl
double ee nt
entryr yu nde
under rt hep
the r ovi s
provisionsi onso offArticle
Ar ti
c le1 6
1600( 3
(3))
(he r e i
na
(hereinafter fte rr e fe
referredrr e dt tooa asst he“
the pe r
“personso ns ubj
subjecte c tttoob oo kke e
bookkeeping pingb byyd oubl
double ee nt r y”
entry”) )h a
has sf aile
failedd
tos
to ubmi
submit tt hed
the oc ume
documents nt su nde
under rt hep
the rovi
provisionsiono offs ub-p
sub- ar agr
paragraph aph3 3,,hehes ha
shall llbe
bed e eme
deemed d
toh
to aven
have otf
not il e
filed dt hef
the ina
final lr e tur
return nf ina
final lr e tur
return no onnt axb
tax as
base eo offg l
obali
global nc ome
income: :< Amended
<Amended
byA
by Act c tNo.No.5580, 5 5 8 0 ,Dec.
Dec .28,
2 8 ,1998;
1 9 9 8 ;Act
Ac tNo.
No.7 8 3
7837,7 ,Dec.
Dec .3],
31 ,2005;
2 0 0 5 ;ActAc tNo.
No.8144,8 1 4 4 ,Dec.
Dec .
30,2006;
30, 200 6;A Act c tNoNo..8825, 88 25 ,De Dec. c .3],
31 ,2007>
20 07 >
11..D oc ume
Documents nt sa assp re sc r
prescribed ibe db byyt heP
the r e s ide
Presidential nt ialDecree
De c re ea tt es t
attestingingt hath
that heei isss ubj e
subject c tt o
to
t hep
the e rs
personalonald e duc
deduction t iona assp re sc r
prescribedibe di nA
in rt i
Articlecle5 0
50,,5511o orr5 1-2
51-2, ,the
t hep ens
pensionioni ns ur
insuranceanc e
p re
premiummi um d e duc
deduction tiona assr e fe r
referredr e dt oi
to nA
in rt i
Articlecle5 1 -3
51-3, ,t hei
the nt e re
interest s te xpe
expense ns ed educ
deductiontionf or
for
r eve
reverse rs emo rt
mortgage-ga ge -b a c
backedke dr e tir eme
retirement ntp ens
pensionio ns ys t
systemema assp rovi
providedde di nA
in rtic
Article le5 511- 4
-4, ,a nd
and
t hes
the pe c
speciali ald e duc
deduction tionu nde
under rt hep
the rovi s
provisions ionso offA r ti
c
Article le5 2;
52;
2
2.. D o c ume
Documents nt sa assp r e s cr
prescribedibe db by yt heP
the re s i
de nt
Presidential ia lDecree,
De c re e,w hi
whichc ha r
areen e
nec-c -e ssa
essaryryf o
for rc a l
c ul at
calculatinging
t het
the ot alg
total ros
gross si nc omea
income mounta
amount ndt
and hen
the e
nec-c -e s sar
essary ye xpe ns
expenses eswh i
whichc ha r
areet heb
the as
basisis
o
offt hec
the a lc ul
calculationat i ono offt heg
the loba
global li nc omea
income mount
amount; ;
3
3.. I
Iffa nyr
any e
reala le s ta
estate ter e nt
rentala li nc omea
income mounto
amount orra nyb
any us i
ne
business s si nc ome a
income mo untis
amount isc alc ul a
calculatedte d
o
on nt heb
the a
basiss iso offt heb
the oo
books ksa nds
and uppo r
supporting tingd o c
docu-u-m ent
ments sk epta
kept nde
and nte
enteredre du nde
under rArticles
Ar tic l
e s
1
1606 0a nd1
and 6
161, 1 ,t heb
the ala nc
balance es he
sheete ta ndt
and hei
the nc omes
income ta teme
statement ntprepared
pr epa re db ya
by ppl yi
applying ngmu ta
mutatis tis
mu t
mutandisandi st hec
the or por
corporate a t ea c c ount
accounting ings t anda
standards, r ds ,a ndt
and hea
the nne
annex xt he re
thereof, of,t ri a
triallbal-
bal -a nc
ance e
s he
sheet e ta ndt
and hea
the dj us
adjusted te da c c o
account unts t at e me
statement ntp re pa
preparedr edu nde
under rt hec
the o ndi
conditionstionsa assp re sc r
prescribedibe d
b
by yt heP
the r e s ide
Presidential nt i
alD e c
Decreeire e :P rov i
Provided,ded,T hati
That iffthe
theb us ine s
businessman s ma nh hasask e ptbooks
kept booksu nde
under r
A rt
Articlei cle1 60(
160 2 )
(2), ,t hea
the c
ac--c ounts
count ta te me
statement nto offincome
inc omea mo
amountsunt sb byys impl
simple eb ook-ke
book-keeping epi ng
p r e s c
prescribedr ibe db byyt heP
the r e s ide
Presidential nt i alD e c
Decree;re e ;
4
4.. I
Ifft hen
the e c e s
neoessarys a rye xp e
expensesn se sa r
areec a lcula
calculatedt edu n
underde rArticles
Ar tic l
e s2288through
thr ough3 2
32,,the
th es p eci fi
c a
specificationti
o nt h e r
e o
thereof; f;
5
5.. I
Iffab us i
a businessmanne s s man( e xc ludi
(excluding ng a ny s
any mal l-s
small-scale c aleb us ine s
businessman s man a assp re s c r
prescribedibe db byy the
t he
P re s ide
Presidential nt ia lD e c
Decree)r ee )r e c e i
receivesve sd oc ume
documents nt so t he
other rt hant
than hes
the uppor
supportingt ingd oc ume
documents nt sf al ling
falling
u nde
under raanynys ubpar
subparagraph agr apho offA rti
Articlecl e1 6
160-0 -2(2 (2)2 )a fte
afterrbeing
be i ngs uppl
supplied ie dg oodso
goods orrs e r vic
services e s
f r
fromoma no
anothert he rbusiness-
bus ine s s -maman n( i
nc ludi
(including nga nyc
any or po ra t
i
corporation)o n)ini nc onne c
connection ti onw i
withthh isb
his us ine
business, s s,
t hes
the pe c if ic
specification a tio no offt her
the e c e pt
reception iono offreceipt
re c e i
p t( he re ina
(hereinafterfte rreferred
r e fe rredt tooa ass the
the“ spe c ific a
“specificationtio n
o
offr e c e pt
reception iono offr ec e ipt
receipt”) ” )a assp r es c r
the re s
Pres- -i de nti
identialalD ecr
Decree; ee ;a nd
and
6
6.. I
Iffa nyr
any e
realale st
estateat er e nt
rental ali nc omea
income mounto
amount orra nyb
any usi
businessne s si nc
incomeome a mounti
amount issnnotot
c a lc ul
calculated a te do onnt heb
the as
basisiso offt hes
the uppor
supportingt ingd oc ume
documents ntso orrbooks
booksk e
kept pta nde
and nt e
enteredre du nde
under r
A rt i
Articles cle s1 1606 0a nd1
and 61
161, ,t hea
the c c ounts
account ta te me
statement nto offe s tima
estimated te di nc omea
income mount
amounts sp res c r
prescribed i
be d
b
by yt heP
the re s ide
Decree.r ee .
(5
(5))I Ifft he
thererei issa nyd
any e fe
defect cto orre r rori
error nt
in her
the e tur
return no orro t
he
other rd o c ume
documents nt sf i
le
fileddu nde
under rp a ra gr
paragraph a ph
(4 )
(4),,t hec
the hi e
chief fo offat a
a tax xo f fic
office eh a vi
jurisdiction tio no ve
over rthe
thep la
placec eo offtax
ta xp ayme
payment ntmayma yd e ma
demand nd
thes
the uppl e
supplementme nta ndc
and or re c
correctiont iont he re
thereof.of .
- 122 -
-122—
(6)D
(6) eleted.<
Deleted. byA
<by ctNo
Act No..6781,De
678], c
Dec.18,2002>
18, 20
02>
Art i
cle7
Article 711(FinalR
(Final eturnf
Return final
i
nalr eturno
return nt
on axb
tax aseo
base offRetirementI
Retirement ncome)
Income)
(1)A
(1) nyr
Any esidenth
resident avinga
having nyr
any etirementi
retirement ncomea
income mounta
amount ccruingd
accruing uringt
during hec
the orresponding
corresponding
year,s
year, hallreturn
shall r
eturnt het
the axb
tax aseo
base offsuchr
such etirementin-
retirement i
n-c omet
come ot
to hec
the hiefo
chief offat axo
a tax ffice
office
havingj
having ur i
sdictiono
jurisdiction vert
over hep
the laceo
place offtax
taxp ayment,from
payment, f
rom May
May1t oMa
1 to y3
May 311int
in hey
the ear
year
followingt
following hec
the orrespondingy
corresponding ear,u
year, ndert
under hec
the onditionsa
conditions assprescribedb
prescribed yt
by heP
the residential
Presidential
Decree.
Decree.
(2)T
(2) hep
The rovisionso
paragraph 1)s
(1) halla
shall ppl
ye
apply venw
even hent
when herei
there issn
nootaxb
tax aseo
base offretirement
retirement
incomea
income ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ear:P
yeari rovided,T
Provided, hatthe
That t
hec aseso
cases offap erson
a person
whoh
who asp
has aidt
paid hei
the ncomet
income axu
tax nderA
under rt i
c l
es1
Articles 46t
146 hrough1
through 48,t
148, hiss
this hallnot
shall no
ta pply.<
apply. Amended
<Amended
byA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
(3)T
(3) her
The eturna
return assreferredt
referred tooinp
in aragraph(
paragraph 1)s
(1) hallb
shall beereferredt
referred tooa
ass“finalreturn
“final r
eturnf inal
final
returno
return nt
on axb
tax aseo
base offretirementi
retirement ncome”.
income”.
Art i
cle7
Article 2De
72 leted.<
Deleted. byA
<by ctNo
Act No..8144,
8144,Dec.
Dec.80,
30,2006>
2
006>
Art i
cle7
Article 3(
73 Exceptiont
(Exception oF
to inalReturn
Final Re
turnf inalreturn
final r
eturno nt
on axb
tax ase)
base)
(1)N
(1) otwithstandingt
Notwithstanding hep
the rovisionso
provisions offArt i
c l
es7
Articles 0a
70 nd7
and 1,ar
71, esidentf
a resident allingu
falling ndera
under ny
any
o
offthef
the ollowings
following ubparagraphsm
subparagraphs ayn
may otf
not ileaf
file inalr
a final e-t
re- urnf
turn inalr
final eturno
return nt
on axb
tax ase
base
o
offthec
the orrespondingi
corresponding ncome:<
income: Amendedb
<Amended yA
by ctN0.
Act No.6292,
6292,Dec.
Dec.29,
29,2000;
20
00;A ctN0.
Act No.
6781,Dec.
678], Dec.18,
18,2 002;A
2002; ctNo
Act No..8825,
8825,Dec.
Dec.8],
31,2007>
2
007>
1
1..
A resident
A residenth avingo
having nlye
only arnedi
earned ncome;
income;
2
2..
A resident
A residenth avingo
having nlyr
only etirementi
retirement ncome;
income;
3
3..
A resident
A residenth avingo
having nlya
only nnui
t yi
annuity ncomeu
income nderA
under rticle2
Article 0-3(
20-3 1)1a
(1) nd2
1 and 2;;
4
4..
D eleted;<
Deleted; byA
<by ctNo
Act No..6781,De
678], c
Dec.18,2002>
18, 20
02>
5
5..
Ar
A esidentwh
resident oh
who aso
has nlyb
only usinessi
business ncomep
income rescribedb
prescribed yt
by heP
the resi
-d
Presi- entialD
dential ecree
Decree
thati
that isssubjectt
subject ow
to ithholdingt
withholding axationp
taxation ursuantt
pursuant o A
to rt i
cle1
Article 27;
127;
6
6..
A resident
A residenth avingo
having nlyi
only ncomesf
incomes allingu
falling nders
under ubparagraphs1a
subparagraphs nd2
1 and 2;;
7
7..
A resident
A residenth avingo
having nlyi
only ncomesf
incomes allingu
falling nders
subparagraphs nd3
2 and 3;;
8
8..
A resident
A residenth avingo
having nlyi
only ncomesf
incomes allingu
falling nders
subparagraphs nd5
2 and 5;;
9
9..A residenth
A resident avingo
having nlyi
only nterest,d
interest, ividend,a
dividend, nnuitya
annuity ndmi
and scellaneousi
miscellaneous ncomest
incomes hat
that
ares
are ubjectt
subject os
to eparatet
separate axation;a
taxation; nd
and
10.A
10. residenth
A resident avingt
having hei
the nterest,d
interest, ividend,a
dividend, nnuitya
annuity ndmi
and scellaneousi
miscellaneous ncome,wh
income, ich
which
ares
are ubjectt
subject os
to eparatet
separate axationa
taxation mongt
among hosef
those allingu
falling nders
under ubparagraphs1t
subparagraphs hrough8
1 through 8..
- 124 -
-124-
(2)T
(2) hep
The rovisionso
paragraph( 1)s
(1) halln
shall ota
not pplyt
apply ot
to hep
the erson,o
person, therthan
other t
hanad ai
l y-paid
a daily-paid
worker,w
worker, hoh
who asa
has nye
any arnedi
earned ncome,a
income, nnui
t yi
annuity ncome,retirement
income, r
etirementincome,
i
ncome,oorrincome
incomep rescribed
prescribed
inp
in aragraph(
paragraph 1)5(
(1) includingp
5 (including ersonswh
persons oh
who aveb
have othC
both lassA
Class A andB
and B earnedi
earned ncomes
incomes
a
attthes
the amet
same ime)p
time) aidb
paid yt
by woo
two orrmorep
more ersons:Provided,
persons: Pr
ovided,T hatt
That hiss
this halln
shall ota
not pply
apply
tot
to hep
the ersonw
person hoh
who asp
has aidt
paid hei
the ncomet
income axb
tax yay
by ear-enda
a year-end djustmenta
adjustment asspre-s
pre- cribed
scribed
inA
in rt i
cle1
Article 37,1
137, 38o
138 orr144-2.<
144-2. Amendedb
<Amended yA
by ctN0.
Act No.519],
5191,Dec.
Dec.30,
30,1996;
19
96;A ctNo.
Act No.
6292,Dec.
6292, Dec.29,
29,2 000>
2000>
(3)T
(3) hep
The rovisionso
paragraph( 1)s
(1) halln
shall ota
not pplyt
apply tooap ersonwh
a person whoohasC
has lassBe
Class arned
B earned
incomeo
income orrClassBr
Class etirementi
B retirement ncome:Provided,
incomei Pr
ovided,T hatt
That hiss
this hallnot
shall notapplyt
apply ot
to hep
the erson
person
whoh
who asp
has aidi
paid ncomet
income axu
tax nderArticle
under Ar
t i
cle1 52(
152 2)by
(2) byreferringt
referring ot
to hep
the racticeso
practices offthe
thep ayment
payment
o
offawi thholding t
a withholding axa
tax assprescribedi
prescribed nA
in rt i
c l
es1
Articles 37a
137 nd1
and 38,a
138, ndwh
and oh
who asp
has aidi
paid ncome
income
taxp
tax ursuantt
pursuant ow
to ithholdingt
withholding axr
tax ateu
rate nderArticle
under Ar
t i
cle1 56-5.<
156-5. Amendedb
<Amerided yA
by ct N0.
Act No.8825,
8
825,
Dec
Dec..3],
31,2007>
20
07>
(4)T
(4) hep
The rovisionso
paragraph 1)s
(1) halln
shall ota
not pplyt
apply ot
to hec
the asew
case hereaw
where ithholdinga
a withholding gent
agent
underA
under rt i
cle1
Article 27f
127 ailst
fails owi
to thholda
withhold ni
an ncomet
income axf
tax rom t
from hoseh
those avinga
having nye
any arnedi
earned ncome
income
(excludingd
(excluding ayl
day aborw
labor ages),a
wages), n-n
an- uityi
nuity ncome,retirement
income, r
etirementi ncome,o
income, orrincomeu
income nderparagraph
under p
aragraph
(1)5b
(1) yt
5 by hey
the ear-enda
year-end djustmentu
adjustment nderA
under rt i
cle1
Article 37,1
137, 38,1
138, 43-4,1
143-4, 44-2,o
144-2, orr146.
146.
<NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..6292,Dec.
6292, Dec.29,
29,2000>
2
000>
(5)I
(5) Ifftherei
there issnoa
no dditionali
additional ncomea
income ccruinga
accruing fterthe
after t
heo ccasionala
occasional ssessmenta
assessment assprescribed
prescribed
inA
in rt i
cle8
Article 2,i
82, ittmayb
may ep
be ermittedn
permitted ott
not oma
to ket
make hef
the inalreturn
final r
eturno nt
on het
the axb
tax ase.
base.
Art i
cle7
Article 4(
74 SpecialC
(Special aseo
Case offFinalR
Final eturnf
Return inalr
final eturno
return nt
on ax b
tax ase)
base)
(1)I
(1) Iffar esidentd
a resident ies,h
dies, isi
his nheritors
inheritor hallma
shall kear
make eturno
a return nt
on her
the esident’st
resident’s axb
tax asef
base or
for
thet
the axablep
taxable eriodo
period offdeathwi
death thins
within ixmo
six nthso
months offthe
thec ommencemento
commencement offthe
thei nheritance
inheritance
(inc
(in asew
case heret
where hei
the nheritord
inheritor epartsi
departs n t
in hisp
this eriodf
period rom K
from oreat
Korea omo
to veh
move isd
his omicile
domicile
o
orrtemporaryd
temporary omicilet
domicile oaf
to oreignc
a foreign ountry,n
country, otl
not atert
later hant
than end
ten aysf
days romt
from hed
the ateo
date offdeparture),
departure),
undert
under hec
the onditionsa
prescribed yt
by heP
the residentialD
Presidential ecree.
Decree.
(2)T
(2) hep
The rovisionso
paragraph 1)s
(1) halla
shall pplym
apply utatism
mutatis utandisi
mutandis nc
in asew
case heret
where her
the esident
resident
whod
who iesb
dies etweenJ
between anuary1a
January ndMa
1 and y3
May 1,fails
31, f
ailst om
to aket
make hef
the inalreturn
final r
eturno nt
on het
the axb
tax ase
base
fort
for het
the axablep
taxable eriodi
period mmediatelyp
immediately recedingt
preceding het
the axablep
taxable eriodo
period offdeath.
death.
(3)T
(3) hep
The rovisionso
provisions offparagraphs
paragraphs( 1)a
(1) nd(
and 2)s
(2) halla
shall pplym
apply utatism
mutatis utan-d
mutan- isi
dis nc
in asew
case here
where
thei
the nheritord
inheritor ieswi
dies thoutma
without kingt
making hef
the inalr
final eturno
return nt
on het
the axb
tax asei
base ns
in uchp
such eriod.
period.
- 126 -
-126-
(4
(4))I nt
In hee
the ventt
event hatar
that es ide
a resident ntl ia bl
liable ef ormaking
for ma kingt hef
the ina
finallreturn
retur no n the
on t
het a
taxxb as
base, e ,d epa r
departsts
from K
from or
Koreaeat omo
to moveveh isd
his omi c
domicile ileo orrt empor
temporaryar yd omi c i
domicilelet oaf
to or ei
a foreigngnc ount r
country, y,hehes ha l
shalll
ma ket h er e t
u rno nt h et a xb a s ef ort het a xa blep eriodt owh
make the return on the tax base for the taxable period to Which the date of departure icht hed a t
eo f d ep artu re
b elongs
belongs, ,n otl
not ate
laterrt hant
than end
ten aysf
days r om the
from thed at
dateeooffd e par tur
departure.e .
(5
(5))T hep
The rovis ionso
provisions offp aragr
paragrapha ph( 4
(4))s ha
shalll
la ppl
applyymu tat
mutatisismu tandi
mutandis st toot hef
the final
i
nalr e tur
return nf ina
finall
re tur
returnno nt
on axb
tax as
baseef ort
for het
the axabl
taxable ep eri
odi
period mme diat
immediatelyelyp rec edi
precedingngt het
the axa bl
taxable ep e riodt
period o
to
w hi
Whichcht hed
the at
dateeooffd ep artur
departure eb elo ngs
belongs, ,iiffthe
ther e si
de ntd
resident epartsf
departs romK
from o re
Korea at om
to o
moveveh i
hissd omi ci
domicilel
e
o
orrt empor
temporaryar yd om-i
dom- cilet
icile oaf
to or
a foreigneignc ount
country,ry,b etwe e
betweennJ anua
Januaryry1a ndMa
1 and May y3 1.
31.
(6
(6))T hep
The rovis io
provisionsnso offA rti c
Articlele7 700( 4
(4))a nd(
and 5)s
(5) ha l
la
shall pplymu
apply ta
mutatistismu t
mutan-a
n-d ist
dis toot hes
the pec i
a
speciall
ca se
casesso offm akingaf
making a final
i
na lreturn
ret ur no onnt het
the axb
tax a s
baseeu nde
underrparagraphs
pa ragr a phs( 1)through
(1) through( 5)
(5)..< Newl
<Newly y
In s er te db yA ctNo . 55 8 0, De c. 2 8 ,1 9 98 ;A
Inserted by Act No. 5580, Dec. 28, 1998; Act No. 8825, Dec. 8], 2007> ctNo . 88 25 , De c. 3 1, 2 0 0 7>
Art i
cle7
Article 5(
75 Applicationf
(Application orR
for eductiona
Reduction ndE
and xemptiono
Exemption offTaxA
Tax mount)
Amount)
(1)A
(1) nyr
Any esi
de n
residenttw h
Who od esire
desiresst oh
to a vet
have hei
the nc omet
income axr
tax edu ce
reduceddoorrexe mp t
exemptede
du nd e
under rA rticle
Article
13(
13 1)
(1),,s ha
shalll
lf i
lea
file anna p p l
i
c atio
application nf ori
for ittw it
ht
with hec
the hie
chieffooffat axo
a tax ff
ic
officeeh avingj
having ur i
sdic ti
o
jurisdictionn
ove
overrt hep
the laceo
place offt a
taxxp ayme
payment,nt ,together
toge the rw i
t
Withht her
the e t
ur
returnna sp
as rescri
be
prescribeddi nA
in rticl
es6
Articles 9,
69,
70o
70 orr7 4,u
74, nd e
underrt hec
the ondi
condi--t io nsa
tions sp
as resc rib
prescribede
db byyP resident i
a
PresidentiallDecree.
De cree.
(2)A
(2) nyp
Any ersonw
person Whohod esir
e
desiresst oh
to avet
have het
the a
taxxo nh
on i
hisse a rne
earned di nco mer
income e
d uce
reduceddo orre xemp
exemptedted
und e
under rA r ti
cl
Articlee1 3(
13 1)1
(1) 1,,sha l
la
shall p p
applyl
yf o
forrititto
tot hec
the hie
fo
chief offat a
a taxxo ffic
eh
office avingj
having ur i
sd i
c ti
o
jurisdictionn
ove
overrt h
theep l
ac
placeeoofft axp
tax ayme
paymentntunder
u nd e rthe
th ec ond i
tio
conditionsnsaassprescribed
p r
es cri
be db yP
by res
ide n t
ia
PresidentiallDecree.
De cree.
< Amendedb
<Amended byyA Actc tNo
No..5580,
5 58 0,Dec.
Dec .28,
28,1998>
199 8>
Art i
cle7
Article 6(
76 VoluntaryP
(Voluntary aymentb
Payment yF
by inalReturn)
Final Re
turn)
(1
(1))A n
Anyyr es id e
resident nts ha
shalll
lp a
payyt hea
the mo
amountun tc a l
c ula t
e
calculated db yd
by e du cti
ngt
deducting h
theer e
re--d uce
duceddoorre xe mp t
exemptede d
ta
taxxa mo
amountunta ndt
and het
the a
taxxc re di
credit ta mo
amountuntfrom
fro m the
t
hec al
cal--c ula t
e
culateddg l
o ba
global lincome
inc o
met a
taxxa mo unt
amount
o
orrt hec
the a l
c ul a
calculated tedr e ti
r eme
retirement nti nc o
incomeme tax ta xa mo unto
amount nt
on het
the a
taxxb a
bases eooffthe
t hec or r e
sp ondi
corresponding ng
ye a
year,r ,t ot
to hec
the o mp e
competentte ntt a
taxxo f fic
officeeh a vingj
having urisd ic t
io
jurisdiction no ve
over rthe
thep la c
placeeo offtax
taxp a yme
payment,nt,the
the
B a
Banknko offK or
Korea,e a ,oorrap ost
a postala la ge nc
agency yu nd e
under rt hec
the ondi tio
conditionsnsa assp r esc ri
prescribedbe db yP
by resident i
Presidentiala l
D e c
Decree reen o
not tl a te
laterrt ha
than nt het
the imel
time imi
limittfor
fort hef
the ina
final lreturn
retur n final
f
ina lreturn
retur noonnt a
taxxb as
baseea ass
pr e s cr
prescribedi
be di nA
in rt ic
Articlesl
e s7 0
70,,7711a nd7
and 4u
74 nde
under rthe
thec o nditionsa
conditions sp
as re s
c ri
prescribedb e db yP
by resident i
Presidentiala l
D e c r
Decree. ee.< Amendedb
<Amended yA
by c
Act tNoNo..8144,
814 4,Dec.
Dec .80,
3 0,2006>
2 00 6>
(2
(2))T hep
The ayme
payment nta assr efe rr
referrededt tooi np
in ara gr a
paragraphp h( 1)s
(1) ha l
shalllbe
ber eferre
referreddt tooaass“ volunta
“voluntaryryp a yme
payment nt
byf
by ina
finallr e tur
return”.n” .
(3
(3))T het
The axa
tax mountf
amount al l
ingu
falling nde
under ra nyo
any offthe
thef ol l
owi
followingngs ubpar agr
subparagraphsaphs s ha l
l,if
shall, i
fa ny,be
any, be
de duc
deducted te df rom t
from het
the a
taxxa mountv
amount olunt ar
voluntarilyilyp a
i
paiddb yaf
by inalreturn:
a final ret ur n:< Amendedb
<Amended yA
by Act ct
No.6
No. 2 92
6292, ,Dec.
Dec .29,
2 9,2000>
2 00 0>
11..T axa
Tax mountf
amount ori
for nt e r
interimi
m prepayment
pr e payme nta assp r e scr i
be
prescribed di nA
in rtic
Articlele6 5;
65;
2
2.. T axa
Tax mountc
amount al cul at
calculated edb byyap rovi sionalreturn
a provisional ret ur noonng ainsa
gains ccr ui
accruingng from
from trading
t
radingo off
land,e
land, tc
etc..a assp r e scr i
prescribedbe di nA
in rti c
Articlele6 9
69,,oorrthe
thed etermi ne
determined do orrrectified
re c tif
iedt a
taxxa mo
amountuntthereof
t
he re of
(inc ludi
(includingngt het
the a
taxxc redi
credit tf orap
for rovi s i
onalr
a provisional et urn)
return); ;
- 128 -
-128-
3
3..
T axa
Tax mounta
amount ssessedo
assessed ccasional
l yu
occasionally nderA
under rt i
cle8
Article 2;
82;
4
4..
Wit hholdingt
VVlthholding axa
tax mountprescribed
amount pr
escribedi nA
in rt i
cle1
Article 27(
127 limitedt
(limited ot
to het
the axa
tax mounto
amount offthe
the
correspondingr
corresponding esidentu
resident nderA
under rt i
cle4
Article 6o
46 nt
on hei
the nterestc
interest orrespondingt
corresponding ot
to heh
the olding
holding
periodi
period nc
in aseso
cases offwithholdingt
withholding axo
tax n interest
on interesti ncomeo
income nb
on onds,e
bonds, tc.u
etc. nderp
under aragraph
paragraph
(1)o
(1) offthes
the ameA
same r-t
Ar- icle);a
ticle); nd
and
5
5..
T a
xa
Tax mountc
amount ollectedb
collected yat
by axa
a tax ssociationu
association nderArticle
under Ar
t i
cle1 50,a
150, ndt
and hed
the educteda
deducted mount.
amount.
Art i
cle7
Article 7(
77 Paymenti
(Payment nI
in nstallments)
Installments)
I
Iffthet
the axa
tax mountt
amount ob
to ep
be aidb
paid yar
by esidentu
a resident nderA
under rt i
cle6
Article 5,69
65, 6
9oorr76,
76,e xceedst
exceeds enmi
ten llion
million
won,h
won, ema
he yp
may ayap
pay arto
a part offsuchp
such ayablet
payable axa
tax mountin
amount i
ni nstallments,wi
installments, thint
within womo
two nths
months
fromt
from hee
the xpirationd
expiration ateo
date offthep
the aymentt
payment erma
term assprescribedb
prescribed yP
by residentialD
Decree. Amended
<Amended
byA
by ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
20
08>
Art i
cle7
Article 8(
78 Reporto
(Report nP
on resentS
Present ituationo
Situation offBusinessP
Business lace)
Place)
(1)A
(1) nyb
Any usinessp
business roprietors
proprietor hallf
shall ilear
file eporto
a report nt
on hep
the resents
present ituationo
situation offther
the elevant
relevant
businessplace
business p
lace( hereinafterreferred
(hereinafter r
eferredt oa
to s“
as reporto
“report np
on resents
present ituationo
situation offbusiness
businessplaoe”)
p
lace”)
witht
with hec
the hiefo
chief offat axo
a tax fficeh
office avingj
having urisdictiono
jurisdiction vert
over hes
the eato
seat offtheb
the usinessp
business lace,
place,
withint
within hirty-oned
thirty-one aysa
days ftert
after het
the axablep
taxable eriodi
period st
is erminatedu
terminated nderc
under onditionsp
conditions rescribed
prescribed
byP
by residentialD
Presidential ecree:P
Decree; rovided,T
Provided, hati
That nc
in asesf
cases allingu
falling ndera
under nyo
any offthe
thef ollowings
following ubpar
a-
subpara-
graphs,t
graphs, hes
the ames
same halln
shall ota
not pply:<
apply: Amendedb
<Amended yA
by ctNo.
Act No.5580,
5580,Dec.
Dec.28,
28,1 998;Act
1998; Ac
t
No.8144,
No. 81
44,Dec.
Dec.30,
30,2006>
2
006>
1
1..
Wheret
Where hep
the rovisionso
Art i
cle7 4a
74 rea
are ppliedd
applied uet
due ot
to heb
the usiness-ma
business- n’sd
man’s eatho
death orr
departuref
departure rom K
from orea;a
Korea; nd
and
2
2..
Wheret
Where heb
the usinessmana
businessman assprescribedi
prescribed nA
in rt i
cle2o
Article 2 offthe
theV alue-AddedT
Value-Added axA
Tax ctfiles
Act f
il
es
ar eturnu
a return nderA
under rt i
c l
es1
Articles 8,1
18, 9o
19 orr27o
27 offthes
the aidA
said ct.
Act.
(2)A
(2) nyb
Any usinessmanwh
businessman oi
who issobligedt
obliged of
to ilear
file eporto
a report np
on resents
present itua-t
situa- iono
tion offbusiness
business
placeu
place ndert
under hep
the rovisionso
paragraph 1)s
(1) hallf
shall ileawr
file ittenr
a written eportw
report hichi
which ncludes
includes
thema
the ttersf
matters allingu
falling ndera
under nyo
any offthe
thef ol-l
fol- owings
lowing ubparagraphs:<
subparagraphsi NewlyI
<Newly nsertedb
Inserted y
by
ActNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006;
2
006;A ctNo
Act No.. 8825,
8825,Dec.
Dec.8],
31,2007>
2
007>
1
1..
P ersonald
Personal etailso
details offtheb
the usinessman;
businessman;
2
2..
R ecordso
Records offrevenuea
revenue mountb
amount yb
by usinesst
business ypes;
types;
3
3..
P resentc
Present onditiono
condition offthef
the acilit i
es;a
facilities; nd
and
4
4..
O therma
Other ttersa
matters assprescribedb
prescribed yP
by residentialD
Presidential ecree.
Decree.
- 130 -
-130-
Ar ti
c l
Articlee7 9(
79 Inve sti
gat i
(Investigationona ndC
and onf i
r ma
Confirmation ti
ono nP
on r esentS
Present i
tuat i
Situationono offB us ine
BusinessssP lace)
Place)
T hec
The hie
chieffooffat axo
a tax ffic
officeeh avi
havingngj uri s
dictiono
jurisdiction ve
overrt hes
the eato
seat offthe
t
heb us ine
business ssp lac
placeeoorrt he
the
C ommi s s
Commissionerione rooffthec
the ompe
competentte ntR egiona
RegionallT axO
TaX ff
ic
Officee may,
ma y,upon
uponr e ceivi
receivingngt her
the eporto
report n
on
thep
the re se
presentnts i
tuat i
ono
situation offt heb
the us i
ne
businessssp lac
placeeaassp r
es cribe
prescribed diinnA rti
c l
Articlee7 8
78,,investigate
inve s ti
gatea nd
and
conf i
confirmrmt hep
the resents
present ituationo
situation offt heb
the usines
businesssplace
placeoorrordert
order hes
the ub miss
submissioni
o nooffb ooks
books,,d ocume nt
documents,s,
article s
articles,,e tc.pertaining
etc. pe r
ta i
ningt oi
to itta ndo
and the
otherrn eces sa
necwsaryrym atte
mattersrsu nde
underrthe
thec ondi t i
o
conditionsnsaassp r
esc ri
be
prescribedd
byP
by r eside nt
PresidentialialD ecr e
Decree.e.< Amendedb
<Amended yA
by ActctNo.
No.5580,
55 80 ,Dec.
Dec .28,
28,1998;
19 98 ;Act
ActNo.
No.6051,
60 51,
Dec
Dec. .28,
28 ,1999>
19 99>
Ar tic
Articlel
e8 800( De te r mi
(Determination na tiona ndR
and ec ti
f icat
Rectification)ion)
(1
(1))I Iffar e s ide
a resident ntl iabl
liable ef orma
for makingki ngaf i
na
a final lreturn
re t ur no nt
on a
taXxb as
base eu nde
under rA rt i
c
Articlesle s7 0,71
70, 71a nd
and
74h
74 asf
has a i
le
faileddt oma
to make ket her
the e le vantf
relevant ina
final lr et ur
return, n,t heC
the om-mi
Com- s sione
missioner ro offt hec
the ompe
competenttent
R e gi onalT
Regional TaXaxO ff
Officeic eo orrt hec
the hi
chiefefo offata taXaxo ff
officeiceh avi
having ngj ur i
s di ct
jurisdiction iono ve
over rt hep
the la c
place eo off
ta
taxxp ayme
payment nts hal
shall ld e ter mi
determine net het
the axb
taX as
base ea ndt
and axa
tax mounto
amount offt her
the es ide
resident ntc onc e
concernedrne di n
in
thec
the or r es pondi
corresponding ng year. ye a r .< Amendedb
<Amended byyA Act ctNoNo..8144,81 44 ,DeDec. c .30,
30 ,2006>
20 06 >
(2
(2))I Iffa nyp
any e r
person sonwh who oh a
has smamade deaf inalreturn
a final re tur nf inalreturn
final re turno nt
on a
taxxb as
base eu nde
under rA rtic
Articlesl
e s
70
70,,7 711a nd7
and 744( i
(innc a s
cases eso offs ubpar agr
subparagraph aph1 -2o
1-2 orr1 -3,in-
1-3, in-c ludi
cludingnga nyp
any er
personsonwh who oh a
hass
fai le
faileddt oma
to make keaf a finalinalreturn
r e tur nf i
nalreturn
final re tur no onnt axb
taX as
base eu nde
under rthe
t hep r ovi s i
onso
Ar ticle7 3
73) )
fa ll
fallssu nde
under ra nyo
any offt hef
the ol-l
fol- owi
lowing ngs ubpar agr
subparagraphs, aphs ,t heC
the ommi s
Commissionersione ro offt hec
the ompe
competenttent
R e gi onalT
Regional TaXaxO ff
Officeic eo orrt hec
the hi
chiefefo offata taXaxo ff
officeiceh avi
having ngj ur i
s di ct
jurisdiction iono ve
over rt hep
the la c
place eo off
ta
taxxp ayme
payment nts hal
shall lr e a ss
reassesse s st het
the axb
taX as
base ea ndt
and het
the a
taX xa mountin
amount int hec
the or
cor--r e spo ndi
responding ngy e a
year:r:
< Amendedb
<Amended by yA Act c tNoNo..5580,
5 58 0,Dec.
Dec .28,
2 8,1998;
1 99 8;A Actc tNoNo..6292,
62 92 ,Dec.
Dec .29,2 9,2000;
20 00 ;A c
Act t
No.7
No. 3 19
7319, ,Dec.
Dec .31,3 1,2004;
2 00 4;A Act c tNo
No..8144,
81 44 ,Dec.Dec .30,
30 ,2006;
20 06 ;A Actc tNoNo..8825,
882 5,Dec.
Dec .31,
31 ,
200
2007; 7;A Act ctNoNo..9270, 92 70 ,Dec.
Dec .26,
2 6,2008>
20 08 >
11..Whe
Where ret he
there rei issa nyo
any mi s
omissions iono orre rr
errorori nt
in hed
the e t ai
detailslso offr et ur
return;n;
1 -2
1-2. .Where
Whe r et he
there r ei issa nyo
any mi s
omissions i
ono orre rrori
error nt
in hed
the e ta
detailsil
so offt hey
the e ar-e
year-end nda dj us tme
adjustment nt
unde
under rt hep
the r ovi
provisionss ionso offA r ti
Articlec l
e1 37
137, ,1 38
138, ,1 43
143-4,-4 ,1 4 4
144-2-2o orr1 46
146, ,wh
whene niittis
i sd e e
deemedme dt ha
that t
i
ittiissd iffic
difficultul tt tooc olle
collectc tat
a taX axf rom t
from hewi
the thhol
withholding di nga ge ntd
agent uet
due ot
to hed
the is c ont i
nua
discontinuance nc e
o
offbusiness,
bus ine ss ,missing,
mi s si ng,e t
c
etc..oofft hew
the ithho ld
withholding inga ge nto
agent orrthat
t ha tit
itis
isd i
ffic
difficultultfor
fo rthe
thew ithho l
withholdingding
a ge
agent ntt oc
to ol l
collecte c tawi thhol
a withholding di ngt a
taXxd uet
due toot her
the et ire me
retirement nto offt hei
the nc omee
income ar ne
earners;r s;
1 -3
1-3. .Whe
Where rea anynyp er s
person, on,w hos
who ubmi
submittedtte dar e po
a report rtoonni nc o
income med educ
deductiont
io nf orap
for e rs
a person onh a vi
havingng
a nye
any arne
earned di nc
incomeomeu nde
under rArticle
Ar ti
c le1 4 0
140,,r e cei ve
received dt heg
the lo ba
global li nc o
incomemed educ t
deductionio nb byyw rongf
wrongful ul
w a
ways,ys ,s uc
such ha assu s ingf
using aul
faultyt
yr e ceipt
receipts,s ,aassp re s cr
prescribedi
be db byyP res ide nt
Decree,ee ,a ndawi
and a with-th-
h o ldi
holding nga ge
agent nti isse xp e
expectedctedt tooh a ved
have iffic ul
difficulty tyi nc
in o nfirmi
confirming ngw r ongf ul
wrongfulnessne s sooffs uc
such hd educ ti
deduction;o n;
2
2.. Whe
Where reh heef a il
failsst os
to ubmi
submit tt hew
the hol
whole eo orrpart
pa r to offthe
thes umma
summary r yt a bl
tableeo offtax
ta xb illsb
bills byys elle
seller r
a ndb
and uye
buyer ra assp r e sc r
prescribedibe di innA rtic
Article le1 6
1633o orrt hep
the ay-me
paymentntr e cor
recordsdsa assp r e sc ri
prescribedbe di n
in
Ar t ic
Articles les1 6
164 4a nd1
and 64
164-2;-2;a andnd
3
3.. Whe
Where rei itti issj udge
judged dt hed
the e t ai
details lsooffr etur
return na areren ots
not i nc e
sincererec ons i
de
consideringringt hes
the c al
scale eo offt he
the
f ac iliti
facilitiesesa ndt
and hec
the ur r
currentents ta t
statususo offthe
theb us ine
business, s s,w hi
which c hf a ll
fallssu nde
under ra nyo
any offthe
thef ollo wi
followingng
it ems
items: :
- 132 -
-132-
(a)Wh
(a) enab
When usinessp
a business roprietorwh
proprietor oi
Who issobligedt
obliged ou
to seab
use usinessa
a business ccountu
account ndert
under he
the
provisionso
provisions offArt i
cle1
Article 60-5(
160-5 1)h
(1) asf
has ailedt
failed od
to os
do o;
so;
(b)Wh
(b) enab
When usinessp
a business roprietorw
proprietor hoi
Who issobligedt
obliged oo
to pena
open ndr
and eportab
report usinessa
a business ccount
account
undert
under hep
the rovisionso
provisions offArt i
cle1
Article 60-5(
160-5 3)h
(3) asf
has ailedt
failed od
to os
do o;
so;
(c)Wh
(c) enab
When usinesswh
a business ichf
Which allsu
falls ndert
under her
the equiremento
requirement offsubscr
ip-t
subscrip- ionf
tion orac
for redit
a credit
cardme
card mbers
member toreu
store nderA
under rticle1
Article 62-2o
162-2 offthis Act
this Acth asf
has ailedt
failed toosubscribef
subscribe or
for
ac reditc
a credit ardme
card mbers
member toreu
store ndert
under heS
the pecializedC
Specialized reditF
Credit inancialB
Financial usinessA
Business ct
Act
withoutj
Without ustif i
ableg
justifiable rounds;
grounds;
(d)Wh
(d) enac
When reditc
a credit ardme
card mbers
member tore,w
store, hichme
Which etst
meets her
the equiremento
requirement offsubscription
subscription
forac
for reditc
a credit ardme
card mbers
member toreu
store nderA
under rt i
cle1
Article 62-2,has
162-2, ha
sr efusedat
refused ransactionb
a transaction y
by
creditc
credit ardi
card nv
in iolationo
violation offparagraph(
paragraph 2)o
(2) offthes
the ameA
same rt i
clewi
Article thoutj
Without ustif i
able
justifiable
grounds,o
grounds, orrhasi
has ssuedac
issued reditc
a credit ards
card aless
sales lipd
slip ifferentlyf
differently rom t
from hef
the act;
fact;
(e)Wh
(e) enab
When usinessp
a business roprietorwh
proprietor oi
Who issobligedt
obliged oj
to oina
join assac ashr
a cash eceipt member
receipt member
storeu
store ndert
under hep
the rovisionso
provisions offArt i
cle1
Article 62-3(
162-3 1)o
(1) orrwhoi
who issdesignateda
designated assap erson
a person
subjectt
subject ot
to hes
the ubscriptionf
subscription orac
for ashr
a cash e-c
re- eiptmember
ceipt me
mbers toreu
store ndert
under hep
the rovisions
provisions
o
offArticle
Art i
cle3 2-2o
32-2 offthe Value-Added
the Value-AddedT axA
Tax cthas
Act ha
sf ailedt
failed oj
to oina
join asso
orrsubscribe
subscribe
forac
for ashr
a cash eceiptmember
receipt me
mbers toreu
store nderthe
under t
hep rovisionso
Art i
cle1 26-3o
126-3 offthe
theR estriction
Restriction
o
offSpecialT
Special axationA
Taxation ct(
Act hereinafterreferred
(hereinafter r
eferredttooa
assa“ cashr
a “cash eceiptmember
receipt me
mbers tore”)
store”)
withoutj
Without ustif i
ableg
justifiable rounds;a
grounds; nd
and
(f)Wh
(f) enac
When ashr
a cash eceiptme
receipt mbers
member toreh
store asr
has efusedt
refused oi
to ssueac
issue ash receipt
a cash receiptwi thout
Without
justif i
ableg
justifiable roundso
grounds orrhasi
has ssuedi
issued ittdifferentlyf
differently rom t
from hef
the act.
fact.
(3)I
(3) IfftheC
the ommissionero
Commissioner offthec
the ompetentR
competent egionalT
Regional axO
Tax ffi
ceo
Office orrthec
the hiefo
chief offat axo
a tax ffi
ce
office
havingj
having urisdictiono
jurisdiction vert
over hep
the laceo
place offtax
taxp aymentd
payment etermineso
determines orrreassessest
reassesses het
the axb
tax ase
base
andt
and axa
tax mountf
amount ort
for hec
the orrespondingy
corresponding ear under
year underp aragraphs(
paragraphs 1)a
(1) nd(
and 2),it
(2), i
ts hallbe
shall be
madeo
made nt
on heb
the asiso
basis offthe b
the ooksa
books ndo
and thers
other upportingd
supporting ocuments:Provided,
documents: Pr
ovided,T hati
That iff
i
itti
issimpos-s
impos- iblet
sible oc
to alculatet
calculate hei
the ncomea
income mountby
amount bybooksa
books ndo
and thers
other upportingd
supporting ocuments,
documents,
duet
due or
to easonsp
reasons rescribedb
prescribed yP
Presidential De
cree,t hei
the ncomea
income mountma
amount yb
may ee
be stimated,
estimated,
investigateda
investigated ndd
and eterminedu
determined nderc
under onditionsp
prescribed yP
by residentialD
Presidential ecree.
Decree.
(4)I
(4) Iffanyo
any missiono
omission orrerrori
error issfounda
found fterd
after eterminationo
determination orrreassess- me
reassess- nto
ment offthet
the ax
tax
basea
base ndt
and axa
tax mount,t
amount, heC
the ommissionero
Commissioner offthe
thec ompe-t
compe- entRegional
tent Re
gionalTax
TaxOfficeo
Office orrthe
the
chiefo
chief offat axo
a tax fficeh
office avingj
having urisdictiono
jurisdiction vert
over hep
the laceo
place offtax
taxp ayments
payment hallimmediately
shall i
mmediately
reassessi
reassess t.
it.
Art i
cle8
Article 811(AdditionalTa
(Additional x)
Tax)
- 134 -
-134-
(1)Wh
(1) erea
Where nyp
any ersonwh
person oi
Who issobligedt
obliged os
to ubmitap
submit aymentr
a payment ecordu
record ndert
under hep
the rovisions
provisions
o
offArticle
Art i
cle1 64o
164 orr164-2h
164-2 asf
has ailedt
failed os
to ubmitthe
submit t
her elevantpayment
relevant paymentrecord
recordwi thint
Within he
the
deadlinet
deadline hereforo
therefor orrwheret
Where hes
the ubmittedp
submitted aymentr
payment ecordf
record allsu
falls nderc
under aseso
cases offobscurity
obscurity
determinedb
determined yP
by resi
-d
Presi- entialDecree,
dential De
cree,a na
an mounte
amount quivalentto
equivalent t
o2 /100o
2/100 offthe
thea mountpaid
amount pa
id
withoutt
Without hep
the aymentrecord
payment r
ecordoorro
offthea
the mountpaid
amount pai
dwi tht
With heo
the bscurep
obscure ayment record
payment record
shallb
shall ea
be ddedt
added ot
to hef
the inaltaX
final t
axa mount:Provided,
amounti Pr
ovided,T hatwh
That eres
Where uchp
such aymentrecord
payment r
ecordiiss
submittedwi
submitted thino
Within nemo
one ntha
month ftert
after hel
the apseo
lapse offthe
thed eadlinef
deadline ors
for ubmission,a
submission, na
an mount
amount
equivalentt
equivalent o1
to /100o
1/100 offthep
the aida
paid mounts
amount hallbe
shall beaddedt
added ot
to hef
the inaltaX
final t
axa mount,a
amount, ndw
and here
Where
ana
an dditionalt
additional axi
tax issleviedu
levied ndert
under hep
the rovisionso
Art i
cle9 0-2o
90-2 offthe
theR estrictiono
Restriction offSpecial
Special
TaxationA
Taxation ct,t
Act, hes
the ames
same halln
shall ota
not pply.<
apply. Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
(2)I
(2) nt
In hec
the aseo
case offappl
yi ngt
applying hep
the rovisionso
paragraph( 1),the
(1), t
hea ppl
i-c
appli- ationo
cation offthe
thea dditional
additional
taxt
tax ot
to hep
the ortionf
portion orwh
for icht
Which hep
the ersonwh
person oh
Who asb
has eenp
been aidi
paid issobscures
obscure hallbe
shall belimited
limited
withino
Within ney
one earf
year rom t
from hec
the losingd
closing ateo
date offthep
the eriodf
period oraf
for inalr
a final eturnf
return inalr
final eturno
return n
on
taxb
tax aseu
base ndert
under hep
the rovisionso
Art i
c l
es7 0,7
70, 711and7
and 4o
74 offthe
they earto
year t
ow hicht
Which hep
the ayment
payment
dateu
date ndert
under her
the elevantpayment
relevant payme
ntrecord
r
ecordb elongs.<
belongs. Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.
31,2007>
3], 2
007>
(3)Wh
(3) ena
When nyp
any ersons
person ubjectt
subject ob
to ookkeepingb
bookkeeping yd
by oublee
double ntryf
entry allsu
falls ndera
under nyo
any offthe
thef ollowing
following
subparagraphs,a
subparagraphs, na
an mounte
amount quivalentto
equivalent t
o1 /100o
1/100 offthe
thes upplyv
supply aluea
value mountthereof
amount t
hereofs hall
shall
bea
be ddedt
added ot
to hef
the inalt
final axa
tax mount:Provided,
amounti Pr
ovided,T hati
That nt
in hec
the aseo
case offsubparagraphs2a
subparagraphs nd
2 and
3
3,,whent
When hep
the aymentr
payment ecordi
record isssubmittedwi
submitted thino
Within nem
one ontha
month ftert
after hel
the apseo
lapse offthe
thed eadline
deadline
fors
for ubmission,a
submission, na
an mounte
amount quivalentt
equivalent o5
to /1000o
5/1000 offthes
the upplyv
supply alues
value hallbe
shall beaddedt
added o
to
thef
the i
nalt
final axa
tax mount,a
amount, ndw
and herea
Where na
an dditionalt
additional axi
tax issleviedu
levied nderthe
under t
hep rovisionso
Art i
cle
2
222(2)t
(2) hrough(
through 4)o
(4) offtheV
the alue-AddedT
Value-Added axA
TaX ct,the
Act, t
hes ames
same hallnot
shall notapply:
applyi
1
1..
Whent
When hep
the ersonh
person asf
has ailedt
failed od
to eliverthe
deliver t
hea ccounts
account tatementunder
statement unde
rthe
t
hep rovisionso
provisions off
Art i
cle1
Article 63(
163 1)o
(1) orr(2),h
(2), asf
has ailedt
failed tooenterthe
enter t
hewh oleo
Whole orrparto
part offthe
thee ntriesp
entries rescribed
prescribed
byP
by residentialD
Presidential ecreei
Decree nt
in hed
the elivereda
delivered ccounts
account tatement,o
statement, orrhase
has nteredt
entered hemd
them iffer-
differ-
entlyf
ently rom t
from hef
the act:P
fact: rovided,T
Provided, hatt
That hes
the ames
same hallnot
shall notapplyt
apply ot
to hep
the ortiont
portion ow
to hich
Which
subparagraph2a
subparagraph pplies;
2 applies;
2
2..
Whent
When hep
the ersonh
person asf
has ailedt
failed os
to ubmitat
submit ableo
a table offtotal
totala ccounts
account tatementby
statement bybuyera
buyer nd
and
sellerunder
seller und
erArticle
Ar
t i
cle1 63(
163 5),has
(5), ha
sfailed
f
ailedt oe
to nterthe
enter t
hew holeo
Whole orrpart
partooffthe
thema ttersr
matters equiring
requiring
tob
to ee
be nteredi
entered ntot
into het
the able,o
table, orrhas
hase nteredt
entered hemd
them ifferentlyf
differently rom t
from hef
the act
:Provided,
fact Pr
ovided,
Thatt
That hes
the ames
same halln
shall ota
not pplyt
apply ot
to hev
the alueo
value offsaleo
sale orrpurchase
purchaseooffthe
thep ortionwh
portion ich
which
mayb
may ev
be erifi
edu
verified nderPresidential
under Pr
esidentialD ecreet
Decree hatt
that hee
the ntrieso
entries offthet
the ableo
table offtotal
totala ccount
account
statementb
statement yb
by uyera
buyer nds
and ellerh
seller aveb
have eene
been nteredb
entered ymi
by stake;a
mistake; nd
and
- 136 -
-136-
3
3..Wh
When ent h
theep e r
persons onh a
has sf a ile
failed dt os
to u b mi
submit ta at a b
table leo offs u
summo offt a
tax xi n vo i
invoicesce sb byys e l l
e
seller rr efe rr
referreded
toi
to nA
in r ti
Articlec le2 200o offt heV
the al ue
Value-Added -Ad d e dT Tax axA Actc t( he rei
(herein-n-a fte
after rr efe r
referredre dt oa
to assa“ tabl
a “table e
o
of sum of tax invoices by seller”) pursuant to the provisions of Article 163-2 (1),,
f s u m o f ta xi n v oi c e sb ys e l
l er” ) p u r s u a n t t ot h ep r ov ision so f A rtic le1 63 -2( 1)
h a
hassf a ile
failed dt oe
to nt
entere rt hew
the ho
Whole leo orrp a
partrto offt hem
the a tt
matterse rsr e q ui
requiring ringt toob beee nt er
entered e di nt
intoot he
the
ta b
tablel
eo offs um o
sum offt a
taxxi nvo
invoice ic eb byys elle
seller,r,o orrh a
has se nt er
entered edt he
them md if fer e
differentlynt lyf r o
from mt hef
the a c
factt :
P r ovi
Provided,ded,T ha
That tt hes
the ames
same ha
shall lln o
notta ppl
apply yt ot
to hep
the ur chas
purchase ev a l
ueo
value offthe
t hep or t
portionionwh i
Whichch
ma
may yb beev e r i
verifiedfi edu nde
under rP r e s ide
Presidential nt ialDecree
De c re et hatt
that hee
the nt r
entries iesi nt
in het
the abl
table eo offs um o
sum off
taxi
tax nvoi
invoice c eb byys el l
sellere rh a veb
have e
beene ne nt e
enteredr e db byymi st ake
mistake. .
(4
(4))WhWhere e rea nyb
any us ine
businessman s s man( e xc ludi
(excluding nga nys
any mal l-s
small-scalec al eb us ine
businessmans s ma np r e
pre--s c ribe
scribed db y
by
P re s i
de nt
Decree,r ee ,oorra nyp
any e rs
person o nw hos
Whose ei nc omea
income mo untis
amount ise s t ima
estimated te du nde
under rthe
thec o ndi ti
conditionsons
asd ete rmi n e db yP re s i
d e n tia l D e c re e) h a sb e e ns
as determined by Presidential Decree) has been supplied goods or services from another u p plie dg o o d so r s er v i
c e sf r o m a no th er
bus ine s
businessmansma n( inc ludi
(including nga nyc
any o rp o r
corporation)at i
o n)ininr e lat
relationiont oh
to isb
his us ine
business s sa ndh
and a
hassf a ile
failed dt or
to e ce i
ve
receive
as uppor
a supporting tingd oc ume
document ntf al li
fallingngu nde
under ra nys
any ubpar agr
subparagraph apho offA rti
Articlecle1 60
160-2-2( 2)
(2),,a anna mount
amount
equi val
equivalent entt too2 / 1
2/100 00o offt hea
the mountf
amount orwh
for Which i c hs uc
such hs uppor
supporting t ingd oc ume
document nth asn
has otb
not e e
beenn
pr ovi
providedde d( he r einaf
(hereinafter t err e f e
referredr re dt toot he“
the a ddi ti
“additionalonaltax taxo onnn nooe vi de nc
evidence ep re par at
preparation”) ion” )s hal
shall l
bea
be dde
added dt ot
to hef
the i na
final lt axa
tax mount
amounti :P r ovi
Provided,ded,T hatthe
That thes ames
same hal
shalllnot
nota ppl
apply yt tooa nyc
any as
case e
wh e
Where ret hep
the rovi
provisions s ionso offt hep
the r ovi
proviso s ot oA
to r t
Articleic le1 60 -2(
160-2 2
(2))i issa ppl ie
applied. d.
(5
(5))WhWheree r ea nyb
any us ine
businessman s s ma n( e xc ludi
(excluding nga nys
any ma ll-s
small-scalec aleb us ine
businessmanss ma np re
pre- -s c ribe
scribed db y
by
P
Presidential Decree, or any person Whose income amount is estimated under the conditionss
re s i
d e nt ia l D e c r e e , o r a n yp e rs o nw h o sei n c o mea m ou n t i
se s tima t e du n d er th ec o nd ition
a
assd ete rmi
determined ne db by yP re s ide
Presidential nt ialDecree)
De c ree )has
ha sf ai le
failed dt toos ubmi
submit tthe
t hes pe c ific
specificationat i
ono offreception
rec ept ion
o
offr ec e i
receiptspt sr e fe r
referred r e dt tooi nA
in r ti
Articlec le7 700( 4
(4))5wi
5 Within thi nt het
the imel
time imi
limit tf oraf
for inalr
a final e t ur
return nf inal
final
re tur
return no onnt a
taxxb a
bases eo orrw he
Where r ei ittiissd e eme
deemed dt hes
the ubmi
submittedtteds p e cifi c
specificationa ti
o no offreception
re ce p tiono offreceipts
re ce ipts
fa ll
su
falls nde
under raca caseas eo offo bs c
obscurityur it ya assp re sc r
prescribedi
be db yP
by res i
de nt
De cre e ,a na
an mounte
amount qui va l
equivalentent
to1
to /10
1/100 0o offt hea
the mountp
amount a
paididwi t
Without houtt hes
the pe c if icat
specification iono orro offt hea
the mountp
amount ai
paid dw i
Withtht he
the
o bs c
obscureur es pe c if ic
specificationat ion( he r e i
naf
(hereinafter t e rreferred
re fer re dt tooa asst he“
the addi tionaltax
“additional ta xo onnn noos ubmi
submission ss iono off
spe c ific a
specificationt io no offreception
re c e pt io no offreceipts”)
re c ei p t s ”)s ha
shall l
lbebea dde
added dt ot
to hef
the ina
final ltax
ta xa mo
amount untforforthether eleva
relevantnt
ta xabl
taxable ep e riod.
period.
(6
any us ine
businessman s s ma n( onl
(only ys uc
such hab us ine
a businessman ss ma na assd e t
e r mi
determined ne db byyP r es ide
Presidentialnt ia l
D e c r
Decree,e e,whWho os uppl
supplies i esg oodso
goods orrs e rvi
servicesc e sma mainlyi
nl yt tooc ons ume
consumers rso t he
other rt hanb
than us ine
businessmens sme n
shal
shall lb beea ppl ic abl
applicable) e )whWho oh a
hassf a i
failedle dt or
to e por
report to onnt hep
the re s
presentents ituat i
situationono offbusiness
bus ine ssp lac
place e
unde
under rt hep
the rovi s
provisions ionso offA r t
i
Article c le7 8o
78 orrh asr
has e por
reported te da anna mountt
amount ob
to be es hor
short toofft her
the e ve nue
revenue
amountwh
amount Whichi c hi issr equi
required r e dt toob be er e por
reportedte du nde
under rt hep
the rovi s
provisionsi onso offp a ragr
paragraph aph( 2)o
(2) offt he
the
sameA
same r ti c
Article,le ,a anna mounte
amount qui va
equivalent l entt o5
to / 10
5/1000 0 0o offs uc
such hr eve
revenue nuea mountwh
amount Whichic hh asn
has ot
not
be e
been nr epor
reported te do orrt her
the e ve
revenue nuea mountwh
amount Whichic hh a
has sb ee
been nr e por
reportedte dt ob
to be es hor
short to off( he reina
(hereinafterf t
e r
re fer r
referrede dt oa
to ass“ a ddi
“additionalt
i ona ltaxtaxo on ni ns inc
insinceree rer e por
report to onnp r es
presente nts itua ti
situationo no offb us ine
business s sp lac e
place”)” )
shal
shall lb beea dde
added dt ot
to hef
the inalt
final a
taxxa mountf
amount ort
for her
the eleva
relevant ntt axabl
taxable ep e riod.
period.
(7
any us i
businessne ssp r opr
proprietorie torf al l
fallssu nde
under ra nyo
any offthe
t hef ollowi
following ngs ub-p
sub- ar
para ag raphs
graphs
inr
in e lat i
relationont ot
to her
the e gi s t r
registrationa tiono offbusiness
bus ine s sp r opr i
proprietore toro orrt her
the e por
report to na
on nyj
any oi ntb
joint us ine
business s s
pl ac
place,e ,aanna mountf
amount al lingu
falling nde
under ra nyo
any offt hef
the ol lowi
following ngs ubpa ra
subparagraphs gr aphs( he r einaf
(hereinafter t e rr e fer r
referreded
toa
to ass“ addi ti
“additionalona lt axo
tax onni ns inc
insincere e rer egi s tr at
registration i ono offaj oi
a jointntbusiness
bus ine ssp lac e
place”) ”)s ha
shall llbebea dde
added d
tot
to hef
the i nalt
final axa
tax mountf
amount ort
for her
the e levantt
relevant axa
taxable bl ep er iod:
period:
- 138 -
-138-
11..Whe
When na nyj
any oi
jointntbusiness
bus ine ssp r opr
proprietor ie torh a
has sf a ile
failed dt or
to e gi
register s tera asst heb
the us ine
business- s s-ma man nu nde
under r
thep
the rovi s i
Ar tic le8 877( 3
(3) )oorra nyp
any e r
personsonwh who oi issn otaj
not oi
a jointntb us i ne
business s sp r opr i
proprietore tor
ha
hassd ece itful
deceitfully lyr e gi ste
registeredre da assaj o
a jointintbusiness-
bus ine ss - man;ma n;5/1000
5 / 1 00 0o offthe
thet o t
totalalrevenue
r e ve nuea mo
amountunt
o
offr e spe c t
respectiveivet axa bl
taxable ep e
pe- -r iodsd
riods ur
duringi
ngw hi
which c hn noor e gi s
registrationtrati ono orrad e c e
a deceitfulit fulr e gi st ra
registrationtio n
h as been
has be enma made; de ;a nd
and
2
2.. Whe
When na nyj
any oi
jointntb us ine
business s sp ropr
proprietori e torh asf
has a il
failede dt toor e por
report tu nde
under rt hep
the r ovi
provi- -s ionso
sions off
A r ti
cl
Articlee8 877( 4
(4))a nd(
and 5)o
(5) orrh a
hassd ec eit f
deceitfullyullyr e po rt
reported,ed ,w hi
whichc hi issac a
a cases ep r es c r
prescribed i
be db yP
by re s id ent
Presidential ial
D e cre
Decree, e,1 / 1 0
1/1000 0 0o offt het
the o talr
total e ve
revenue nuea mounto
amount offr es pe c
respective t ivet a xa bl
taxable ep e ri
periodsodsd ur i
duringngw hi
whichc h
n
noor e por
report to orrad e c ei
a deceitfultfulreport
re por th a
has sb e
beenenma made. de .
(8
(8))Wh e
Where rea nyb
any us i
businessne s sp r op rie
proprietor to r( e xc ludi
(excluding nga nys
any ma l l-s
small-scale c aleb us ine
businesss sp r op r i
proprietore to rprescribed
p r e s cribe d
byP
by r eside nt
Decree)re e )h asf
has ai
failedle dt took e
keepe pa nde
and nt
entere rt heb
the ooksu
books nde
under rt hep
the r ovi s
provisionsionso off
A r ticl
Articlese s1 6
1600a nd1
and 6
1611o orra nyi
any nc
incomeomea mounte
amount nt e
entered r edi innt theheb ooksi
books isss hor
short to offthe
thea mount
amount
w hi
whichc hs houl
should dh a
haveveb e
beenene nt e r
entered,e d,a an na mo
amountunte qui va
equivalent le ntt o2
to 0/ 1
20/1000 0o offthe
thea mo
amount untcalculated
c a lc ul ate d
bymu
by l
tipl yi
multiplying ngt hec
the al c ul at
calculated e dt axa
tax mountby
amount byt her
the at
ratioi o( 1
(1, ,if
ifthe
t her e le vantratio
relevant rat ioi issl ar ge
larger r
than1
than 1;;00,,iiffiitti isss ma l
smallerl
e rt han0
than 0))o offt her
the e le vanti
relevant nc
income omea mountwh
amount which ichh asn
has otb
not ee
been n
ent e r
enterede di nt
in heb
the ookso
books orrt her
the e le vanti
relevant nc omea
income mountb
amount e
beingings hor
short to offt hea
the mountwh
amount i
whichc h
sho ul
should dh aveb
have e
beene ne nt e
enteredre dttoot heg
the lo
globalba li nc o
income mea mo
amount unt( he r eina
(hereinafter f
t erreferred
r e fe rr e dt tooa ass“ a ddi tio
“additional na l
ta
taxxo nn
on nooe nt r
entry”)y” )s ha
shallllbbeea dde
added dt toot hef
the final
ina ltax
taxa mo unt
amount. .< Amendedb
No.8825, 88 2 5 ,
De
Dec. c.3],
31 ,2007>
20 07 >
(9
(9))Wh e
Where rea nyb
any u s ine
business s sproprietor
pro p riet o rf a l
l
fallssunder
und e ra nyo
any offthe
thefollowing
f oll o wings ub p a
subpara-r a -g r a p
graphs,h s ,the
th ea mo
amountunt
fa ll
ingu
falling nde
under re a
eachc ho offt her
the ele va
relevant nts ubp ar
subparagraphagr a ph( he r
(here- e-i na f
inafter te rreferred
refe rre dt tooa ass“ a ddi tio
“additional na ltax
ta x
onn
on o nus
nonuse eo offb us ine
business s sa c co unt
account”) ”)s ha
shall llbbeea d d
added edt toot hef
the ina
final lt taxaxa mo
amountuntf o
forrt her
the e le va
relevant ntt a xa b
taxable l
e
pe rio
periodid:< Amendedb
<Amended byyA Actc tNoNo..8825,8 8 2 5 ,D ec
Dec. .3],
3 1 ,2007;
2 0 0 7 ;A ActctNo No..9270,
9 2 7 0 ,Dec.
Dec .26,
26 ,2008>
2 0 08 >
11..Whe
When nab us
a businessine s sp ropr ie
proprietor t
orhas ha sf ai le
failed dt toou s
use eab us
a businessine ssa cc ounta
account ndf
and all
fallssu nde
under ra ny
any
subpar agr
subparagraph apho offA rtic
Article le1 6
160-50 -5( 1 )
(1)3:AnAna mounte
amount qui
equivalent val e ntt too2 / 10
2/1000 00o offt hea
the mount
amount
forwh
for i
whichc hn noob us ine
business s sa c c ounth
account asb
has ee
been n u s e
used; d;o orr
2
2.. Whe
When nab us i
a business ne s sp ropr ie
proprietor torh hasasf ai le
faileddt tooo pe
open na ndr
and e por
report tab us
a businessine ssa c c ountunder
account unde r
thep
the rovi s
provisionsionso offA rt ic
Articlele1 6
160-50 -5( 3 )
(3)3:Larger
La r ge ra mountb
amount e t we
between e nt hef
the ol l owi
following ngi t ems
items: :
(a)A
(a) An na mo
amount unte qui va l
equivalente ntt too2 / 1
2/10000 0 0o offthe
ther e ve
revenue nuea mo
amount untd ur ingt
during hep
the er
periodiodi nw
in hi
whichc h
ab us i
a businessne s sa cc ounth
account asn
has otb
not e
beene no pe ne
opened da ndr
and e por
reported te d( ref e rr
(referring i
ngt ot
to hen
the umbe
number r
o
offd aysf
days r
fromom t hed
the ayn
day e
nextxtt ot
to hed
the eadl
deadlineinef o
forro pe
opening ninga ndr
and e por
reporting ti
ngu nt
untililt hed
the a
day y
b efor
before et hed
the a
dayyo nw
on hi
which chb us ine
business s sa c c ountw
account wasa so p e
opened ne da ndr
and ep o rt
reported; e d;hereafter
he re a fte rreferred
re fer red
toa
to ass“ unope
“unopened ne dp e riod”i
period” nt
in hi
this ss ubpa ragr
subparagraph. a ph.In I ns uc
suchhc a se
cases,s ,w he
where r et heu
the nope
unopened ne d
p eriods
period panst
spans woo
two orrmomore r et axabl
taxable ep e riods
periods, ,the
t heu nope
unopened ne dp e r
periodiods hal
shall la ppl
apply yt o
to
eac
eachht a xabl
taxable ep e riod)i
period) nt
in het
the a xa
taxablebl ep e rio
period.d.In I ns uc
such hc a s e
cases,s ,the
t heme methodtho do offcalculating
c a lc ul ating
re ve nuea
revenue mountd
amount ur i
duringngt heu
the nope
unopened ne dp e ri
period ods hal
shall lbbe ep ur s ua
pursuant ntt ot
to hef
the ol lowi
following ng
for mul
formula; a ;a nd
and
R eve
Revenuenuea mount=R
amount e
: Revenueve nuea mounto
amount offt her
the e le
relevantva nttaxable
taxabl ep e ri
periodod×U nope
>< Unopened ne d
pe riod/3
period / 365 65( 36
(366 6f orl
for e apy
leap e
year)ar )
- 140 -
-140-
( b)A
(b) Anna mo
amount unte q ui va
equivalent le ntt too2 / 1 0
2/1000 0 0o offt het
the o ta
total loofft ra ns ac t
transactionsio nsp ur s ua
pursuant ntt toos ubp a r agr
subparagraphs ap hs
o
offA r t
Articleic le1 6 0
160-5 -5( 1)
(1). .
(1 0 )Wh e rea n yc r
(10) Where any credit card member e d it c a r dme mbe rs t or
store, e ,w hi
which c hme
meets e tst her
the e qui r e
requirementme nto offs ubs cript
subscription ion
forac
for re
a creditditc ar
card dme membermbe rs tor
store eu nde
under rA r ti
Articlec le1 62-2
162-2, ,has
hasr e fus
refused e dat rans ac
a transaction tionb byyc re di
credit t
car
card di nv
in iol at
violationiono offparagraph
pa ragr aph( 2
(2))o offthethes ameA
same rt i
Articlec leo orrh asi
has s s ue
issued dac r e
a credit di tcard
c ar ds ale
sales s
sli
slippd iffe re nt
differently lyf r om t
from hef
the ac
fact, t,a anna mounte
amount qui val
equivalent entto to5 / 1
5/100 00o offthe
thea mounto
amount offthe
thec as
case e
wh
whichi c hh asb
has e
beene nr e f us
refused edo orro offt hea
the mounto
amount offc r e di
credit tc a r
cardds al
salese ss ipwh
sip whichic hh hasasb e
beene nmamadede
d iff e re
differently nt lyf r om t
from hef
the a c
fact t( r e fe r
(referringr i
ngt ot
to hed
the iff er e
difference nc eb e twe
between e nt hep
the or ti
portionont hats
that houl
should dh ave
have
b e
beene ni s sue
issued da ndt
and hep
the or t
portioniont hath
that hasa sb e
beene ni s s ue
issued di nf
in ac t
fact),),a assn ot ifi
notifiede db byyt hec
the hi e
chief fo off
thec
the o mpe
competent te ntt a
taxxo f f
officeic eu nde
under rt hep
the ro vi s
provisions io nso offt hel
the a tt
lattererpart
pa rto offArticle
Ar ti
c le1 6 2
162-2 -2( 4
(4))( r efe rri
(referringng
tof i v et h o u s a n dw o nwh e ret hea mo u n t c a
to five thousand won where the amount calculated by deals is short of five thousandlc u la te db yd e al si ss h o r to f fiv et h o u sa nd
w on;h
won; e reinaf
hereinafter te rreferred
re f e r re dt tooa ass“ addi t
“additionalionaltax ta xf orrefusal
for re fus alo offc r edi
credit tc ar d”
card”) )s hal
shall lbe
bea dde
added d
tot
to thehef inalt
final axa
tax mountf
amount ort
for her
the e le vanttaxable
relevant taxabl ep e r iod.<
period. Amendedb
<Amended byyA Actc tNo.No.8825,
88 25 ,
De
Dec. c .3],
31 ,2007;
20 07 ;A Act c tNo No..9270,9 27 0,Dec.
Dec .26,
2 6,2008>
2 00 8>
(1 1
(11))Wh Whereerea nyb
any us i
businessne ssp ro p r
proprietoriet orw whohoi isso bl ige
obliged dt oj
to oi
joinna assaca casha shr e c ei
receiptptm e mbe
member rs tor
store e
u nde
under rt hep
the r ovi s
provisions ionso offA r t
Articleic l e1 62
162-3-3( 1)has
(1) hasf ai le
failed dt od
to doos o,o
so, orrw he
where rea nyc
any a s
cash hr e ce i
receiptpt
m embe
member rs to r
store eh a
has sr e fus
refused edt oi
to ss
issueueac a casha s hr e c e
receiptipto orri ss ue
issued di ittd iffe re nt
from hef
the ac
fact,t,
thea
the mountf
amount a llingu
falling nde
under ra nyo
any offt hef
the ol lowi
subparagraphs aphs( he re inaf
(hereinafter te rreferred
re f er re dt oa
to ass
“a d d itio n al t a xo nn oi s s u a n ceo f c a s hr e c e ip t”
“additional tax on no issuance of cash receipt”) shall be added to the final tax amount) sh a ll b ea d d e dt ot h ef i n a l ta xa mo unt
fo
forrt her
the e l
e va
relevant ntt axabl
taxable ep e ri
periodi od:P r ovi
Provided, ded,T ha
That tt hes
the ames
same hal
shall ln ota
not ppl
apply yt os
to ubpa r
a
subparagraphgr a ph
2
2,,iifft hea
the mounto
amount offac as
a cash hr ec e
receiptipti isss mal
smaller le rt ha
than n5 ,0
5,00000wo wont n:< Amendedb
<Amended by yA Actc tNo.
No.
8 82
8825, 5,Dec.Dec .3],31 ,2 00
2007; 7;A Act c tNoNo..9270,92 70 ,Dec.
Dec .26,
2 6,2008>
2 00 8>
1
1.. Whe
When nt heb
the us i
businessne s sp ropr
proprietor ie torh asf
has ai l
failede dt oj
to oi
joinna assac as
a cash hr ec ei
receiptptme membermbe rs tor
store:e :AAn n
a mounte
amount qui val
equivalent e ntt too5 / 1
5/10000 00o offthe
ther e ve
revenue nuea mount(
amount appl ic
(applicable abl eo nl
only yt ot
to her
the e ve nue
revenue
a mo
amount unto offt heb
the us i
businessne s st ypes
type ubj
subjecte c tt oj
to o ini
joiningnga assac a
a cashs hr e c e
receiptiptme mbe
member rs tor
store)e )d ur i
duringng
t hep
the er i
periodod( r ef e r
(referring r ingt ot
to hen
the umbe
number ro offd aysf
days r om t
from hed
the ayn
day e
nextxtt ot
to hed
the e adl
deadlineinef or
for
j oini
joining ngu nde
under rA r t
Articleicle1 6 2
162-3 -3u nt
untili lt hed
the a
day yb e for
before et hed
the ayo
day nw
on hi
whichc hh heej oi ne
joined; d;h ere af
hereafter ter
r e fer
referredredt tooa ass“ unj o
“unjoined i
ne dp e rio
period” d”i nt
in hi
this ss ubp a r agr
subparagraph. a p h.InIns uc
such hc ase
cases,s ,w he
where r et heu
the nj o i
ne
unjoined d
p e ri
periodods panst
spans woo
two orrmo more r et a xabl
taxable ep e riods
periods, ,the
theu nj oi
unjoinedne dp er
periodiods hal
shall la ppl
apply yt oe
to ac
each h
t axa
taxablebl ep e ri
period)od)o onnwh whichi c hh heed i
diddn otjoin
not joi na assaca cashas hr e ce
receipt iptme mbe
member rs tor
store, e,InIns uc
such h
c as
cases,e s,t heme
the methodthodo offc al c ul
calculatingat ingt her
the e ve
revenue nuea mo
amountuntd ur
duringingt heu
the nj oi
unjoinedne dp e ri
periodods ha
shallll
b
be ep ur s uantt
pursuant ot
to hef
the ol lowi
following ngf or mul
formula; a;a nd
and
R e ve
Revenue nuea mo
amount unt=R e
: Revenueve nuea mo
amount unto offt her
the ele vantt
relevant a xa
taxablebl ep er i
periodod×U nj oi
>< Unjoined ne dp e ri
periodo d
//3 65(
365 36
(366 6f orl
for e apy
leap e
year) a r)
2
2.. Whe
When nt heb
the us ine
business s sp ropr
proprietor ie torh hasasr e fus
refused e dt oi
to s s
issueueac a cashas hr ec ei
receiptpto orrh a
has si ss ue
issued di itt
d if fe rent
differently l yf r om t
from hef
the a c
fact: t:AnAna mounte
amount qui va
equivalent le ntto t o5 / 1
5/1000 0o offthe
thea mountby
amount byd e a
deal lfor
for
w hi
which c ht hei
the s s ua
issuance nc eo offaca casha s hr e c e
receipt iptw was asr e f us
refused e do orroofft hea
the mountb
amount byyc a
cases ef orw
for hi
whichc h
t hec
the as
cashhr ec e
receiptip tw wasasi s s
issuedue dd if fe re nt
differently lyf r o
fromm thet hef a
factct( r ef er r
(referringingt ot
to hed
the if fe re
difference nc eb e twe
between e n
t hep
the or
por- -t i ont
tion hats
that houl
should dh aveb
have e
been e ni s s ue
issued da ndt
and hep
the or t
portioniont ha
that th asb
has e
beene ni s
is--s ue
sued d
inf
in a ct
fact))a assn ot if
notified i
e db byyt hec
the hi e
chief fo offt hec
the ompe
competent te nttax taxo ffi
officec eu nde
under rt hel
the a tt
lattererp ar
part to off
A r ti
Articlecle1 6 2
162-3 -3( 5
(5) )( whe
(where r et hea
the mountc
amount a lc ul
calculateda te db by yd e
dealalisiss hor
short toofff ivet
five ho us
thousand a ndw on,
won,
i
itts hal
shalllbebef i vet
five hous
thousand andwo won).n) .
- 142 -
-142-
( 12
(12) )WhWhereer ea nyp
any e
personrs onwh who oi s s ue
issues sd onat
donation i
onr e ceipt
receipts st hata
that r
areer e qui
requiredr
e df ort
for hei
the nc lus
inclusionion
o
offs uc
such hd ona ti
donationo ni nn
in ec e ss
necessary ar ye xpe
expensesns eso orrthe
thed educ
deductionti
o no offs uc
suchhd ona t
donationionf r o
fromma nyi
any nc o
income me
a mountunder
amount unde rt hep
the rovi s
provisionsionso offAr-
Ar -t ic l
ticlese s3 344a nd5
and 522( 6
(6) )ooffthis
thi sAActcta ndo
and offArticle
Ar tic le7 733
( 1
(1))oofft heR
the e str ic
Restrictionti o no offS pe c
Specialia lT a xa
TaxationtionA Actct( he r eina
(hereinafterf
te rr eferr
referrededt tooaassa“ d ona
a “donationtio nr e c eipt
receipt”) ”)
h a
has se nt e r
enterededa nyma
any matterst tersd iff er
differente ntf r o
frommt hef
the a
factcti nt
in hed
the onat
donation ionr e ceipt
receipts so orrhas
ha sn otd
not rawn
drawn
upa
up ndk
and e
keptptt hec
the ont
contents ent so offi s s uanc
issuance eb byyd onoru
donor nde
under rt hep
the ro vis i
provisionso nso offA r tic
Article le1 60-3(
160-3 1
(1),)
,
t hea
the mo
amountuntf a llingu
falling nde
under rthe
t hef o ll
o
followingwi ngs ubp a ra
subparagraphsgr a phs( he r eina
refe r
r edt tooaass“ a ddi tio
“additional na l
t a
taxxo ni
on ns inc
insinceree r ed onat
donation ionr e c e i
receipt”)pt ”)s hal
shall lbebea dde
added dt toot hef
the ina
finalltaxtaxa mount
amount, ,a ndw
and he
where r e
a ddi tionalt
additional axi
tax issl e vi
levied edd uet
due tooaf ailur
a failure et toop e r for
perform m thetheo bligat i
obligation ont os
to ubmi
submit tthe
ther epor
report t
u nde
under rt hep
the r ovi s
provisions ionso offA r tic
Article le7 788( 3)o
(3) offt heI
the nhe rit
Inheritancea nc eT axa
Tax ndG
and i
f
Gift tT axA
Tax Actcto orrttoo
af ai lur
a failure et tood r
drawaw u pa
up ndk
and e
keepe pab ookwi
a book witht hr e s pe
respect c ttotot hep
the rope
propertyrtyd onat
donated e du nde
under rt he
the
p rovi si
provisionsonso offparagraph
par agr aph( 5)o
(5) offt hes
the a meA
same r t i
c
Article,le ,the
thep r ovi s
provisionsionso offs ubpar a gr
subparagraph a ph2s hal
2 shall l
n ota
not ppl
apply:y:< Amendedb
<Amenclecl byyA Act ctNo No..8825,
88 25 ,Dec
Dec .8],
3 1,2007>
20 07 >
1
1..Inc
In as e
cases so offad onat
a donation ionr e c e
receipt: i
pt :
( a
(a))Wh
Where er et hea
the mounto
amount offd onat
donation i onwawassi s sue
issued dd iff er e
differently nt l
yf rom t
from he f
the a ct
fact::T Thehea mount
amount
e qui val
equivalent e ntt o2
to /1 0
2/100 0o offt hea
the mount(
amount re f err
(referringingt ot
to hed
the iffe re nc
difference eb e twe
between e nt hea
the mo
amountunt
e nt e
enteredre di nt
in her
the e c e
receiptipta ndt
and hec
the or r
correcte c ta mountt
amount toob beee ac
each hr ecor de
recorded); d) ;a nd
and
(b)O
(b) the
Other rc as
cases e st ha
thanni te
itemm( a )
(a),,s uc
such ha assad onor
a donor’s ’sp e r sona
personal linformation
inf or ma ti
onwa wassr e c or
recordedde d
d if
fe r ent
differently lyf or
form mt hef
the ac
fact t:T Thehea mounte
amount qui va
equivalentle ntto to2 /100o
2/100 offthe
t hea mounte
amount nt er
enterede d
int
in her
the e ce
receipt; ipt ;a nd
and
2
2..I nc
In as
casese so offc ont
contents ent so offi s s uanc
issuance ebbyyd onor
donori :A Anna mounte
amount qui va
equivalentlentt o2
to /10
2/100000o offthe
the
a mountf
amount orwh
for which ic hab ookh
a book a
has sn otb
not e
beenend r a
drawnwnu uppa ndk
and ept
kept. .
( 13
(13))T hep
The ro vis i
provisions onso offp a ragr a
paragraphs p hs( 1 )
(1),,( 3)t
(3) hr o
throughugh( 7),a
(7), n
andd( 9)t
(9) hr ough(
through 12
(12))s ha
shalllla p pl
apply yt toot he
the
c ase
cases sw h e
whereret h e
therer ei issn nooc a lcu lat
calculated e dt axa
tax mo unt
amount. .< Ame
<Amended n de db byyA c
Act tNo.
No .8825,
88 25 ,Dec.
De c.3],
31 ,2007>
2 00 7 >
( 14
(14) )T hea
The ddi ti
additionalonalt axu
tax nde
under rthe thep rovi s
provisionsionso offparagraphs
pa r agr aphs( 1
(1))a nd(
and 3
(3))s ha
shalll lbe
ber e f err
referrede d
t
tooa asst he“
the addi ti
“additionalonalt a
tax xo onni ns inc
insinceree rer e por
report”. t”.
[ Thi
[This sA rt i
Articlec leWh Wholly ol lyA mendedb
Amended byyA Act ctNo No..8144,
81 44 ,Dec.Dec .30,
30 ,.2006]
20 06 ]
Art i
cle8
Article 2(
82 OccasionalAssessment)
(Occasional As
sessment)
(1
(1))I Iffar es id
a residente ntf allsu
falls nd
undere ra n
anyyooffthe
thefollowing
follo wi ngs ub para gr ap
subparagraphs,hs,the
thec h i
efo
chief offat axo
a tax f
fice
office
o
orrt hec
the ommi ss
commissionerio ne roofft hec
the o mp e t
competententregional
r
e gi ona ltax
taxo ffic
officeeh avi ngj
having urisdi c
ti
jurisdictionono vert
over he
the
pl ac
place eo offt axa t
taxation ionm maya ya s se
assesssst hei
the n-c
in— omet
come axo
tax nt
on her
the esident(
resident he rei
na f t
e
ref e
rredt o
to
a
ass“ o cc asio
“occasional na la s se s
assess-s-m ent
ment”) ”)aatta nyt
any imed
time uringt
during het
the a xatio
taxationnp eriod:<
period: Amendedb
<Amended byy
Ac
Act tNo No..5580,
55 80 ,Dec.
Dec .28,
2 8,1998;
199 8;A ActctNoNo..8825,
88 25 ,De
Dec c.8],
31,2007>
20 07 >
11..
Whe
Where rei itti issd eeme
deemed dt ha
thatth emi
he ghte
might va
evadedea nyi
any nc omet
income axb
tax e caus
because ehheeiissi nas
in t
a t
a statee
o
offs us pe ns
suspension i
ono orrd is cont inuanc
discontinuance eo offbusiness
bus inessf oral
for ongt
a long ime
time, ,wi thoutr
without e por
reportnti
ngd ue
due
tob
to us ine
business s sd epr ess
depressioniono the
otherrc i
r c
um-s
circum- tanc e
stances;s;
22..
Whe
Where rei ittiissd e eme
deemed dt hath
that heemi ghte
might vadea
evade nyt
any axo
tax nar
on eas ona bl
a reasonable eg roundo
ground therthan
other than
thata
that assr e ferr
referred edt oi
to ns
in ubpar agr
subparagraph aph1 1;;a nd
and
—144—
- 144 -
3
3.. De leted.<
Deleted. <bybyA Actc tNoNo..8825,88 25 ,Dec
Dec .3],
3 1,2007>
2 00 7>
( 2)T
(2) hep
The rovi s
provisionsionso offp ar agr
paragraph a ph( 1)s
(1) hal
shall la ppl
apply yb byyd e emi
deemingngt hep
the er i
periododr angi
ranging ngf rom t
from he
the
c omme nc
commencement eme nto offt heb
the us ine
business s si nt
in hec
the or re s pondi
corresponding ng y ea
year rt ot
to hed
the at
date eoofft heo
the cc ur re
occurrence nce
o
offt her
the ea s
reasonona assr ef er
referredredt oi
to ns
in ubpa
subpar- r-a gr aph1a
agraph l asst heo
the c c as
occasionalionala s s es s
assessmentme ntperiod.
pe riod.
Int
In hisc
this as e
case, ,iifft heg
the r oundsr
grounds e fe r
referred redt tooi ns
in ubpar agr
subparagraphs aphso offparagraph
par a gr a ph( 1)has
(1) haso cc ur
occurredred
b e for
before et hep
the e r i
periododo offt hef
the ina
final lreturn
re t ur no onnt a
taxxb as
base ea ndat
and a
a taxxp aye
payer rhas
ha snnototfile
filet her
the e por
reportt
int
in hep
the rece di
precedingngt axa ti
taxationonp e ri
periodo d,t hep
the rec ed
precedingingt axa ti
taxationonp e rio
periodds ha
shallllbebei nclude
included di no
in c ca siona
occasional l
a ss e ssme
assessment ntp e r i
period.od.< Amendedb
<Amended yA
by Act c tNo
No.. 8825,88 25 ,Dec.
Dec .8],3 1,2007>
2 00 7>
( 3
(3))T hep
The rovi s
provisionsionso offArticles
Ar tic le s4 7
47-2-2a nd4
and 7
47-3-3o offthe
theF rame wor
Framework kA ActctoonnN a tionalT
National axe
Taxes s
s ha
shall l
ln o
notta ppl
apply yt ot
to her
the e l
e va
relevant ntt a
taxxa mounta
amount ndr
and eve nuea
revenue mounti
amount nt
in hec
the a s
caseseso offo cc as io
occasionalna l
a ss e ssme
assessments nt su nde
under rt hep
the r ovi s
provisionsi onso offparagraphs
par agr a phs( 1)a
(1) nd(
and 2)
(2)..< Newl
<Newly yI ns er
Actt
No.8144,
No. 81 44 ,Dec.
Dec .30,
3 0,2006>
2 00 6>
( 4
(4))T hep
The r ovi si
provisions onso offp ar agr
paragraphsaphs( 1)a
(1) nd(
and 2
(2))s ha l
shallla ppl
apply ymu t
mutatisa t ismumu--t a ndi
tandis st toot hos
thosee
liabl
liableef ort
for hep
the ayme
payment nto offtaxes
taxe si na
in anna re
area awh e
where ret hed
the omi
domi- -c i les
ciles, ,temporary
t e
mpor ar yd omi c
domicilesi
les
o
orrb us ine
businesss sp la c
placese sa r
areed ee me
deemed dt ob
to em
be o
movedve df r eque nt
frequently, ly,u nde
under rt hec
the ondi tionsa
conditions assp r es c ri
be
prescribed d
b
byyt heP
the r esi de
Presidentialnt ial Decree.
De c re e .
( 5)I
(5) na
In ppl yi
applyingngp ar agr
paragraphaph( 1)3
(1) 3,,the
thep roce dur
procedure eo offa ppl yi
applying ngf oro
for cc
occa-a -s ionala
sional ss es s
assessmentme nt
a ndo
and t he
otherrn e c es
necessarys ar yma tt
matterse r ss hal
shall lb ed
be ete r mi
the r es i de
Presidentialnt ialD ec r
Decree.e e.< Newl
<Newly y
I ns er
Insertedt edb byyA Actc tNoNo..5580,
5 58 0,Dec.
Dec .28,
28 ,1 99
1998> 8>
Art i
cle8
Article 3(
83 Notificationo
(Notification offTaxB
Tax asea
Base ndT
and axA
Tax mount)
Amount)
Wh
Whene nt heC
the o mmi s s
Commissionerione ro offt hec
the omp e
competentt
e ntRegional
RegionalT a
Tax xO ffi
c
Officeeo orrthe
the chief
chi efo
offat ax
a tax
o ff
ic
officeeh avingj
having uris d i
cti
jurisdictionono ve
over rt hep
the l
ac
placeeoofftax
t
axp ayme
paymentnth asd
has ete rmi ne
determined doorrreassess
reas sessthe
the
t a
taxxb as
baseea ndt
and axa
tax mo unto
amount offar e
s i
de
a residentntunder
und erArticle
Arti
c l
e8 0
80,,he
hes ha l
lnotify
shall no ti
fyiittin
inw r
itingt
writing o
to
t h
theer esid en
residenttoorrh isi
his n-h
in- erito
heritorru nde
underrt hec
the o nd i
tion
conditionssasprescribed
as p r
es cri
be db yt
by h
theePresidential
Pr
es iden ti
alDecreei
De cree:
P rovi ded,T
Provided, hati
That ifft hed
the et er mi nat
determinationi onoorrr e assessme
reassessmentntooffthe
thet axb
tax as
baseea ndt
and axa
tax mount
amount
i
issma
madedeu nde
under rA rtic
Articlele4 2
42,,iitts hallbe
shall ben ot i
f i
edw
notified i
thoutd
without e
lay.
delay.
Art i
cle8
Article 4(
84 Minimum Ta
(Minimum xableL
Taxable imito
Limit offMiscel l
aneousI
Miscellaneous ncomes)
Incomes)
I
Iffmi s c
e llane
miscellaneous ousi nc omef
income allsu
falls nde
under ra nyo
any offt hef
the ollowi ngs
following ubpar a gra
subparagraphs,phs ,no
noi ncomet
income ax
tax
s hal
shall lb ei
be mpo s
imposede do nt
on hec
the orre spondi
corresponding ngi nc ome
income: :< Amendedb
No.7 3 1
7319,9,Dec.
Dec .3],
31 ,
2 00
2004;4;A Actc tNoNo..8144,
8 14 4,Dec.
Dec .30,
30 ,2006>
20 06>
1
1..
Whe ne
Whenever ve rt hes
the um o
sum offt hea
the mount
amounts si ndic a t
indicatededo nt
on hef
the ac e
faces sooffh or s
horse e racing
r acingt icke ts
tickets,,
wi nne
winner rv ot ingt
voting ic ket
tickets,s,b ul l
fight i
bullfightingngma t
matchchv otingt
voting i
cke t
ticketsso orrs port
sports sp romot i
promotiononv oting
voting
ticke t
tickets siissn otmore
not mor et han1
than 00t
100 hous a
thousand nd wowon na ndt
and her
the efundp
refund e
perru ni
unittv otinga
voting mount
amount
u nde
under rt hep
the rovi sionso
provisions offA rticl
e2
Article 211( 1
(l))44iissn otmore
not mor et ha
thanno neh
one undr
hundrededt ime
timesst heu
the ni
t
unit
v otinga
voting mount
amount; ;
2
2..
Whe ne
Whenever ve rwi nni
winning ngp rize
prizes,s,e tc.p
etc. resc r i
be
prescribed di nA
in rti
cl
Articlee2211( 1)1
(1) 4a
14 rel
are esst
less han5mi
than ll
ion
5 million
wo
won,n;o orr
- 146 -
-146-
3
3..
Wh ene ve
Whenever rt hes
the um o
sum offmiscellaneous
misce l
la neousi ncomea
income mountso
amounts thert
other hant
than hoseu
those nders
under ubparagraphs
subparagraphs
1a nd2i
1 and 2 iss5 0,
000wo
50,000 wonno orrl ess.
less.
[Thi
[ThissA r ti
cl
Article eWh ol
Whollyl
yA mendedb
Amended yA
by ctNo
Act No..6292,
62 92 ,Dec.
Dec .29,
29 ,2000]
2000]
Art i
cle8
Article 855(Collectiona
(Collection ndR
and efund)
Refund)
(1
(1))I Iffar e s i
a residentd e ntf a ll
fallssu nd
under e ra nyo
any offt h
the ef o llo wi
following ngs ub p a ra gr
subparagraphs, a p hs ,t hec
the o mmi ss
commissioner ione ro off
re gi o
regional na lt a
taxxo ffic
office eh a vi
having ngj ur isd ic t
over rt hep
the la
placec eo offt a
taxxp a yme
payment nts ha
shallllc o ll
e
collectctt he
the
u np a
unpaid idp o rt
portioniono offi nc
incomeo met a
taxxw ithi
within nt h re
three em o nt
months hsh a
havevep a s s
passed eds inc
since et hed
the e a d
deadlineli
nef or
for
th
theep ayme
payment nt :< Amendedb
No.6292,62 92 ,Dec.
Dec .29,
29 ,2000;
2 00 0;ActAc tNo.No.8825,88 25 ,Dec.
Dec .3],
31 ,
200
2007>7>
11..Whe
Where r eap e r
a person so nl ia bl
liable et of
to il
fileea ndp
and a
payyat a
a tax xa mountfor
amount fo rinterim
int e rim pre-
pr e -p a yme
payment ntpursuant
pur suant
t
tooA rti
Articlec le6 655( 6
(6))f ai l
fails st toop ayt
pay hewh
the ol
whole eo orrp ar
part to offt hes
the a met
same a
taxxa mount
amount; ;oorr
2
2.. Whe
Where reap e r
a persons onl ia bl
liable et toop ayt
pay hei
the nc omet
income axp
tax ayabl
payable ef ort
for hec
the or r
corre-e -s pondi
sponding ngy e
yearar
p ur s
pursuant ua ntt oA
to r ti
Articlec le7 766f ail
failsst op
to ayt
pay hewh
the whole ol eo orrp ar
part to offt hes
the a met
same ax.
tax.
(2
(2))I Ifft hei
the nc omet
income axa
tax mounto
amount offar e s i
de
a resident ntc ol le
collectedcte do orrp ai
paid du nde
under rp a r
para- a -g r aph(
graph 1
(1))o off
thi
thissA r ti
Articlecleo orrA r ti
Articlec l e7 766i nt
in hec
the or r es pondi
year, ,i isss hor
short to offthe
thei nc
incomeomet axa
tax mount
amount
de te r mi
determined ne do orrreassessed
r ea ss e s s e du nde
under rA rt ic
Article le8 0b
80 byyt heC
the ommi s
Commissioner s io ne ro offthe
thec o mpe
competent te ntRegional
Re gio na l
T axO
Tax f fi
Officeceo orrt hec
the hi
chiefe fo offat a taxaxo ff i
officec eh avi
havingngj ur i sdi c
jurisdiction t i
o no ve
over rthe
thep lac
place eo offtax
taxp ayme
payment, nt,
thei
the ns uf f
ic
insufficient ie ntt a
taxxa mo
amount unts ha
shallllbe
bec o llec
collectedte db byyt hec
the hi e
chief fo offat
a taxaxo ffi
officec eh avi
having ngj ur isdi cti
jurisdiction on
ove
over rt hep
the lac
place eo offt a
taxxp ayme
payment. nt .T hes
The ames
same hal
shall la l
alsosoa ppl
apply yt ot
to het
the axa
tax mountfor
amount f orinterim
int er im
pr e pa yme
prepayment nta assp re s c
prescribedr ibe di innA rt i
c
Articlel e6 5
65. .
(3
(3))I Iffaanynyw it hhol
withholding dinga ge
agent nto orra nyp
any e rs
person onl ia bl
liable ef o
forrc o lle c t
collectingingt a
taxxf r om income
from inc omea atts our
source ce
u nde
under rt hep
the rovi s
provisions ionso offA r tic
Articlesle s1 56a
156 nd1
and 56-3t
156-3 hr ough1
through 56-5h
156-5 asf
has ai l
e
failed dt toop ayt
pay he
the
taxa
tax mountc
amount ol le ct
collected e do orrt toob beec ol le c
collected te dwi thi
within nt hed
the e a dl
deadline inet he r e
therefor,for ,o orrh asu
has nde rpa
underpaid id
thet
the a
tax xa mount
amount, ,t hec
the hi
chiefe fo offat a
a taxxo ff i
c
office eh a vi
over rthe
thep l
a c
place eo offtax
ta xp ayme
payment nt
sha
shallllc ol le
collect ctt hea
the mountc
amount a lc ul
calculateda tedb byya ddi
addingngt hea
the ddi t ionaltax
additional taxa mounta
amount assp re s c r
prescribedi
be di n
in
A rtic
Article le1 5
1588( 1)t
(1) ot
to het
the axa
tax mountt
amount ob
to beec ol lec
collectedt e df r om the
from ther ele vantwi
relevant thhol
withholding di nga ge nt
agent: :
P r ovi
Provided,ded,T ha
That tw he
where ret hew
the ithho l
withholdingdi nga ge
agentnth a
has sn otc
not o l
le c
collectedte dt a
taxxf r om i
from nc omea
income atts our
source ce
fal lingu
falling nde
under ra nyo
any offt hef
the ol lowi
subparagraphs, a phs ,o nl
only yt hea
the ddi tionalt
additional a
tax xa mo
amountuntunder
unde r
thep
the rovi s
Ar t ic le1 5
158 8( 1)s
(1) hal
shall lbe
bel e vi
leviede d:< Amendedb
<Amended yA
by Act ctNo No..5580,
55 80 ,Dec.
Dec .
28,1998;
28, 1 99 8;A Actc tNoNo..8144, 81 44 ,De Dec.c .30,
30 ,2006;
20 06 ;A Act c tNo No..9270,
9 27 0,Dec.
Dec .26,
26 ,2 00
2008> 8>
11..Whe
Where r et hei
the nc omea
income mo
amount unts ubj e
subject c tttoow i
t hho
withholdingldi ngt a xa t
taxationio nw hi
which cht hew
the i t
hho l
agentnt
h
hasasf ail e
faileddt toowi t hhol
withhold, d,i issa lre a
alreadydyc ount
counted e di nt
in het
the axb
tax as
base ea mountreturned
amount r e tur ne da ndp
and ai
paid d
b
by yat a xpaye
a taxpayer; r;a andnd
2
2.. Whe
Where ret hec
the hi
chiefe fo offt hec
the ompe
competentte nttax taxo f f
i
officecel e vi
leviese so orrc ol le c
collects tst hei
the nc
incomeomet axo
tax onnt he
the
i nc omea
income mountt
amount ha
that ti isss ubj
subjectec tttoot hewi
the thho
withholding ldi ngt axa
taxationtionb uth
but a
has sn nototb ee
been nw ithhe
withheld l
d
d ire c
directly tlyf r o
from mt her
the e le va
relevant ntperson
pe rso nl ia bl
liableef o
forrtax
ta xp ayme
payment ntunder
unde rthe
thep ro vi s
provisions ionso offArticles
Ar tic les
8
800a nd1
and 1
114.4.
- 148 -
-148-
(4
(4))IIfft het
the axa
tax mount
amounts sp ai
db
paid byya anni nt eri
interimm prepayment,
pr e payme nt,provisional
provi si
ona lre-
re -t urna
turn ndp
and ayme
payment nt
o
offg ai nsf
gains ro
frommt het
the radi ngo
trading offl and,e
land, tc.,o
etc., cca siona
occasional la s
as--s essme nt
sessment, ,a ndw
and i
thhol di
Withholdingngt a xa t
ion,
taxation,
u nde
under rt hep
the rovi s
ionso
provisions offA r tic
Articlesl
e s6 5
65,,69,
69,8 2,1
82, 27a
127 nd1
and 5
1500e xce e
exceed,d,respectively,
res pe c t
ive ly,the
t het otal
total
sum o
sum offt heg
the ros
grosssf ina
finallt axa
tax mounto
amount onnt heg
the lobalincome
global incomea ndt
and heg
the ro s
grosssf i
naltax
final ta xa mount
amount
ont
on her
the etireme
retirementnti nc omeu
income nde
under rt hep
the rovis ionso
provisions offs ubpa ragr a
subparagraphph3o3 offA rti
cle1
Article 5
15,,t hec
the hief
chief
o
offat a
a taxxo ffic
officeeh avingj
having ur isdi c t
jurisdictioniono ve
overrthe
thep lac
placeeoofftax
taxp ayme
paymentnts ha l
lrefund
shall refunds uc
suchhe xce s
excesss
taxa
tax mounto
amount orra ppr opr ia
appropriatetei ittfor
foro the
otherrn ationaltaxes,
national taxe s,a dditiona
additionalld ue
duessa ndd
and i
s pos iti
dispositiononf ee
fee
fora
for rr e a
arrears.rs .< Amendedb
<Amended byyA c
Act tNo
No..8144,
814 4,Dec.
Dec .80,
30,2006>
2 00 6>
Art i
cle8
Article 5-2(
85-2 Refundb
(Refund yR
by etroactiveD
Retroactive eductiono
Deduction offDeficit)
Deficit)
( 1)I
(1) nc
In as
case ew he
Where r ead e fi
a deficitc itc a rrie d -o
carried-over ve ri nat
in a xa
a taxable b lep e ri
periodo da assp re s cri
prescribedbe di nA
in r t i
c
Article le4 5
45
( 2)o
(2) cc
occursur si nc
in a lc ul
calculatinga tingt hea
the mo unto
amount offb us i
ne
business ssi nc o
income me o offar es id
a resident entw Whohoo pe r a
operatestesa a
s ma
small lla n
anddm ed
mediumiu me nt erp r
enterpriseis ea sp
as r e s c r
prescribed ibe db byyP r es id e n
Presidential tia lDecree,
De c ree ,the
th eresident
res id entmayma ya pp l
applyy
f o
forrt h
theer e f
u ndo
refund offt h
the ea mo
amountun tc a l
c u la
calculated te du n d
undere rthe
th ec o nd it
conditionsio nsa assprescribed
p res c ri
be db byyP r
e s id en
Presidentialt ial
D ec
Decreer e e( he r ein a
(hereinafterf te rr efer r
referrede dt tooaass“ t a
“tax xa mo untby
amount byr e tro a c
retroactive tived e d uc t
deductioni ono offd e fic i
deficit”)t
” )w it
h
Withinin
t h
theel i mi
limit toofft h
theea mo
amount u ntooffi n c
incomeomet a
taxx( re ferr i
(referringngt othe
to t h ea mo
amountu n tooffincome
in c o metaxtaxa assprescribed
pre s crib ed
b
byyP r es id e
Presidentialnt i
a lD e c
Decree)re e)l evi
leviede do nt
on heb
the us in
businesse ssincome
inc o meo offs uc
such hs ma
smalll la n
anddm e d
medium ium e nte
enter-r-
p ris
prise ei nt
in hei
the mme di
immediately a telyp r ec e
precedingdingt a xa
taxable blep e rio
period.d.In Int hi
this sc a s
case, e,the
thed e fi
c
deficititthat
tha tis
i
sr etro
retro- -
a ct i
ve
actively lyd e d uc
deductedte ds ha
shallllbbeec o ns i
d
considerede r e da st
as h
theea mo
amountuntd e d uc
deducted te di na
in p plyi
applying ngA rt i
c
Articlele45 4 5( 2 )
(2)..
( 2)Ap
(2) e
A personrso nw Who hoi n ten
intendsd st toor e cei
receivevet h
theer e fundo
refund offt a
taxxa mo
amount un tb byyr e t
ro
retro- -a cti
activeved e d uc
deductiontion
o
offd e fi
deficitc its ha
shalllla p
applyp lyf o
forrt her
the efundt
refund toot hec
the h ie
chieffo offata taxaxo ffi
officec eh avi
havingngj ur is d ict
overr
t h
theep la
placec eo offt a
taxxp a yme
payment ntu nd
under ert hec
the o nd
condi- i-t i
o nsa
tions sp
as re sc ri
prescribedbe db byyP re sid e nt
De cr ee
w ithi
Within nt het
the imel
time i
mi
limit tf o
for raf ina
a final lr e tur
return no nt
on a
taxxb a
basesep ur sua
pursuant ntto toA rtic
Article le7 700o orr7 4
74..
( 3)I
(3) Ifft h
theec h i
e
chieffo offat a
a taxxo ff
officei
c eh avi
having ngj u risd ict
jurisdictioni
o no ve
over rt h
theep lac
place eo offt axp
tax ayme
payment n tr e c eive
reoeives s
t h
theea p p l
ic at
applicationio nf o
for rr e fun
refund do offi nc omet
income a
taxxp urs ua
pursuant n tt op
to a ra gr
paragraph a p h( 2 )
(2),,he
h es h a
shalll
ld et ermi
detennine n ethe
th e
t axa mo u ntt ob er e f un de da n ds hallr
taxarmimttoberefiirxledarrlshaflrefiinditpursuanttoArficlee51 e fu n di tp urs ua ntt oAr ticles5 1a nd5 2o ft h eFr
and520ftheFranework a me wo rk
A
Actc to onnN at iona
National lT a
Taxes xe sw it h
Without ou td e la
delay. y.< Amendedb
<Amended byyA ActctNo No..8144,
8 1 4 4,Dec.
Dec .30,
3 0,2006>
20 06 >
( 4)T
(4) Thehep r ovi s i
provisionsonso offparagraphs
pa ra gr aphs( 1
(1))through
t hr ough( 3
(3))s ha
shall lla ppl
apply yo nl
onlyyt toot hec
the as
case ewhWheree ret he
the
r es ide
resident ntc onc e r
concernedne dr etur
returns nst het
the axb
tax a
basesea ndt
and axa
tax mounto
amount nt
on hei
the nc omef
income ort
for het
the axabl
taxable e
p er i
periododi nwh
in Whichi
c hd e f i
deficitcitc a rr ie d-o
carried-over ve ro c
oc- -c ur r
currededa ndf
and o
forrt hei
the mme di
immediatelyat elyp re ce di
preceding ngt axa bl
taxable e
p er i
periododwi thi
Within nt het
the imel
time imi
limit tforforaf inalreturn
a final re turno offtax
t axb a
bases ep ur s uantto
pursuant toA r tic
Article le7700o orr7 4
74..
< Amendedb
<Amended byyA Actc tNoNo..8825,8 82 5,Dec.
Dec .8],
3 1,2007>
200 7>
( 5)Wh
(5) Where e read e f
a deficitic itc ar rie d-ove
carried-over ri issd e c re
decreasedase db byyr e as s es
reassessing singt het
the ax base
tax basea ndt
and ax
tax
a mounto
amount offt hei
the nc omef
income ort
for het
the a xabl
taxable ep e ri
periododi nw
in hi
Which c ht hed
the e fic
deficititc arr ied-ove
carried-over ro c cur
occurredre d
a fte
after rrefunding
r e fundi ngt hei
the nc omet
income a
tax xp ur s uantt
pursuant toop ar agr
paragraphaph( 3 )
(3),,the
t
hec hi
chiefefo offat a
a taxxo ffic
officeeh avi ng
having
j ur i
s di c
jurisdiction ti
ono ve
over rt hep
the l
ac
place eo offtax
taxp ayme
payment nts ha
shallllc ol le
collectc tthe
t het a
taxxa mounte
amount qui val
equivalente ntt toos uc
suchh
d ef i
deficitc itd ecr e a
decreasedse df r om a
from mongt
among het
the a
tax xa mountrefunded
amount refunde da asst hei
the nc omet
income a
taxxf ort
for het
the axabl
taxable e
p er i
o
period di nw
in hi
Which chs uc
such hd efic
deficititc a rried-o
carried-over ve ro ccur r
occurrede du nd
under e rc o ndi tio
conditions nsp re s cribe
prescribed db byyP res i
d ent
Presidential ial
D e cr
Decree. e e .
- 150 -
-150-
(6)T
(6) hec
The alculationo
calculation offt het
the axa
taX mountt
amount ob
to er
be efunde
refundeddb
byyther
the etr oac
retroac--t ived
tive e ducti
on
deduction
o
offd eficit,procedure
deficit, proce duref ora
for pplica t
iona
application ndo
and thern
other ecess a
r
necessaryyma tterss
matters ha
shalll
lbe
bep r
e s
cribedb
prescribed y
by
P reside nt
PresidentialialDecree.[This
Dec ree.[
Thi sA rt i
cleN
Article e
wl
NewlyyI nsertedb
Inserted yA
by c
tN
Act o.5
No. 191,Dec.
5191, Dec.30,
30 ,199 6]
1996]
Art i
cle8
Article 6(
86 Non-Collection o
(Non-Collection offSmallS
Small um)
Sum)
A nyi
Any ncomet
income a
taxxs halln
shall otb
not ec
be olle cte
collecteddw he r
where eiittfalls
fallsu nd e
underra nyo
any offthe
thef ollowings
following ubpa ragraphs
subparagraphsi:
< Amendedb
<Amended yA
by c
ActtNo.No.5031,
5 03 1 ,Dec.
Dec .29,
2 9 ,1995;
1 9 95;ActActNo.
No.6557,
6 55 7,Dec.
Dec .31,
3
1,2001;
2 001 ;Act
Ac tNo.
No.
927 0,Dec.
9270, Dec .26,
26 ,2008>
20 08 >
1
1..
Whe
Where ret hew
the it
hho l
withholdingdingt a
taxxa mo unta
amount assp r escr i
be
prescribed di nA
in r
t i
cle1
Article 2
1277( ex-c
(ex- ludi ngp
cluding a r
agr a
paragraphph
( 1)1o
(1) 1 offt hes
the aidA
said rti
c le
Article))i issu nde
underr1 ,00
1,000 0wo
won;n;
2
2..
Whe
Where ret het
the axa
tax mountc
amount ol le ct
e
collected db yat
by a
a taXxa ss
oc iationa
association assp re scr ibe
prescribed d ininA rticl
e1
Article 50
150
i
issu nde
under r1 ,0 0
1,000 0wo
won; n;
3
3..
Whe
Where ret hewi
the thhol
withholdingdingt axa
taX mounta
amount assp res cr i
be
prescribed di nA
in rticl
e
Articless1 56a
156 nd1
and 56-3t
156-3 hrough
through
1 56-5i
156-5 issu nde
under r1 ,000wo
1,000 won;n;a nd
and
4
4..
Whe
Where ret het
the axa
tax mountfor
amount fori nteri
m prepayment
interim pr e payme ntaassp res cribe
prescribeddi nA
in r
Ar--t ic l
ticlee6 5i
65 issu nde
underr
2 0 0,0
200,00000wo won.n.
Art i
cle8
Article 7(
87 SpecialC
(Special asesf
Cases orJ
for ointB
Joint usinessP
Business lace)
Place)
( 1
(1))T het
The axa
tax mountwi
amount thhe
withheld ldf rom the
from t hei nc omea
income mounta
amount cc rui
accruingngf rom aj
from oi ntb
a joint us ines
business s
p lac
place es hal
shall lb beed istr ibut
distributede di na
in ccor danc
accordance ewi t
withht hep
the rofit
profit--a nd-l os
and-loss sd is tribut
distributionionr atioo
ratio off
t her
the espe c ti
respectivevej ointb
joint us ine
businessssp ropr iet o
proprietors.r s.< Amendedb
<Amended yA
by ActctNo.
No.8144,
8 1 4 4,Dec.
Dec .30,
30 ,2006>
2 00 6>
( 2)T hea d dit io n al ta xa sp r es crib edi nA rti
cle s8 1( 1 )
(2) The additional tax as prescribed in Articles 81 (1) and (3) through (11) an d( 3) thr ou g h( 1 1 ) an
andd1 5
1588wh i
c
which h
i
issr e late
relateddt oaj
to ointb
a joint us ine
business ssp la
placeces hal
shall lb ed
be i
vi de
divided da c
ac--c or di
cordingngt toot hep
the r
of i
t-and-l
profit-and-lossos s
d istr i
but
distributioni
onr at
ratioioo offt her
the es pe c
respectivetivej oi ntb
joint us ine
businessssp ropr i
e tor
proprietors. s.< Amendedb
<Amended byyAActctNo
N0..
5 19
5191,1,Dec.
Dec .30,
3 0,1996;
19 96 ;AActc tNo.
No.5580,
5 58 0,Dec.
Dec .28,
2 8,1998;
19 98 ;AActctNo.
No.6051,
6 05 1,Dec.
Dec .28,
28,1999;
1 999;
Ac
Act tNo
No..8144,
81 44 ,Dec.
Dec .30,
3 0,2006;
200 6;A ActctNo 88
No..8825, 25 ,De
Dec. c.31,
31 ,2007>
20 07 >
( 3
(3))T hep
The r ovi s
provisionsionso offA r tic
Articlesl
e s1 6
160 0( 1
(1))a nd1
and 68s
168 hal
shall la ppl
applyyt oaj
to oi
a jointnt business
bus ines sp l
ac
placee
byd
by eemi
deeming ngi ittaassap l
a
a placeceo offb us ine
business s so pe ra t
operatededb byyo neb
one us ine
business ssp r opr i e
proprietor. t
or.
( 4
(4))WhWhenena nyj
any o i
ntbusiness
joint bus i
ne s sp r opr ieto
proprietors rsm aket
make her
the egi stratio
registrationno offthe i
theirrb us ine
business ssa assp rescr i
be
prescribedd
in Article 168 (1) and (2), they shall file a report with the chief of a tax office having jurisdiction
inA rti
cle 16 8( 1 ) and( 2),th eys ha ll fil
e ar epo t
r w i
tht he chief of at axo ffice havin gj urisdicti
o n
o ve
over rt hes
the e a
seatto offaj o i
ntbusiness
a joint bus ine ssp lac
place eo nt
on hej
the ointbusiness
joint bus i
ne ssp r op rieto
proprietors rs( inc l
udi ngm
(including a tte
mattersrs
c onc erni
concerningngw he
whethert
he ro orrn ott
not he
theyyf allunder
fall und eri nve s t
me
investment ntjoint
jointbusiness
bus ine ssp ro p riet o
proprietors),r
s )
,a gre
agreededp r o
f
prof--
i t
-a nd-l o
it-and-loss s sd is tribut
distribution i
o nr a tio
ratio, ,representative
repr e se nt ativeo offjoint
jo i
ntbusiness
bus i
ne ssp ro pr i
e to
proprietors,rs ,s hare
shares sa ndd
and etail
detailss
o
offi nve stme
investment, nt ,a ndo
and the
other rn ece s s
necessaryar ym a tte
mattersrsu nde
underrc ondi tionsp
conditions res crib
prescribed edb byyP r e
s i
d ent
Presidentiali
alDecree.
De cree .
< Amendedb
<Amended by yA c
Act tNoNo..8144,
8 14 4,D ec
Dec. .30,
3 0,2006;
2 0 06;A c
Act tNoNo..8825,
88 25 ,Dec.
Dec .31,
3 1,2007>
2 0 07 >
( 5
(5))WhWhene na nyc
any hangeh
change aso
has cc urr
occurred e dt ot
to hed
the etai
detailsl
so offthe
ther epor
report tu nde
under rt hep
the r ovi si
onso
provisions off
par agr
paragraphaph( 4)
(4), ,t her
the e pres e nt at
representative i
veo offjoint
j oi bus ine
ntbusiness ssp ropr i
e tor
proprietors ss hal
shalllreport
re por tthe
t hed et
ai l
so
details off
c hanget
change he re
thereof oft ot
to hec
the hie
chief fo offat a
a taX xo ffi
c
officeeh avi
havingngj ur isdict i
ono
jurisdiction ve
over rthe
thes eato
seat offthe
thep lac
placee
o
offrelevant
re l
eva ntb us ine
business ssu nde
underrc ondi tio
conditions nsp r esc r
ibe
prescribed db yP
by res i
de nti
Presidentiala lDecree.
De c re e.< Ne
<Newly wl yI nser t
Inserteded
b
byyA c
ActtNoNo..8144,81 44 ,Dec.
Dec .30,
3 0,2006>
20 06 >
- 152 -
-152—
(6)Ma
(6) ttersn
Matters ecessaryf
necessary orr
for eturn,d
return, etermination,r
determination, eassessme nt
,i
reassessment, nvestigat i
on,e
investigation, tc.o
etc. nt
on he
the
inc omea
income mounto
amount offaj ointb
a joint usine
businesss
sp lace,s
place, hallb
shall ed
be eterminedb
determined yP
by r esi
de nt i
alD
Presidential ecree
Decree..
CHAPTER Ⅱ-
CHAPTER II -22 TAX LIABILITY
TAX LIABILITY ONS
ON INCERE S
SINCERE MALL O
SMALL R ME
OR DIUM
MEDIUM
BUSINESS P
BUSINESS ROPRI ETORS’C
PROPRIETORS’ ONSOLI DATED I
CONSOLIDATED NCOME
INCOME
Art i
cle8
Article 7-2(
87-2 Applicationo
(Application offSincereT
Sincere axP
Tax aymentMe
Payment thod)
Method)
(1
(1))N otwi t
h s ta
Notwithstandingn din gC h a pt
Chaptere rⅡ,1], a n
any yr es id e
residentn tb us in
businessessp rop rieto
proprietorsr sw whohom ee
neet ta llt
all h
theef oll
o wi
followingn g
re qui re me
requirements nt s( he re i na
refe rr e dt oa
to ass“ si
nc e
“sincerer es ma
smalll loorrmedium
me di um business
bu sine s sproprietors”)
p r op ri etors ”)
m
mayayc a lcul a
calculate tet h
theet a
taxxb a
basesea nda
and mo unto
amount offthe
thec o ns o l
id
consolidateda tedi nc o
income med uri
duringngt her
the eleva
relevantnt
ta xa b
taxable leperiod
per io da cc o
accord-r d-i n
inggt ot
to hes
the inc e
sincereretaxtaxp ayme
payment ntmethod
me tho dp re sc ri
b
prescribed e di nt
in hi
thissC ha p
Chaptert
e r
(h er
(here—e-i na fte
inafter rr e fer r
referred edt oa
to s“
as s inc
“sinceree ret axp
tax a yme
payment ntm e tho
method”) d”)t toof il
fileeat a
a taxxr e tur
return na ndp
and a
pay y
ta x:<
tax: Amendedb
<Amended by yA ActctNo No..8825,
88 25 ,Dec.
Dec .3],
31,2007;
2 00 7;A Act ctNoNo..9270,
92 70 ,Dec.
Dec .26,
2 6,2008>
200 8>
11..
T her
The e ve nuea
revenue mounts
amount hal
shall lnnotote xc e
exceed e dt hea
the mountprescribed
amount pr e sc ribe di na
in nyo
any offthe
thef ol lowi
following ng
ite ms(
items he re ina f
(hereinaftert err efe rr
referred edt tooa ass“ s tandar
“standard dr e ve nuea
revenue mount
amount”)3 ”):
( a)A
(a) gr icul t
Agriculture,ure ,f or est r
forestry,y,f is he
fishery,ry,mi ni
mining,ng,w hol e s
wholesale,a le,r eta i
retail,l
,r e a
real le stat
estatees al e
sales, s,a ndo
and the
otherr
bus ine s
businesses se st ha
that td doon otf
not al
falllunder
unde ri te
itemm( b)o
(b) orr( c )
(c)3:6 0
6000mi llionw
million on;
won;
( b)Ma
(b) nuf a ctur
Manufacturing, ing,l odgi
lodgingngo orrrestaurants,
res taur a nts,e le c tricit
electricity,y,g a
gas soorrw a t
watere rs upp l
supply,y,construction,
cons truc tion,
t rans po rtat
transportation,io n,t e l
e c ommuni
telecommunications,ca tio ns ,a ndf
and ina nc
financialia loorrinsurance
ins ur anc eb us i
ne
businessis s :3 0
3000mi l
lion
million
w on;a
won; nd
and
( c)R
(c) e
Realale sta t
estateel e as ing,business
leasing, bus ine sss er vi c
services,es,e duc at i
o
educational na ls er vic e
services, s,p ubl
publici
ch e a
healthlt ha nds
and o cia
sociall
w elfar
welfare, e ,s e r vi
servicesce sr e late
related dt oe
to nt er ta i
nme
entertainment, nt ,c ul
cul--t ur
ture,e,o orrs por t
s
sports, ,a ndo
and the
other rp ubl
publicic
s ervi ce
services, s,r e pa
repair irs ervi c
services,es,p riva
private t
es e rvice
services, s,a ndh
and ous ewo
housework r ks ervi ce
services:s :1 5
1500m ill
io
million nw o
won;n;
a nd
and
2
2..Ab
A us ine
business ssp ro pr i
e
proprietor torw whohof a l
fallslsu nde
under ra nyo
any offthe
thef o llowi
following ngi te mss
items ha l
shalllkeep
ke e pt her
the ec ords
records
o
offt r ans a cti
transactionsonss inc ere
sincerely lya c co rdi
according ngt toot hed
the o ubl
double- e -e nt
entryryb oo kke
bookkeepingepingme tho
method d( inc ludi
(includingng
ke e pi
keeping ngt her
the e c or
records dsb ye
by le
elec-c -t roni
tronic ca ccountb
account ooks
books)3 ):
( a)A
(a) Ab us ine
business ssp r opr i
e
proprietor torw hoh
who a
hassi ns tall
e
installed de qui pme
equipment ntf ore
for nt e rpr
enterprise i
ser e s o ur
resource c ep lanni
planningng
s ys t
systeme mu nde
under rs ubpa ragr
subparagraph a ph1o 1 offA rti
c
Articlel
e5 -2o
5-2 offt heR
the es trict
Restrictionio nooffS pe
Specialcia lT axa t
Taxationion
Ac
Act,t,o orre qui pme
equipment ntf orp
for oi
pointnto offs ales
sale ys
systemte m under
unde rs ubpar agr
subparagraph aph1 ll1o offA r t
ic
Articlele
2o
2 offt heD
the is tr i
but
Distribution i
o nI ndus
Industry tryD e ve lopme
Development ntA c
Actt( he reina ft
(hereinafter e rr ef erre
referreddt tooa ass“ e qui pme
“equipment nt
f orp
for ointo
point offs al
salees ys tem”
system”); );
( b)Ab
(b) us i
A businessne ssp r opr i
e
proprietorto rwwhohoh a
has same mbe
a membershipr s hipo offt hec
the ons olida
consolidated tedc o mput
computer e rn et
wor
network k
f ormovie
for movi et ic ke
ticketst su nde
under rArticle
Ar tic l
e3 399o offthe
t
heP ro
Pro--mo t
motioni
ono offthe
theMo ti
MotiononP i ctur
Pictures esa nd
and
V i
de
Video oP roduc
Products t
sA c
Act;t;
( c)A
(c) Ab us ine
business ssp ropr ie
proprietortorwhwho op ayst
pays hep
the ric
price ef orr
for ent i
rentingngap l
a
a place ceo offb us ine
business s so orru sing
using
at ra de ma
a trademark rko orrr ec eive
receives saf e
a fee,e,e tc
etc.,.,b as
basededo onnt heq
the ua nt
quantityi tys ol
solddoorrrevenue
r e ve nuea mount
amount; ;
- 154 -
-154-
(d)Ab
(d) us
A businessine s sp r o p ri
proprietore torw Whohoh a
has sr a wm
ravv a t eri
nuterials,a ls ,e tc.s
etc. up p l
i
suppliededo nl
only yb byys p e ci
specificficc o rp or ati
corporationsons
( r e fe r
(referringringt ot
to hr
threee eo orrl e s
lesssc o r po rati
corporations; ons ;h e r e a
hereafter ft
e rt hes
the ames
same ha
shall lla ppl
apply yi nt
in hi
thissi te m)
item)
o r d ealsw i
tha n ds ellsc om m o d iti
e s, p ro du c ts , etc. o f s pec
or deals With and sells commodities, products, etc. of specific corporations, or a business i
f ic c or p o r a tio n s , o r ab u sines s
pr opr i
proprietore torw hos
who ell
sellssh i
hissc ommo
commodities,di tie s,p r o duc
products, ts ,e tc
etc. .o nl
only yt os
to pe c
specific if i
cc o rpor a
corporations;tio ns ;
(e
(e) )Ab us
A businessine s sp r o p ri
proprietor eto rw hoe
Who nga
engages ge si na
in anne le c tro
electronicni cc o mme
commerce rcef o
forrw hi
Which cht hep
the ayme
payments nt s
a
arer es e ttle
settled do nl
only yt hr ought
through hes
the e ttle me
settlement nta ge
agency nc ya assd e fi ne
defined di inns ubpa r
subparagrapha gr aph5( b)
5 (b)
o
offArticle
Ar ticle2o2 offt heS
the pe c i
a l
Specializediz e dC re di
Credit tFinancial
Fi na nc ia lBusiness
Bus ine s sA Actc t( i nc ludi
(including ngt heb
the a nki
banking ng
a c c
accountountf orb
for us i
businessne s so onnwh Which ichar e por
a report th asb
has e
beene ns ubmi
submitted t te dt ot
to hec
the hi
chief e fo offt he
the
t a
taxxo ffic
office eh avi
having ngj ur isdi c
jurisdictiont iono ve
over rt hep
the la
place c eo offt axp
tax ayme
payment); nt ) ;
(f
(f))A An ni nt erme di
intermediate at ewh ole
Wholesalersal era assd e fine
defined di ns
in ubpar
subparagraphagr aph9o 9 offA Ar-r -t i c
ticle le2o2 offt he
the
A c t onD istri b u ti ona ndP ric eS ta biliz a tio no f A g
Act on Distribution and Price Stabilization of Agri- cultural and Fishery Products; ri-c u ltu ra l a n dF ish e r yP ro d u cts ;
(g)A
(g) Ab us i
ne
businesss sp ro pr i
proprietor eto rw whohoe nga
engages ge si no
in neo
one offbusbust r ans po rt
transportationa tio nb us ine
businesses s s e si nw
in hi
Whichc h
t her
the eve nuea
revenue mount
amounts sa rej
are oi nt
jointly lyma na
managed ge da ndd
and is tribut
distributed e du nde
under rt hec
the ont
control r olo offt he
the
h e
head ado offt hec
the ompe
competent te ntl oc
localalg ove rnme
government; nt ;
(h)Ab
(h) us
A businessine s sproprietor
p r o p rie torw ho
Whose ses al
salesese nt ire
entirelylyd e p
depend endu p
upono ne xp o r
exporta-ta -t io
tion no offg o o
goods dsto tow hic
Which h
t hez
the er
zeroot a
taxxr a t
rate es ha
shall lla pp
applylyp ur s ua
pursuant ntt tooA rt i
Articlec le1111( 1
(l))1o
l offt heV
the a l ue
Value-Added-Ad de dT a
Tax xA c
Act;t;
(i)Ab
(i) us
A business ines sp ro pr i
proprietore torw ho
Whoses ep a yme
payments nt sa r
are es e ttl
settlede do nl
only yt hr o
throughugh the t heb a nki
banking nga c c ount
account
f orbusiness
for bus ine ssa assr e por
reported tedt toot hec
the hi
chiefe fo offt het
the axo
tax ff i
c
office eh avi
having ngj ur is di
jurisdictionc t i ono ve
over rthe
the
p la c eo ft axp
place of tax payment; a y me n t;
(j
(j))AAb us ine
business s sp r o pr i
proprietor eto rw hop
Who ro vi
providesde sh a
hamanmanr e so ur
resources c e ss e rvi
service c es ubj
subjecte c tt ow
to ithhol
Withholdingdi ng
t axe
taxes sp ur s uantt
pursuant tooA rti
Articlecle1 2
127 7( 1
(l))3 3;;o orr
(k)A
(k) Any nyo the
other rb us i
businessne ssp r opr i e
proprietort o rw ho
Whose s et r ans a c
transactions t
i o nsc anb
can beet r a ns
trans- -p a r e
parentlynt lyv er i
fi
verifiede d
ind
in e t
a i
detailla c cor d
accordingingt ot
to hefacilities
the fa c ilitie soorrtransac-
tr a ns a c -t io
tionnf o rmss
forms imi l
similara rt ot
to ho
thoses eoofft heb
the us ine
businesss s
pr opr ie
proprietors tor ss pe c i
f
specified i
e di ni
in te
itemsms( a
(a))t hr o
throughugh( j)
(j),,a asss pe c ifi
specifiede db byyP r e s ide
Presidential nt ia lDecree.
De cr ee .
(2
(2))A A s inc
sinceree res mal
small lo orrme di
medium um business
bus i ne s sp r opr i
proprietere te rwh
Who owa nt
wants st tooh a
have veh i ms
himself e lfe nt itle
entitled d
tot
to hea
the ppl ic
applicationationo offt hes
the inc
sinceree ret a
taxxp a yme
payment ntme t
methodho ds ha
shall llfile
filea anna ppl i c
applicationa t i
o nf ora
for ppr oval
approval
wi t
With ht hec
the hie
chief fo offt hec
the ompe
competent te ntt axo
tax ffic
office,e,a assp r esc
prescribedr ibe db byyP r e s ide
Decree.r ee .
(3)I
(3) fas in ceres ma llo rme diu mb u s i
n e s sp ro pr i
e to rwh
IfasinoeresmallormediumbisinessprqmietorWhohasobtainedanamovaltmderparagraph oh a so b t
a i
n e da na p p ro va lu n d erp a ragr ap h
(2)d
(2) o
doesesn notota p pl
applyyt hes
the inc e
sincere r et axp
tax a yme
payment ntmethod,
me tho d,hehes ha
shall l
lnot
no tbebee nt it
entitledle dt toot hea
the p plic at
applicationio n
o
offt hes
the inc
sincere e ret a
taxxp a yme
payment ntmethod
me tho df o
forrthe
ther e le va
relevant nttaxable
ta xa bl ep eri
periododa ndt
and hr
threee ey e a
years rsa fte
after rthe
the
endo
end offt her
the e leva
relevant ntt a xa
taxable blep e rio
periodd[ o
[orrf five
ivey e a
years rsi iffhdshe
he /s hef allsu
falls nde
under rp a ra
paragraphgr a p h( 4) ]
(4)]..
(4
(4))I Iffas inc
a sincere eres ma
small llo orrmedium
me di um b us ine
proprietore t o rttoowh Whomom t hes
the i n-c
sin- e
cereret a
tax xp ayme
payment nt
me thodi
method issa ppl ic a
applicablebl ef ai
failsl
st toomemeete tt her
the e qui re
requirementsme nt su nde
under rp ar agr
paragraph aph( 1
(1))2 2,,thet hec hi
chiefefo off
thet
the axo
tax f fi
officeceh a vi
havingngj ur is di
jurisdictionctiono ve
over rhis/her
hi s /he rplace
pl a c eo offtax
t axp ayme
payment nts hal
shall lnot
nota ppl
apply yt he
the
sinc e
sincere ret axp
tax ayme
payment ntme thod,a
method, assp r es c r
prescribedibe db byyP r es ide
Presidentialnt i
a lD e c r
Decree. e e .
(5)I
(5) na
In ppl
applyingyi ng t he p
the rovi
provisionssi ons o offp aragraphs (
paragraphs 1)t
(1) hr ough (
through 4)
(4), ,n ecessary
necessary
ma tt
matterse rsc o nc e r
concerningni ngt hed
the e te rmi nat
determination io na nda
and ppr
approvalova lo onnS inc
Sincere ereS ma
Small llo orrMedium
Me di um Business
Bus ine s s
P ro pr i
et
Proprietor, o r ,c alcul a t
calculationi
o no offt her
the e ve nuea
revenue mo unt
amount, ,g r a
gracec ep e r
i
periodo di nc
in as
case eo offe xc e
exceedingedi ngt heS
the ta nda
Standard rd
R e ve
Revenue nueA mount
Amount, ,a ppl i cat
application i ono offe le ctr oni
electronic ca c c ountb
account ooks
books, ,e t
etc.c.s ha
shall llbe bep r e s c
prescribed ribe db y
by
P re s ide nt
Presidential ia lDecree.[This
De c r ee .[Thi sA rtic
Article leN e
Newlywl yI ns er
Inserted te db byyA Actc tN o.8524,
No. 8 5 24 ,Jul.
J ul .1 9,2
19, 00
2007] 7]
Art i
cle8
Article 7-3(
87-3 SpecialE
(Special xceptionsf
Exceptions orC
for alculation o
Calculation offTaxB
Tax ase)
Base)
- 156 -
-156-
(1
(l))T het
The a
taxxb a s
base eo offaS inc
a Sincere ereS ma
Small l
loorrMedium
Me dium B us ine
Business s sP r op rie t
o
Proprietor’s r’
s consolidated
c o ns ol i
da te di nc ome
income
shal
shalllbe
bet hea
the mountc
amount al cul
calculated atedb byyd educ t
deductingingt hed
the e duc ti
deductiblesble sf o
forrc o ns olida
consolidated te di nc o
incomemef rom
from
thes
the um o
sum offi nc o me
incomes sd ur
duringingt het
the a xa
taxableblep e ri
periodo dc a lc ul
calculateda tedi na
in c co rda
accordance nc ew i
witht
ht hep
the ro vi si
provisionsons
offA
o rtic
Articlesles1 4t
14 hr ough4
through 7 -2
47-2, ,e xc
exceptepta assp rovi
provided de df oro
for the r wi
otherwise sei nt
in hi
thissC hapt
Chapter. e r.I nt
In hi
thiss
cas
case,e,t heR
the e s tri c
Specialia lT axat
Taxation ionA Actc ts ha
shallllnnotota ppl
apply. y.
(2
(2))I na
In pp lyi
applying ngA r ti
c
Articlele3 333( 1
(l))66,,t hed
the epr ec iat
depreciationio nc o s
cost to fixed
offfi xe da s s e
assetstss p ec if
i
specifiededb byyP resid ent
Presidential i
al
D ecre
Decree, e,s uc
such ha assb ui ldi
buildingsngsf orb
for us i
ne
business s sp ur pos
purpose, e,f ort
for het
the axabl
taxable ep e ri
periododo offaS inc
a Sinceree reS ma
Small l
l
orrMedium
o Me di um B us ine
Business s sP r o pr
Proprietori
e t
o rs ha
shall llbe
bet hea
the mo
amount untc al
c ulat
calculatede da assp r
e sc ri
prescribedbe db byyP res ide nt
Presidential i
al
D ecre
Decree, e,r ega r dl
regardless e sso offw he
whether the ro orrn o
nottt heb
the us ine
e
proprietort
o rh a
has sr ec kone
reckoned da assan ec es
a necessarysar y
expe ns
expense, e ,a nds
and ha
shallllbe
bei nc lude
included da assan e c e
a necessaryss ar ye xpe ns
expense. e.
(3
(3))IInna ppl yi
applying ngA r tic
Article le3 344h e re
hereof ofa ndA
and rt ic
Articlesle s7 733a nd7
and 766o offthe
theR e str
Restric-ic-t i ono
tion offS pe c
Specialial
T axa t
TaxationionA c
Act,t ,a f te
afterrd e duc
deducting t i
nge xpe
expensesns eso offaS inc
a Sincere e r eS ma
Small lloorrMedium
Me di um Business
Bus ine s sP ro pr i
e
Proprietortor
d uringt
during het
the a xa bl
taxable ep e r i
o
period, d,i iffthes
the um o
sum offd ona ti
donationso nsi ne
in ac
each hs ubp ar agr
subparagraph aphe xc e e
exceedsdst hea
the mo
amountunt
cal cul at
calculated edb byymu mul-l-t ipl yi
tiplying ngt her
the eve nuea
revenue mountf
amount ort
for het
the axa
taxablebl ep e ri
periododb byyo nep
one e rce
percent,nt,
suc
such ha ne
an xc e
excess ssa mounts
amount hal
shall ln otbe
not bei nc lude
included di nn
in e c es s
necessary arye xpe ns
expenses esi nc
in alc
calcu-u-l ati ngt
lating he
the
inc omed
income ur
duringingt her
the ele va
relevant nttaxable
taxa bl ep er iod.I
period. nt
In hi
this sc as
case,e ,A r
Ar- -t ic l
ticlee3 344( 3)s
(3) hal
shall ln ota
not ppl y:
applyi
1
l..D es igna
Designated te dd onat
donationsionsu nde
under rA rtic
Articlele3 344( 1)
(l);;a nd
and
2
2..D ona ti
Donationso nsu nde
under rArticle
Ar tic le3 4(
34 2
(2))[ inc ludi
[including ngd onat
donations ionsa ndp
and ol i
tic
politicala lf undsu
funds nde
under rArticles
Ar ti
c les
7
733( 1)a
(l) nd7
and 766o offt heR
the es tr ic
SpecialialT a
Tax-x-a t
ionA
ation ct
Act]. ].
(4
(4))IInna ppl yi
applying ngA rtic
Article l e3 355( 1 )
(I),,i ifft hee
the nt e rtai nme
entertainment nte xpe
expensens es pe
spentntb by yaS i nc
a Sinceree reS mal
Small l
orrMe
o di
Medium um B us i
ne
Business ssP r o pr i
Proprietoreto rd ur i
duringngt het
the axa
taxablebl ep erio
periodd[ exc ludi
[excluding ngt hep
the ortio
portion nn o
not tincluded
inc l
ude d
inn
in e ce ss
necessarya rye xpe ns
expenses e sp ur s
pursuantua ntt oA
to rtic
Articlele3 5(
35 2 )
(2)]]e xc ee
exceeds ds1 199mi lli
milliononw o
won,n,s uc
such haanne xc es
excess s
amounts
amount ha
shall lln otb
not ei
be nc l
ude
included di innn e ce s s
necessaryar ye xpe
expenses ns e sf ort
for hep
the ur pos
purpose eo offc al cul at
calculatingingt he
the
inc omed
income ur i
duringngt her
the el e vantt
relevant a xabl
taxable ep e r i
od.
period.
(5
(5))I nc
In alc ula t
calculatingingt hei
the nc o
income meo offaS inc
a Sincereer eS ma
Small l loorrMe di
Mediumum B us i
ne
Business ssP ro p rie
Proprietortorfor
f orat a xa
a taxableble
p e r
iod,n
period, e c es s
necessary a ryma tt
matters e rsc onc e r
concerningni ngt her
the ev-e
rev- nuea
enue mount
amount, ,t hey
the e
yearart ow
to hi
whichc hn ec es
necessarysar y
exp e ns
expenses esa r
areea ttr ibut abl
attributable, e ,e va l
u a t
evaluationi
o no offa ss e
assetstsa ndl
and ia b ili
ties
liabilities, ,inclusion
incl us iono offr ese rve
reserves sa nda
and ll
o wa nc
allowances es
inn
in e ces s
necessaryarye xp e ns
expenses, e s,a p pl ica
applicablebl em etho
methods dsf o
forrthe
thec a s
cases est ow
to hi
whichc ht he S
the inc e
Sincerer eT TaxaxP a yme
Payment nt
Me thodb
Method e c o
becomesme sn ewl
newly ya ppl i
c a
applicablebl eo orrn o
notta ppl i ca
applicable,bl e,e tc
etc..s ha
shallllbe
bep r es cr i
prescribedbe db byyP r es ide nt
Presidentialial
D ecre e.[Thi
Decree.[This sA r t
ic
Article leN e
Newlywl yI ns e r
Inserted tedb byyA ActctN No.o.8 5 24
8524, ,J ul
Jul..1 9
19,,2 00
2007] 7]
Art i
cle8
Article 7-4(
87-4 Calculation o
(Calculation offTax Amo
Tax unt)
Amount)
T hei
The ncomet
income axf
tax ort
for hei
the nc omeo
income offaS i
nc e
a SincerereS mal
Small loorrMe di
Mediumum Business
Bus ine ssP roprietorf
Proprietor or
for
at axablep
a taxable eri
periodods hal
shalllbe
bet hea
the mo untc
amount alculatedb
calculated yd
by e
de--d uctingt
ducting hea
the mo untunder
amount unde rArticles
Ar t
icles
87-5a
87-5 nd8
and 7-6f
87-6 rom t
from hea
the mountc
amount al
cal--c ulatedb
culated ya
by ppl yingt
applying hep
the rovisionso
Ar ti
c l
es5 5
55
through6
through 4t
64 ot
to het
the axb
tax as e
base..I nt
In hisc
this ase
case,,t heR
the es tr
ict i
RestrictiononooffS pecialT
Special axat
i onA
Taxation c
Actts hal
shalll
not a
not pply.
apply.
[Thi
[ThissA rticl
Article eNe wl
Newly yI nser t
Inserted edb byyA ActctNo
No..8524,
852 4,Jul.
Jul.19,
19 ,2007]
2007 ]
- 158 -
-158-
Art i
cle8
Article 7-5(
87-5 StandardT
(Standard axD
Tax eduction)
Deduction)
(1)I
(1) Innt hec
the as
caseeooffaS i
n c e
a Sincere reS ma l
Smalllo
orrMe d i
Mediumu mB usine
BusinessssP ropri
eto
Proprietorr[ thats
[that ha l
shalllbbeelimi te
dt
limited too
ab us i
n e
a businessssp ropr ieto
proprietorrw h
who oe ngage
engages si nat
in y p
a type eooffbusi-
bu si-n e
nesssss pecifie
specifieddi nA
in rticl
Article e7( 1)1o
7 (1) 1 off
theR
the es tr
icti
ono
Restriction offS pe cia
SpeciallT a xat
Taxationi
o nA c t
]
Act],,the
thea mo
amountunte qu iva le
equivalentntto
to2 5percent
25 per ce nt( o
(orr1 5peroent
15 pe r
c en t
forab
for u si
ne
a businessssp rop r
ie t
o
proprietor rw ho
whose s
ed omi cil
domicileei si
is nt
in heS
the eo u
Seoullmetropolitan
me tr
op olit
a na rea
area))o offthe
thei n c
o me
income
taxc al
c ul
a t
edf ort hei nc omed
taxcalcdatedfortheirnomeduring uri
n ga t a
x ab lep e riods h a
ataxableperiodshallbede—llb ed e-d uc t
e dfr omt h et a
ductedfiornthetaxanmmt.xa mo u n t
.
(2)I
(2) Inna ppl
yi ngt
applying het
the axd
tax educ ti
deductiononu nd e
underrp ara gr
paragraphap h( 1),n
(1), ecessa r
necessaryym at
nut- -t e r
terssc onc erning
concerning
them
the etho
methodsdsa p
p licabl
applicableet ot
to h
theec asesw
cases her
whereethere
th erea rea
are n
anyyi ncomeo
income th e
otherrthan
t
h a nb us ine
businessssincome
in c
o me
andi
and nco mef
income roml
from easingo
leasing offreal
reale statea
estate n
anddt hec
the ase
casessw h e
where rethere
ther
ea retwo
are twoo orrmore
mo rebusiness
bus i
n es s
typ e
so
types orrb usine s
businesssp lac e
placessi nw
in hic
whichhab us ine
a business ssp ro p
rieto
proprietor re ngage
engagesss hal
shalllbe
bep r esc ri
be
prescribed dbbyy
P r
e side nti
Presidentiala
lDecree.[This
De c re e.
[ Thi sA rti
c l
eN
Article ewl
Newly yI nse r
InsertedtedbbyyA c
Act tNo.
No.8524,
8 52 4,Jul.
J ul .1 9
19,,2 0 07
2007]]
Art i
cle8
Article 7-6(
87-6 TaxD
(Tax eductionf
Deduction orI
for ncreasedR
Increased evenue)
Revenue)
(1
(1))I nc
In a
casesew he
where ret h
theer eve
revenue nuea mo
amountun td e c la
declaredr
e db yaS
by i nc
a Sincere er eS ma
SmalllloorrMe d
Mediumium B us ine
Business ss
P ro prie
Proprietorto rf ort
for her
the el ev
relevantan tt a xa
taxableb l
eperiod
p erio da attthe
th etine
t imeo offreporting
rep o rtin gt h
theetax
taxb asefor
base fo rconsolidated
c on solida ted
inc omei
income na
in cc o rd a
accordancenc ew i
witht
hA rtic
Articlele7 700e xc e
exceedsed s1 1
115 5p e rc e
percent nto offthe
ther e ve nuea
revenue mo
amountuntd ur i
duringng
thei
the mme d
immediatelyiate lyp r evi
previouso u st axa
taxableblep e ri o
period,d ,the
th ea mo
amount un tc alc ula
calculatedt eda cco rd i
accordingngt ot
to hefollowing
the f ollowi ng
for mu
formula las h al
shalllb ed
be e d uc
deducted te df r o
frommt het
the a
taxxa mo
amount un tc a lcu lat
calculatede df o
for rthe
t h erelevant
re l
e va nttaxable
taxa bleperiod
pe rio d:
T het
The a
taxxa mo
amountuntc a lc ul
calculateda tedf o
forrt her
the ele va
relevant nttaxable
t a xa bl ep er i
periodo d×( thea
X (the mo
amountunte xc ee d
exceeding ing
1 1
1155p erc
percentento offt her
the e ve
revenuenuea mo
amountuntf o
forrt hei
the mme d
immediatelyi
a te l
yp revi o
previousust axa b
taxablelep e ri
periodod/ th
/ thee
reve nuea
revenue mo
amountuntf o
forrt her
the e leva
relevantntt axa
taxablebl ep e r io
period). d).
(2
(2))P a ra gr
Paragraph ap h( 1
(1))s ha
shall lln o
not ta p pl
applyyt ot
to h
theec a s
casesesw he
where rethet
heincome
i
nc omeforfo rthe
therelevant
r ele va nttaxable
taxa b l
e
p er i
o
period dd o
doesesn o
not tr e a
reach cht h
the ei nc o
incomemef o
forrt h
theei mme d
immediatelyia telyp revi
previouso ustaxable
taxa bleperiod
p e rioda n
and dw h e
where r
e
th
theer eve
revenuenuea mo
amountunth a
has si nc r ea
increaseds e do wi
owingngt oa
to nyo
any offt hec
the aus
causese soorre ve nt
events ss p ec ifi
specifiededb y
by
P re sid e nt
Decree,e e ,s u
suchc ha assr e l
o c at
relocationio noofft heb
the us ine
business ssp lac
place eo orrc ha n
changegeo offbusiness
bus ine s stype.
typ e.
(3
(3))I nt
In h
theee ve
eventntt ha
that tab us
a businessine s sp ro p rie
proprietor,to r,t toow ho
whom mp ar a gr
paragrapha p h( 1
(1))w a
was sa pp l
i e
applied,d ,f iles
files
ar et ur
a return nu nd e rsta
understatingt ingt h
the er e ve nuea
revenue mo
amountuntf ort
for her
the e leva
relevant ntt axa bl
taxable eperiod
pe r
iodo orro ve rs tat
overstating ing
n ec e ss
necessary a rye xp e ns
expenses e sa ndi
and ifft heu
the nd e r s
understatedta te do orro ve rs ta
overstatedte da mo
amountuntisis2 0p
20 erc e
percentnto orrmore
mo re
o
offt her
the eve n
revenue uea mo
amount u ntr ec
rec- -t ifi
e
tifieddo orrn ece s s
necessarya rye xp en
expensess esr e c tif
ie
rectified, d,the
thetax
taxa mo un
amount ta l
re a
alreadydy
d educ
deductedt e ds ha
shallllbbeec o ll
e c
collectedte da d ditio na
additionally.lly.
(4
(4))I na
In p p l
yi
applyingngt het
the a
taxxd e duc
deduction ti
o nu nd
undere rp a ragr
paragraph ap h( 1),n
(1), ec e ss
necessarya rym a
nut-t-t e r
terssc onc er
concerningni ng
th
theec al c ula
calculationt
io nm et
methodh o df o
forra pp lyi
applyingn gt a
taxxd e d uc
deductiontio nt ot
to h
theec a se
cases sw he
whereret he r
thereei sa
is nyi
any nc o
incomeme
o the
other rt ha
than nb us ine
business s si nc o
incomemea ndi
and n-c
in- o mef
come ro
fromml ea s i
leasingngo offr ea
realle st
a t
estatees ha
shalll
lbbeeprescribed
pr es cribe d
b
byyP re sid ent
Presidential ia lDecree.
De c re e. [Thi
[This sA rtic
ArticleleN ewl
Newly yI ns er
Inserted tedb by yA Actc tNo.
No .8524,
8 524 ,Jul.
J ul.1 9,2
19, 00
2007]7 ]
Art i
cle8
Article 7-7(
87-7 Reporting,Payment,
(Reporting, Payme
nt,e tc.)
etc.)
(1)A
(1) st
As or
to ep or
t i
nga
reporting ndp
and ayme n
paymentto offincomet
income axo
tax naS
on incereS
a Sincere mallo
Small orrMe di
Mediumum B u
sines
Businesss
Pr opriet
o r’
sg
Proprietor’s l
o ba
globalli ncome
income,,thep
the ro visionso
provisions offA rti
c l
es6
Articles 655thr o
ugh7
through 7s
77 halla
shall pply,e
apply, xcept
except
asp
as rovid e
df
provided oro
for the rwis
otherwiseei nt
in hisC
this hap t
er
Chapter..
- 160 -
-160-
(2)A
(2) rticl
Articlee6655( 3
(3))a nd(
and 5
(5))s halln
shall ota
not ppl
applyyt toot hei
the nt eri
interimm prepayment
pr e payme ntb yaS
by i nc
a SincereereS mal
Small l
o
orrMe di
Medium um Business
Bus ine ssP r oprietor
Proprietor. .
(3
(3))N ece ss
Necessaryar yma tt
matterse
r sc o nc er
ni
concerningngt hed
the o cume
documents nt sa ccompa nyi
accompanying ngt her
the e-t
re- ur
turnnu nde
under rA rtic
Articlel
e
7
700( 4)s
(4) ha l
lbe
shall bep r escr i
be
prescribed db yP
by reside nt
PresidentialialD ec r
Decree.e e.
(4
(4))T her
The ec tifi
c at
rectificationionu nde
under rA r tic
Article l
e8 800( 2)a
(2) nd(
and 4)s
(4) hal
shalllnot
notb beea pplicabl
applicable ettooaS inc er
a Sincere e
S ma
Small l
loorrMe di
Mediumum B usine
Business ssP r opr ie
Proprietort
orwhWho oh a
hassf ile
fileddt her
the e
re- -t ur
turn na ndma
and madedep ayme
payment nti n
in
compl ianc
compliance ewi t
Withht heS
the inc e
SincerereTTaxaxP ayme
Payment ntMe thod:Provided,
Method Pr ovi ded,T ha
That tthe
thef or egoi
foregoingngs hal
shall l
n ota
not ppl
applyyt ot
to hec
the ase
cases swh e
Where r
eiittiisse vide ntt
evident ha
that tt her
the eturnf
return ile
fileddiissu nde rs tat
understatededi nt
in hel
the ight
light
o
offt heo
the b-j
ob- ective
jectivelylye vide nci
evidencingngma t erial
materials.s.
(5
(5))I na
In pplyi
applyingngt hep
the rovi sionso
Article s8800t hr ough8
through 6,necessary
86, ne cess aryma t
mat--t ersc
ters once r
ni ng
concerning
thed
the e t
e rmina ti
on,r
determination, e c
t i
fic ati
on,a
rectification, ndc
and ollect i
collectionons hal
shall lbe
bep re s cr
prescribedi
be db yP
by res ident
Presidential ialD ec re
Decree. e.
[ Thi
[This sA rtic
ArticleleNeNewlywlyI nsert
Inserted edb yA
by ActctNoNo..8524,
8 52 4,Jul.
Jul .19,
19 ,2007]
20 07]
CHAPTER Ⅲ
CHAPTER III RESI
DENT’ST
RESIDENTS AX LIABILITY
TAX LIABILITY ONT
ON RANSFERI
TRANSFER NCOME
INCOME
Art i
cle8
Article 888(Definitiono
(Definition offTransfer)
Transfer)
( 1
(1))F o
For rt h
theep urpo
purposes eo offA rticl
Articlee44( 1)3
(1) 3a n
anddt h
thisisC h ap t
Chapter,er,t het
the erm“
term tran sfe
“transfer”r”m e a
meansnst ha
thatta ny
any
a sse
assetstsa rea
are ctua ll
yt
achially r an sferr
transferrede df orpn'oe
for priced u
dueeto
tos a le
sale,,e xc han g
exchange, e,investnent
i nve stme n tin
ink indt
kind ocorporation,
to cor p oration,
e tc.
,r
etc., ega rdle
regardless sso offa nyr
any egis trati
o
registration no orre nr o l
lme
enrollment ntc onc e r ni
concerning ngs uc
such ha s sets
assets..InInt h i
thissc a se
case,,
i
iffad o
a doneene et a ke
takes so ve
over ra nyo
any bliga t
i
obligationo
no offad ono
a donor rby
b ya no
an ne ro
onerous usd ona ti
donationon( e xc ludi
(excluding ngt he
the
c as
caseef a l
lingu
falling nd e
under rt het
the exto
text offArticle
Ar ticle474 7( 3
(3))o offthe
theI nhe r ita
Inheritance nc eT a
Taxxa ndG
and i
GiftftTax
Ta xA ct
Act),),
t hep
the ort
portionione qui va
equivalentlentt ot
to hea
the mo unto
amount offs uc
such ho b li
ga ti
obligationo ni nt
in h
theed on ati
donationona mo u
amount nts hal
shalll
b
beec o nsid
consideredere da st
as h
theea ctua
actual lt ra nsfe
transferrfor
fo rprice
p r
ic eo offs uc
suchha s s e
assets.ts.< Amendedb
<Amended byyA Actc tNo
N0..
5 19
5193,3,Dec.
Dec .30,
30 ,1996;
1 99 6;ActAc tNo.
No.7 00
7006,6,Dec.
Dec .30,
30 ,2003;
2 00 3;Act
Ac tNo.
No.8144,
8 14 4,Dec.
Dec .30,
30 ,2006>
20 06 >
( 2
(2))I Iffthec
the a te
go
categoryryo orrl otn
lot umbe
number rooffl a ndi
land issc ha nge
changed da asst her
the e sul
result tooffmea-
me a-s ure
sures sf orland
for l
and
s ubs titut
substitution ionu nde
under rt heU
the rba
Urban nD evel opme
Development ntA c
Act ta ndo
and the
other rA c t
Acts,s,oorrl andi
land issd es ignat
designated ed
a
assl ands
land ec ure
secured db byyt hea
the ut hor it
ie
authoritiessi nr
in ec om-p
recom- ens
pense ef o
forrd eve lo pme
development nto utlays
outlays, ,it
its ha
shallllnot
not
b
beec o ns i
de
consideredre daassat r ans
a transferferaassr e f
err e
dt
referred oi
to np
in ar agr a
paragraph ph( 1 )
(1)..< Amendedb
<Amerided yA
by Actc tN0.
No.6292,
6 29 2,
De
Dec.c .29,
29 ,2000;
20 00 ;A Actc tNoNo..8144,
81 44,Dec.
Dec .30,
30 ,2006>
20 06 >
Art i
cle8
Article 9(
89 Non-TaxableT
(Non-Taxable ransferI
Transfer ncome)
Income)
(1)T
(1) h
The ei nc omet
income axo
tax na
on nyt
any r
a ns f
transfereri nc ome(
income h e
re i
nafterr
referred oa
to ass“ tra ns f
“transfere ri ncome
income
tax”
tax”) )s ha l
shallln otb
not beel e vie
levieddo nt
on hef
the ollowi ngi
following ncome s
incomes::< Amendedb
<Amended yA
by ActctNoNo..5580,
5580,
De
Dec.c .28,
28,1998;
19 98;A c
ActtNoNo..605],
60 51 ,Dec.
Dec .28,
28 ,1999;
19 99;A c
ActtNoNo..678],
67 81 ,Dec.
Dec .18,
1 8,2002;
2 00 2;A c
Actt
No.7
No. 837
7837, ,Dec.
Dec .3],
3
1,2005>
200 5>
1
1..Inc omea
Income ccruingf
accruing rom ad
from ispos it
i
a dispositiononb ya
by anna djudica ti
ono
adjudication offb ankr upt
bankruptcy;c y;
2
2..Inc omea
Income ccruingf
accruing roma
from anne xc ha nge
exchange, ,d ivis i
on,o
division, orranne xatio
annexationnoofffarm-
fa rm-l andf
land allingu
falling nder
under
s uc
suchhc ase
casessaassp re scri
be
prescribed db yt
by heP
the re side nti
alD
Presidential e-c
De- ree
cree;;
- 162 -
-162-
3
3..
I ncomea
Income ccruingf
accruing rom at
from ransfero
a transfer offsucho
such neh
one ousef
house oro
for neh
one ouseholda
household assprescribed
prescribed
byt
by heP
Presidential De
cree( excludinge
(excluding xpensiveh
expensive ousesw
houses hosep
whose ricese
prices xceedt
exceed hes
the tandard
standard
amounta
amount assprescribedb
prescribed yt
by heP
the res-i
Pres- dentialD
idential ecree)a
Decree) ndt
and hea
the ppurtenantland
appurtenant l
andw hose
whose
sizeo
size offaread
area oesn
does ote
not xceedt
exceed hatc
that alculatedb
calculated ymu
by ltiplyingt
multiplying hea
the reao
area offlando
land nwh
on ich
which
theb
the uildingi
building issfi
xedb
fixed yt
by her
the atioa
ratio assdeterminedb
determined yr
by egionu
region nderthe
under t
heP residentialDecree
Presidential De
cree
(hereafteri
(hereafter nt
in hisA
this rt i
c l
e,r
Article, eferredt
referred oa
to assthe“
the landa
“land ppurtenantt
appurtenant ot
to heh
the ouse”);a
house”); nd
and
4
4..Deleted.<
Deleted. byA
<by ctNo
Act No..7837,Dec.
7837, Dec.3],
31,2005>
2
005>
(2)N
(2) otwithstandingt
Notwithstanding hep
the rovisionso
paragraph 1),t
(1), hep
the rovisionso
paragraph( 1)33
(1)
shalln
shall ota
not pplyt
apply ot
to hec
the asew
case heret
where heo
the neh
one ouseholdp
household rescribedb
prescribed yt
by heP
Presidential De
cree
possessest
possesses heh
the ouse(
house includingt
(including hel
the anda
land ppurtenantto
appurtenant t
ot heh
the ouse;hereafter
house; he
reafterin
i
nt hisA
this r ti
c l
e,
Article,
thes
the ames
same halla
shall pply)a
apply) nda
and cquirest
acquires hep
the ositiono
position offas electedo
a selected ccupantupon
occupant uponthea
the pproval
approval
o
offthem
the anagementd
management ispositionu
disposition ndert
under hep
the rovisionso
provisions offArticle48
Article 4
8oofftheA
the cto
Act nt
on heMa
the i
ntenance
Maintenanoe
andI
and mprovemento
Improvement offUrban
UrbanA reasa
Areas ndD
and wellingC
Dwelling onditionsf
Conditions orR
for esidents[
Residents limitedt
[limited ot
to he
the
positiont
position hath
that asb
has eena
been cquiredb
acquired yt
by hem
the emberso
members offthe
thed wellingp
dwelling rojecta
project ssociationi
association mplement
-
implement-
ingah
ing ousingr
a housing econstructionp
reconstruction rojecto
project orrah ousingr
a housing edevelopmentp
redevelopment rojectu
project ndert
under hes
the ame
same
Act(
Act includingt
(including hep
the ositiont
position hathas
that ha
sb eena
been cquiredf
acquired roms
from ucha
such ssociationm
association ember);including
member); i
ncluding
thel
the anda
land ppurtenantt
appurtenant hereto;hereinafter
thereto; he
reinafterreferred
r
eferredt oa
to assan“
an occupationr
“occupation ighto
right offana
an ssociation
association
member”],a
member”], ndt
and ransferst
transfers her
the elevanth
relevant ouse:Provided,
house: Pr
ovided,T hatt
That hes
the ames
same hallnot
shall notapply
apply
tot
to hec
the asewh
case erei
where ittacquiresah
acquires ousef
a house orresiding
for r
esidingoorrono
on therinevitable
other i
nevitableg roundsw
grounds hich
which
arep
are rescribedb
prescribed yt
by heP
Presidential De
creed uringt
during hei
the mplementationp
implementation eriodo
period offthe
theh ousing
housing
reconstructionp
reconstruction rojecto
project orrtheh
the ousingr
housing edevelopmentp
redevelopment roj
-e
proj- ctu
ect ndert
under heA
the cto
Act nt
on he
the
Maintenancea
Maintenance ndI
and mprovemento
Improvement offUrbanA
Urban reasa
Areas ndD
and wellingC
Dwelling onditionsf
Conditions orR
for esidents.
Residents.
<NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..7837,Dec.
7837, Dec.3],
31,2005>
2
005>
Art i
cle9
Article 0(
90 Reductiona
(Reduction ndE
and xemptiono
Exemption offTransferI
Transfer ncomeT
Income ax)
Tax)
I
Iffanyi
any ncomea
income mountt
amount ob
to er
be educedo
reduced orrexemptedp
exempted ursuantto
pursuant t
ot hisA
this cto
Act orrotherActs,
other Ac
ts,
isi
is ncludedi
included nt
in het
the ransferi
transfer ncomea
income mounta
amount sprescribed
as p
rescribedi nA
in rt i
cle95,
Article 9
5,the
t
hetransfer
t
ransferincome
i
ncome
taxe
tax quivalentt
equivalent ot
to hea
the mountc
amount alculatedb
calculated ym
by ultiplyingt
multiplying hea
the mount,a
amount, r
rivedb
anived ya
by pplying
applying
thet
the axr
tax atep
rate rescribedi
prescribed nA
in rt i
cle1
Article 04t
104 ot
to het
the axb
tax aseo
base offthe
thet ransferincome
transfer i
ncomep rescribed
prescribed
inA
in rt i
cle9
Article 2(
92 2),by
(2), b
yt heratio
the r
atioooffsuchr
such educedo
reduced orrexemptedi
exempted ncomea
income mountless
amount l
essthe
t
he basic
basic
deductionsf
deductions ort
for ransferi
transfer ncomeunder
income un
derArticle
Ar
ticle1 03(
103 2)to
(2) t
othe
t
hetax
t
axb aseo
base offthe
thetransfer
t
ransferincome,
i
ncome,
shallb
shall ee
be xempted.<
exempted. Amendedb
<Amended yA
by ctNo
Act No..6292,Dec.
6292, Dec.29,
29,2000>
20
00>
Art i
cle9
Article 911(Exclusiono
(Exclusion offNon-Taxat i
ono
Non-Taxation offTransferI
Transfer ncomeT
Income ax)
Tax)
Thep
The rovisionsc
provisions oncerningt
concerning hen
the on-taxationo
non-taxation offthe
thei ncomet
income axo
tax na
on ny transfer
any transferincome
i
ncome
undert
under hisAct
this Ac
toorrotherActs,
other Ac
ts,s halln
shall ota
not ppl
yt
apply othe
to t
hea s-s
as- etstransferred
sets t
ransferredw ithoutregistration
without r
egistration
underA
under rticle1
Article 04(
104 3).<
(3). Amendedb
<Amended yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998>
1
998>
- 164 -
-164-
Art i
cle9
Article 2(
92 Calculationo
(Calculation offTaxB
Tax aseo
Base offTransferI
Transfer ncome)
Income)
(1)T
(1) het
The axb
tax aseo
base offa
atransferi
transfer ncomeo
income offanyr
any esident(
resident herei
n afterr
(hereinafter e-f
re- erredt
ferred oa
to assthe“
the tax
“tax
baseo
base offa
atransferi
transfer ncome”)s
income”) hallb
shall beecalculateds
calculated epa-r
sepa- atelyf
rately romt
from het
the axb
tax aseso
bases offanyg
any lobal
global
incomea
income nda
and nyr
any etirementi
retirement n-c
in— ome.<
come. Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
(2)T
(2) het
The axb
tax aseo
base offat ransferi
a transfer ncomes
income hallbe
shall bethea
the mounto
amount btainedb
obtained yd
by eductingt
deducting he
the
basicd
basic eductionso
deductions offtransferi
transfer ncomea
income assprescribedi
prescribed nA
in r-t
Ar- icle1
ticle 03f
103 rom the
from thet ransferincome
transfer i
ncome
amountc
amount alculatedu
calculated nderArticles
under Ar
t i
c l
es9 4t
94 hrough1
through 02a
102 nd1
and 18.<
118. Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,
Dec
Dec..3],
31,2007>
20
07>
Art i
cle9
Article 3(
93 Orderi
(Order nC
in alculationo
Calculation offTaxA
Tax mounto
Amount offTransferI
Transfer ncome)
Income)
Excepta
Except so
as therwiseprovided
otherwise p
rovidedf ori
for nt
in hisAct,
this Ac
t,the
t
hetransfer
t
ransferincome
i
ncometax
t
axs hallbe
shall becalculated
calculated
undert
under hef
the ollowings
following ubparagraphs:<
subparagraphsi Amendedb
<Amended yA
by ctNo.
Act No.605],
6051,Dec.
Dec.28,
28,J999;
19
99;Act
Ac
t
No.8825,
No. 8
825,Dec.
Dec.3],
31,2007>
20
07>
1
1..
T hec
The alculatedt
calculated axa
tax mounto
amount offanyt
any ransferi
transfer ncomes
income hallbe
shall becalculatedb
calculated ya
by pplying
applying
thet
the axr
tax atea
rate assprescribedi
prescribed nA
in rt i
cle1
Article 04t
104 ot
to het
the axb
tax aseo
base offat ransferi
a transfer ncomea
income assprescribed
prescribed
i
innArt i
cle9
Article 922(2);
(2);
2
2..
T hef
The inalt
final axa
tax mounto
amount offanyt
any ransferi
transfer ncomes
income hallbe
shall becalculatedb
calculated yd
by eductingt
deducting he
the
taxa
tax mountp
amount aidb
paid yap
by rovisionalr
a provisional eturna
return assprescribedi
prescribed nA
in rticle1
Article 08,from
108, f
rom the
thet ax
tax
amountc
amount alculatedu
calculated nders
under ubparagraph 1
subparagraph 1..In
Ins uchc
such ases,if
cases, i
fa nyt
any axa
tax mountis
amount i
sr educed
reduced
o
orrexemptedu
exempted nderA
under rt i
cle9
Article 0,t
90, hef
the inalt
final axa
tax mounts
amount hallb
shall ec
be alculatedb
calculated yd
by educting
deducting
sucha
such mount;a
amount; nd
and
3
3..
T heg
The rossf
gross i
nalt
final axa
tax mounto
amount offtransferi
transfer ncomes
income hallb
shall ec
be alculatedb
calculated ya
by ddingt
adding hea
the dditional
additional
taxp
tax ursuantt
pursuant oA
to rt i
cle1
Article 15o
115 offthisA
this cta
Act ndA
and r-t
Ar- icles4
ticles 7-2t
47-2 hrough4
through 7-5o
47-5 offtheF
the ramework
Framework
Acto
Act nN
on ationalT
National axes t
Taxes ot
to hef
the inaltax
final t
axa mountc
amount alculatedu
calculated nders
under ubparagraph2
subparagraph 2..
Art i
cle9
Article 4(
94 Scopeo
(Scope offTransferI
Transfer ncome)
Income)
(1)T
(1) het
The ransferi
transfer ncomes
income hallbe
shall bethef
the ollowingi
following ncomesa
incomes ccruingd
accruing uringt
during hec
the orresponding
corresponding
year:<
year: Amendedb
<Amended yA
by ctNo
Act No..7006,Dec
7006, Dec
.30,
30
,2003;
20
03;A ctNo
Act No..7837,Dec.
7837, Dec.3],
31,2005;
20
05;
ActNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006;
2
006;A ctNo
Act No..9270,
9270,De c
Dec.26,
26,2008>
20
08>
1
1..
Anyi
Any ncomea
income ccruingf
accruing rom t
from het
the ransfero
transfer offland(
land referringt
(referring oal
to oto
a lot offlands
land ubjectt
subject o
to
registrationo
registration offlandc
land ategoryi
category nt
in hec
the adastreu
cadastre ndert
under heC
the adastralAct)
Cadastral Ac
t)oorrbuildings
buildings
(includingf
(including acilit i
esa
facilities nds
and tructuresa
structures nnexedt
annexed os
to uchb
such uildings);
buildings);
2
2..
Anyi
Any ncomea
income ccruingf
accruing rom t
from het
the ransfero
transfer offthe
ther ightst
rights or
to eale
real statef
estate allingu
falling ndera
under ny
any
o
offthef
the ollowingi
following tems:
items:
(a)R
(a) ightst
Rights oa
to cquirer
acquire eale
real state(
estate includingt
(including her
the ightst
rights oa
to cquireb
acquire uild-i
build- ngsa
ings ndl
and and
land
annexedt
annexed ot
to heb
the uildingsu
buildings nderc
under onstructionwh
construction enc
when ompletelyb
completely uilt);
built);
- 166 -
-166-
(b)S
(b) upe r fi
Superficies;c i
e s;a nd
and
(c)D
(c) e pos it
Deposit-base-bas el eas
lease ea ndl
and e as e hol
leasehold dt it l
titleer e gi st
registereder e di nt
in her
the e
realale s
es--t at
tate er egi s t
register;e r ;
3
3..An
Any yi nc o
incone mea c cr u
accruingin gf ro
from mt h
theet r an sf
transfer e rooffs to c
stocks kso orri n ve s tme
investrrent nts h a
sharesresfalling
f allingu nd
under e ra nyo
any offthe
t
h e
followi n
following gi tems(
items in clu di
(including ngp re emp
predrptive tiverights;
r i
g h ts;hereafter
h e re a fterreferred
re fe rredtotoaass“ sto ck
“stod<s, s,e tc .
”i
etc.” nt
in h i
thissC h ap t
Chapter)e r):
(a)T
(a) ra ns
Transfer fero offs to cks
stocks, ,e tc
etc..o offal is t
a listededs t oc
stock kc o rpo r
corporationat ionu nde
under rthe
theF i
na nc
Financial ia lInvestment
I nve s tme nt
S er vi
Services c e sa ndC
and api
Capital talMarkets
Mar ke t sA c
Act t( he r
(herein-e in-a ft
aftererr e fe r
referredre dt tooa assa“ li
a “listeds t eds tock
stock
co rpo ra t
corporation”)ion” )bybyi tsma
its j
majoro rs ha r e ho
shareholderslde r sp r e sc r
prescribedi
be db yP
by re side
De c r e ec o ns ide
considering ring
ther
the at
ratioioo offs to c
stockskso wne
owned, d,total
tot a lmarket
ma r ke tv a lue
value, ,e tc
etc. .( he re a f
(hereafter terreferred
r e fe rr e dt tooa ass“ maj
“major or
sha r e ho
shareholders”l
de r s ”i nt
in hi
thissC ha pt
Chapter) er)a ndt
and rans
transfer fe ro offs t oc ks
stocks, ,e t c
etc..not
no tt hr ought
through hes
the ec ur it
securitiesies
ma r
marketke tu nde
under rt hes
the ameA
same c
Actt( he re inaf
(hereinafter te rr e f e r
referredre dt tooa ass“ s e cur i
“securitiest ie sma rke
market”); t” ) ;
(b)D
(b) e le
Deleted;te d;a nd<
and byA
<13)» Actc tNoNo..9270,9 27 0,Dec.
Dec .26,
2 6,2008>
2 00 8>
(c)S
(c) toc
Stocks,ks ,e tc
etc..o offac or por
a corporation a tionwh i
whichc hi issn nototal ist
a listede ds toc
stock kc or por at
corporation; ion;a nd
and
4
4..Anyi
Any nc
incomeomea c c rui
accruing ngf r om t
from het
the r ans
transfer fe ro offa ss e
assets tsf al li
ngu
falling nde
under ro neo
one offthe
t hef oll owi
following ng
items(
items he re a
(hereafterfte rr ef er
referredr edt tooa ass“ mi s ce llane
“miscellaneous ousa s se
assets”ts”i nt
in hi
this sC hapt
Chapter)3e r ) :
(a
(a))G oo dwi
Goodwill ll( inc ludi
(including ngw ha
what ti issa d mi
admittedtt edt oh
to a
haveveb e e
been nt ra ns f er
transferred re dw i
withtha anni nc l
us
inclusionio no off
go o
gooddw i
willllb
byyt h
theeg e n er all
y - a
geneally-acoeptedc cep te didea
ide aw h
whileil
etheth eg o o dwi
goodwill llh a
hassnot
n o tbeen
b e ens e p ar a
separatelyte lya ss es
assessedse d
andp
and r ofita
profitablebl eb en-e
ben- fit
efitssd e ri
ve
derived df ro
frommo bt a i
ni
obtaining ngt hea
the ut ho riza
authorization,tio n,permission,
pe r mi s s io n,license
lic ens e
etc
etc..f ro
fromma na
an d mi ni s tr
administrativeat ivea ge nc
agency) y)w hi
which c hi isst ra ns f e
transferredrre dc o nc
concur- ur -r e nt
rentlyl
yw withitht hef
the ixe
fixed d
as se
assetst sf o
forrb us ine
business s s( ref e rri
(referring ngt ot
to hea
the s s
assetset sf allingu
falling nde
under rs ubp a ra
subparagraphs gr ap hs1a 1 and nd2 )
2);;
(b)R
(b) ight
Rights st ou
to s
use, e,me mbe
membership,r s hi p,a ndo
and the
other rr ight
rights, s ,i rr e spe c
irrespectivetiveo offt he
theirirt it le
titles,s ,t ou
to usesei n-
in-
stal l at i
stallationsonswh which icha r
areeg i
ve
given nt tooap e r
a persons onb e comi
becoming ngame a membermbe rooffa anno r ga ni z
organizationat ion
co nt r a
contractedcte dttoob ee
be nt itl
entitlededt oe
to xc l
exclu-u-s ive
sivelylyu s
use et hei
the ns ta ll
a ti
o
installations nso orrtot ou s
useeu nd
under e rfavorable
favo r a ble
co ndi ti
conditions onsi nc
in o mp a
comparisonriso nw i
withthg ene
general ra lusers
us e r s( inc
(in as
casesesw he
where r et her
the ight
rights st tooe xc l
us i
exclusivelyve ly
us
useei ns tallat
installations i
onso orrtotou s
use eu nde
under rf a vor
favorableabl ec ondi t
conditionsionsi nc
in ompa
comparison r is onwi witht hg ene
general ral
us e
usersr sa r
areep r ovi
provided de db byyo nl
only yp os s es
possessing s ings t oc
stocks kse tc
etc..ooffthe
t hec or por at
corporation, io n,the ther e le vant
relevant
stoc
stocks,ks ,e tc.
etc., ,s ha
shalll lbebei nc lude
included); d) ;a nd
and
(c)A
(c) s se
Assets tsp res c r
prescribedibe db by yP re s ide nt
Decree,e e ,t a ki
takingnga c co
accountunto offthe
thec o mpo s
compositionit io no offs ha
share-re-
ho lde
holders,r s,c ur r
currente nts t a t
statususo offh oldi
holdingngr ea
real le s ta
estate,te ,o orrbusiness
bus ine sst yp e
types, s ,e tc
etc..ooffthe
thec o r
p o ra
corporation t i
o n
w hi
whichc hh a
hassi s sue
issued dt hes
the to
stockckc e rtific
certificatesa te so orri nve s t
investmentme ntc e rtif ic
certificates ate so offs to c
stocks, ks ,e tc
etc. .
(2)Wh
(2) Whereeret hep
the rovi s
provisionsi
o nso offparagraph
pa ra gr aph( 1)3a
(1) 3 andnd4a 4 arerea p p l
ic a
applicableb l
ec o
con-n-c ur re nt
currently, ly,the
t hep rovi s i
o
provisions ns
o
offs ubpar a gr
subparagraph aph4s hal
4 shall lbebea ppl icabl
applicable eo nl
only.y.
[Thi
[This sA r t
Articleic leWh Wholly ol lyA mendedb
Amended byyA Actc tNo No..6292,62 92 ,Dec.
Dec .29,
29 ,2000]
20 00 ]
Art i
cle9
Article 5(
95 TransferI
(Transfer ncomeA
Income mount)
Amount)
(1)T
(1) h
The et r ans f
transfereri ncomea
income mo unts
amount ha l
shalllb
beeth
theea mo untc
amount alcula te
db
calculated yd
by ed uc ti
ngt
deducting hes
the pecial
special
long-t e
long-termrmh oldingd
holding educ t
iona
deduction mo untf
amount romt
from h
theeamo unt(
amount hereinafterr
(hereinafter eferre
referreddt
tooaass“ga i
ns
“gains
fro
frommt het
the ran sfe r
transfer”)” )obtainedb
obtained yd
by e
d u cti
n
deductinggt h
theen ecessa r
necessaryye xpe nse
expensessa sp
as re scri
be
prescribeddi nA
in r
ticle
Article
97f
97 romt
from h
theet otalr
total evenu
revenueea mo un
amount toofftransferi
transfer ncomea
income assp rescribedi
prescribed nA
in rti
cle9
Article 4(
94 he re
inafter
(hereinafter
ref erre
referreddt tooaass“ tr ansfe
“transferrv alue”).
value”).
- 168 -
-168-
(2
(2))T het
The erm“
term spe c
“speciali all ong-t
long-termer mh oldi
holdingngd e duc t
deductioni
ona mount
amount” ”i np
in ar
para-a- g raph(
graph 1)means
(1) me ans
thea
the mo untc
amount a l
c ula
calculatedte db byymu ltiplyi
multiplyingngg a i
gainsnso nt
on ra ns f
transferero offthe
t
hea s se t
assets,s,w hic
which ha r
areep r escribe
prescribed d
byA
by rti
cle9
Article 4(
94 1)1(
(1) e xc l udi
1 (excluding ngt hea
the ss e
assetstss ubje
subjectctt ot
to hea
the pplicatio
applicationno offthe
thet axr
tax at
rateep ursuant
pursuant
toA
to rti
cle1
Article 04(
104 1)2
(1) -3t
2-3 hr ough2
through -8,a
2-8, nds
and ubpar agr
subparagraph aph3o 3 offthe
t hes amep
same ar agraph,a
paragraph, nd
and
thea
the s set
assets ss ubj e
subject ctt toot hea
the ppl icat
applicationiono offA rtic
Articlel
e1 04(
104 6)
(6)))a ndh
and aveb
have ee
beennh e
heldldf ort
for hre
threee
o
orrmo r
moreey ear
years,s,bybyt hed
the educ t
deductionionr a t
rateef r om T
from abl
Table e1b el
1 belowow c or r e spondi
corresponding ngt tooat er
a termmo off
h olding:P
holding: rovi ded,T
Provided, hati
That nc
in ase
cases so offa s se
assetstsf allingu
falling nde
under ro neh
one ous
house ef oro
for neh
one ous ehol
household d
(inc l
udi ngt
(including hel
the anda
land nne
annexed xe dt he ret
thereto)o)a assp r
e sc ribe
prescribed db yP
by reside nt
PresidentialialD e
cr ee
Decree,,iittme anst
means he
the
amo untc
amount alcula t
calculatede df ro
fromm multiplying
mul ti
p lyingg a i
nso
gains onnt ra ns f
e
transfer rooffthe
ther eleva nta
relevant sset
assetssbbyyt hed
the educ ti
o
deduction n
rat
rateec lass ifi
e
classifieddb byyt het
the e r
termmo offh oldi
holdingnga assp r es cribe
prescribed di nT
in abl
Tablee2b el
2 belowow:< Amendedb
<Amended y
by
Ac
Act tNo.
No.8825,
88 25 ,Dec
Dec .3],
3 1,2007;
200 7;A Actc tNo
No..89]],
8 91 1,Mar.
Ma r .2],
21 ,2008;
20 08 ;AActctNo.
No.9270,
9270 ,Dec.
Dec .
26,2008>
26, 2 008>
[Tabl
[Tablee1 1]]
T er
Termmo offH ol
ding
Holding DeductionR
Deduction ate
Rate
Longert
Longer han3y
than earsa
3 years nds
and hor t
e
shorterrt han4y
than ears
4 years 10/100
10/100
Longert
Longer han4y
than earsa
4 years nds
and hor t
e
shorterrt han5y
than ears
5 years 12/100
12/100
Longert
Longer han5y
than earsa
5 years nds
and hor t
e
shorterrt han6y
than ears
6 years 15/100
15/100
Longert
Longer han6y
than earsa
6 years nds
and hor t
e
shorterrt han7y
than ears
7 years 18/100
18/100
Longert
Longer han7y
than earsa
7 years nds
and hor t
e
shorterrt han8y
than ears
8 years 21/100
21/100
Longert
Longer han8y
than earsa
8 years nds
and hor t
e
shorterrt han9y
than ears
9 years 24/100
24/100
Longert
Longer han9y
than earsa
9 years nds
and hor t
e
shorterrt han1
than 0y
10 ear
yearss 27/100
27/100
Over1
Over 100y ears
years 30/100
30/100
[Table2
[Table 2]]
T er
Termmo offH ol
ding
Holding DeductionR
Deduction ate
Rate
Longert
Longer han3y
than earsa
3 years nds
and hortert
shorter han4y
than ear
4 yearss 24/100
24/100
Longert
Longer han4y
than earsa
4 years nds
and hortert
shorter han5y
than ear
5 yearss 32/100
32/100
Longert
Longer han5ye
than 5 arsandshor
years and tert
shorter han6year
than 6 s
years 40/100
40/100
Longert
Longer han6y
than earsa
6 years nds
and hortert
shorter han7y
than ear
7 yearss 48/100
48/100
Longert
Longer han7y
than earsa
7 years nds
and hortert
shorter han8y
than ear
8 yearss 56/100
56/100
Longert
Longer han8y
than earsa
8 years nds
and hortert
shorter han9y
than ear
9 yearss 64/100
64/100
Longert
Longer han9y
than earsa
9 years nds
and hortert
shorter han1
than 100y ear
yearss 72/100
72/100
Over1
Over 100years
years 80/100
80/100
(3
(3))N ot wi t
hs ta
Notwithstandingndi ngt hep
the r
ovi sionso
provisions offp aragr a
paragraphph( 1 )
(1),,t heg
the a i
nsf
gains ro
fromm the
thet r ans f
transferera ndt
and he
the
spe cia
specialll o ng-t
long-termermh oldingd
holding educ ti
deductionona mo
amountuntooffthea
the s
as--s etsw
sets hic
whichha ret
are hee
the xp ens
expensiveiveh ouses
houses
(inc l
udi ngt
(including hel
the anda
land ppur tena
appurtenant ntt here to)e
thereto) xclude
excludeddf rom t
from heo
the bjec
object tooffn o n-t axat
non-taxation iono nt
on he
the
tra nsfe
transfer ri nc omeu
income nde
under rA rticl
Articlee8 899( 1)3
(1) 3,,s hal
shalllbe
bet hea
the mountc
amount alcul at
calculatededa assp re scr i
be
prescribed db y
by
P reside nt
PresidentialialDecree.
De cre e .< Amendedb
<Amended yA
by c
Act tNo.
No.6 781
678], ,Dec.
Dec .18,
18 ,2002;
2 002 ;Act
Ac tNo.
No.7 8 3
7837,7,Dec.
Dec .
3 1,2005>
3], 2 00 5>
(4
(4))T heh
The ol di
holdingngp e ri
periododooffthea
the sset
assetssa assr eferredt
referred tooi np
in ar agr aph(
paragraph 2)
(2),,s ha
shallllbbeef rom t
from he
the
a cquis it
i
acquisitiono nd ateo
date offt hea
the ssetst
assets ot
to heirt
their r ans f
e
transferrd ate
datei:Provided,
Pr ov ide d,T ha
That tin
inc a s
casesesu nde
under rArticle
Ar t
icl
e
9
977( 4),i
(4), itts ha
shalll
lbe
bec a l
c ulate
calculateddf rom t
from hed
the at
dateewh e
when nt hes
the pous
spouse ed ona tingt
donating her
the e l
evanta
relevant sse t
s
assets
a cquir
acquiresest he
them.m. < Amendedb
<Amended byyA c
ActtNoNo..519],
51 91 ,Dec.
Dec .30,
30,1996>
1 99 6>
- 170 -
-170-
(5)Ma
(5) t
te r
sn
Matters ec e
ssar
yf
necessary o
forrthec
the alculationo
calculation offthet
the ransferi
transfer ncomea
income mounts
amount hallbe
shall bedetermined
determined
byP
by residentialD
Presidential e
cree.
Decree.
Art i
cle9
Article 966(TransferVa
(Transfer lue)
Value)
(1
(1))T Thehet r ans
transferf e rv al
valueueo offa s se
assets tsa assp re sc r
prescribedibe di inne ac
eachhs ubpar agr
subparagraph apho offA rt ic
Articlele9 4(
94 1)
(1)
sha
shallllbebet hea
the ct ua
actual lt rans ac
transactiont
ionv alueb
value et we
between e nt het
the r a ns
trans- -f e rora
feror ndt
and r ans f
transfereee reea attt het
the ime
time
o
offt rans
transferfe ro offt her
the e le va
relevant nta s se
assetsts( he r
(here-e -a f t
e
after rr e fe r
referredre dt tooa ass“ a ct ua
“actual ltransaction
tr a ns ac tionv al ue
value”).” ).
< Amendedb
<Amended byyA Act c tNo No..7 83
7837,7,Dec.
Dec .3],
3 1,2005>
200 5>
(2
(2))N ot wi ths
Notwithstandingta ndi ngt hep
the rovi sio
pa r a gr aph( 1)
(1),,w he
where rea s s e
assetstsp r ovi
provided de df o
forrini
nA r tic
Articlele
9
944( 1
(1))1a
1 andnd2a 2 areret r a ns fe
transferredrr
e dn otl
not a t
latere rthan
tha nD e c embe
December r3 1
31, ,2 0 0
2006,6 ,their
t he i rtransfer
t rans f
e rvalue
va lues ha
shallll
b
beeb as
based e do onnt hes
the tandar
standard dma r
ke
market tp ri
pricec eaattthe
thet imeo
time offthe
thet r ans
transferfe ro offthe
t her e
l eva
relevant nta s se
assetsts
w i
witht
ht hee
the xc e p
exceptiontiono offc a se
cases sf a l
lingu
falling nde
under ra nyo
any offthe
thef o ll
o wi
following ngs ubpa r a gr
subparagraphsi aphs :< Amended
<Amended
b
byyA ActctNoNo..7 8 37
7837, ,DecDec .3],
3 1,2005>
20 05 >
1
1..Whe
Where ret her
the e l
e va
relevant nta ss e
assetst
sm e
meete tt hes
the t anda
standard rdf o
forre xpe ns
expensive iveh o us
houses e su nde
under rt hep
the ro vi si
provisionso ns
o
offA r tic
Article le8 899( 1
(1) )3( inc ludi
3 (including ngt hel
the anda
land nne xe
annexed dt he ret
thereto); o) ;
2
2..Whe
Where ret her
the e le vanta
relevant s s
e
assetstsa r
areer ight
rights st oa
to c qui
acquire rer e a
real le s ta
estateteu nde
under rt hep
the r ovi s
provisionsionso off
A r ti
Articlecle9 944( 1
(1))2(2 (a);a );
3
3..Whe
Where ret her
the e le va
relevant nta sse
assetstsa r
areet rans fe
transferredrr edwi thoutregistration
without r egi st rat ionu nde
under rt hep
the rovi s
provisionsi
ons
o
offA r tic
Article le1 04(
104 3)
(3); ;
4
4..Whe
Where reo ney
one e
yeararh asn
has otp
not as s
passed e da fte
afterrt hea
the c qui s i
t
acquisitioniono offr ele vantr
relevant e
realale st at
estates;e s;
5
5..Whe
Where ret her
the ele va
relevant nta ss e
assetstsa r
areer e
real ale s ta t
estatese sa cqui
acquiredr edo orrtransferred
tr a ns fe rre db byyu nl
awf
unlawful ulmeans,
me a ns ,
s uc
suchha asst hep
the re p a ra
preparation tiono offaf a l
s
a falseec ont ra
contractc ta ndt
and hef
the a ls
falseec ha ngeo
change offt her
the es ide
residentntr e gi s t
r ati
registration,on,
aassp re s c r
the res
Presi-i-d e nt
dential ialD e cr
Decree;e e ;
6
6..Whe
Where reat ra ns f
a transferor er orf files
ilesar e tur
a return no na
on ctua
actual ltransaction
tr ans a c tionv a lue
values saattthe
t het imeo
time offthe
thet ra ns f
transferer
o
orra cqui s
acquisitionit
ionwi with tht hec
the hie
chieffo offat axo
a tax f fi
officeceh avi
over rt hep
the la
placec eo offt ax
tax
p ayme
payment ntt oge t
togetherhe rwi t
withht hes
the uppor
support- t-i ngd
ing oc ume
documents, nt s,n otl
not at e
laterrt hant
than het
the imel
time imi
limit to off
f ina
final lr e t ur
returns nsu nde
under rt hep
the rovi s i
Articlec l
e1 1
1100( 1)
(1);;
7
7..Whe
Where ret her
the ele va
relevant nta ss e
assetstsa r
areer e
reala le s tat
estates esl oc a t
locatede dwi t hi
within nt hed
the e s
desig- ig-n ate
natedda r e
areaau nde
under r
t hep
the r ovi s
provisionsionso offA rticl
Articlee1 04
104-2-2( 2);
(2);
8
8..Whe
Where ret her
the e le va
relevant nta ss et
assetssa rel
are a ndsf
lands o
forrn o n-bus
non-business ine ssu nde
under rt hep
the r
pro- o -v i
s i
o
visionsnso offArticle
Ar ticle
1 0 4-3
104-3; ;a nd
and
9
9..O the
Other rc as
cases esp r e s c r
prescribed i
be db byyP re s i de
Presidentialnt ialD e c
Decreere eb yt
by aki
takingnga cc ounto
account offt ype
types so offrelevant
re leva nt
a s se t
assets,s ,h oldi
holding ngp er i
period,od,n umbe
number rooffa sse
assetstsh eld,s
held, ca
scaleleo offtransaction,
tra ns ac tio n,transaction
tr ans a ctionme tho
methods, ds ,
e t
etc.c.
(3
(3))I Inna ppl yi
applying ngp a ra gr
paragraph aph( 1
(1))a nde
and ac
each hs ubpar a
subparagraphgr apho offparagraph
pa ra gr aph( 2)
(2),,wh
whereer ear es i
de
a resident nt
tr ans f
transferse rsa s s
assetsetsf al li
fallingngu nde
under ra nys
any ubpar agr
subparagraphs aphso off A r ti
Articlec le9 944( 1 )
(1),,t hema
the r
marketke tp r ic
pricee
shal
shall lb beed e e
deemedme da asst hea
the ctualtransac-
actual t rans ac -t ionv
tion aluea
value attthe
thet imeo
time offtransferi
t rans fe r:< Amended
<Amended
b
byyA ActctNoNo..8825,88 25 ,DecDec .3],
3 1,2007>
20 07 >
—172—
- 172 -
1
1..T
Thehem ar
marketke tp ric
priceea assr ef er
re
referreddt oi
to nA
in rti
c l
Articlee5522oofft hes
the ameA
same cts
Acts,,iiffa s
as--s etsa
sets ret
are ransfe rr
e
transferred d
t
tooas pe ci
a speciallyallyr ela t
relatede dc orpor at
corporationion( inc ludingf
(including or
for--e ignc
eign orpor a ti
ons
corporations; ;hereafter
her e afte rreferred
refe r
re d
t
tooa assa“ spe c i
a “speciallyal lyr e l
at
relatededp e r
per--s on”i
son” nt
in hi
thissA r
t i
c l
Article)e)r e ferre
referred dt tooi nA
in rtic
Articlele5 522ooffthe
the
C or por
Corporate ateT axA
Tax c
Act,t,a ndt
and he
thereree xi s
exists tst hea
the mo
amountuntd ispos
disposede dooffaassb onus
bonus, ,d ivide nds
dividends, ,etc.
et c.
f ort
for her
the e side
residentntc onc e
concernedrne da assr efe rr
referrededt tooi nA
in rticl
Articlee6 677oofft hes
the ameA
same c
Act;t;a nd
and
2
2.. T
Thehema r
market ke tp r i
pricecea assr efe rre
referred dt oi
to nA
in rti
c
Articlele3 5o
35 offt heI
the nhe rita
Inheritancenc eT axa
Tax ndG
and if
GifttT a
Tax x
A c
Act, t ,iiffa sse
assetstsa ret
are r ans fe
transferredrre dttooa nyp
any er s
personone xc e
exceptptfor
foras pe cia
a specially llyr e late
related dp e r
s oni
person n
in
ah ighe
a higher rp r
ic
priceet ha
thannt hema
the r
ke
market tprice,
p rice ,a ndt
and he r
thereee xis t
existsst hea
the mounto
amount offthe
thed ona
donatedte da s set
assetss
o
offt her
the es i
de
resident ntc onc er
concerned nedi nt
in hes
the ameA
same rtic
Article.le.
(4)I
(4) na
In ppl yi
applying ngp a r agr
paragrapha ph( 2)4,
(2) 4 ,thes
the tanda
standard rdma r
marketketprice
pr icem a
mayyb beea p-p
ap- l
ie
plieddttoot hea
the s set
assetss
w hi
Whichc ha r
areet r ans fer
transferredr edw ithi
Within no ney
one e
yeararfrom
from the
t
hea c
ac--q uis i
tio
quisitionnt he re
thereofofo onni ne vi t
a bl
inevitable eg ro unds
grounds
suc
suchha asse xpr opr iat
expropriation, ion,e tc
etc..( in-c
(in- ludi
cludingngp ur cha
purchase s eu pona
upon gr e eme
agreement)nt )under
unde rt heA
the Actctoonnt he
the
A c qui s
Acquisitionitio no offLand,
Land,e tc
etc. .f o
forrPublic
Publ icWoWorksrksa ndt
and heC
the ompe ns
CompensationationT he r
Thereforeforo orro the
other rActs
Ac ts
unde
under rt hec
the o ndi ti
conditionsonsa assp res cribe
prescribed db byyP reside nt
De cr ee.< Newl
<Newly y Inserted
Ins er tedb byyA c
Actt
No
No. .6292,
6 2 9 2 ,Dec.
De c.29,
2 9 ,2000;
2 0 0 0 ;Act
Ac tNo.
No.6 7 8
678],1,D ec
Dec. .1 8
18, ,2002;
2 0 02;Act
Ac tNo.
No .7 8 3
7837,7 ,Dec.
De c .3],
3 1 ,2005>
2 00 5>
(5)a
(5) nd(
and 6
(6))D e lete
Deleted. d.< <bybyA c
Act tNoNo..7 83 7,De
7837, Dec.c .3],
31 ,2 00
2005>5>
[Thi
[This sA r ti
Articlecl eWhWhollyol lyA mendedb
Amended yA
by Actc tNo
No..605],
60 51 ,Dec.
Dec .28,
28 ,1999]
19 99 ]
Art i
cle9
Article 7(
97 Calculationo
Necessary xpensesf
Expenses orT
for ransferI
Transfer ncome)
Income)
( 1
(1) )T Thehen e ce ssa
necessary rye xp e ns
expansese st ob
to beed e duc t
deductededf r o
frommt het
the ra ns
transfer fe rv alu
value ei nc
in al
cal--c ulatin
culatinggr esid ent
’s
resident’s
g a
gainsi
nsf ro
frommt het
the r ans fe
transfer,r,s ha l
shalllbebea sf
as o ll
ows
follows: :< Amendedb
No.503],
50 31,Dec.
Dec .29,
29,
1 99
1995; 5;A c
Act tNo.
No.605],
60 51 ,Dec.
Dec .28,
28 ,1999;
19 99 ;A c
ActtNo.
No.6292,
6 29 2,Dec.Dec .29,
29,2000;
2 00 0;A c
Act tNo.
No.678],
67 81,
De
Dec. c.1 8
18,,2002;
20 02 ;A c
Act tNoNo..7 83
7837,7,Dec.
Dec .3],
31,2005>
2 00 5>
11..Ac qui s i
t
Acquisition i
onV a l
ue
Value; :
(a)A
(a) c tualt
Actual rans ac
transactionti
onv alue
values sr equi r
requirededf ora
for cqui sit
acquisitioni ono offa s se
assets tsf all
-i
fall- ngu
ing nde
under re ach
each
subpa ragr
subparagraph apho offA rtic
Articlele9 944( 1 )
(1)1:Provided,
Pr ovi ded,T ha
That ti nc
in as
casesesf allingu
falling nde
underrt hema
the i
n
main
se nte nc
sentence eo the
other rt hane
than a c
eachhs ubpa ragr
subparagraph apho offArticle
Ar tic l
e9 6(
96 2),the
(2), thes t anda
standardrdma r ke
market tprice
price
a
attt het
the imeo
time offa cqui
acqui- -s itiono
sition offt her
the e levanta
relevant s se
assets;ts ;a nd
and
(b)I
(b) nc
In as
casesesu nde
under rt hema
the main ins ent e nc
sentence eooffitem
item( a )
(a),,i ifft hea
the c tua
actual ltrans-
trans -a ctionv
action alue
valuess
a
attt het
the imeo
time offa cqui s iti
acquisitionona r
areen on-c onf irma
non-confirmable, bl e ,t hev
the alue
values so offt rans ac t
transactioni
one xampl e
example,,
appr a i
s
appraisal a lv alue
values so orrc onve r
conversion sionv alue
valuessa assp re sc r
prescribedibe db by yP res ident
PresidentialialDecree;
De cree ;
22..C apit
Capitalale xpe ns
expenses, es ,e tc.prescribed
etc. pr e sc ribe db yP
by res ident
Presidentiali alDecree;
De c re e ;
33..D elete
Deleted;d;a nd<
and byA
<by c
Act tNoNo..6 2 92
6292, ,Dec.
Dec .29,
29,2000>
20 00 >
4
4.. T rans
Transferf ere xpe ns
expenses, es,e t c
etc..prescribed
pr es c ribe db yP
by re side nt
De c re e .
( 2
(2) )I Iffa nyd
any e pr ec iat
depreciationionc os
costta c cr ui
accruing ngd uringt
during heh
the ol di
holdingngp e riodo
period offa nyt
any rans fe rr
transferrededa sset
asset
i
issc ount
countededo orrt ob
to beec o unte
counted di nt
in hen
the e ce ssa
necessaryr ye xpe ns
expenses, e s,iinnc al cul a
calculatingtingt her
the ea
realles ta
estatet
er ental
rental
i nc omea
income mounto
amount orrt heb
the us ine
income mounto
amount offe a
eachc hy ear
year, ,the
t hea mounto
amount bt aine
obtained db y
by
d e duc
deducting t
ings uc
suchhc os
cost tf ro
frommt hea
the mo
amountuntr eferr e
referreddttooi np
in a r a gr
paragraph aph( 1)s
(1) hal
shall lbe
bet hea
the c quis i
tio
n
acquisition
v a l
ue
value. .< Amendedb
<Amended byyAActc tNoNo..8144,
81 44 ,Dec.
Dec .30,
30,2006>
20 06 >
—174—
- 174 -
( 3
(3))T Thehec a lcul a
calculationt io no offn e c es
necessary s a r ye xpe
expensens ef o
forrtransfer
tr a ns fe rincome
inc o meu nde
under rthe
thep r o vi
provisionssio nso offpara-
pa r a-
g raphs(
graphs 1
(1) )a nd(
and 2)s
(2) hal
shall lbebeb as
based e do onnt hef
the ol lowi
following ngs ub-p
sub- aragr aphs
paragraphsi :
1
1..Whe
Where rea cqui s
acquisitioni t i onv al
value uei issb as
basede do onnt hea
the c tua
actual ltransaction
tra ns a c tio nv al ue
value, ,necessary
ne ce s s ar ye xpe ns
expenses e s
s ha
shall llbe bea anna mounto
amount bt ai
adding ngt hea
the mountu
amount nde
under rp ar a gr
paragraph a ph( 1)2a
(1) 2 andnd4t 4 to o
thea
the mounti
amount nt
in hef
the ol lowi
following ngi te ms(
items whe
(where r ei ittf allsu
falls nde
under rp a ragr
paragraph aph( 2
(2),),t hea
the mount
amount
pr e s cr
prescribed ibe di nt
in hes
the a
same mep ar agr
paragraph) aph) :
(a)Wh
(a) erei ti sb a se do nt hema ins e nten c eo fp ar a gr
Wfleitisbasedonthenainfliteneofpamgfafilfl)1(a),therelevantact11altrarm1imvalue;a ph( 1)1( a), ther ele van ta c t
u a lt ran sa ctio nv alue ;
(b)Wh
(b) Where er ea c t
actualua lt r a ns a
transactionc t io nv a l
valueuea attthethet imeo
time offa c qui si
acquisitiontioni issc alc ula
calculated t e da assp r es cri
prescribedbe d
inp
in ar agr
paragraph a ph( 1
(1))1( b)a
1 (b) ndA
and rti
Articlec le1 1
114 4( 7
(7) )based
ba s edo onnt hec
the onve rs
conversion io nv a l
value,ue ,a ndw
and he
wherer e
thea
the c qui s
acquisitioni t ionv a
valuelueo offa na
an ss
asset e t( inc ludi
(including nga s s e
assets tsi nhe ri
inheritedtedo orrd ona
donated)t e d)a c qui
acquiredr ed
be f
beforeor et hed
the dateat e( he re af
(hereafter t err e fer
referredr e dt tooa ass“ fi ct i
tio
“fictitious usa c qui sit
acquisitioniond a t
date”e ”i nt
in hi
this sA rtic
Article)le)
o
onnwh whichic hi itti issd e e
deemed me dt tooh aveb
have e
been e na cqui
acquired r edu nde
under rA rtic
Articlele8o8 offthe theA dde
Addenda ndao off
A
Actc tN o
No. .4803,
4 8 0 3 ,t hea
the me ndme
amendment nttot ot heI
the nc omeT
Income a
Tax xA c
Act, t,is
i
sb as
basededo nt
on het
the o ta
total la mo unt
amount
o bt a
obtainedi
ne db byya ddi
adding ngt hea
the c t ualtransaction
actual tr ans ac t io nv al
valueuea attthe
thet imeo
time offa c qui s
acquisitionit iona ndt
and he
the
a mounto
amount bt
obtainedai ne db byymu lti
multiplyingpl yi ngt hea
the for e me
aforementionednt ione dv alueb
value byyt her
the at
rate eo offi nc r eas
increase e
o
offproducer
pr oduc e rp r
priceic ed ur
duringi ngt hep
the e r
periodi odo offp os s es
possession s ionf rom t
from hea
the c qui s
acquisitioni tiond at
date eu nt
until il
thed
the ayb
day e f
before or et hef
the ic t it
fictitiousiousa c qui
acquisitions itiond at
date,e,t her
the e leva
relevant ntt ot
totalala mount
amount; ;a nd
and
( c
(c) )WhWhere e rei itti issb a s
based e do onnt hema
the main ins e nt e
sentence nc eo offt hema
the main inb odyo
body offp a
para-ra-g raph(
graph 7)
(7), ,
ther
the ele vanta
relevant c t ualt
actual r a ns
transactionac tionv al
value;ue ;a nd
and
2
2..Inc
In as
cases eso t he
other rt ha
than ns ubpa ra
subparagraph gr a ph1 1,,n e c es
necessary s a rye xp ens
expense es ha l
shalllbbeea na
an mo
amount unto bt a ine
obtained db y
by
a ddi
adding ngt hea
the mo
amount untby bya s s
assetse t sa assp r e s c r
prescribed ibe db yP
by res ide nt
Presidential ia lD ec r
Decreeeet toot hea
the mo
amount untu nde
under r
thep
the r o vi
proviso s ot toop a ra
paragraphgr aph( 1
(1) )1( a
1 (a),),i te
item m( b)o
(b) offthethes a mes
same ubpa ra gr
subparagraph a ph( e xc ludi
(excluding ngc as
casese s
w h
wheree res u b
sub--p a r a
paragraphgr a p h1 1( b
(b))i issa p p l
ica b l
applicable),e ),paragraph
pa r agr a ph( 7
(7))( exc lud
(excludingi
ngc as e
cases sw h
wheree res u bp aragr
subparagraph a p h
1
1( c)i
(c) issa pp lic a
applicable)b l e )o orrArticle
Ar tic le1 1
1144( 7
(7))( exc lu
(excluding d i
n gc a s
casese sw he
where res ub p ar agr
subparagraph ap h1 1( b
(b))is
isa p plica
applicabl b l
e )
)..
( 4
(4))I Innc a s
casese sw he
where r ear e s
a residentide ntc al cul a
calculates t e sg ai
gainsnsf rom the
from thet r ans f
transfer ero offa s s
assetse tsp ur s uantto
pursuant t o
Ar tic
Article le9 944( 1
(1))1d onat
1 donated e db byyh hisiss pous
spouse e( i nc l udi
(including ngc as
casese swh e
where reama r
a marriager ia ger ela tions
relationship hi p
h ast
has e rmi na
terminated te da attt het
the i meo
time offt ra ns f
transfer;e r ;h e r e af
hereafter te rt hes
the ames
same ha
shalll
la ppl
apply yi nt
in hi
this sp ar agr a
paragraph), ph) ,
line a
lineal la sc e ndanto
ascendant orrd e s c enda
descendant, nt ,oorro the
other ra s s
assetse tsp re scr
prescribed ibe db byyP re side
Presidentialnt ialDecree
De cr eewi thi
within n
fivey
five e ar
years sr e t roac
retroactively t ive lyt ot
to hed
the ayo
day offt r ans
transfer,fe r,thethen e c e s
necessary sa rye xpe ns
expenses e sd e duc
deducted t e df rom
from
thet
the rans
transfer feri nc omes
income hal
shall lbebec al cul
calculated at edu nderp
under ar agr
paragraph aph( 3)
(3),,but
butthet hea cqui si
acquisition tionv a l
valueue
s ha
shallllbebet hea
the mo
amount untp r e s cr
prescribed ibe di na
in nyi
any t
iteme mo offp a ra gr
paragraph aph( 1
(1))1a
1 attthe
thet i
meo
time offa c qui s i
t
acquisition ion
bys
by uc
such hs pous
spouse, e ,l i ne
lineal ala s c enda
ascendant nto orrd e sc endant
descendant. .I Inns uc
such hc as e
cases,s ,t hea
the mounte
amount qui val
equivalent e nt
tot
to hed
the onat
donation iont a
tax xp a
paidido orrpayable
pa ya bl eb byyar e s
a residentide nto onnt hea
the ss e
assetstsd ona
donatedt e ds ha
shall llbebei nc lude
included d
int
in hen
the e c e s
necessarys ar ye xpe
expenses, ns e s,n ot wi ths t
notwithstanding andi ngp a r a gr
paragraph aph( 3 )
(3)..
(5
(5))M at ter sn ece s s ar yf o rt h ec
h/Iattesneoesseryforthecalwlafimdnecessaryama lc u la tiono fn e c e s sa rye x p e ns es,s uc ha st h es co peo ft h ea
suzhasthesrmeofthearmaltIarEaction ctu alt r an saction
v alu
valueen e ce ss
necessary aryf o
forrt h
theea c q u isi
acquisitionti o na n
anddt h
theec al cu lat
t
h ea mo u
arrount nte q u i
v ale
equivalent n tto
t ot h
theed o na ti
donationont ax
tax, ,
s hal
shalllbeb ep re sc ri
prescribedb e db by yP r e s id e
Presidentialn t ia lDecree.
De cre e.< Ne
<Newly wl yI n s e
Insertedrte db yA
by c
ActtNo.
No .519],
5 1 9 1 ,Dec
De c .39,
3 0 ,1996>
1 99 6 >
( 6
(6))T Thehen umbe
number ro offy e
yearsar sa assp re s c r
prescribedibe di innp ar agr
paragraph aph( 4)s
(4) hal
shalllbebeb as
based e do nt
on hep
the er i
periodod
o
offo wne
ownershipr shi po onnt her
the e gi s
register.te r .< Newl
<Newly yI ns er
Inserted t edb yA
by Act c tNoNo..519],
51 91 ,Dec.
Dec .30,
3 0,1996>
19 96 >
- 176 -
-176-
(7
(7))I na
In ppl yi
applyingngt hema
the main i
ns ent enc
sentence eooffparagraph
par agr aph( 1
(1))1( a)
1 (a),,wh e
wherer ear e si
-d
a resi- ent
dent,,wh
whooh as
has
tra ns fe r
transferredredt hea
the s set
assetssa assr e f
err e
referreddt oi
to nA
in rt i
c
Articlel
e9 944( 1
(1))1a nd2
1 and 2,,has
hasb ee
beennf oundt
found oc
to onf ir
confirmm
thea
the c tualt
actual rans ac ti
transactiononv al uea
value c cor di
according ngt ot
to heme
the t
methodhodd et ermi ne
determined db byyP res i
de nt
Presidentialia lD ec r
Decreeee
a
attt het
the imeo
time offa c qui s i
ti
acquisitionono offt her
the e l
e vanta
relevant ss e
assets,ts,its
itsv alues
value hal
shalllbebed e e me
deemed dt hea
the ctua
actual l
trans ac t
transactionionv aluea
value attt het
the i meo
time offa cqui s it
acquisitionionb byyt her
the ele va
relevantntr eside
resident:nt:P rovi ded,T
Provided, ha
That tthe
the
sa mes
same ha l
ln
shall ota
not ppl
applyyt oc
to as e
casessf allingu
falling nde
under ra nyo
any offt hef
the ollowi ngs
following ubpar agr a
subparagraphsiphs :< Newl
<Newly y
Ins er
Insertedt edb byyA c
Act tNo.
No.6051,
6 05 1,Dec
Dec .28,
28 ,1999;
1 99 9;ActAc tNo.
No.6781,
678 1,Dec.
Dec .18,
18 ,2002;
2 00 2;Act
Ac tNo.
No.
7 83
7837,7,Dec.
Dec .31,
31 ,2 00
2005;5;A ActctNo
No..8825,
88 25 ,Dec
Dec .31,31,2007>
2 00 7>
1
1..Whe
Where ret het
the rans ac t
transactionionv alueo
value offt hep
the re ce di
preceding ngo wne
owner’s r’sr e levanta
relevant sse
asset tisisc or rec t
correctededo orr
c hange
changed dp ur suantt
pursuant tooA r
tic
Articlel
e1 14
114;;a nd
and
2
2..Whe
Where ret hep
the r ecedi
precedingngo wne
owner’sr’
sr e leva
relevantnta sse
asset tiisse xe mp
exempted tedf ro
frommt ra ns
trans- -f eri
fer nc omet
income a x,a
tax, nd
and
thea
the sse
asset tw
wasasc onf ir
me
confirmed dt ob
to beet rans fe r
transferredredi nah
in ighe
a higher rprice
pricet ha
thannt hea
the ctua
actual ltrans fe
transferrv alue
value..
Art i
cle9
Article 8(
98 Timeo
(Time offTransfero
Transfer orrAcquisition)
Acquisition)
Inc
In a l
culatingg
calculating ainsf
gains romt
from het
the ransfero
transfer offanya
any ssets,the
assets, t
het imeo
time offtrans-
trans-f era
fer nda
and cquisition
acquisition
shallb
shall ed
be e t
ermine
determineddbbyyP resi
de nti
alD
Presidential e c
ree.
Decree.
Art i
cle9
Article 9(
99 Computation o
(Computation offStandardMa
Standard rketP
Market rice)
Price)
(1)T
(1) hes
The tandar
standard dma r
marketke tp r i
c
priceea assp res c ri
prescribedbedi nA
in r tic
Articlel e9966( 2),proviso
(2), pr ovi soo offArticle
Ar tic le9 977( 1
(1))
1( a)
,A
1 (a), rt icl
Articleses1 0
1000a nd1
and 1
114 4( 7)s
(7) ha
shallllbebea assf o l
lows
followsi :< Amendedb
<Amended byyAAct ctNo.
No.5108,
51 08 ,Dec.
Dec .
29
29,,1995;
19 9 5;Act
Ac tNo.
No.6051,
60 51 ,Dec.
Dec .28,
2 8 ,1999;
1 99 9 ;Act
Ac tNo.
No.6292,
62 9 2,Dec
Dec .29,
29 ,2000;
2 0 00 ;Act
Ac tNo.
No.7 00
7006,6 ,
De
Dec.c.30,
3 0 ,2003;
20 03 ;Act
Ac tNo.
No.7 33 5
7335, ,Jan.
Jan.14, 1 4,2005;
200 5 ;Act
Ac tNo.
No.7 57
7579,9 ,Jul.
Jul .13,
1 3,2005;
2 00 5;Act
Ac tNo.
No.
783 7,Dec.
7837, Dec .31,
31 ,2 00
2005; 5;A Act ctNo
No..8144,
81 44 ,Dec
Dec .30,
3 0,2006>
2 00 6>
1
1..Lando
Land orrb ui l
di
buildingsngsp r e scribe
prescribed di nA
in rt ic
Articlele9944( 1)1
(1) 12:
(a)L
(a) and:
Land:
T hep
The ubl ic
publicly lyn ot if
notifiediedi ndi vi duall
individual andv
land al ueu
value nde
under rt heP
the ubl
Public i
cN o-t
No- ic
ticeeooffV al
Valuesue s
andA
and ppr a
Appraisalisa looffReal
Re alE s tat
Estate eA Actc t( he re inaf
(hereinafterte rr e
re--f e rre
ferred dt tooaass“ publ i
c
“publiclylyn ot i
fi
notifiede d
indi vi dua
individual ll a ndv
land al ue”
value”): )
:P r ov ided,T
Provided, hatt
That hev
the a l
valueueo offthe
thel a ndw
land itho
without uta nyp
any ubl i
c
publicly ly
n ot ifi
e
notified di ndi vi
individ-d-u all
ual andv
land al ue
value, ,s ha
shalll
lbbeet hea
the mounta
amount ppr a
appraisedi
s e db yt
by hec
the hie
chief fo offaa
taxo
tax ff
ic
office eh a vi
havingngj ur i
s dic ti
jurisdictionono ve
over rthe
thep la
placeceo offtaX
taxp ayme
payment, nt,by
by s uc
such hme t
methodhoda ass
d et ermi
determinedne db yP
by re side nt
Decree,e e,t aki ngi
taking nt
intooc ons i
de r a
considerationtiont hep
the ubl i
c
publiclylyn ot i
fi
notifiede d
indi vi dua
individual ll andv
land al
valueueo off a nys
any imi l
similararl a ndi
land nt
in hev
the ic i
ni t
vicinity,y,a ndt
and hev
the al ueo
value offt he
the
landwi
land t hi
within nt hea
the r e
area,a,aassp r es c ri
prescribedbe db byyP re side nt
Presidential i
alD ecr
Decree,e e,i nw
in hi
whichc ht hev
the al
valueueo off
landi
land nc re a
increasess esr a pi dl
rapidly,y,s ha
shallllbe
bet hea
the mounte
amount va lua
evaluatedte db yt
by hema
the gni fic
magnificationati
o nme tho
method; d;
(b)B
(b) ui ldings
Buildings: :
T hev
The alueo
value offab ui ldi
a building ng( e xc ludi
(excluding ngt heo
the nef
one al li
ngu
falling nde
under rt hep
the ro-v
pro- isionso
visions offi tems
items
(c)a
(c) n
andd( d))c
(d)) a l
c ula t
calculatede da n
anddn o tifi
notifiededp ublicl
yo
publicly nc
onceeo orrmore
mo r ee ac
eachhy ea
yearrbybyt heC
the ommi s si
Commissionerone r
o
offt heN
the a t
io
NationalnalT a
TaX xS e r
Ser--v i
c
viceei nc
in o ns i
de ra t
considerationio nooffthe
t hen e
newwc o ns truc
constructiontionp rice
price,,s truc tur
structure, e,
u se
use, ,l oc at ion,t
location, hey
the earo
year offn e
new wc ons truc t
construction,ion,e t c
etc;.;
- 178 -
-178-
(c
(c))O ffic e
Officetel t
e la ndc
and o mme
commercial r c ialb uildings(
buildings re fer r
(referringingt toot heo
the fficetel
officetelssa ndc
and omme
commercialrc ia lb ui ldings
buildings
( inc lud
(includingingt hel
the a
landnda p p ur t
appurtenantena ntthereto)
t he re to)w hi
Which c ha r
areeo wne
owned du nde
under rpartitioned-ownership
p artitio ne d-o wne rs hip
a ndwh
and whoseos el andi
land isss ha r
sharede du nde
under rc o-owne
co-ownership r s hi pa ndw
and hi
Whichc ha r
areep r es c r
prescribedibe db byyt he
the
P re
Pres-s-i de nt
identiali
a lDecree
De c re et a ki
takingngt heu
the s age
usage, ,s i
z
sizeeo offa r e
area, a,number
numbe ro offp ar t
parti-i-t i one
tioned du nit
unitss
i nt
intooa c c ount
account)3 ):
TThehev a l
valueueo offl a nda
land andndb ui ldi
buildingngc omput
computed e da ndp
and ubl ici
publicizedze de ennb loco
bloc nc
once eo orrmomorere
p
perery e
yeara rb byyt heC
the ommi
Commissioner s sione ro offt heN
the at i
NationalonalT TaxaxS er vi
Servicec et aki ngi
taking nt
into oa c count
account
t hek
the i
nd,s
kind, i
z e
size,,t r ans a
transaction ct ions ituat
situation,ion,l oc at
locationiono offb uildings
buildings; ;a nd
and
(d)H
(d) ous
House; e:
T hev
The a lueo
value offa nyi
any ndi vi dua
individual lhouse
ho us eo orra anynyc o l le c
collectivet iveh o us
house eu nde
under rt heP
the ubl
Public i
cN ot i
Noticece
ooffV a l
Valuesue sa ndA
and ppr
Appraisal ai s alo offReal
Re alEstate
Es ta teA c
Act; t:Provided,
Pr ovi ded,That
Tha twh e
Where ret hev
the alueo
value off
a nyc
any o ll
e c t
collectiveiveh o
houseus ei issd ete rmi
determinedne da ndp
and ubl ic
publicized iz e db byyt heC
the o mmi s s
Commissioner i
o ne ro offthe
theN a t
io na
National l
TTaxaxS er vi
Service ceu nde
under rt hep
the rovi
provisos oo offA r t
Articleic le1 177( 1
(1))o offt hes
the ameA
same c
Act, t,t her
the e leva
relevant nt
v alues
value ha
shallllbbeet hes
the t andar
standard dmamarketr ke tprice
pr ic ef ort
for hec
the olle cti
collectiveveh ous
house, e,a ndwh
and Whereer et he
the
v alueo
value offa nyi
any ndi vi
individual dualh ous
house eo orra nyc
any ol le c
collectivet iveh ous
house eh a
hassn otb
not e
beene nd e te rmi
determined ne d
u nde
under rt hes
the a meA
same Act,c t,t hev
the a lueo
value offs uc
such hh ous
house es hal
shall lbebea ppr ai
appraisedse db byys uc
such hme thods
methods
aassp r es c r
the r e side
Prwidentialnt ia lDecree
De cr e et a ki
takingngi nt
into oa cco untthe
account thev a l
ueo
value offthethes imi la
similarr
i ndi vi dua
individual lh ous
house eo orrs imi l
similararc ol le ct
collective iveh ous
house ei nt
in hev
the ic inity;
vicinity;
2
2..R ight
Rights st toor eale
real s ta
estateste sa assp res cr
prescribedibe di nA
in rt
Articlei
c le9 944( 1
(1))2 22:
(a)F
(a) Fororr i
ght
rights st oa
to c qui
acquire r er ea
real le st at
estates; es :
V a l
Valueuee va lua
evaluated te db byys uc
such hme t
ho
method da assp r e s c
prescribedribe db byyt heP
the re side
Presiden-n-t ia
tiallDecree,
De c r ee ,taking
taki ng
i nt
intooc ons i
de r
considerationat iont hek
the ind,s
kind, c al
scale, e ,transac-
trans ac -t ionals
tional itua tion,e
situation, t c
etc..ooffthe
t het rans fer
transferred red
a ss e
asset;t ;a nd
and
(b)F
(b) Forors upe r fic
superficies, i
e s ,d epos i
deposit-baset -ba sel e as
lease, e ,aandndr e gi s t
registered e re dr ea
realle stat
estate el e as e hol
leasehold dt it l
e
titlei:
V a l
Valueuee va lua
evaluated te db byys uc
such hm e t
ho
method da assp r e s c
prescribedribe db by yt heP
the r es i
de
Presiden-n-t ialDecree,
tial De c r ee ,t aki ng
taking
i nt
intooc onsi de r
considerationat iont her
the e mai ni
remaining ngp er i
period,od,n a tur
nature, e ,c ont e nt
content, ,transactional
t rans ac ti onals ituat ion,
situation,
e t c
etc..o offt her
the ight
rights; s;
3
3..S toc ks
Stocks, ,e tc
etc..under
unde rA r ti
Articlec le9 944( 1
(1))3( a)
3 (a)3 :
V aluee
Value va l
uat
evaluated e db byymu mutatist ati smu t a
mtandisndi sa ppl
applyingyi ngA rt i
Articlecl e6 3(
63 1)1(
(1) a
1 (a) )o offt heI
the nhe r it
a
Inheritancenc e
T a
Tax xa ndG
and i
GiftftT a
Tax xA c
Act. t.ForFo rt hi
thissp ur po
purpose, s e,“ t wom
“two o nt
months hsb efor
before eo orra fte
afterrt hee
the val uat
evaluation i
on
b as
baseed at
date,e,respectively”
re s pe ct ive l y”u nde
under rthe
thes amei
same te
item ms ha
shall llbebed ee me
deemed d“ onemo
“one nt
month hb ef or
before et he
the
trans f
transfer erd at
dateeo orrt hea
the c qui s
acquisition iti
ond a te
date”; ” ;
4
4..S toc ks
Stocks, ,e tc
etc..prescribed
pr es cr i be db by yt heP
the r es ide
De c r e ea mo
among ngt ho
thoseseu nde
under r Article
Ar tic le9 944( 1)
(1)
3( b)
3 (b); :
V aluee
Value val ua
evaluated te db byymu t
mutatis a tismu tandi
mutandis sa ppl yi
applying ngA rti
Article cle6 3(
63 1)1(
(1) b)o
1 (b) offthe
theI nhe ritanc
Inheritance e
T a
Tax xa ndG
and if
GifttT TaxaxA c
Act. t.ForFort hi
thissp ur pos
purpose, e ,“ two months
“two mont hsb efo
beforereo orra f te
afterrthe
thee va l
ua t
evaluationion
b as
baseed a t
date,e,respectively”
r es pe c tive ly”u nde
under ri te
itemm( a
(a))o offt hes
the a
samemes ubp ara gr
subparagraph aphs ha
shalll
lb beed e e
deemedme d“ o ne
“one
m ont
month hb efo
before ret het
the r ans
transfer f e rd a t
dateeo orrt hea
the c qui s
acquisition itiond a te
date”; ”;
- 180 -
-180-
5
5.. S toc
Stocks,ks ,e t
etc.c .n otf
not all i
fallingngu nde
under rs ubpar agr
subparagraph a ph4b 4 bututfalling
fal li ngu nde
under rA r ti
Articlec le9 944( 1
(1))33( b)
(b),,
a nds
and t oc
stocks, ks ,e t
etc.c.under
unde rA r ti
Articlec le9 944( 1
(1))3( 3 (c)3c ):
V al
Value uee val uat
evaluated e db byymu t
mutatisat ismu tandi
mutandis sa ppl yi
applying ngA rt i
c
Article le6 633( 1)1(
(1) c
1 (c) )o offthe
theI nhe rita
Inheritance nc e
T a
Tax xa ndG
and i
GiftftT Taxa xA c
Act. t.InInt hi
thissc a se
case, t
,thehet imeo
time offe va lua t
evaluationi o na ndt
and hea
the mo
amount unto offe va lua
evaluationt i
o n
s hal
shall lb beed e te r
determinedmi ne db byyt heP
the re side nt
Decree. re e.I Ifft hes
the ta nda
standard rdmamarketrke tp ric
price ea attt he
the
timeo
time offa c qui s
acquisitionit ion i iss u nknown d
unknown uet
due ot
to hel
the o s
loss so offb oo
books,ks ,e tc
etc.,.,t he f
the ac
face ev al
valueue
s ha
shall llbebet hes
the ta ndar
standard dma r
market ke tp ric
price ea attt het
the i
meo
time offa c qui s i
t
acquisition; ion;
6
6.. P re e mpt
Preemptive i ver i ght
rights, s ,e tc
etc. .u nde
under rA r tic
Article le9 944( 1
(1) )3 33:
V al
Value uee val ua
evaluated t e db by ys uc
such hmemethodthoda assp r es c
prescribedri be db byyt heP
the r eside
De c r ee ,taking
ta kingi nt
intoo
c ons ide
considerationr at iont hek
the ind,s
kind, c al
scale, e,t rans a ct
transactionalionals it-u
sit- at i
uation,on,e t
etc.c.o offthe
thet r ans fe
transferredrre da s s e
assets;ts ;
a nd
and
7
7..Miscellaneous
Mi s c e lla ne ousa s s e
assets tsu nde
under rA r ti
c
Articlele9 944( 1
(1) )4 42:
V al
Value uee va l uat
evaluated e db byys uc
such hme t
methodhoda assp r e s c
prescribed ribe db byyt heP
the re s ide nt
Presidential i al Decree,
De cre e,t aki
taking ng
int
intooc ons ide
considerationrat iont hek
the ind,s
kind, cale
scale, ,t rans a c
transactionalt iona ls i
t- uation,
situa t
ion,e tc
etc..o offt het
the r a ns fe
transferredr red
a ss e
asset. t .
(2
(2))T het
The er
term m“ ma gni f
“magnificationic at io nm e t
method”ho d”u s
usededi nt
in thehep r o vi
proviso soo offparagraph
pa r a gr aph( 1)1(
(1) a
1 (a))m e a
meansnsa a
m et
methodho do offe va l
ua
evaluationtio no onnt heb
the a s
basis i
so offt hea
the mo
amountuntc alcul a
calculated tedb ym
by ultipl
multiplyingyi ngt hep
the ubl ic
publiclylyn o tif
notified i
e d
indi vi duall
individual a ndv
land al
value uea attthe
thet imeo
time offt ra ns
transferf e ro orra c qui sit
acquisition,io n,by bys uc
such hm agni fic
magnification ati onf ac
factortor
a
assd e te r mi
the re s ide
Decree.ee .
(3
(3))Ma tt
Matterse r sn ec e s
necessarys a ryf o
forrt hec
the a lcul ati
calculationo no offt hes
the t anda
standard rdm a
marketrke tprice,
pr ic e,s uc
such ha asst hes
the ta nda
standard rd
m ar
market ke tp r i
pricec ea attt het
the imeo
time offtransfer
t r a ns fe ro offa nya
any s s
assetse tsw ho
Whose ses t anda
standard rdm ar
market ke tprice
pr iceh a
hassn o
nott
cha nge
changed df r o
from mt het
the imeo
time offa c qui s
acquisitionitiont toot het
the imeo
time offtransfer,
trans f er,the
thes ta nda
standard r dma r
marketke tprice
pr i
c e
a
attt het
the i meo
time offa c qui s
acquisitionitio no offa nyl
any a ndo
land orrh ous
house ew hi
Whichc hh asb
has e
beene na c qui
acquired re db e for
before et hev
the al
valueue
o
offa nyi
any ndi
indi- -v idua
vidual ll a nd,i
land, ndi vi
individualdualh ous
house eo orrc ol lec t
collectiveiveh ous
house ei issp ubl i
publiclyc lyn otifi
notifiededu nde
under r
theP
the ubl
Public icN ot
Notice ic eo offV al ue
Values sa andndA ppr ai
Appraisal salo offReal
Re alEstate
Es tateA c
Act, t,oorrthe
thes tan-d
stan- ar
dard dma r
market ke t
p ric
price ea attt het
the i meo
time offa c qui s
acquisitioni
t iono offa nyb
any ui l
di
buildingngw hi
which chh a
has sb e
beene na c qui
acquiredr edb e fo
before ret hes
the ta nda
standard rd
m ar
marketke tprice
p r icea assr e fe r
referredre dt tooi np
in a
para-ra -g r
a ph(
graph 1
(1))1( 1 (b)b)isisp ubl i
c
publicly lya nno unc
announced, ed ,s ha
shallllbe
b ed etermi
detemiined ned
byt
by heP
the r e
Pres- s -i de nt
idential ia lD e c r
Decree. e e.< Amendedb
No.503],5 03 1,Dec.
Dec .29,
2 9,1995;
19 95 ;Act
Ac tNo.
No.
6 05
605], 1,Dec.
Dec .28,
28 ,1999;
1 99 9;A Act c tNo.
No.7 3 35
7335, Ja
,Jan. n.14, 1 4,2005;
20 05 ;AAct c tNo.
No.7 57
7579, 9,jul.
Jul .13,
1 3,2005>
20 05 >
(4
(4))Wh When e nt heC
the ommi
Commissioner ss ione ro offthe
theN a tiona
National lT Tax axS e r vi
Service cef ixe
fixes st hes
the tandar
standard dma r
marketke tprice
pr i
c e
u nde
under rparagraph
p a r a gr a ph( 1
(1))1( c
1 (c),),hehes ha
shall llhear
he a t
rtheheo p ini
opinion o no offthe
theo wne
owner ro orro the
other rinterested
int ere ste dp e r s
personsons
formo
for morer et han2
than 200d a
daysysb byyp ubl
publiclyiclyn ot i
fyi
notifying ngi ittby
byt heme
the meansa nsp ro vi
providedde db byyO rdi na
Ordinance nc eo off
theMi
the ni s
Ministry t r yo offS t rat
Strategy e gya ndF
and inanc
Finance, e ,s uc
such ha asst hen
the o ti
noticec et hr o
throughught heI
the nt e r
Internet,ne t,e tc
etc. .before
be f o re
suc
such hs t anda
standard r dma marketr ke tprice
pr ic ei issp ubl ic
publiclylyn ot if
notified.ie d.< Newl
<Newly yI ns er
Inserted tedb by yA Actc tNoNo..7 5 79
7579, ,
Jul
Jul. .13,
13 ,2005;
20 05 ;A Act c tNoNo..8852,88 52 ,Feb.
Feb.29, 2 9,2008>
2 00 8>
(5
(5))WhWhen e nt heC
the ommi
Commissioner s s ione ro offt heN
the at i
onalT
National TaxaxS e rvi
Service c eh asr
has e ce i
receivedve dt heo
the pini
opinionsonsf r om
from
theo
the wne
owner ro orro the
other ri nt e r e
interesteds te dp e rs
personsonsu nde
under rp ar agr
paragraph aph( 4 )
(4), ,hhees hal
shall lma
make kean ot ificat
a notification ion
o
offt her
the e s ul
results t so offi tsd
its is pos
disposal alwi thi
Within n3 0d
30 a ysf
days r
fromom thethed at
dateewh When e nt heo
the pi ni
opinion ons ubmi s
submission s ion
pe ri
periodode xpi
expires.re s.< Newl
<Newly yI ns er
Inserted tedb byyA Actc tNo No..7 57
7579, 9,J Jul.ul .1 3
13, ,2005>
20 05 >
- 182 -
-182-
(6)T
(6) hep
The ublicn
public o
tifi
cationu
notification nderparagraph
under pa r
agr aph( 4)s
(4) hallc
shall ontaint
contain h
theematters
ma t
tersprescribed
p
rescribedb yP
by re
s i
dential
Presidential
D e c
ree
Decree,,sucha
such assthep
the erusa
perusallp laceo
place offthep
the e rusa
perusallr egi
ste
registerrooffstandardm
standard arke
markettp rice
price,,t hep
the eriod
period
of opini
ons u b mission ,e t
c. < Ne wlyI nse r t
edb yA c t No . 7579, J
of opinion submission, etc. <Newly Inserted by Act No. 7579, jul. 13, 2005>ul. 1 3, 2 00 5 >
Ar ticl
Articlee9 9 -2(
99-2 Ap plic a t
(Applicationi
o nf orR
for e -c o mput
Re-computationatio na ndP
and ubi
Pubic cN ot i
f icati
Notificationono offS tanda
StandardrdMa r
Marketke tPrice)
Pric e
)
(1)A
(1) Anynyo wne
owner ro orro the
other ri nte res t
interestededp e rs
persononw hoi
who issd issat isfie
dissatisfieddwi t
withht hep
the ub-l
pub- iclyn
licly otifie
notifiedd
s tandar
standard dma rke
market tprice
pr i ceu nde
under rA rtic
Articlele9999( 1)1(
(1) 1 (c)c )ma
mayyf ilei
file nwr
in i
ti
writingnga na
an ppl icat
applicationi
onf or
for
ther
the e-c omput at
re-computation iono offt hes
the ta nda
standard rdma rke
market tp ric
price ea ndp
and ubi
pubic cn o t
if i
c a t
i
notificationo nt her e
thereofofw i
t
withht he
the
C o mmi ssi
Commissionerone roofft heN
the at i
o na
National lTTaxaxS ervi
Servicecew ithi
within n3 300d aysf
days r o
frommt hed
the a
dateteooffp ubli
publiccn o ti
ficatio
notificationn
o
offs t anda
standardrdma r ke
market tp ric
price.e.
(2) The Commissioner of t
(2 ) T h eC o mmi s s ion e ro f heN
the a tiona
National lT axS
Tax e rvi
Service ces hal
shall ln ot i
f
notifyyi nw
in r i
tingt
writing hea
the ppl i
ca nt
applicant
o
offt her
the e sult
resultsso offi t
sd
its is pos
disposalalwi thi
within n3 0d
30 aysf
days rom the
from thed at
dateewhwhenent hea
the ppl ic ati
applicationonp e riod
period
u nde
under rp ar agraph(
paragraph 1)e
(1) xpi re
expires.s .In
Int hi
thissc ase
case, ,wh
whene nt heC
the ommi s s
Commissionerione ro offthe
t
heN at i
onalTax
National Ta x
S e rvi
Servicec ed e emst
deems ha
that tt hed
the e t
ai l
detailsso offa ppl icat i
o
application na r
are ea c cept abl
acceptable, e,he
hes ha
shalll
lc omput
compute ea ga
againi
nt he
the
s tanda
standard rdma rke
market tp ric
price eu nde
under rA rti
c
Articlele9999( 1)1(
(1) 1 (c)c )a ndn
and ot i
notifyf
yi ittp ubl icl
publicly.y.
(3
(3))Wh
Whene nt heC
the o mmi s
Commissionersio ne roofft heN
the a tiona
National lT a
Tax xS erviceh
Service a
hassd is cove
discovered r
e dt ha
thattthe
t hes tanda r
standardd
ma rke
market tp ric
priceeh a
hassb e
beene nc omput
computed e da ndp
and ubl ic
publiclylyn ot ifi
e
notifieddb ymi
by stakeo
mistake orra nye
any rrorin
error i
nwr iting
writing
a ndo
and the
otherra ppa rente
apparent r ror
errorssp res cribe
prescribed db yP
by resid e
nt
Presidentiali
a lDecree
De creehave
ha veb ee
beennm ad
made, e,he
hes ha
shalll
lcompute
c omp ute
ita g ainwi thou td e laya ndn o t i
fyi
it again without delay and notify it publicly. tp u blic l
y .
(4
(4))Ma tte
Mattersr sn e c es s
necessary a ryf ora
for na
an ppl ica ti
applicationonf orr
for e-c omput
re-computationat iona ndp
and ubl
publici
cn ot ificat i
ona
notification nd
and
thep
the roc edur
proceduresesf ord
for i
s pos
disposal,al,e t c
etc..s hal
shalllb ep
be re s c r
prescribedi
be dbbyyP r
e side nt
Presidentiali alD ec re
Decree.e .
[ Thi
[This sA rtic
ArticleleNe Newlywl yI nser
Insertedtedb yA
by ActctNo
No..7 57 9,J
7579, ul
Jul. .1 3
13,,2005]
20 05 ]
Art i
cle1
Article 00(
100 Computationo
(Computation offGainsf
Gains rom T
from ransfer)
Transfer)
(1
(1))I nc
In alc ul at
calculatingi ngg ai
gainsnsf ro
frommt het
the r ans f
transfer,e r,iiffthet
the ra ns f
transfere rv aluei
value sc
is alc
calcu-u-l ate
lateddb as
basededo n
on
th
theea c tua
actual lt rans a
transactionctionv alue(
value inc lud
(includingingt hev
the al uep
value ro vi
provideddedf o
forrin
inA rt i
c
Article l
e9 966( 3
(3))a ndt
and h
thee
co rr es p ond
corresponding ingt r ans a c
transactiontio ne xa mp
example l
ev alue
value, ,a p pra i
appraiseds e dv a lue
value, ,e tc
etc..that
t ha ta r
areea pp l
i ca
applicableb leu nd e
under r
A rtic
Articlel
e1 14(
114 7)),t
(7)), hea
the c q u isit
aoquisitionionv a lu
valuees ha
shall l
la ls
alsoobebec alc ulat
calculatededb as
basededo nt
on h
theea ctu
actualaltransaction
tr a ns action
v alu
value e( in clud
(includingi
ngt hev
the a l
valueu eprovided
p rovi d edf o
forri nA
in r ti
c
Articlele9 977( 7)a
(7) ndt
and h
theec o rre sp ond
corresponding ingt ra ns act
transactionio n
exa mp
example lev a lu
value,e ,a pp rai
appraisedse dv alue
value, ,c onve r
conversions io nv al
ue
value, ,e tc
etc..that
t ha ta rea
are p plica b
applicable l
eunder
un derArticle
Ar ti
c l
e1 1
1144
(7 )
)a
(7)) n d
and,, ift h ea c q uisii
to nv alues ha llb ec alc u la
te
iftleamfisifimvalteslaflbecalculatedbasalmfliestarflardnark db a se do nt hes tand ardma rk etp ri
etpicece ,th et rans
thetransfer fer
v alu
valuees h a
shalllla lsob
also be ec al cu la
calculatedtedb a s
basededo onnt h
thees t and
standardar dm ar
marketketprice.
p ric e.< Ame
<Amended nde db byyA c
Act tNo.
No .
6 05
6051,1 ,D e
Dec.c .28,
28 ,1 999
1999; ;A Act ctNo.
No .6 2 9
6292,2,Dec.
De c.29,
2 9,2000;
20 00 ;AActctNo.
No .8144,
8 1 44 ,Dec.
De c .30,
30 ,2006>
2 006 >
(2
(2))I na
In ppl yi
applying ngt hep
the r o vis
provisionsionso offparagraph
par agr a ph( 1)
(1),,if
ifthe
thet r
ans f
transferervalue
va lueo orra cqui siti
acquisition onv alue
value
o
offt hel
the and,buildings,
land, bui l dings ,e t
c
etc..t hata
that rea
are c qui
acquiredredo orrt rans f e
transferredrreds imul tane
simultaneouslyous l
yi issc omput
computed ed
b as
basede do nt
on hea
the c t
actualualt rans ac
transactiontionv al ue
value, ,the
thev alueo
value offl anda
land ndt
and ha
thatto offbuildings,
bui ldings ,e tc
etc..s hal
shall l
b
beee nt e r
enterededi nab
in a bookooks epar ate
separately. ly.IfIft hes
the epar at
separation i
onb e twe
between ent hev
the alueo
value offthe
thel anda
land nd
and
thato
that offbuildings,
bui ldings ,e tc.i
etc. isso bs cur
obscure, e ,t he
theirirv alue
values ss ha
shall l
lbe
bec a lculat
calculated e
do nap
on ropor ti
a proportionalonalbasis
bas is
a
assp res c ri
prescribedbe db byyP resi de nt
Presidential ialD e cre
Decree,e ,t aki
takingngi nt
intooa c co unttheir
account the i
rs t andar
standard dma rke
market tp r ice
prices,s ,etc.
e tc .
a
attt het
the imeo
time offa cqui s it
acquisition iono orrt r ans f
transfer.er.InIns uc
such hc a se
cases,s ,t hec
the o mmo
common na c qui sit
acquisitionionv al
valueuea nd
and
trans f
transfere re xpe ns
expenses e ss hal
shall lbe
bec alc ula
calculatedte do onnap ropor
a proportionaltionalbasis
bas iso offthe
thes epar at
separate ev alue
values so off
ther
the e levanta
relevant s s e
assets.ts .< Amendedb
6 29 2,Dec.
Dec .29,
29 ,2000>
20 00 >
- 184 -
-184-
(3)Ma
(3) tter
Matterssn ec e
ssar
necessaryyf o
rt
for hec
the alculationo
calculation offgainsf
gains rom the
from thet ransfers
transfer hallb
shall ed
be etermined
determined
byP
by residentialD
Presidential ecree.
Decree.
Art i
cle1
Article 01(
101 Calculation o
(Calculation offTransferI
Transfer ncomeb
Income y Un
by lawfulAc
Unlawful t)
Act)
(1
(1))I Iffi itti issd ee me
deemed dt hata
that nya
any c
actto orrc a l
c ul at
calculation iono offar e side
a residentnthaving
havi nga nyt
any r ans f
transfererincome,
inc ome ,
ma ke
makes st heb
the ur de
burden no offt axo
tax ns
on uc
such hi nc omer
income e duc
reduced e dwr ong-f
wrong- ullyt
fully hroughat
through rans ac
a transactiontion
wi t
with hap e
a person rsonh a vi
having ngas pe c
r elat ions hi p wi witht
ht her
the e side
resident,nt ,the
theC ommi s
Commissionersione ro offt he
the
c ompe
competent t e ntR e gionalT
Regional TaxaxO ffic
Office eo orrt hec
the hie
chief fo offat
a taxa
xo fficeh
office avi
havingngj ur i sdic t
i
jurisdictionono ve
overrt he
the
p lac
placeeo offt a
taxxp a yme
payment ntmayma yc a l
c ul
calculatea tet hei
the nc o
income mea mounta
amount c crui
accruingngd ur i
ngt
during hec
the or res pondi
corresponding ng
y ea
year ri nd
in i
s re ga
disregard rdo offs uc
such ha c
actto orrc al cul at
calculation iono offt her
the eside nt
resident. .< Amendedb
<Amended byyA ActctNoNo..
5 03
503],1,Dec. Dec .29,
29 ,1 99
J995> 5>
(2
(2))IIffa anynyp e rso
person nd o na
donates te sa nya
any s s e
assetstst ot
to hep
the e rs
persono nh avi ngas
having pe c
r elatio ns hipa assr e f
e rr
referreded
toi
to np
in ar a
paragraphgr aph( 1
(1) )( e xc ludi
(excluding ngc a s
caseseso offs pous
spouse, e ,l i ne
linealala s ce nda
ascendants nt sa ndd
and e sce nda
descendants nt sb e ing
being
s ubj e
subject c tt oA
to rtic
Article l
e9 977( 4 )
(4)))wi
withtht hei
the nt e nt
intentioniono offreducing
r e duc ingwr ongf
wrongfullyul lyt hei
the nc omet
income axo
tax onn
thet
the r ans
transfer feri nc ome
income, ,a ndt
and he
then nt hed
the one
donee et r ans f
transferser ss uc
suchha ss e
assets tst oa
to not
anotherhe rp ers
persononwi t
hi
within n
fivey
five e
yearsa r sf rom t
from hed
the ona t
donationiond at
date,e,the
thed o na
donatortors ha l
shalllbe
bec ons ide
consideredr edt oh
to avet
have r ans fe r
r
transferred e d
d i
re ctl
directlyyt h
theea s set
assetsst ot
to h
theet ran sfe r
transfereeee .In
Ins uc
suchhc a s
casee ,n og
no i
f
giftttax
taxs ha l
lbe
shall b el evie
levieddoonnt h
theeo rigina ll
y-d
originally-do-o-
n at
natededa s s
assets,ets ,n ot wi t hs
notwithstandingtandi ngt hep
the r ovi s
provisionsionso offthe
t heI nhe rita
Inheritancenc eT Taxaxa ndG
and if
GifttTax
TaxA c
Act. t
.
(3
(3))WiVVlth t hr e spe
respectc tt toot hec
the alc ul at
calculation iono offt hen
the umbe
number rooffyears
ye ar sp ur suant to
pursuant top ar agr
paragrapha ph( 2)
(2)
o
offt hi
thissA r ti
c
Article,le,t hep
the rovi s
Ar tic le9 977( 6)s
(6) ha
shall l
la ppl
applyymu ta
mutatis ti
smu ta ndi
mutandis. s.< Amended
<Amended
b
byyA Act c tNo N0..519],
51 91 ,Dec.
Dec .30,
3 0,J996>
19 96>
(4
(4))T The hes c opeo
scope offt hos
those eh avi
havingngt hes
the pe c
specialialrelationship
re lati onshi pa assr e ferr
referrededt oi
to np
in ar agr aph(
paragraph 1)
(1),,
a ndo
and the
other rma tt
matterser sn ec es
necessarysar yf ort
for hec
the al c ul at
calculation ionb ywr
by ongf
wrongful ula c t
actsss ha
shall llbe
bed ete rmi ne
determined d
b
byyP re s ide
Presidential nt i
a lD e c
Decree.r ee .< Newl
<Newly yI ns er
Inserted tedb byyA Actc tNo 50
No..503], 31 ,Dec.
Dec .29,
2 9,1995>
1 99 5>
Art i
cle1
Article 02(
102 SeparateC
(Separate alculationo
Calculation offTransferI
Transfer ncomeA
Income mount)
Amount)
(1
(1))A nyt
Any ran sfe
transferri n co
incomemes h al
shalllb
beec la ssi
fie
classifieddi ntoi
into n co me
incomes sf allingu
falling nd
underera n
anyyo offt hef
the ollowi
followingng
sub p aragr a
subparagraphs.p hs.I ns
In uc
suchhc a s e
cases,s,l o sse
losses sa c cr
ui ngf
accruing ro
frommc alcul ati
calculatingngt h
theeincome
inc omea mo unts
amount h al
l
shall
n o
not tb es
be umme
summed du uppt ot
to hei
the ncomea
income mo untu
amount nd
undere rt hed
the iffe rents
different ubpa ragr ap
subparagraphsi hs :< Amended
<Amended
b
byyA ActctNoNo..6292,
62 92 ,Dec.
Dec .29,
29,2000>
20 00 >
1
1..T hei
The nc omea
income assp res cri be
prescribed di nA
in rti
cl
Articlee9944( 1)1
(1) 1,,2a nd4
2 and 4;;a nd
and
2
2..T hei
The nc omea
income assp res cri be
prescribed di nA
in rti
cl
Articlee9944( 1)3
(1) 3..
(2
(2))I nc
In alculat i
ngt
calculating het
the ra ns f
transfereri nc omea
income mountunder
amount unde rt hep
the rovi s i
onso
provisions offp a ra gra
paragraph ph( 1 )
(1),,if
i
f
the r
thereee xis t
sa
exists nyl
any o s
loss sf ro
fromm the
thet r ans f
transfererooffanyp
any r ope rt
property,y,s uc
such hl ossf
loss rom the
from thet rans f
transferers hall
shall
b
beed e duc t
deductededf rom t
from het
the ra ns f
transfereri nc omea
income mo untd
amount e rive
derived df om o
r
from t he
otherra sset
assetsst ha
thannt her
the eleva
relevantnt
a ss e
assetstsb ye
by achs
each ubpa ragr
subparagraph apho offp a ragraph(
paragraph 1 )
.In
(I). Ins uc
suchhc as
case,e ,the
theme thodo
method offd educ t
i
deduction on
shal
shall lb ep
be res cri
be
prescribed db yP
by re sident
PresidentialialD ecre
Decreeebbyyt akinga
taking c counto
account offthe
t het a
taxxr a te
rate,,e t c
etc..ooffthe
t he
tra ns f
transfereri nc omea
income mo unt
amount. .< Newl
<Newly yI ns er t
edb
Inserted byyA ActctNoNo..7 0 06
7006, ,De c
Dec. .30,
30 ,2003>
20 03 >
[ Thi
[This sA rtic
ArticleleWh ol
Wholly lyA mendedb
Amended byyA c
ActtNoNo..605],
60 51 Dec
,Dec. .28,
28,1999]
19 99 ]
- 186 -
-186-
Art i
cle1
Article 03(
103 BasicD
(Basic eductionf
Deduction orT
for ransferI
Transfer ncome)
Income)
(1)F
(1) orar
For esidenth
a resident avinga
having nyt
any ransferi
transfer ncome,2
income, .5m
2.5 illionw
million onp
won eri
per ncomef
income allingu
falling nder
under
eacho
each offthef
the ollowings
following ubparagraphss
subparagraphs hallbe
shall b
ed eductede
deducted achy
each earfrom
year f
rom the
thetransfer
t
ransferincome
i
ncome
amounta
amount ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ear:<
year: Amendedb
<Amended yA
by ctN0.
Act No.6292,
6292,Dec.
Dec.
29,2000>
29, 2
000>
1
1..
Incomeu
Income nderArticle
under Ar
t i
cle9 4(
94 1)1
(1) 1,,2a nd4
2 and 4,,excludingt
excluding hei
the ncomea
income ccruingf
accruing romt
from het
the ransfer
transfer
o
offassetswi
assets thoutr
without egistrationp
registration ursuantt
pursuant oA
to rt i
cle1
Article 04(
104 3);a
(3); nd
and
2
2..Incomeu
Income nderA
under rt i
cle9
Article 944(1)3
(1) 3..
(2)I
(2) na
In ppl
yi ngp
applying aragraph(
paragraph 1),a
(1), nyi
any ncomes
income ubjectt
subject or
to eductiono
reduction orrexemp-t
exemp- ionu
tion ndert
under his
this
Act,t
Act, heR
the estrictiono
Special axationA
Taxation cto
Act orrotherActs
other Ac
tst hatis
that i
si ncludedi
included na
in nyt
any ransfer
transfer
incomeu
income nderA
under rt i
cle9
Article 5,s
95, hallbe
shall bedeductedf
deducted rom t
from het
the ransferi
transfer ncome,o
income, thert
other hans
than uch
such
incomes
income ubjectt
subject or
to eductiono
reduction orrexemptioni
exemption nt
in heo
the rdert
order hatt
that hei
the ncome,f
income, romt
from het
the ransfer
transfer
o
offassetsa
assets ccruesd
accrues uringt
during hec
the orrespondingy
corresponding ear.<
year. NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.6292,
6292,
Dec
Dec..29,
29,2000;
20
00;A ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
(3)T
(3) hed
The eductiona
deduction assreferredt
referred tooinp
in aragraph(
paragraph 1)s
(1) hallbe
shall bereferredt
referred tooa
ass“basicd
“basic eduction
deduction
fort
for ransferi
transfer ncome”.
income”.
Art i
cle1
Article 04(
104 Tax R
(Tax ateso
Rates offTransferI
Transfer ncome)
Income)
(1)A
(1) nyt
Any ransferi
transfer ncomet
income axo
tax nar
on esidents
a resident hallb
shall et
be hea
the mountc
amount alcu-l
calcu- atedb
lated ya
by pplying
applying
thef
the ollowingt
following axr
tax atest
rates ot
to het
the axb
tax aseo
base offtransfer
transfer income
incomea ccruingd
accruing uringt
during hec
the orresponding
corresponding
year(
year hereinafterr
referred oa
to ass“calculateda
“calculated mounto
amount offtransferi
transfer ncomet
income ax”).I
tax”). ns
In uchc
such ase,
case,
i
iffas inglep
a single ropertyc
property orrespondst
corresponds ot
to woo
two orrmoret
more axr
tax atesf
rates roma
from mongt
among hoseu
those ndert
under he
the
provisionso
provisions offthef
the ollowings
following ubparagraphs,the
subparagraphs, t
heh ighestrate
highest r
atef rom a
from mongt
among hems
them hallbe
shall be
appl
i ed:<
applied Amendedb
<Amended yA
by ctNo.
Act No.5580,
5580,Dec.
Dec.28,
28,1998;
19
98;Act
Ac
tNo.
No.605],
6051,Dec.
Dec.28,
28,1999;
1
999;
ActNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000;
20
00;A ctNo
Act No..6557,
6557,Dec.
Dec.3],
31,2001;
20
01;A ctNo.
Act No.7006,Dec.
7006, Dec.
30,2003;
30, 2
003;Act
Ac
tNo.
No.7319,Dec.
7319, Dec.3],
31,2004;
2
004;Act
Ac
tNo.
No.7837,Dec.
7837, Dec.3],
31,2005;
2
005;Act
Ac
tNo.
No.9270,
9270,
Dec
Dec..26,
26,2008>
20
08>
1
1..
Assetsp
Assets rescribedi
prescribed nA
in rt i
cle9
Article 944(1)1
(1) 1,,2a nd4
2 and 41:
Taxr
Tax ateu
rate nderA
under rt i
cle5
Article 555(1);
(1);
2
2..
Assetsp
Assets rescribedi
prescribed nA
in rt i
cle9
Article 4(
94 1)1a
(1) nd2
1 and 2,,the
theh oldingp
holding eriodo
period off whichi
which issnotless
not l
ess
thano
than ney
one earb
year utl
but esst
less hant
than woy
two ears:
yearsi
40/100o
40/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
2-2.A
2-2. ssetsp
Assets rescribedi
prescribed nA
in rt i
cle9
Article 4(
94 1)1a
(1) nd2
1 and 2,,the
theh oldingp
holding eriodo
period offwhichi
which issless
less
thano
than ney
one ear:
year:
50/100o
50/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
- 188 -
-188-
2-3.
2-3. Housef
House allingu
falling ndero
under neo
one offthreeh
three ouseso
houses orrmore
moreh eldb
held yo
by neh
one ouse-h
house- oldp
hold rescribed
prescribed
byP
Presidential De
cree( includingl
(including anda
land nnexedt
annexed hereto;hereafter
thereto; he
reafterthe
t
hes ames
same halla
shall pply
apply
i
innthisA
this r ticle)
Article)3:60/100o
60/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
2-4.
2-4. Whereo
Where neh
one ouseholdp
prescribed yP
Presidential De
creeh oldsh
holds ousesa
houses ndo
and ccupation
occupation
rightso
rights offassociationme
association mbersu
members nderA
under rt i
cle8
Article 9(
89 2),a
(2), ndwh
and eret
Where hea
the ggregateo
aggregate offthe
the
numbero
number offhousesa
houses ndo
and ccupationr
occupation ightsi
rights issnotl
not esst
less hant
than hree,t
three, her
the elevanth
relevant ouse
house
(excludingc
(excluding asesprescribed
cases p
rescribedb yP
by residentialDecree):
Presidential De
cree):60/100
6
0/100ooffthetax
the t
axb aseo
base offtransfer
transferincome;
i
ncome;
2-5.H
2-5. ousef
House allingu
falling ndero
under neo
one offtwoh
two ousesh
houses eldb
held yo
by neh
one ouseholda
household assprescribedb
prescribed y
by
PresidentialDecreei
Presidential De
cree:5 0/100o
50/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
2-6.
2-6. Whereo
Where neh
one ouseholdp
prescribed yP
by residentialD
Presidential ecreeh
Decree oldsr
holds espect
ive lyo
respectively neh
one ouse
house
ando
and neo
one ccupationr
occupation ighto
right offassociationme
association mbersu
members nderA
under rt i
cle8
Article 9(
89 2),the
(2), t
her elevant
relevant
house(
house excludingc
(excluding asesp
cases rescribedb
prescribed yP
by residentialDecree)3
Presidential De
cr e
e ):
50/100o
50/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
2-7.Land
2-7. Landforn
for on-businessu
non-business nderA
under rt i
cle1
Article 04-3
104-31:
60/100o
60/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
2-8.A
2-8. ssetsp
Assets rescribedb
prescribed yP
Presidential De
creeb yt
by akinga
taking ccounto
account offcurrent
currentp ossessing
possessing
statuso
status offthel
the andf
land orn
for on-businessu
non-business nderArticle
under Ar
t i
cle1 04-3a
104-3 mongt
among hea
the ssetsu
assets nderArticle
under Ar
t i
cle
9
944(1)4(
(1) c)
4 (0)3:60/100o
60/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
3
3..
Unregisteredt
Unregistered ransfera
transfer ssets:7
assets: 0/100o
70/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
4
4..
Assetsp
Assets rescribedi
prescribed nA
in rt i
cle9
Article 944(1)3
(1) 32:
(a)S
(a) tocks,e
Stocks, tc.o
etc. offac orporation,o
a corporation, thert
other hans
than malla
small ndme
and dium e
medium nterprisesp
enterprises rescribed
prescribed
byP
by residentialD
Presidential ecree(
Decree hereafterr
(hereafter eferredt
referred tooa
ass“smalla
“small ndme
and dium e
medium nterprises”
enterprises”
int
in hisC
this haptera
Chapter ndA
and rt i
cle1
Article 60(
160 6)),w
(6)), hichh
Which aveb
have eenh
been eldf
held orless
for l
esst hano
than ney
one ear
year
bys
by uchc
such orporation’sma
corporation’s jors
major tockholders:
stockholdersi
30/100o
30/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;
income;
(b)S
(b) tocks,e
Stocks, tc.o
etc. offsmalla
small ndme
and dium e
medium nterprises:
enterprisesi
10/100o
10/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;o
income; orr
(c)S
(c) tocks,e
Stocks, tc.,o
etc., thert
other hant
than hoseu
those nderi
under tems(
items a)a
(a) nd(
and b)
(b)3:
20/100o
20/100 offthet
the axb
tax aseo
base offtransferi
transfer ncome;a
income; nd
and
5
5..
D eleted.<
Deleted. byA
<by ctNo
Act No..6292,Dec.
6292, Dec.29,
29,2000>
2
000>
(2)T
(2) heh
The oldingp
holding eriodr
period eferredt
referred tooinp
in aragraph(
paragraph 1)2
(1) 2,,2-2a
2-2 nd4(
and a) s
4 (a) hallbe
shall befrom the
from the
acquisitiond
acquisition atet
date ot
to het
the ransferd
transfer ateo
date offthe
thea ssetsc
assets on-c
con- er
ned:Provided,
cemedi Pr
ov i
ded,That
Tha
tthe
t
her espective
respective
givend
given atess
dates hallbe
shall bethea
the cquisitiond
acquisition ateo
date offthe
thea ssetsc
assets oncernedi
concerned iffthey
theyf allunder
fall unde
ra ny
any
o
offthef
the ollowings
following ubparagraphs:<
<Amended yA
by ctNo.
Act No.6292,
6292,Dec.
Dec.29,
29,2000;
2
000;Act
Ac
tNo.
No.
7006,Dec.
7006, Dec.30,
30,2 003>
2003>
- 190 -
-190-
1
1..TThehed at
date ea c qui
acquired r edb byyt hep
the re de c e
predecessorss ori nc
in a
caseseo offi nhe ri
inheritedt eda ss e
assets; ts;
2
2..TThehed at
date eo onnwh which ic ht hed
the onora
donor c qui
acquiredredt her
the ele vanta
relevant s s
assetsetsi innc as
case eo offa s s
assetse tsf al l
ing
falling
u nde
under rA r ti
Article cl e9 977( 4
(4););a nd
and
3
3..T
The hed at
date eo onnw hi
which cht hes
the t o c
stocks,ks ,e tc
etc..ooffam e
a merged rge dc o r po ra
corporation,ti
o n,ad ivi
a dividedde dc or por
corporationat iono orra a
c ount e
counterpartr pa r tc or por
corporation at i ono offthet
heo nee
one xt ingui
extinguished she db byyd ivi de
divided dm erge
merger, r
,i nc
in a s
case ew he
where ret he
the
s to cks
stocks, ,e t
etc.c.a r
areea c q ui
acquired r e da ne
anew wf r o
fromm am e r
a merginggi ngc o rpo r a
corporation, tion,ac o r po r
a corporationa ti
o nn e wl
newly yo r ga ni
organized z e d
b
byyd i
vi s
divisionio no orrac o unt
a counterparter pa r tc o rpo ra
corporationti
o no offs uc
such hd ivi de
divided dm e rge
merger, r,o na
on cc ounto
account offa me
a merger rge r
o
orrad i vi
a divisions ion( e xc ludi
(excluding ngp hys
physical icald ivi s i
division)on)o offc or por at
corporations. ions .
(3)T
(3) Thehet e r
term m“ tr a ns
“transfer fe ro offunregistered
unr egi s te r
eda s se t
assets”s ”u s e
used di np
in ar agr
paragraph a ph( 1
(1) )33,,m e a
means nst ha
that tap e r
a persons on
w hoh
who a
has sa c qui
acquired re dt hea
the s s
assetsetsa assp resc ri
prescribedbe di nA
in Ar-r-t i c
ticlel
e9 944( 1
(1))1a1 andnd2 2,,transfers
tra ns fer st hea
the ss e
assetst s
wi thoutma
without makingki ngar e gi s t
a registrationrat ionc onc e rni
concerning ngt hea
the cqui s
acquisitionitiont he r e
thereof: of :Provided,
Pr ovi ded,That Thats uc
such h
as se
assets tsa assp r
pre-e-s cr ibe
scribed db by yP re s ide
Presidential nt i
a lD e cr
Decree e ea r
areee xc lude
excluded. d.< Amendedb
<Amended byyA Actc tN0.
No.6292, 6 2 92 ,
De
Dec.c .29,
29 ,2000>
20 00 >
(4)I
(4) nc
In a s
cases esw he
where r er ea
real le s t
a
estatetef allingu
falling nde
under ra nyo
any offt hef
the o ll
o wi
following ngs ubp ar agr
subparagraphs a p hsi isst ra ns fe
transferred rre d
byn
by no ol at
laterert hanD
than e ce
December mbe r3 1,2
31, 0 10,t
2010, axr
tax a
rateste su nde
under rA r ti
Articlec le5 555( 1 )
(1),,to
towh whichic h1 0 /1
10/100 0 0iiss
adde
added, d,s hal
shall la ppl
apply yt os
to uc
such hr e ale
real s tat
estate,e,i nl
in ie
lieu uo offtax
taxr at e
rates su nde
under rp a r agr
paragraph aph( 1
(1))1 1,,wh
when en
thep
the r ovi s
provisionsionso offpara-
par a-g ra
graphph( 6
(6))a r
are ea ppl i
applied;e d:< Ame
<Amended n de db byyA Act ctNo.
No.9672,9 67 2,May Ma y2 1
2], ,
200
2009>9>
1
1..H ous
Houses esf a llingu
falling nde
under ro neo
one offt hr e
three eh o us
housese so orrm o
more reh e
heldl
db byyo neh
one ous
house- e-h ol
holddu nde
under rp a ra gr
paragraph a ph
( 1
(1) )2 -3
2-3, ,w hi
which c ha r
areel o c a
locatedte di nad
in e s i
gna
a designated t e da r e
area au nde
under rArticle
Ar tic l
e1 04
104-2-2( 2
(2))( inc l
udi
(including ngl and
land
a nne
annexed xe dt he r
thereto;et o;h e r eaf
hereafter te rt hes
the ames
same hal
shall la ppl
apply yi nt
in hi
this sp ar agr
paragraph);aph) ;
2
2.. Whe
Where r eo neh
one ous
householde hol du nde
under rp aragr
paragraphaph( 1
(1))2 -4h
2-4 ol
holdsdsh ous
houses,e s ,wh i
whichcha r
areel oc at
located e di na
in a
d e s igna
designated t eda re
area au nde
under rA rt i
Articlec le1 04-2(
104-2 2)
(2),,a ndo
and cc upa
occupation tionr ight
rights so offa ss o c i
a
associationtionme mbe
members r s
a ndt
and hea
the ggr e
aggregate gat eo offt hen
the umbe
number rooffh ous
houses e sa ndo
and c c upat
occupation i
onr ight
rights si issn otl
not e s
less st ha
than n
t hr e
three, e ,t her
the e le vanth
relevant ous
houses; e s ;
3
3..La
Land ndf o
forrn o n-bus
non-business ine ssu nde
under rArticle
Ar tic le1 0 4 -3
104-3, ,w hi
which c hi issl oc a t
locatede di nad
in esigna
a designated te da re
area au nde
under r
A r ti
Articlec le1 0 4
104-2-2( 2 )
(2); ;a nd
and
4
4.. O the
Other rreal
r e ale s tat
estate ep r e s cr
prescribed ibe db byyP res ide
Presidentialnt ia lD e c r
Decree,e e,whwhene ni itti issd e eme
deemed dn e ce
necessarys s ar yf or
for
s tabi li zat
stabilization iono offt hep
the ri
c
price eo offreal
r e ale s t
at
estate, e,a asst hep
the ri
pricec eo offreal
r ea le stat
estate eh ass
has kyr oc
skyrocked, ke d,o orr
i
issl ike
likelylyt os
to kyr oc
skyrocket. ke t.
(5)Ma
(5) t
Matterste rsn ec e s
necessary s a ryf orc
for a lc ul
calculateda t eda mo
amountunto offt ra ns
transfer ferincome
i
nc o met a x,o
tax, the
other rthan
t ha nt ho
those s eu nde
under r
pa ra gr
paragraphsa phs( 1
(1))t hr ough(
through 4)s
(4) ha
shall l
lbebep res cr
prescribedibe db byyP r es ide
Presidentialnt ia lDecree.
De c re e .< Newl
<Newly yI ns er
Inserted ted
b
byyA Act c tNoNo..6292, 62 92 ,Dec.
Dec .29,
2 9,2000;
20 00 ;A ActctNo No..8825,8 82 5,Dec.Dec .3],
31 ,2007>
20 07 >
(6
(6))T Taxaxr at
ratese su nde
under rp ar agr
paragraph aph( 1)1(
(1) t
1 (taxaxr at
ratese su nde
under rp ar agr
paragraph aph( 1)2o
(1) 2 orr2 -2i
2-2 nc
in as
casese s
o
offh ous
houses e st hath
that aveb
have e
been e nh e
held ldf orl
for esst
less hant
than woy
two e ar
years), s) ,instead
ins t eado offt axr
tax at
rates esr e f
e rr
referred ed
toi
to np
in ar a gr
paragraph aph( 1)2
(1) -3t
2-3 hr ough2
through -8
2-8, ,s hal
shall la ppl
apply yt oi
to nc omea
income c cr
accruingui ngf r
fromom t r ans
transfer fero off
as se
assetstsu nde
under rp a ra gr
paragraph a ph( 1
(1))2 -3t
2-3 hr ough2
through -8b
2-8 by yn nool at e
laterrthan
t ha nD e ce mbe
December r31,
3 1,2 0 1
2010.0 .< Ame
<Amended nde d
b
byyA Act c tNoNo..9672, 96 72 ,May
Ma y2 2],1 ,2009>
20 09 >
- 192 -
-192-
Art i
cle1
Article 04-2(
104-2 Operationo
(Operation offDesignatedA
Designated rea)
Area)
(1
(1))I nt
In hea
the re
area aw he
where ret hei
the nc r easi
increasingngr at
rateeo offr e a
realle sta t
estateep ri
c
priceeo offr eleva
relevantnta reai
area issh ighe
higherr
tha
than nt h a
thatto offt hen
the atio na
national lc o ns ume
consumers rsp r i
ce
price,,a ndw
and h e
where ret her
the ea
realle s ta
estatet
ep ric
priceei nt
in her
the eleva nt
relevant
ar e
areaah a
hassr a pid
rapidly lyi nc re as
increased,ed ,oorrw h e
whereree xis tingt
existing hew
the orr i
e
worriesso ve
overrar api
a rapiddi nc re a
increase seb byyt aking
taking
ac c ou
account n toofft hei
the nc rea si
increasingngr at
rateeo offthen
the a tio
n a
national lr e a
realle st a
estatet
ep ric e
s
prices,,e tc.
etc,,t heMi
the n is
MinisterterooffS trategy
Strategy
an dF in an c em a yd es i
g n atei t ast hed e sig n a teda re au n
and Finance may designate it as the designated area under the standard and methodsder th es tan d ar da n dm ethod s
pr e s cri
prescribedbe db yP
by r es ide nt
Presidentialia lD ec r
e
Decree. e.< Amendedb
<Amended byyA c
Act tNo
No..8852,
8 852,F eb.29,
Feb. 29,2 008>
2008>
(2
(2))T het
The e r
termm“ r eale
“real stat
estateew ithi
within nt hed
the e signa
designated t
e da rea
area” ”i nA
in rtic l
e
Articles s9966( 2)7a
(2) nd1
7 and 04(
104 4)
(4)
1t hr ough3me
1 through 3 meansa nst her
the eale
real stat
estateep res cr i
be
prescribed db byyP res ident
PresidentialialD e cr
Decreeeef r om a
from mongt
among he
the
rea
realle s t
a t
el
estate oc at
locatededi nt
in hed
the esigna
designatedt
e da re
areaau nde
under rthe
thep rovisio
provisionsnsooffparagraph
pa ragr ap h( 1 )
(1)..< Amended
<Amended
b yA ctNo . 9 67 2 ,
by Act No. 9672, May 2], 2009>Ma y2 1 , 2 00 9>
(3
(3))T TheheD e li
be ra
Deliberative tiveC o mmi
Committeetteeo nS
on ta biliza ti
Stabilizationono offReal
Re alEstate
Es ta t
eP rice
Pricesss ha l
shalllbebee s tablishe
established d
int
in heMi
the ni s
Ministrytryo offS t
r ategya
Strategy ndF
and i
na nc
Finance ef ord
for e signa
designationti
ona ndc
and a nc ellati
cancellationono offthe
thed e signat
designateded
ar ea
areas su nde
under rt hep
the rovi s i
onso
provisions offpara-
pa ra-g raph(
graph 1
(1))a ndd
and eliber atio
deliberationno offo the
otherrnecessary
ne c e ssa ryma tters
matters..
< Amendedb
<Amended byyA ActctNoNo..8852,
8852,F eb.29,
Feb. 29,2 008>
2008>
(4 )Ma tt
e rsn e ce ss ar yf o rt h es ta
(4) Matters necessary for the standard and methodsnd arda n dme t hodso offc a nc ella t
cancellationi
ono offt hed
the e si
gnat
designatede d
ar e
areasasu nde
under rt hep
the rovi sionso
provisions offp ara graph(
paragraph 1
(1))a ndt
and heo
the r-g
or- a niz ati
ganizationona ndo
and pe r
at
operationiono offthe
the
D e libe r
at
Deliberative iveC ommi
Committee tteeo nS
on tabilizat i
ono
Stabilization offR e
RealalE sta
EstateteP r i
c e
Pricesss ha l
shalllbbeep re sc ribe
prescribed db byy
P re s ide nt
Presidential ia lD e c re e.[
Thi
Decree.[This sA rtic
Articlel
eN e wl
Newly yI ns e r
Insertedtedb yA
by c
Act tN o.7
No. 837
7837, ,Dec.
De c .31,
31 ,2 0 0
2005]5]
Art i
cle1
Article 04-3(
104-3 Scopeo
(Scope offLandf
Land orNo
for n-business)
Non-business)
(1
(1))T het
The erm“
term landf
“land orn
for on-bus
non-business”ine ss ”i innA rtic
Articlesle s9 966( 2)8a
(2) 8 andnd1 04(
104 1
(1))2 -7me
2-7 anst
means he
the
landf
land alli
ngu
falling nde
under ra nyo
any offt hef
the oll owi
followingngs ubpar agr
subparagraphs aphso wne
owned df ort
for hep
the e ri
periododp resc ri
prescribedbed
byP
by re side nt
De cre ef r om a
from mongt
among hep
the er i
periododo offo wni
owning ngt her
the e l
e va
relevant ntl and:<
land: Amended
<Amended
b
byyA Actc tNo
No..8825,
88 25 ,Dec.
Dec .3],
3 1,2007;
20 07 ;A c
Act tNoNo..9270,
9 27 0,Dec.
Dec .26,
26 ,2008>
20 08 >
11..
P addyf
Paddy field,
ield,o rdina r
ordinaryyf field,
ie ld,a ndo
and rc ha
orchardrd( he rea f
(hereafterte rreferred
refe rre dt tooaass“ farml and”in
“farmland” i
nt hi
thissA rticle
Article))
wh
whichi
c hf a l
lunder
fall unde ra nyo
any offt hef
the ollowi
following ngi te ms
items; :
( a)T
(a) hef
The ar ml
farmlandandf o
forrw hi
which cht heo
the wne
owner ris isn o
nottresiding
r es idingi nt
in hel
the o c ati
locationo no offfarmland
fa rml a ndu nde
under r
co ndi tio
conditions nsp res cri be
prescribed db byyP re si
de nt
Presidentiali a lD ecr
Decree,e e ,oorrt hef
the a rml
farmland andw hi
whichc hiissn o
not tc ultiva t
e
cultivatedd
byh
by im/ he r
him/herselfself:Provided,
Pr ovi ded,T ha
That tt hes
the a mes
same ha
shallllnot
no ta ppl
apply yt toof a rml
farmlandandp res cribe
prescribed db y
by
P res i
de nt
Decreee ea assmamay yb eo
be wne
owned du nde
under rt heF
the a r ml
Farmland andA c
Act ta ndo
and the
otherrA cts
Acts; ;a nd
and
( b)T
(b) hef
The a rml a
farmland ndw ithi
within nt hec
the i
tya
city re
area au nde
under rt hep
the r ovi s
provisionsionso offt heN
the Na-a -t ionalL
tional and
Land
P l
anni
Planningnga ndU
and tiliz a
Utilizationtio nA c
Act t( exc l udi
(excluding ngt hea
the re
area ap re s cr
prescribedibe dbbyyP re s ident
Presidential ia lDecree;
De c ree;
h ere aft
hereafter ert hes
the ames
same ha
shalllla ppl
applyyi nt
in hi
thisss ubpar agr
subparagraph) aph)f rom a
from mongt
among heS
the pe ci
Specialal
Me tropol
Metropolitanitan C ity,t
City, heMe
the tropol
Metropolitani tan C it
City y( e xc l
udi
(excluding ng thetheG unsl
Guns oc at
locatede d in
in the
the
Me tro po l
Metropolitani
tanC i
ty;h
City; e r ea f
t
hereaftere rt hes
the ames
same ha
shalllla p p
applylyi nt
in hi
this sA r t
ic l
Article)e)a ndS
and Siia rea(
area exc l
ud i
ng
(excluding
theE
the up/ Myeona
Eup/Myeon r e
area ai nt
in heS
the Siio offaf or
a form mo offc it
cityya nda
and gr icul tur
agricultural alc ompl
complex exu nde
under r
thep
the r o vis i
o
provisions nso offArticle
Ar ticle3( 4
3 (4))ooffthe
theL oc
Locala lAutonomy
Aut o no myA ct
Act; ;hereafter
he r ea fterthe
thes ames
same ha l
l
shall
appl
applyyi nt
in hi
thissA rti cle
Article); ):Provided,
Pr ovi ded,T Thatha tthe
thef a rml
farmlandandf orw
for hi
which cht hep
the e r
periodi
odp resc ribe
prescribed d
byP
by re s i
de nt
Presidential i
alDecree
De cr e eh asn
has otb
not e
beene np as
passeds edf r om the
from thed aywh
day whenent hef
the ar ml
farmlandand
wh os
whose eo wne
owner rh asl
has ive
lived da ndc
and ul tiva
cultivatedt edu nde
under rc o ndi t
conditionsio nsp r esc ri
prescribedbe db yP
by r eside nt
Presidentialial
D e cr
Decreee eh asb
has e e
beenni nc or po r
incorporateda tedi ntot
into hec
the i
t
cityya re
area ao offthe
t heS pe ci
Speciala lMetropolitan
Me tr opol it
anC ity,
City,
theMe
the tropol
MetropolitanitanC it
City ya ndt
and heS
the Si,i ,s hal
shall lb ee
be xc lude
excluded; d;
- 194 -
-194-
2
2..
F or
estl
Forest and:P
land; rovided,T
Provided, hatt
That hiss
this halln
shall ota
not pplyt
apply ot
to hatf
that alling u
falling nder
under
anyo
any offthef
the ollowingi
following tems:
items;
(a)T
(a) hef
The o re
forest s tf o
forrp r ot ec
protectingtin gf o re
foreststh e r e d
hereditaryita r yr es o ur
resources ce sd e s ign
designated a t edu nd
under e rt h
theeC r ea t
Creationion
a ndMa
and na
Management ge me nto offF o r
Foreste s tR es o ur
Resources c esA c
Act,t ,r e s e r
reservedve df o r e
forest, s t,s e e d-ga the
seed-gathering r ingf o r e
forestst
a n
anddt e
teststf o re s
forest, t,a n
anddo th
other erf o r es
forests tsn e c es
necessary s a ryf o
forrp u bl
publicici n te re
interests st soorrf o
forrt h
theep ro tec t
protectionion
a ndf
and o st e
fosterager ageo offf o r e
forestss tsw h
whichicha r
areep r e s cr
prescribed ibe db byyP r e s id
Presidentiale nt ialD e cr
Decree; ee ;
(b)T
(b) Theh ef o r e
forest s to wne
owned db by yt hep
the e rs
personso nsw whohol ivei
live innt hep
the la
place c ew he
where r et hef
the o re
forest stl o ca t
locatese s
und
under e rt hec
the o nd iti
conditionso nsa as sp r es cr
prescribedib e db yt
by heP
the r es i
d
Presiden-e n-t ia
tiallD ec
Decree;re e ;a nd
and
(c)T
(c) Thehef o re
forest sth a vi
having ngc o ns i
d
considerableer a bler e as
reasons on sf o
forra d mi tt
admitting ingt ha
that th a vi
having ngd ire c
direct tr e lat i
o
relations ns
w
withi
tht h
theeresiding
r es id in go orrbusiness
b u s in es si nv
in ie
view ww i
withtht h
theeo wn e
owner, r,l o c a ti
location, o n,utilization
ut iliz ations it ua ti
situation,on,
p oss e
possession s si o np e r i
periododa nda
and r e
areaao offthe
t h el a nd,w
land, h
whichic ha r
areeprescribed
pr e s cr ib e db byyt heP
the r es i dent
Presidential ial
De c
Decree;r e e ;
3
3..
T
The hel andf
land o
forrpasturage
p a st ur a gew h
which ic hf a ll
fallssu nd
under e ra nyo
any neo
one offthe
thefollowing
fo l
l o wi ng items;
i
t ems :Provided,
Pr ovi ded,
T ha
That tw ha
what ta r
are ep r e sc ri
the re s ide
Presidentialnt ia lD e c
Decreer eewh i
which cha r
areet hel
the a ndf
land orpasturage
for pas tur age
h a vi
havingngc o ns ide
considerable r abl er e a so
reasons nsf o
forra d-m
ad- itt
mittingingt ha
that th a vi
havingngd ire
directc trelations
r e l
a tio nsw i
t
withht her
the e sidi
residingng
o
orrb us ine
business s si innv ie
view w wiwitht ht heo
the wne
owner, r ,l oc a ti
location, on,u t i
liz ati
utilizationons i tuat
situation, ion,p os se s
possessions i onp e ri
periodod
a nda
and re
area ao offt hel
the and,s
land, ha
shall l lbe
bee xc l ude
excluded; d:
( a
(a))T hel
The a
landndf o
forrp a s tur
pasturagea geo wne
owned db byyt hep
the e rs
person o no pe r at
operatinginga as to c k-r
stock-raising aisingb us i
ne
business sswh i
whichch
e xc e
exceedse dst hes
the t andar
standard da r
areaeao offl a ndf
land orpasturage
for pa s tur agea assp r e s cr
prescribed ibe db byyt heP
the r es i dent
Presidential ial
D e cr
Decree,e e ,o orrw hi
which c ha r
areel oc at
located e dwi t
withinhi nt hec
the it
cityya r
areaeao offthe
theS pe c
Special ialMetropolitan
Me tropol itanC it
City,y,
theMe
the tr opol
Metropolitan itanC i
Citytya ndt
and heS
the Sii( e xc ludi
(excluding ngt hea
the re
area aa assp r e s c
prescribedri be db yt
by heP
the re s
Presi- i
-
d e nti
dential a lD e c
Decree;re e ;h e re a
hereafterf te ri nt
in hi
thisss ubpa r agr
subparagraph, aph,t hes
the ames
same ha
shall lla ppl
apply) y)( e xc ludi
(excluding ng
thec
the as
case ewh wheree ret hep
the e r
periodioda assp r e s cr
the res ide nt
Presidential ia lD ec
Decree r eeh a
hassnnotote laps
elapsed ed
fro
from mt hed
the a
dateteo offi nc o rpor
incorporated a te di nt
into ot hec
the it
cityya re a
area); );a nd
and
( b)T
(b) Thehel a
landndo wne
owned db byyt hep
the e rs
person o nw whohod o
doesesn o
not to pe ra
operatetet hes
the t o c k-r
stock-raisinga isingb us ine
business; s s;
4
4..
T
The hel ande
land xc ludi
excluding nge ac
each ho offthe
t hef ol lowi
following ngi t emsf
items rom a
from mongt
among hel
the ando
land the
other rt ha
than nt he
the
f arml
farmland,and,f or es
forestry tr ya ndl
and andf
land orp
for as tur
pasturage; a ge :
( a
(a))T hel
The a
landndf o
forrw hi
whichc ht hep
the ro pe
property rtyt a
tax xi issnnototl e vi
leviededo orre xe mpt
exempted e du nde
under rthe
t hep rovi si
provisionso ns
o
offL oc
Local a lT TaxaxA Actcto orrr e la
relatedte dA c
Acts;t s;
( b)T
(b) Thehel ands
land ubj e
subject ctt oas
to e par
a separate at ea ddi
adding ngu up po offt hep
the rope
propertyr tyt axu
tax nde
under rt hep
the rovi s
provisionsions
o
offA r t i
Article cle1 82(
182 1)2a
(1) 2 and nd3o 3 offthetheL oc
Local alT TaxaxA c
Act,t,o orrt tooas e par
a separate a tet axat i
taxation;on;a nd
and
( c
(c))TThehel andh
land avi
having ngac ons ide
a considerable rabl er e as
reason onf orr
for ec ogni
recognizingz i
ngt ha
that ti itth a
hassad ire
a directc tr elat i
relationon
wi
withtht her
the e s idi
residing ngo orrb us ine
business s sb yt
by aki
taking nga c c ounto
account offthe
t hel andu
land tiliz at
utilizationi
ons ituat i
situation,on,
wh et
whether he ro orrn otp
not e rfo r
performingmi ngt heo
the bl iga
obligationt i
o nu nde
under rthe
ther e lat
related e ds t a tut
statutes, e s ,a ndt
and hei
the nc ome
income
a mounte
amount t c
etc., .,wh
what ata r
are ep re s c r
the re s ide
Decree;r e e;
5
5..
T
The hel ande
land xc e e
exceedingdi ngt hea
the r
areae ac omput
computed e db ymu
by ltipl
multiplyingyi ngt hea
the r e
area, a,wh e
whereonreont heh
the ous
house e
i
issf ixe
fixed,d,b by yt her
the at
ratioi
oa assp r es c r
the r e side
Decree r e ef rom a
from mongt
among hel
the and
land
a nne
annexedxe dt toot heh
the ous
house eu nde
under rt hep
the rovi s
provisionsi onso offArticle
Ar ti
c le1 8
1822( 2
(2))o offthe
theL oc
Local alT a
Tax xA c
Act;t;
- 196 -
-196-
6
6.. T
Theheb ui l
di
buildingngf orr
for e s ide
residence ncewh whichichi issn otused
not us edf ort
for heu
the s ua
usual lresiding,
r es idi ng,butbutis i
su se
used df or
for
t hep
the ur pos
purposes ess uc
such ha assr e cre a t
recreation,ion,s umme
sumrnering,ri ng,c omf or
comfortingt ingp le as ur
pleasure, e ,e tc
etc. .( he r eaf
(hereafterteri n
in
t hi
thisss ubpa ra gr
subparagraph, aph,referred
re f erredt tooa asst he “
the vi l
l a
“villa”)”)a ndt
and hel
the a nda
land nne
annexed xe dt he re
thereto:to :Provided,
Pr ovi ded,
T hatt
That hi
thisss hal
shall ln ota
not ppl
apply yt ot
to heh
the ous
house eo offfishing
fi s hinga nda
and gr ari
agrariananv i
l l
agel
village oc at
located edi nE
in up,
Eup,
Myeona
Myeon re
areaau nde
under rt hep
the rovi s i
Ar ticle3( 3
3 (3))a nd(
and 4)o
(4) offt heL
the oc
Local alAutonomy
Aut onomyA c
Actt
a ndc
and o r res po ndi
corresponding ngt ot
to hes
the c o
scopepea ndc
and riteri
criteriaaa assp re
pre--s c ribe
scribed dbbyyt heP
the res ide
PresidentialntialD ecr
Decree ee
a ndt
and hel
the a nda
land nne
annexedxe dt he re t
thereto,o ,a ndwh
and When ent heb
the o unda
boundary ryo offt hel
the anda
land nne
annexedxe dt ot
to hev
the ill
a
villa
i
issn otc
not le ar
clear, ,thel
the andc
land orre s pondi
to ent
ten ime
times st hef
the loora
floor re
areasa so offs uc
such hb ui l
di
buildingngs ha
shallll
ber
be e gar
regarded de da asst hea
the nne
annexedxe dl and;a
land; nd
and
7
7.. O the
Other rl andss
lands imi l
similarart os
to ubpa ra gr
subparagraphs aphs1t hr ough6a
1 through 6 assp res cr i
the res ident
Presidential i
a l
D e c
Decreer e ea assh avi ngc
having ons i
de r
considerablea bl er ea so
reasons nsf ora
for dmi t
admittingtingt ha
that tthey
the yh aven
have nood ir e
directctrelations
re lations
wi
Withtht her
the esidi
residingngo orrb us ine
business s so off ar e s i
de
a resident. nt.
(2
(2))I na
In ppl
applyingyingt hep
the r ovi
provisionssionso offparagraph
par agr aph( 1 )
(1), ,la ndwh
land i
Whichc hc or r es pondst
corresponds ot
to hel
the andf
land or
for
n on-bus
non-business ine sst hep
the rohi bi
prohibitiontio nooffuse
us eu nde
under ro the
other rActs
Ac tsa fte
after rits
itsa cqui s i
acquisitiontiond dueuet oa
to ndo
and the
otherr
ine vi t abl
inevitable er ea sonsa
reasons assp re s cr
the re side nt
De c re e,may
mayn otbe
not ber e gar
regarded de da asst he
the
landf
land orn
for on-bus
non-businessine s su nde
under rt hec
the ondi ti
conditionsonsa assp r es c ri
the re side nt
Decree. e.
(3
(3))IInna ppl yi
applying ngt hep
the r ovi s
provisions ionso offparagraphs
pa ragr a phs( 1
(1))a nd(
and 2)
(2),,matters
ma ttersn e ce
neces- s -s ar
saryyf o
forrthe
thes co pe
scope, ,
et c
etc..o offt hef
the a rml a
farmland,nd,f o r e
forests ta ndl
and andf
land orp
for as tur
pasturage ages hal
shall lbe
bep res c r
prescribedi
be db byyt heP
the res ide nt
Presidential ial
D e cr e e.[Thi
Decree.[This sA rtic
Article leNe Newly wlyI ns er
Inserted tedb byyA Act c tNo
No..7 8 37
7837, ,Dec.
Dec .3],
3 1,2005]
2 00 5]
Art i
cle1
Article 05(
105 PreliminaryR
(Preliminary eturno
Return offTaxB
Tax aseo
Base offTransferI
Transfer ncome)
Income)
(1
(1))A nyr
Any e sid
residententw hoh
Who a
has st ra ns ferr
transferrede da s s
assetsetsa sp
as re scr i
prescribedb edi na
in nys
any ubp a
subpara-ra-g r a p
graphshso off
A rtic
Articlele9 4(
94 1)s
(1) ha
shallllf ilet
file her
the etur
return noofftaxt
a xb as
base eo offthe
t het r ans
transferf
e r income
inc omecalculated
calcu la t
e du n de
underr
A rtic
Articlele9 2(
92 2
(2))t ot
to hec
the h ie
chief fo offt h
theet axo
tax ffic
office ei nt
in hep
the l
a c
placeeo offtax
taxp a yme
payment ntw ithi
Within nt het
the ime
time
limi
limitta sc
as la ssi
classifiedfiedu nd
undere rt hef
the o ll
o w-i
follow- n
inggs u bpa r agr
subparagraphs,a p hs,under
un de rthe
thec on diti
conditionsonsaassprescribed
pr es c
r ib
ed
b
byyt h
theeP re s ide n
Presidentialti
a lD ecr e
Decreei e :< Amendedb
No.503],
5 03 1 ,Dec.
Dec .29,
29,1995;
19 9 5 ;Act
Ac tNo.
No.605],
60 51 ,
Dec
Dec. .28,
28,1999;
19 99;A c
Act tN0.
No.6292, 6 292,Dec.
Dec .29,
29,2000;
20 00;A ActctNo.
No.678],
6781,Dec.
Dec .18,
18,2002;
2002;A c
Actt
No.7
No. 00 6,Dec
7006, Dec .30,
30,2003;
200 3;A ActctNo
No..8144,
81 44 ,Dec.
Dec .30,
3 0,2006>
2 00 6>
1
1..Whe
Where ret hea
the s se
assetst
sp r ovi
provided de df ori
for nA
in rtic
Article le9 4(
94 1)1
(1) 1,,2
2,,a nd4a
and r
4 areet rans
trans- -f e r
r e
ferred,d,the
thet ime
time
limi
limitts ha
shall llbbeew i
thi
Withinnt wom
two ont
monthshsf rom t
from hel
the a s
last td a
dateteo offthe
themo nt
month httoow hi
whichc ht het
the rans fe
transferr
d at
dateeb e longs
belongsi :Provided,
Pr ovi ded,T hatwh
That Wheree ret hel
the andl
land oc ate
located di nt
in hez
the onewh
zone Whereeret rans a
c t
transactioni
on
c ont rac
contracts tsa r
arees ubj e
subjectc tt tooa ppr ovalu
approval nde
under rA rt i
Articlecle1 1
1177( 1
(1))oofftheN
the at iona
National lLand
La ndP l
anni
Planningng
a ndU
and t iliza t
UtilizationionA c
Actti isst ra ns ferr
transferrededa andndi tsp
its ric
price eiissp ai
paiddb efor
beforeet hea
the ppr ovalfor
approval f orthe
thel a
nd
land
trans a c
transactiontionc ont ra
contract cti issg rant e
granted,d,t het
the imel
time imi
limit ts hal
shalllbebewi thi
Withinnt womo
two nt
monthshsf rom the
from t
he
las
lasttd a
datet eo offt hemo
the monthnt ht owh
to i
c
Which ht her
the el
rel--e vanta
evant ppr ovald
approval at
dateeb e longs
belongs; ;a nd
and
2
2..
Wh
Wheree r
et hea
the s s e
assetstsp ro vi
provided de df ori
for nA
in r ti
c
Article le9 944( 1)3a
(1) 3 areret ra ns ferre
transferred,d,t het
the imel
time imi
limit ts hal
shalllb
bee
w ithi
Withinnt wom
two o nt
monthshsf r o
from mt hel
the astd
last a
datet eooffthe
theq ua rt
quartere rto
tow hi
Whichcht het
the ra ns f
transfererd a
dateteb e l
o ngs
belongs. .
- 198 -
-198-
(2)T
(2) her
The eturno
return offtaxb
tax aseo
base offanyt
any r a
nsferincome
transfer inc omeaassreferre
referreddttooinp
in ara-g
para- raph(
graph 1)s
(1) hall
shall
b
beer eferredt
referred oa
to assp rovi s
ionalreturn.
provisional ret
ur n.< Amendedb
<Amended byyA c
ActtNoNo..605],
6051,Dec.
Dec .28,
28,J999>
1 99 9>
(3)T
(3) hep
The rovi si
onso
para graph( 1)s
(1) halla
shall lsoa
also pplyw
apply he
Whennt he r
thereea ccruesn
accrues og
no ain,o
gain, orra ny
any
los s
loss,,from t
from het
the ransf er
transfer..
Art i
cle1
Article 06(
106 VoluntaryP
(Voluntary aymentb
Payment yP
by rovisionalR
Provisional eturn)
Return)
(1)A
(1) nyr
Any e side
residentnts ha ll
shall,,u ponma
upon ki
making ngap ro visionalr
a provisional et urn,p
return, ayt
pay het
the axa
tax mountc
amount alc ulat
calculatede d
b
byyd educ t
deductingingt het
the axd
tax e duct
deductionsionsa assp re sc ribe
prescribed db byyt heR
the estri cti
Restrictionono offS pecialT
Special axat
Taxationion
A
Actcta ndo
and the
otherrA ct
Acts so orrt het
the axc
tax r edi
credit ta mountfor
amount f
o rthe
thep a yme
paymentntbybyp ro visi
ona
provisional ltax
taxr etur
returnn
a
assp rovide
provided df ori
for nA
in r
Ar--t icle1
ticle 08f
108 rom t
from het
the axa
tax mountc
amount al
cul ate
calculated du nde
under rA rti
cle1
Article 07
107,,to
t o
at a
a taxxo f
fic
officeeh avi
having ngj ur i
s di ct
jurisdictioniono ve
over rt hep
the lac
placeeo offtax
taxp ayme nt
payment, ,the
theB anko
Bank offK ore
Koreaao orra a
p ostala
postal ge nc
agency ya assp res cri
the r eside nt
Presidential i
a lDecree.
De cr ee.< Amendedb
<Amended yA
by c
ActtN0.
No.605],
60 51 ,
De
Dec.c .28,
28 ,1999;
62 92 ,Dec.
Dec .29,
29 ,2000;
2000 ;AActc tNo
No..8144,
81 44 ,Dec.
Dec .30,
30,2006>
2 006>
(2
(2))T hep
The ayme
payment nta assr e fer r
referrededt tooi np
in a ragr
paragraphaph( 1)s
(1) ha
shallllbe
ber eferre
referreddttooaassv olunta r
voluntaryyp a yme
payment nt
b
byyp rovi sionalr
provisional etur n.<
return. Amendedb
<Amended byyA ActctNoNo..605],
6051,Dec.Dec .28,
28,1 999>
J999>
(3
(3))I nc
In as
caseewh
wheree ret he r
thereee xi st
exists st het
the axa
tax mounto
amount offo c casionala
occasional ss ess me
assessment ntaassr e f
er re
referreddt too
inA
in rticle
Articless8 2a
82 nd1
and 1
1188i nt
in hev
the olunt
voluntary aryp a yme
payment ntb yp
by re l
im-
prelim-
inar
inaryyr etur n,i
return, itts ha
shalll
lb ed
be educ
deductedte df r om t
from hep
the ayme
payment. nt .< Newl
<Newly yI ns er
Insertedtedb y Act
by Ac tNo
N0..
6 051,Dec.
605], Dec .28,
28 ,J999>
19 99 >
Art i
cle1
Article 07(
107 Calculationo
(Calculation offTaxA
Tax mountto
Amount t
ob eP
be aidb
Paid yP
by rovisionalReturn)
Provisional Re
turn)
(1
(1))T hec
The a lcula t
calculatededt axa
tax mo untp
amount aya
payable blei nap
in a yme
a payment ntbbyyap r
o visio na
a provisional lr e tur
returnns ha l
lb
shall bee
th
theea mo untc
amount alculate
calculated db byya pp lyi
applyingngt hetax
the ta xr at
rateea sp
as re
pre--s cr i
be
scribeddi nA
in rti
cle1
Article 0
1044( 1
(1))to
tot he
the
amo u
amountn to bta in
obtainededb ym
by a ki
makingn gt h
thees p ec i
speciala ll on g-t
long-terme
r m holding
h ol
d ingd edu cti
o
deduction na ndt
and hebasic
the ba si
ctransfer
trans fer
inc omed
income e d uc
deductiont
ionf r
o
frommt heg
the a inso
gains on nt ra ns fe
transfer. r.< Amendedb
<Amended byyA c
Act tN0.
No.605],
6 05 1,Dec.
Dec .28,
28 ,
1 99
J999>9>
(2)Wh
(2) er
Whereet hep
the rovisi ona
provisional lt axr
tax e tur
retum niissm a
madedem o
r
more et ha
than nt wiceo
twice na
on ss et
ss
assets ubjectt
subject toopr ogre ssi
progressiveve
ta
taxxr atesi
rates nr
in e le
vantt
relevant axy
tax ear
year, ,a ndi
and iffar es ide
a resident ntintends
inte ndst oma
to makekear e
tur
a returnnb ya
by ddi
addingngt o
to
thea
the lreadyr
already eturne
returneddt rans f
transfereri n-c
in- omea
come mount
amount, ,t hea
the mounto
amount bta ine
obtained db yt
by hef
the ollowi
followingng
for mul
formulaas ha
shallllb et
be hec
the a lcula t
e
calculateddt a
taxxa mo
amount untt ob
to ef
be ile
fileddf o
forrthes
the econda
second nds
and ubs e que
subsequentntp relim-
prelim-
inar
inaryyr etur ns
returns: :< Amendedb
<Amended byyA ActctNo No..6 29 2,Dec
6292, Dec .29,
29,2000>
20 00>
C alculate
dt
Calculated axa
tax mountf
amount orprovisional
for pr ovisiona lreturn
return={ (tra nsfe
rincome
: {(transfer i
ncomet axb
tax as
baseea lreadyf
already ile
filedd
+t rans fe
+ transferri ncomet
income axb
tax as
base ef i
ledo
filed nt
on hes
the ec ondo
second orrs ubseque ntreturns)
subsequent returns )×t axr
>< tax atea
rate ass
prescribedi
prescribed nA
in r
t i
cle1
Article 04(
104 1)1a
(1) nd4
1 and 4( a)}-c
(a)} alculatedt
- calculated axa
tax mountfiled
amount fi
l
edo np
on revio usp
previous rovisio na
provisionall
returns
returns..
(3)D
(3) eleted.<
Deleted. byA
<by ctNo
Act No..6292,De
6292, c
Dec..29,
29,2000>
20
00>
Art i
cle1
Article 08(
108 Deductiono
(Deduction offTaxA
Tax mountp
Amount aidb
paid yP
by rovisionalReturn)
Provisional Re
turn)
- 200 -
-200-
(1)I
(1) Ifft hev
the olunt a
voluntaryryp ayme
payment nti
issma dea
made attthet
the imeo
time offthep
the rovi
sionalre-
provisional re
-t urn,t
turn, hea
the mount
amount
equi va le
equivalentntt o1
to 0/100o
10/100 offt hep
the ayabl
payable etaxa
taX mounts
amount ha
shalll
lbe
bed e
duc t
e
deducteddf rom the
from thec alcul a
tedt
calculated ax
tax
amo un t. <A me nd edb yA ctNo . 5031 ,De c.29 , 1 995; A ctNo .
amount. <Amended by Act No. 503], Dec 29, 1995; Act No. 605], Dec. 28, 1999; 6051, De c
. 28, 1999;
Ac
Act tNo
No..6 292,Dec.
6292, Dec .29,
29 ,2000>
2000 >
(2)T
(2) hed
The e duc ti
ona
deduction assr efe r
redt
referred oi
to np
in a ragraph(
paragraph 1)s
(1) hallbe
shall ber eferr e
referreddtoa
to assd educ t
iono
deduction off
taxa
tax mountpaid
amount pai
db yp
by reliminaryr
preliminary eturn.<
return. Amendedb
<Amended yA
by ctNo.
Act No.605],
6051,Dec.
Dec.28,
28,J999>
1
999>
Art i
cle1
Article 09D
109 eleted.<
Deleted. byA
<by ctNo
Act No..605],
6051,Dec.
Dec.28,
28,J999>
1
999>
Art i
cle1
Article 10(
110 FinalR
(Final eturno
Return nT
on axB
Tax aseo
Base offTransferI
Transfer ncome)
Income)
(1)A
(1) nyr
Any esidenth
resident avinga
having nyt
any ransferi
transfer ncomea
income mounti
amount nt
in hec
the urrenty
current ears
year hallm
shall akea
make a
returno
return nt
on het
the axb
tax aseo
base offtransferi
transfer ncomet
income ot
to hec
the hiefo
chief offthe
thet axo
tax ffi
cei
office nt
in hep
the laceo
plaoe off
taxp
taX aymentf
payment rom Ma
from y1t
May o3
1 to 311o
offthe
they earf
year ollowingt
following hec
the urrentyear
current ye
ar( from May
(from May1t o
1 to
3
311o
offthey
the earf
year ollowingt
following hey
the earw
year herebelongs
where be
longst hed
the atew
date hent
when hea
the pprovalis
approval i
so btained
obtained
fort
for hel
the andt
land ransactionc
transaction ontract,i
contract, nc
in asesf
cases allingu
falling nderthe
under t
hep rovisoo
proviso offArticle
Art i
cle1 05(
105 1)
(1)
1
1))asp
as rescribedb
prescribed yt
by heP
the residentialD
Decree. Amendedb
<Amended yA
by ctNo
Act N0..6292,
6292,Dec.
Dec.29,
29,
2000>
2000>
(2)T
(2) hep
The rovisionso
paragraph 1)s
(1) halla
shall lsoa
also pplyw
apply hent
when herei
there issnot
no axb
tax aseo
base orrthere
there
i
issanyl
any ossi
loss nt
in hec
the urrenty
current ear.
year.
(3)T
(3) her
The eturno
return nt
on axb
tax aseo
base offtransferi
transfer ncomea
income assreferredt
referred tooinp
in ara-g
para- raph(
graph 1)s
(1) hall
shall
ber
be eferredt
referred oa
to assfinalr
final eturn.<
return. Amendedb
<Amended yA
by ctNo
Act No..605],
6051,Dec.
Dec.28,
28,J999>
1
999>
(4)N
(4) otwithstandingt
Notwithstanding hep
the rovisionso
paragraph 1),a
(1), nyp
any ersonwh
person oh
who asma
has det
made he
the
preliminaryr
preliminary eturnma
return yn
may otma
not ket
make hef
the i
nalreturn
final r
eturno ns
on uchi
such ncome:Provided,
income: Pr
ovided,That
Thatthis
this
shalln
shall ota
not pplyt
apply os
to uchc
such asesp
cases rescribedi
prescribed nt
in heP
Presidential De
creeaassac ase,e
a case, tc.wh
etc. ere
where
preliminaryt
preliminary axr
tax eturnso
returns na
on ssetss
assets ubjectto
subject t
op rogressivet
progressive axr
taX atesa
rates rema
are demo
made ret
more han
than
twicew
twice ithint
within hec
the urrenty
current ear.<
year. Amendedb
<Amended yA
by ctNo.
Act No.605],
6051,Dec.
Dec.28,
28,1999;
1
999;Act
Ac
tN0.
No.
6292,Dec.
6292, Dec.29,
29,2 000>
2000>
(5)I
(5) nma
In kingt
making hef
the i
nalreturn,
final r
eturn,t hed
the ocumentsn
documents ecessaryf
necessary orc
for alculatingt
calculating het
the ransferv
transfer alue
value
andn
and ecessarye
necessary xpenseswh
expenses icha
which ret
are heb
the asiso
basis offthec
the alculationo
calculation offthet
the ransferi
transfer ncome
income
amount,a
amount, nda
and assprescribedb
prescribed yt
by heP
the residentialD
Presidential ecree,s
Decree, hallb
shall es
be ubmittedt
submitted ogetherwi
together th
with
suchr
such eturn,t
return, ot
to hes
the uperintendento
superintendent offthec
the ompetentd
competent istrictt
district axo
taX fficei
office nt
in hep
the laceo
place off
taxp
taX ayment.<
payment. Amendedb
<Amended yA
by ctNo
Act No..605],
6051,Dec.
Dec.28,
28,J999>
1
999>
(6)I
(6) Ifftherei
there issanyo
any missiono
omission orrerrorin
error i
nt her
the eturna
return ndo
and therd
other ocumentss
documents ubmittedu
submitted nder
under
paragraph(
paragraph 5),t
(5), hec
the hiefo
chief offthet
the axo
tax ffi
ceh
office avingj
having urisdictiono
jurisdiction verthe
over t
hep laceo
place offtaX
taxp ayment
payment
mayd
may emandas
demand upplementt
a supplement hereof.
thereof.
Art i
cle1
Article 11(
111 VoluntaryP
(Voluntary aymentb
Payment yF
by inalR
Final eturn)
Return)
- 202 -
-202-
(1)E
(1) a
Eachc hr e side
residentnts ha l
lp
shall a
payyt hea
the mo untc
amount alcula t
calculatede dbbyyd e duc t
deductingingt her
the e
re--d uc
ducededo orre xe mpt
exempted ed
taxa
tax mounta
amount ndt
and het
the a
taxxc re di
creditta mo untf
amount r om t
from het
the r ans
trans- -f e
ferri nc o
income met axa
tax mo
amountuntcalculated
ca lcul
at ed
ont
on het
the axb
tax as
base ei nt
in her
the el
e vantyear,
relevant ye ar,t ot
to hec
the ompe
competenttentt a
taxxo ffi
officec eh a vi
havingngj ur i
s di cti
jurisdictionono ve
over r
thep
the lac
place eo offt axp
tax ayme
payment, nt,t heB
the anko
Bank offK or
Koreaeao orrt hep
the os
postalt
als e rvi
servicec eo r gani zat
organization,ion,bybyt he
the
de adl
deadlineinef ort
for hef
the inalreturn
final re t
ur naassp res cr i
be
prescribed di nA
in r ti
c
Articlel
e1 1
1100( 1)(
(1) inc ludi
(including ngA rt ic
Articlele7744( 1)
(1)
thr ough(
through 4
(4))wh i
whichc ha r
areea ppli cabl
applicable emu tat
mutatisismu tandi
mutandis su nde
under rA rti
Articlecle1 18)
118), ,under
unde rconditions
condi t
io ns
pre s cri
prescribedbe db byyP re s i
de nt
Presidential ialD ec re
No.605],60 51 ,Dec.
Dec .28,
28,1999;
19 99 ;A
Act ct
No.8825,
No. 88 25 ,Dec.
Dec .3],31,2007>
200 7>
(2)T
(2) Thehep ayme
payment nta assr e ferre
referreddt oi
to np
in ara gr a
paragraph ph( 1)s
(1) ha l
shalllb er
be efe rre
referred dt oa
to assv olunt a
voluntary ryp ayme
payment nt
byf
by ina
finallr etur
return.n.< Amendedb
<Amended yA
by c
ActtNoNo..6 05
605],1,Dec.
Dec .28,
2 8,J999>
199 9>
(3)I
(3) nav
In olunt a
a voluntaryryp ayme
payment ntby
byf ina
final lreturn,
r
etur n,ifi
fthere
ther eis
isthe
thec a lc ulat
calculated edt a
taxxa mo untby
amount byp relimina
preliminaryry
ret ur
return na assp r esc ribe
prescribed di nA
in rti
c l
Articlee1 0 7
107,,a nda
and nyt
any axa
tax mo
amountuntd e termi
detenninedne do orrr ectifi
rectifiededu nde
under rA rticl
Articlee
114o
114 orrt ha
thattooffo c c a siona
occasional la s ses sme
assessment ntunder
unde rArticles
Ar ticles8 2a
82 nd1
and 1
118,8,the
thep ayme
payment ntthereof
t he reofs ha
shallll
bema
be madedea fte
afterrd e duc
deductingti
ngs uc
suchha mount
amounts. s .< Amendedb
No.605],
60 51 ,Dec.
Dec .28,
28 ,J999>
199 9>
Art i
cle1
Article 12(
112 Paymento
(Payment offTransferI
Transfer ncomeT
Income axi
Tax nI
in nstallments)
Installments)
A nyr
Any e s
identw
resident ho
whoses
et axa
tax mo un
amount tto
t
obebepaid
paidund e
underrArticle
Arti
cle1 06o
106 orr111e
111 x-c
ex- eedsten
ceeds t
enm ill
ion
million
w on,m
won, a
may ypa
payyi ni
in nstallme nt
installments sap arto
a part offsuchp
such ayablet
payable axa
tax mo unt
amount, ,w it
h i
nt
within wom
two ont
monthshs
fromt
from hee
the xp i
rationd
expiration ateo
date offt hep
the a yme
paymentntterm,
t
erm,under
underco ndi
tion
conditionssprescribed
prescri
b e
dbbyyP residential
Presidential
D ec
re e
Decree..< Amendedb
<Amended yA
by ActctNoNo..9270,
9
27 0,Dec.
Dec .26,
26,2008>
20 08>
Art i
cle1
Article 12-2(
112-2 Paymento
(Payment offTransferI
Transfer ncomeT
Income axi
Tax nK
in ind)
Kind)
(1)I
(1) nc
In a se
casessw h e
where reiitti sd
is e e me
deemed dd ifficultt
difficult ob
to ep
be a i
paiddi nc
in a s
ht
cash h
theet r ansfe
transfer ri ncomet
income axo
tax onn
thei
the nc omea
income c crui
accruingngo nt
on hel
the and,e
land, t
c
etc..being
b eingt ra ns ferr
transferrede dt oap
to ers
a person o nwwhohoc arri
e
carriesso utthe
out th e
pu b l
i
publiccw o r
worksk sf ort
for heuse
the u seo offt h
theepublic
pu b li
cw or
worksk sto
tow h i
whichc
ht heAct
the Ac to nt
on h
theeAcquisition
Ac quis i
tionooffLand,
Lan d ,
etc
etc..f orP
for u bl
Public i
cWoWorksrksa ndt
and heC
the o mp e ns
Compensationa tio nT h er e
f
Thereforo ra ppl i
e
appliesso orrbeing
be inge xp rop r
ia t
expropriatededb byy
theA
the c
Acttoonnt heAcquisition
the Ac qu is i
t iono offland,
La n d,e t c
etc..for
f
o rPublic
Pu bli
cWorks
Wo rk sa ndt
and heC
the omp ensa
Compensation ti
o n Therefor
Th e r
e f
o r
an
anddo the
otherrActs,
Ac ts ,s u
suchcht ra ns f
transfereri ncometax
income ta xm a
may ybbeepaid
pa i
dw it
withht hebonds
the b on dsissued
i
ssu edaassthe
t hepurchase
p u rchas e
pric
priceeooffth
theerelevant
relev a ntl a n
land d,e tc
etc;.:Provided,
Pr ov ided,T ha
That tthe
t
hes ames
same ha l
lnot
shall no ta p pl
apply yt oc
to a se
casessp re scribe
prescribed d
byP
by reside nt
PresidentialialD ecr e
<Amended byyA ActctNo
No..8144,
81 44 ,Dec.
Dec .30,
3 0 ,2006>
20 06>
(2)Ma
(2) tte
Mattersr sn ece ssar
necessary yf ort
for hes
the c opeo
scope offpayment
pa yme ntinink i
nd,the
kind, thea s se s sme
assessment ntooffthe
theb ondi
bond n
in
payme
payment nti nk
in inda
kind ndt
and hep
the roc edur
procedure ef o
forrpayment
p ayme ntini
nk inds
kind ha l
lbe
shall bep res cr ibe
the res identi
Presidentialal
D e cree .
[Thi
Decree.[This sA r ticl
ArticleeWh ol
Wholly lyA me nde
Amended db byyA c
Act tNNo.o.5191,
519 1 ,Dec.
De c.30,
30 ,1 99 6]
1996]
Art i
cle1
Article 13De
113 leted.<
Deleted. byA
<by ctNo
Act No..6051,Dec.
605], Dec.28,
28,J999>
1
999>
Article1
Article 14(
114 Determination,R
(Determination, eassessment,a
Reassessment, ndN
and otificationo
Notification offTaxB
Tax asea
Base ndT
and axA
Tax mount
Amount
o
offT r
ans f
e
TransferrIncome
Income))
- 204 -
-204-
(1
(1))WhWhere e rear e si de
a resident ntwh Who oh a
has st oma
to make keap r ovi
a provisional sionalr e tur
return nu nde
under rA rt ic
Article le1 0
105 5o orraf inal
a final
re tur
return nu nde
under rArticle
Ar tic le1 1
1100f a i
failslst toos uc
such hr et ur
return, n,thetheC o mmi
Commis- s-s io ne
sioner rooffthe
thec o mpe
competent te ntRegional
Re gi o na l
T axO ff iceo r th ec h ie f o f at a xo ffic eh a v in gj u r i
Tax Office or the chief of a tax office having jurisdiction over the place of tax payments d ict io no v e r t hep la c eo f ta xp a y me n t
s ha
shalllld e te rmi
determine net het
the a
tax xb a
base s ea ndt
and axa
tax mo
amount unto offt het
the r a ns
transferferi nc
incomeomef o
forrt her
the e s i de
resident ntc o nc e
conoemed rne d .
(2
(2))WhWhere e ret heC
the ommi
Commissioners s ione ro offt hec
the ompe
competent t e ntR e gi
RegionalonalT TaxaxO ffi
Officec eo orr the thec hi
chiefe fooffa a
ta
taxxo f f
officeic eh a vi
havingngj ur is di
jurisdictionc t io no ve
over rthethep la
placec eo offtax
t axp ayme
payment nthas hasf oundt
found hatthere
that the rei issa ny
any
o mi s
omissions i
ono orre r rori
error nt
in hec
the ont e
contents nt so offthe
t hep r
pro-o-v is iona
visional lreturn
r et ur no orrf inalreturn
final re tur nf i l
e
fileddu nde
under r
A rtic
Article le1 0
105 5oorr1 10
110, ,h he es ha
shall llre-
re -a ss e
assess sst het
the a
taxxb a
basesea ndt
and a
taxxa mo
amountunto offthe
thet r ans
transfer f erincome.
inc ome .
(3
(3))WhWhere e r et heC
the ommi
Commissioners s i one ro offt hec
the ompe
competent te ntR e gi
Regionalona lTTaxa xO f fi
Officec eo orrthe
t hec hi
chiefe fooffat ax
a tax
o ffi
c
office eh a vi
jurisdiction tiono ve
over rthe
thep la
placeceo offtax
t axp ayme
payment nthas
ha sf o undt
found ha
that tthere
t
he rei issa nyo
any mi s s
omission i
o n
o re r r o ri nt h ed e te rmi n a tio no rr e as -s e s s me n
or error in the determination or reassessment after he has determined or reassessed t a ft erh eh a sd e te rmi n e do rr e a ss e ss e d
thet
the a
tax xb a
basesea ndt
and a
taxxa mo
amount unto offt het
the r ans
transfer fe ri nc ome
income, ,he
hes ha
shall l imme
limmediatelydiat elyr e a s s
reassess e sst he
them m.
(4
(4))WhWhere e ret heC
the ommi
Commissioner s s ione ro offt hec
the ompe
competent t e ntR e gionalT
Regional TaxaxO ff
Officeic eo orr the t hec hi
chiefefo offa a
ta
taxxo ff i
officec eh avi
havingngj ur is di
jurisdiction c t iono ve
over rt hep
the lac
place eo offt axp
tax ayme
payment ntd e te rmi
determines ne so orrr e a ss e
reassesses ss e s
thet
the a
taxxb as
base ea ndt
and het
the a
taxxa mo
amount unto offthe
thet ra ns
transfer f e rincome
inc o mep ur s
pursuantua ntt toop a ra gr
paragraphsa phs( 1
(1))t hr o ugh
through
(3 )
(3),,h hees hal
shallld doos soob a s
based e do onnt hev
the a lue
values sr e f e r
referredr e dt tooi nA
in rtic
Articles le s9 966a nd9
and 7
97. .
(5
(5))WhWhere e rea nyp
any e r
persons onwh Who oh hasast rans f
transferreder r e dt hea
the s s
assetse tsu nde
under rt hep
the rovi
provi- -s i onso
sions offA rti
Articlecl e
9
944( 1)1a
(1) 1 andndi issl i a bl
liable et oma
to make keaf i
na
a final lreturn
re tur no on nt het
the axb
tax a
bases eo offat r ans
a transfer fe ri nc omeb
income byy
c alc u l atin gt h et ra n s fe r v a l
u ea n dt h ea c -q u is it ionv
calculating the transfer value and the acquisition value based on the actual transaction alu eb a s e do nt h ea c t u a l tr a n sa c tio n
v alue(
value he re inaf
(hereinafter te rr e
re- -f e r
ferredre dt tooa asst he“
the pe r
“person sonl ia bl
liable ef oraf
for i
nalr
a final et ur
return”)n” )h asf
has aile
failed dt too
files
file uc
such haf inalreturn
a final r e t ur na andndf al
fallslsu nde
under rt hec
the as
case ep re sc r
prescribedi be db byyt heP
the re s ide
Presidential nt ial Decree
De c r e e
c ons ide
considering r ingt het
the axb
tax as
base ea ndt
and axa
tax mounto
amount offthe
t het r ans
transferfe ri nc omeo
income orrwh e
Whethert he ro orrn otthe
not the
pe rs
persono nl ia bl
liableef o
forrt hef
the i
na
final lreturn
r e tur nr e as s e
reassesses ss e st hea
the ctua
actual ltransaction
t ra ns a c tio nv a lue
value, ,the
theC ommi
Commissionerss io ne r
o
offt hec
the ompe
competent te ntR egi
Regionalonal T TaxaxO f fi
Officec eo orrt hec
the hi
chiefe fooffat a taxaxo ffi
officec eh avi
having ngj ur i
s di c
jurisdiction tion
o ve
over rt hep
the l
ac
place eo offt axp
tax ayme
payment ntma may yd e t e r
determinemi net het
the axb
tax as
base ea ndt
and axa
tax mounto
amount offt he
the
tr ans
transferf eri nc o me
income, ,n o t wi ths
notwithstanding t andi ngt hep
the r ovi s
provisions io nso offparagraph
pa ra gr a ph( 4
(4),),bybyp r e sumi
presuming ngt het
the ra ns-
trans-
a ctio
action nv a l
valueuee nt er
enterede di nt
in her
the e gi s
registerte runder
unde rthe
thep r o
provi-vi -s i
o nso
sions offArticle
Ar tc
i le5 577( 4
(4))ooffthe
t heR e gi str
Registrationat i
o n
o
offR e
Real alEstate
Es tat eA Actc t( he re
(herein- in-a f te
after rr e fe r
referredr e dt tooa asst he“
the val
“value uee nt e
entered redi nt
in her
the e gi st
register”)er ”)a ass
thea
the c tualt
actual r ans ac
transaction tionv al
value: ue :Provided,
Pr ov ided,T ha
That twh Wheree ret heC
the o mmi
Commissioners s ione roofft hec
the o m-p
com- e te
petent nt
R egi
RegionalonalT axO
Tax f f
Officei
c eo orrt hec
the hi
chiefe fo offat axo
a tax f fi
officec eh avi
having ngj ur is di
jurisdic- c -t io
tionno ve
over rthe
thep la
placeceo off
taxp
tax ayme
payment nth a
hassc onf i
confirmedrme dt hatt
that hev
the al
valueuee nt e
entered r edi nt
in her
the e gi s
register te rd iffe
differsrsf r
fromom t hea
the c tua
actual l
tr ans ac
transaction ti onv a lue
value, ,t hes
the ames
same hal
shall ln ota
not ppl
apply. y.< Newl
<Newly yI ns er
Inserted tedb byyA Act ctNo.No.8144, 81 4 4,Dec.
Dec .
3 0,2006>
30, 2 00 6>
(6
(6))I Inna ppl yi
applying ngt hep
the r ovi
provisionss ionso offparagraph
pa r a gr aph( 4 )
(4), ,wh
Where er eap e
a personrs onh asf
has il e
filed dap r ovi
a provisionalsiona l
re tur
return no orrf inalr
final et ur
return no onnt het
the axb
tax a
bases eo orrt axa
tax mounto
amount offat rans
a transfer f e ri nc omeb
income byyc alc ul at
calculating ing
thet
the r ans
transfer fe rv aluea
value nda
and c qui s
acquisition it i
onv a
valuelueb as
based e do onnt hea
the c t
actual trans
ualtransaction a c tionv al
value,ue ,but
butit itisi s
foundt
found ha
that tt hev
the al
valueueo offt her
the e le vantreturn
relevant r et ur ni issd i
f fe r
different entf r om t
from hef
the ac
fact,t,t heC
the ommi
Commissioners s ione r
o
offt hec
the ompe
competentt entR e gi
Regionalona lT TaxaxO ffi
Officec eo orrt hec
the hi
chiefe fo offat
a taxaxo ffi
office ceh avi
havingngj ur i
juris-s -d ic ti
dictionon
o ve
over rt hep
the lac
placeeo offt a
tax xp a yme
payment nts hal
shall lc onf
confirm ir m thet hea c t
ualtransaction
actual t r a ns ac tionv a l
valueuea ndr
and ea s s
reassesse s s
thet
the axb
tax as
base ea ndt
and taxa xa mounto
amount offt het
the r a ns
transfer fe ri nc omeb
income by yc alc ul at
calculating ingt het
the r ans
transfer fe rv al
valueue
o
orrt hea
the c qui s i
acquisitiontionv al
valueueb a s
based e do onnt hev
the a l
valueues sooc onf irme
confirmed. d.< Newl
<Newly yI ns er
Inserted tedb yA
by Act c t
No.8144,
No. 81 44 ,Dec.
Dec .30,3 0,2006>
2 00 6>
- 206 -
-206-
(7
(7))I na
In ppl yi
applying ngt hep
the rovi s i
par agr aphs( 4)a
(4) nd(
and 6 )
(6),,whwhereeret he transfer
the tra ns f erv alueo
value orr
a cqui s it
acquisitioni onv a l
valueuei issc a l
c ula
calculatedt
e db a s
basededo nt
on hea
the ctua
actualltransaction
tr ans ac tio nv al
valueu ea ndw
and he
where rei ittis
isi mp os sibl
impossible e
toa
to dmi
admit to orrc onf
confirm ir mt hea
the ctualt
actual rans ac
transaction ti
o nv aluea
value attthe
thet imeo
time offtransfer
tr ans f ero orra c qui si
t
acquisition i
ono off
thep
the rope
property rt yc onc e
concernedr ne db yt
by heb
the ookso
books orro the
other rs uppor t
supportingingd oc ume
documents nt so nt
on heg
the r oundsa
grounds ass
d ete rmi
the re s i
de nt
Decree,ree ,t het
the r
ans f
transfer erv al
valueueo orra cqui
acqui- -s itionv
sition al
valueuema mayyb bee
d eter mi
r e a s se ss edb a se
based do onnt het
the ra ns ac
transactiont
ione xa mp
example lev a lue
value, ,a pp rais
appraisede dv al
value,ue ,c onve rs
conversionion
v alue(
value r ef err
(referringingt toot hea
the c
ac--q ui siti
quisitiono nv a l
uec
value onver
convertedte df rom t
from hea
the ct ualtransaction
actual transact ionv al ue
value, ,
tra ns a c
transactiont i
o ne xa mpl
example ev a l
valueueo orra p p ra i
appraisedse dv a lueb
value byyt hemethod
the me tho da assd e ter mi
detenrinedne db yt
by heP
the r esi
d ent
Presidentialia l
D e cr
Decree)ee )o orrt hes
the t andar
standard dma rke
market tp rice
price, ,e t
etc.c.u nde
under rt hec
the on-d
con- it ionsa
ditions assp r e sc r
prescribedibe dbbyyt he
the
P re side nt
Presidential ia lDecree.
<Amended by yA ActctNo.No.8144,
8 1 44 ,Dec.
Dec .30,
30 ,2006;
2 0 0 6;Act
Ac tNo.
No.8825, 8 8 2 5,Dec.
Dec .
3 1,2007>
31, 2 00 7>
(8
(8))WhWhere eret heC
the ommi s
Commissioner s i
one ro offt hec
the ompe
competent tentR e gionalT
Regional TaxaxO ffi
Officeceo orr the
t hec hie
chieffo offa a
ta
taxxo ffi
officec eh a vi
having ngj ur is dic t
jurisdictioni
ono ve
over rt hep
the la
placec eoofftax
ta xp a yme
payment nthas
hasd ete rmi
re a sses s ed
thet
the rans
transferfe ri nc omet
income a
taxxb as
baseea ndt
and a
taxxa mo
amountunto offa nyr
any e s ide
resident nta assr e ferre
referred dt oi
to np
in a ragra
paragraphsphs
(1
(1))t hr o ugh(
through 7 )
(7),,h hees ha
shalllln ot
ifyi
notify nw
in riti
ngt
writing toot her
the el
e va
relevantntresident
re s i
de ntunder
unde rc o nd it
io
conditions nsp re
s cribe
prescribed d
b
byyP r e s ide
Presidentialnt i alD e c
Decree.ree .< Amendedb
No.8144,
8 14 4,Dec.
Dec .30,
3 0,2006;
20 06 ;Act
Ac tNo.
No.8825,
88 25 ,
Dec
Dec. .31,
31 ,2007>
20 07 >
(9
(9))I na
In ppl yi
applying ngt hep
the rovi s i
par agr a phs( 1)t
(1) hr ough(
through 3),wh
(3), whereeret heC
the ommi
Commissionerss i
one r
o
offt hec
the ompe
competent te ntR e gi ona
Regional lT axO
Tax ffic
Office eo orrt hec
the hi e
chieffo offat
a taxa xo ffic
office eh avi ngj
having ur isdi c
over r
thep
the lac
place eo offt a
taxxp ayme
payment ntn e e
needsdst ov
to e ri
verifyf yt hea
the ppr opr iat
appropriateness e ne sso offthe
t hema t t
matterse r so mi tt
omittededo orr
e rrone
erroneous ousa ndt
and hef
the ai rne
fairness sso offthe
thet ransac
transaction tionp ar tic ul
particularsar si nt
in her
the e tur
return nc onc er
concerning ningt he
the
g ainsf
gains r om t
from ra ns
transfer f
e ro offs t
o cks
stocks, ,e tc
etc. .u nde
under rA r t
icl
Article e9944( 1
(l))3a nd4
3 and 4,,he
hemamay ymamake kea anni nqui
inquiryry
int
intoot he
them md i re c
directly tl yt oa
to nyi
any nve s t
investmentme ntt r ade
trader roorri nve s tme
investment ntb roke
broker ru nde
under rt heF
the i
nanci
Financial al
Inve s tme
Investment ntS e rvi
Services cesa ndC
and a pit
Capital alMarkets
Ma rke tsA c
Act toorrto
tot hec
the o rpo ra
corporation tiont ha
thattissued
iss ue dt hes
the toc ks
stocks, ,
e tc
etc..o orri nve s tme
investment ntc e rtificat
certificates,e s,a assp r es cr i
prescribed be dbbyyP r eside
Presidentialnt i
a lDecree,
De c ree ,n ot wi t hs t
notwithstandinga ndi ngt he
the
p rovi si
provisions onso offt heA
the Actc to nR
on e
RealalName
NameF inanc
Financial ialT rans ac
Transactions tionsa ndG
and uar ant
Guarantee e eo offS ecr e
Secrecyc y
a ndo
and the
other rA c
Acts.ts .
Art i
cle1
Article 15(
115 AdditionalTa
(Additional xo
Tax n Tr
on ansferI
Transfer ncomeTa
Income x)
Tax)
Inc
In as e
casessw her
whereet het
the rans a ct
transactioni
o np a rticular
pariiculars,s,e tc
etc..o
offthes
the to ckso
stocks orrinve st
invest--m e
mentnts ha r
e
sharesst ra ns f
err
transferrede d
b
byyama
a majorjors toc khol de
stockholder ro offa nyc
any or porat i
on(
corporation in-c
(in- ludi
cludingngs mal
small la ndme
and di
mediumum e nt er prise
enterprises) s )
h aven
have otbeen
not beene nte r
enterededi no
in orr o mi t
omittedtedf rom the
from t
heb ook,a
book, na
an mounte
amount qui val
equivalententto
t o1 0/ 10
10/100 0o off
thea
the mountc
amount alculat e
calculated db ymu
by ltipl yi
multiplying ngt hec
the alculat
calculatededt axa
tax mountby
amount byt her
the at
rateeaattwh
whichicht he
the
incomea
income mountn
amount ote
not nte r
enterededi no
in orro mi tte
omitteddf r
om t
from heb
the ooko
book cc upi
occupiese si nt
in het
the rans f
e
transfer ri nc ome
income
amount(
amount hereinaf te
(hereinafterrr ef erre
referreddt tooa ass“ addi tionalt
“additional a
taxxf ori
for ns inc e
insincerer ee nt ry”
entry”) )s hal
shalllbbeea dde
added dt too
thec
the alcul at
e
calculated dt axa
tax mount
amount: :Provided,
Pr ovi ded,T ha
That twh e
where rennooc al cul at
calculatededt axa
tax mounte
amount xis t
exists,s,aann
amo unte
amount qui
va lentt
equivalent o7
to /1 0,00
7/10,000 0o offthe
thet ra nsa c t
transactioni
o na mo unts
amount ha
shallllbe
bei mpo s
imposed eda assthea
the ddi t
io na
additional l
ta
taxxf ori
for ns i
nc er
insincereee nt r
entry.y.
[ Thi
[This sA rti
c
Articlel
eWh ol
Wholly lyA mendedb
Amended yA
by Actc tNo
No..8144,
81 44 ,Dec.
Dec .30,
30 ,2006]
20 06 ]
- 208 -
-208-
Art i
cle1
Article 16(
116 Collectiono
(Collection offTransferI
Transfer ncomeT
Income ax)
Tax)
(1)Wh
(1) erear
Where esidenth
a resident asn
has otp
not aida
paid llo
all orrpartso
parts offthet
the ransferi
transfer ncome t
income axp
tax ayablef
payable or
for
thec
the orrespondingy
corresponding earunder
year und
erArticle
Ar
ticle1 11,the
111, t
hec hiefo
chief off at axo
a tax ffi
ceh
office avingj
having urisdiction
jurisdiction
overt
over hep
the laceo
place offtaxp
tax ayments
payment hallc
shall ol
-l
col- ectthe
lect t
heo utstandingp
outstanding ortiono
portion offthe
thetransfer
t
ransferincome
i
ncome
taxa
tax mountw
amount i
t hint
Within hreem
three onthsf
months rom the
from thee xpirationo
expiration offthe
thet imel
time imitfor
limit f
orthe
t
hep ayment.
payment.
Thes
The ames
same halla
shall ppl
yt
apply ot
to hec
the asew
case herethe
Where t
hetax
t
axa mountpaid
amount p
aidb yt
by heprovi-
the p
rovi
-s ionalreturn
sional r
eturn
a
assreferredt
referred oi
to nA
in rt i
cle1
Article 06.
106.
(2)Wh
(2) eret
Where heg
the rossf
gross i
nalt
final axa
tax mounto
amount offanyt
any ransferi
transfer ncomea
income sr
as eferredt
referred oi
to ns
in ubparagraph
subparagraph
3o
3 offArticle9
Article 3e
93 xceedst
exceeds het
the otals
total um o
sum offthe
thea mountfalling
amount f
allingu ndere
under acho
each offthe
thef ollowing
following
subparagraphsa
subparagraphs sar
as esulto
a result offthed
the e-t
de- erminationo
termination orrreassessment
reassessmentooffthe
thet axb
tax asea
base nd
and
taxa
tax mounto
amount offthet
the rans-f
trans- eri
fer ncomea
income sr
as eferredt
referred oi
to nA
in rt i
cle1
Article 14,the
114, t
hec hiefo
chief offat ax
a tax
offi
ceh
office avingj
having urisdictiono
jurisdiction vert
over heplace
the p
laceoofftax
taxp ayments
payment hallc
shall ollects
collect uche
such xcessa
excess mount
amount
(herei
n afterr
referred oa
to assthe“
the add i
tionalp
“additional a i
d- i
paid-innt axa
tax mount”)f
amount”) rom t
from her
the esidentc
resident oncerned
concerned
w i
thint
Within hirtyd
thirty aysf
days ro
frommt hed
the ateo
date offno t
ificat i
on:<
notification: Amendedb
<Amended yA
by c
ActtNo
No..8144,
81 44,Dec.
Dec .
30,2006>
30, 2
006>
1
1..
T het
The axa
tax mountpaid
amount pa
idv oluntarilyb
voluntarily yt
by hep
the rovisionalreturn
provisional r
eturnaassre-f
re- erredt
ferred oi
to nA
in rt i
cle
Article
106,a
106, ndt
and het
the axa
tax mountpaid
amount pai
dv oluntarilyb
voluntarily yt
by hef
the inalreturn
final r
eturnaassreferredt
referred oi
to nA
in rt i
cle
Article
111;
111;
2
2..
T het
The axa
tax mountc
amount ollectedu
collected ndert
under hep
the rovisiono
provision offparagraph(
paragraph 1);
(1);
3
3..
T het
The axa
tax mountby
amount byoccasionala
occasional ssessmenta
assessment assreferredt
referred oi
to nA
in rt i
c l
es8
Articles 2a
82 nd1
and 18;a
118; nd
and
4.T
4. het
The axa
tax mountwi
amount thhelda
Withheld attsourceu
source ndert
under hep
the rovisionso
provisions offArt i
cle1
Article 56(
156 1)3
(1) -2.
3-2.
[ThisA
[This rt i
cleWh
Article ollyA
Wholly mendedb
Amended yA
by ctNo
Act No..6051,
6051,Dec.
Dec.28,
28,1999]
19
99]
Art i
cle1
Article 17(
117 Refundo
(Refund offTransferI
Transfer ncomeT
Income ax)
Tax)
I
Iffthes
the um o
sum offthea
the mountp
amount rescribedi
prescribed ne
in achs
each ubparagrapho
subparagraph offArticle
Article1 16(
116 2)e
(2) xceeds
exceeds
thet
the otalf
total inalt
final axa
tax mounto
amount offanyt
any ransferincome
transfer i
ncomepre-
p
re-s cribedi
scribed ns
in ubparagraph3
subparagraph 3o
offArticle
Art i
cle
93o
93 nt
on hea
the nnualb
annual asis,t
basis, hec
the hiefo
chief offa taxo
a tax fficehaving
office ha
vingj urisdictiono
jurisdiction verthe
over t
heplace
p
laceoofftax
tax
payments
payment hallr
shall efundo
refund orrcredits
credit uche
such xcesst
excess axa
tax mountto
amount t
oo thera
other ccountso
accounts offnational
national
taxes,a
taxes, dditionald
additional uesa
dues nde
and xpensesf
expenses ord
for ispositiono
disposition offtax
taxi na
in rrears.<
arrears. Amendedb
<Amended y
by
ActNo
Act No..6051,Dec.
6051, Dec.28,
28,1999;
19
99;A ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000>
20
00>
Art i
cle1
Article 18(
118 ApplicableP
(Applicable rovisions)
Provisions)
Thep
The rovisionso
Art i
cles2 4,2
24, 7,3
27, 3,3
33, 9,43,
39, 4
3,44,
4
4,46,
4
6,74,
7
4,75
7
5a nd82
and 8
2s halla
shall ppl
ym
apply utatismu
mutatis tandis
mutandis
toa
to nyt
any ransferi
transfer ncomet
income ax.<
tax. Amendedb
<Amended yA
by ctNo
Act No..6051,
6051,Dec.
Dec.28,
28,1999>
19
99>
Art i
cle1
Article 18-2(
118-2 Scopeo
(Scope offTransferI
Transfer ncome)
Income)
- 210 -
-210-
A
Anynyt rans fe
transferri nc omea
income c c rui
accruing ngf rom t
from het
the rans fe
transfer rooffa sse
assetst si naf
in oreignc
a foreign oun-t
coun- r
tryywh ic
whichh
ar
areeo wne
owned db yar
by e s i
de
a residentnt( limi t
(limitede dt ot
to ho s
those ew ithad
with omi c
a domicile i
leo orrtemporary
t empor aryd omi ci
domicilelei nK
in ore
Koreaa
fo r n ot lesst ha nf i vec o ns e cu tiv ey ea r
s u nti
l th ed a yo f thet rans
for not less than five consecutive years until the day of the transfer of the correspondingfer of t
hec o rr
e sp onding
as s ets
assets),),s ha l
lb
shall beet hei
the nc omef
income a ll
i ngu
falling nde
under ra nyo
any offthe
thef ollowi
followingngs ubpa ragr a
phst
subparagraphs hata
that ccrue
accruess
fr om t
from het
the rans f
transferero offa ss e
assetstsi naf
in or e
a foreignignc ount
countryryi nt
in hec
the or res pondi
corresponding ng yeari
ye ar:< Amended
<Amerided
b
byyA c
Act tNo
No..8825,
8 82 Dec
5,Dec. .3],31 ,2007>
20 07 >
1
1..Inc omea
Income c
c rui
accruingngf rom t
from het
the ra ns
transferfero offb ui l
di ngso
buildings orrl and;
land;
2
2..Incomea
Incone cc r
u in
aocniinggf romt
from het
the r ans f
e
transfer ro offthe
th eright
rig htto
toimmvables
immo v abl
e sd eter-m
deter“ ine
mineddb yP
by resid en
tialD
Presidential ecree;
Decree;
3
3..Inc omea
Income ccrui
accruingngf r om the
from thet r ans f
transfer ero offs toc
stockskso orri nve stme
investment nts hare
sharessd e te r
mi
determinednedb y
by
P reside nt
Presidentiali
alDecree;
De cr ee;a nd
and
4. Income accruing from t
4 .Inc omea cc ruin gf ro m het
the r ans
transfer f
e rooffa ss et
assetssd e t
e rmi
determinedne db byyP residentia
PresidentiallDecree,
De cree ,othe
otherr
thans
than uc
suchhi nc ome
incomes sa asss tipul at
stipulated edi ns
in ubpar agr
subparagraphsaphs1t hr ough3
1 through 3..
[ Thi
[This sA rtic
Articlel
eNe Newlywl yI ns er
Act tNo
No..5580,
5 58 0,Dec.
Dec .28,
28,1998]
199 8]
Art i
cle1
Article 18-3(
118-3 Valueo
(Value offTransfer)
Transfer)
(1)T
(1) he t
The ra nsf
transferer v al
valueue o off a s se
assets ts ( he re i
na f
(hereinafterter r efe rre
referred d t o a
to ass “ a sset
“assetss
abr o a
abroad” d”i nt
in hisS
this ect io
Section) p ur s
n)pursuantua ntto
tot heprovisions
the p ro vis i
o nso offArticle
Ar ticle1 18-2s
118-2 ha
shallllbe
bed ete rmine
determined d
o
onnt heb
the a s
basisiso offt hea
the c tua
actuallt rans ac ti
transactiononv al
valueueo offthe
t hec o r
cor--r es po nd
respondinginga s se
assetstsa attthe
t
het ime
time
o
offt het
the ra ns f
transferier:Provided,
Pr ovi ded,T hatwh
That wheneni ittiissi mpos si
impossibleblet oc
to onf i
r
confirmmt hea
the c tualtransaction
actual tr ans action
v alue
value, ,thet
the r ans f
transfererv alues
value ha
shalll
lbe
bed e ter mi
determined ne db ase
baseddo nt
on hema
the rke
market tprice
pr ic ea attthe
thet imeo
time off
thet
the rans
trans--f e
ferrw hic
which hr eflec
reflects tst hec
the irc ums t
circumstancesanc e sooffthe
t hec ount
countryryi nwh
in i
whichc ht hea
the sse t
assetssa re
are
loc at e
located,d,a ndwh
and e
when ni itti
issd ifficul
difficulttt oc
to al
c ul
calculateatet hema
the r ke
market tp ri
ce,t
price, het
the rans f
transfere rv alues
value hal
shalll
b
beed e te
r mi
determinedne db yP
by r esident
Presidentialia lD ec re
Decree,e,t a ki
takingngi ntoa
into cc ountt
account het
the ypea
type nds
and izeo
size offt hea
the sse t
s
assets
andt
and hec
the ir c ums ta
circumstancesnc esa attt het
the imeo
time offt het
the rans a ction.
transaction.
(2)T
(2) hec
The al c ulat
calculationiono offt hema
the r
ke
market tp ric
priceeu nde
under rp a r
a graph(
paragraph 1
(1))a ndo
and the
otherr necessary
ne ce ss ar yma tter
matterss
shal
shall lb ep
be re s cri
prescribedbe db yP
by res ident
Decree.e e .
[ Thi
[This sA rt i
ArticlecleNe wl
Newly yI ns er
Insertedtedb yA
by Act ctNo No..5580,
5 580,Dec.
Dec .28,
28,1998]
1 99 8]
Art i
cle1
Article 18-4(
118-4 Calculationo
Necessary xpensesi
Expenses nT
in ransferI
Transfer ncome)
Income)
(1
(1))I nt
In h
theec a lcul at
calculationiono offg ain
gainssf r o
frommt het
the r an sf
e
transfer rooffa ss e
t
assetssa bro
abroadad,t h
theen e c essa
necessaryr ye xpens
expenses es
de duc ti
deductible blef r o
frommt h
theet ra nsf
transferera mo
amountunts ha
shallllbe
bet he s
the um o
sum offthe
thea mo untfalling
amount fa l
li
ngu nd
undere re a
eachch
o
offt hef
the o llowi
followingngs ubp a ragr
subparagraptap hs :
11..
A c qui s
Acquisitioni
tio nv alue
value; :
T h
The ea c t
u
actualalt ran sacti
transactiono nv a l
ued
value i
sb ur s
disbursededf orthe
for t
hea c quisi
t i
o
acquisitionno offthe
th ea ss e
assettc on cern e
concerned;d :Provided
Pr ovide d,
Tha
That twhe
when ni ti
it si
is mp o ssibl
impossible ettooc onfir
confirmmt hea
the ctua
actualltra nsac t
io
transaction nva l
uea
value tt
at het
the imeo
time fa
of cq uis
ition,
acquisition,
thea
the c qui sit
acquisitionionv alues
value hal
shalllbbe ed e termi
determinedne db ase
baseddo onnt hema
the rke
market tp ric
priceeaattt het
the imeo
time off
a cqui si
acquisitiont
ionwh whichichr e flec
reflectstst hec
the ir
c ums tanc
circumstances eso offthec
the ount
country ryw he re
wherein int hec
the orr es pondi
corresponding ng
a sse
asset tiissl oc a te
located, d,a ndw
and he
when ni itti
issd iffi
c ul
difficult tto
toc alcul at
calculateet hema
the r
ke
market tp rice
price, ,thea
the c quisit i
on
acquisition
v alues
value hal
shalllbebed eter mi
determinednedb byyP r eside nt
PresidentialialD ecre
Decree, e,t a ki
takingngi ntoa
into c countt
account het
the ypea
type nd
and
s i
z
sizeeo offt hea
the s se
asset ta ndt
and hec
the ir
c ums ta
circumstancesnc e saattt het
the imeo
time offt het
the r ans ac t
transaction;i
on;
2
2..D e l
e t
Deleted;ed;< byA
<by ActctNoNo..7 0 06
7006, ,Dec.
Dec .80,
3 0,2008>
2 00 3>
- 212 -
-212-
3
3..
C apitale
Capital xpenditured
expenditure eterminedb
determined yP
by residentialD
Presidential ecree;a
Decree; nd
and
4
4..
T ransferc
Transfer ostd
cost eterminedb
determined yP
Presidential De
cree.
(2)Ma
(2) ttersn
Matters ecessaryf
necessary orc
for urrencye
currency xchangeo
exchange offgainsf
gains romt
from ransfer,a
transfer, c-t
ac- ualt
tual ransaction
transaction
valued
value isbursedf
disbursed ort
for hea
the cquisition,a
acquisition, ndc
and alculationo
calculation offama rketprice
a market pr
iceu nderp
under aragraph
paragraph
(1)s
(1) hallb
shall ed
be eterminedb
determined yP
by residentialD
Presidential ecree.
Decree.
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998]
1
998]
Art i
cle1
Article 18-5(
118-5 TaxR
(Tax ateo
Rate offTransferI
Transfer ncome)
Income)
(1)T
(1) hei
The ncomet
income axo
tax na
on nyt
any ransferi
transfer ncomea
income ccruingf
accruing roma
from ssetsa
assets broads
abroad hallb
shall ec
be alculated
calculated
bya
by ppl
yi ngt
applying het
the axr
tax atesu
rates ndert
under hef
the ollowings
following ub-p
sub- aragraphst
paragraphs ot
to het
the axb
tax aseo
base offthe
the
transferi
transfer ncomea
income ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ear.I
year. ns
In uchc
such ase,w
case, heno
when nea
one sset
asset
iss
is ubjectt
subject ot
to hea
the ppl
i-c
appli- ationo
cation offtwoo
two orrmoret
more axr
tax atesf
rates allingu
falling ndera
under nyo
any offthef
the ollowing
following
sub-p
sub- aragraphs,i
paragraphs, ittshallb
shall es
be ubjectt
subject ot
to hea
the pplicationo
application offthet
the axr
tax atew
rate hicheveri
whichever isshigher:
higher:
<Amendedb
<Amended yA
by ctNo
Act No..6557,Dec.
6557, Dec.8],
31,2001;
2
001;A ctNo
Act No..7006,Dec.
7006, Dec.30,
30,2008;
20
03;A ct
Act
No.7
No. 319,Dec
7319, Dec
.3],
3
1,2004;
2
004;A ctNo
Act No..8144,
8144,Dec.
Dec.80,
30,2006;
20
06;A ctNo
Act No..8825,
8825,Dec.
Dec.8],
31,
2007>
2007>
1
1..
Assetsp
Assets ursuantt
pursuant os
to ubparagraphs1
subparagraphs 1,,2
2,,and4o
and 4 offArt i
cle1
Article 18-2
118-23:
Taxr
Tax atesu
rates nderA
under rt i
cle1
Article 04(
104 1)1
(1) 1;;
2
2..
a nd2
and -2.D
2-2. eleted;a
Deleted; nd<
and byA
<by ctNo
Act No..8825,
8825,Dec.
Dec.8],
31,2007>
2
007>
3
3..
Assetsp
Assets rovidedf
provided ori
for ns
in ubparagraph3o
subparagraph 3 offArt i
cle1
Article 18-2:
118-23
(a)S
(a) tocks,e
Stocks, tc.o
etc. offsmalla
small ndme
and dium e
medium nterprises:
enterprisesi
10/100o
10/100 offthet
the axb
tax aseo
base offanyt
any ransferi
transfer ncome;a
income; nd
and
(b)S
(b) tocks,e
Stocks, tc.o
etc. thert
other hant
than hoseo
those offitem(
item a)
(a)3:
20/100o
20/100 offthet
the axb
tax aseo
base offanyt
any ransferi
transfer ncome.
income.
(2)T
(2) hep
The rovisionso
Art i
cle1 04(
104 4)s
(4) halla
shall pplymu
apply tatismu
mutatis tandiswi
mutandis thr
with espectt
respect toothe
the
adjustmento
adjustment offtaxr
tax atesu
rates nderp
under aragraph(
paragraph 1).<
(1). Amendedb
<Amended yA
by ctNo.
Act No.8825,
8825,Dec.
Dec.3],
31,
2007>[ThisA
2007>[This rt i
cleN
Article ewlyI
Newly nsertedb
Inserted yA
by ctN
Act o.5580,
No. 5
580,Dec.
De
c.2 8,1
28, 998]
1998]
Art i
cle1
Article 18-6(
118-6 Deduction o
(Deduction offTax Amo
Tax untP
Amount aidt
Paid oF
to oreign C
Foreign ountries)
Countries)
(1)Wh
(1) enaf
When oreignc
a foreign ountryi
country mposesat
imposes axo
a tax na
on nyi
any ncomea
income ccruingf
accruing rom t
from het
the ransfer
transfer
o
offana
an sseti
asset nt
in hec
the ountryc
country oncerneda
concerned ndat
and axpayerh
a taxpayer asp
has aido
paid orri
isstop
to ayt
pay het
the ransfer
transfer
incomet
income axa
tax mounta
prescribed yP
by residentialD
Presidential ecree(
Decree hereafteri
(hereafter nt
in hisA
this rt i
cler
Article eferred
referred
toa
to assthe“
the transferi
“transfer ncomet
income axa
tax mounto
amount offassetsa
assets broad”)to
abroad”) t
ot hec
the orrespondingc
corresponding ountry,
country,
oneo
one offthef
the ollowingma
following yb
may es
be electeda
selected nda
and ppl
i ed:
applied
- 214 -
-214-
1
1..
D e
ductingt
Deducting het
the ransferi
transfer ncomet
income axa
tax mounto
amount offassetsa
assets broadf
abroad romt
from hec
the alculatedt
calculated axa
tax mount
amount
o
offthet
the ransferi
transfer ncomea
income ccruingd
accruing uringt
during hec
the o-r
co- respondingy
rresponding earw
year ithint
Within hes
the copeo
scope offthe
the
amounto
amount btainedb
obtained ym
by ultiplyingt
multiplying hec
the alculatedt
calculated axa
tax mounto
amount offtransfer
transferincome
i
ncomea ccruingd
accruing uring
during
thet
the ax-a
tax- blep
able eriodu
period nderArticle
under Ar
t i
cle1 18-5b
118-5 yt
by her
the atioo
ratio offthet
the ransferincome
transfer i
ncomef roma
from ssets
assets
abroadt
abroad ot
to het
the ransferi
transfer ncomea
income ccruingd
accruing uringt
during hec
the or-r
cor- espondingt
responding axablep
taxable eriod;a
period; nd
and
2
2..
C ountingt
Counting het
the ransferi
transfer ncomet
income axa
tax mounto
amount offassetsa
assets broadp
abroad aido
paid orrpay-a
pay- blet
able ot
to he
the
foreignc
foreign ountryc
country oncerneda
concerned assnecessarye
necessary xpensei
expense nt
in hec
the alculationo
calculation offthe
thet ransfer
transfer
incomea
income mounta
amount ccruingd
accruing uringt
during hec
the or-r
cor- espondingy
responding ear.
year.
(2)Ma
(2) ttersn
Matters ecessaryf
necessary ort
for hec
the alculationo
calculation offnecessarye
necessary xpensesa
expenses ndt
and axc
tax reditu
credit nderp
under aragraph
paragraph
(1)s
(1) hallbe
shall bedeterminedb
determined yP
by residentialD
Presidential ecree.
Decree.
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,I998]
1
998]
Art i
cle1
Article 18-7(
118-7 BasicD
(Basic eductionf
Deduction orT
for ransferI
Transfer ncome)
Income)
(1)F
(1) ora
For aresidenth
resident avinga
having nyt
any ransferi
transfer ncomea
income ccruingf
accruing romt
from het
the ransfero
transfer offassetsa
assets broad,
abroad,
2.5m
2.5 illionw
million onf
won ore
for acho
each offthei
the ncomef
income allingu
falling ndera
under nyo
any offthef
the ollowings
following ubparagraphs
subparagraphs
shallb
shall ed
be eductedf
deducted romt
from het
the ransferi
transfer ncomea
income ccruingd
accruing uringt
during hec
the orrespondingy
corresponding ear:
yeari
1
1..
Incomeu
Income nders
under ubparagraphs1
subparagraphs 1,,2a nd4o
2 and 4 offArticle1
Article 18-2;o
118-2; orr
2
2..
Incomeu
Income nders
under ubparagraph3o
subparagraph 3 offArticle1
Article 18-2.
118-2.
(2)I
(2) na
In ppl
yi ngp
applying aragraph(
paragraph 1),i
(1), iffanyt
any ransferi
transfer ncomea
income ccruingd
accruing uringt
during hec
the orresponding
corresponding
yeari
year ncludesa
includes nyi
any ncomes
income ubjectt
subject or
to eductiono
reduction orrexemptionu
exemption ndert
under hisA
this ct,t
Act, heR
the estriction
Restriction
o
offSpecialT
Special axationA
Taxation cto
Act orrotherA
other cts,t
Acts, heb
the asicd
basic eductionss
deductions hallb
shall et
be akenf
taken r
omt
fiom het
the ransfer
transfer
incomea
income mount,o
amount, thert
other hans
than uchi
such ncomes
income ubjectt
subject or
to eductiono
reduction orrexemptioni
exemption nt
in heo
the rder
order
thet
the ransferi
transfer ncomea
income ccruesf
accrues romt
from het
the ransfero
transfer offassetsd
assets uringt
during hec
the orrespondingy
corresponding ear.
year.
<Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.80,
30,2006>
2
006>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000]
2
000]
Art i
cle1
Article 18-8(
118-8 ApplicableP
(Applicable rovisions)
Provisions)
Thep
The rovisionso
provisions offArt i
c l
es8
Articles 9,9
89, 0,9
90, 2,9
92, 3,9
93, 5,9
95, 7(
97 2),9
(2), 8,1
98, 00,1
100, 01,1
101, 05t
105 hrough1
through 12,a
112, nd
and
113t
113 hrough1
through 18s
118 halla
shall ppl
ymu
apply tatismu
mutatis tandist
mutandis ot
to het
the axationo
taxation offtransfer
transferincome
i
ncomea ccruing
accruing
fromt
from het
the ransfero
transfer offassetsa
assets broad:P
abroad: rovided,T
Provided, hatt
That hes
the peciall
special ong-termh
long-term oldingd
holding eduction
deduction
amountunder
amount unde
rA rt i
cle9
Article 5s
95 halln
shall otbe
not bededucted.<
deducted. Amendedb
<Amended yA
by ctNo.
Act No.6292,
6292,Dec.
Dec.29,
29,
2000;A
2000; ctNo
Act No..8825,
8825,Dec
Dec
.3],
31
,2007>
20
07>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,I998]
1
998]
CHAPTER Ⅳ
CHAPTER IV TAX L
TAX IABILITY F
LIABILITY OR N
FOR ONRESIDENT
NONRESIDENT
- 216 -
-216-
Art i
cle1
Article 19(
119 DomesticS
(Domestic ourceI
Source ncomeo
Income offNonresident)
Nonresident)
A nyd
Any o me s
domestict ics o ur
source c ei nc o
income meo offan o nr e
a nonresidentsid e nts ha
shall llbbeec las s i
classifiedfie da assf o l
fol--l ows
lowsi :
1
1..
I n teres
Interests tsaassp re s cri
prescribedb e di nA
in r ti
c
Article l
e1 6(
16 1
(1))( e xc lu d
(excludingin gt hei
the n co
incomemea assp r e
Wbed sc ri b edi ns
in u b p
subpara-ara -
g ra
graphph8o 8 offt hes
the a
samemep ar a gr
paragraph) ap h)w hi
whichc ha r
areep r
pro-o -v ide
vided df o
forri nt
in h
theef o llo wi
following ngi te ms
items: :
P rovi ded,T
Provided, Thathata nyi
any nt er
interest e s toonna a l oanb
loan or rowe
borrowed dd irec t
directly l
yb byya no
an ve r
overseass e asb us i
businessnes s
p lac
place eoonnb e ha
behalf lfo offs uc
such ho ve rs
overseas ea sb us ine
business s sp l
ac
placeeo offar e s i
de
a resident nto orrd ome
domestic s ticc or por a
corporation ti
on
s ha
shallllbe
bee xc l
excluded:ude d:
(a)I
(a) nc ome
Incomes sr e ce i
receivedve df r
fromom t heS
the tat
State eo orrl oc
localalg ove rnme
governments, nt s ,residents,
r es ide nt s,d ome
domestic s ti
cc or po-
corpo-
ra ti
ons
rations, ,d ome
domestics t icb us ine
business s sp l
ac
placese so offf or ei
foreigngnc o rpo-r
corpo- at i
o
rationsnsa assp re s c r
prescribed i
be di nA
in rtic
Articlele
94o
94 offt heC
the o rpo r
Corporate a teT Tax axA c
Act,t,oorrd ome s
business ssp la ce
places so offn onr e s id
nonresidents ent sa assp re s cr
prescribedi
be d
inA
in r t i
Articlec l
e1 2 0
120; ;a nd
and
(b)I
(b) nc ome
Incomes sr e ce ive
received df r om af
from or ei
a foreigngnc or por at
corporation iono orrn onr e side
nonresident, nt ,wh
which ic h is isc ount
counted e di n
in
thel
the o s
loss so orrn ec e s
necessarys a r ye xpe ns
expenses e si nc
in alc ul ati
calculationo no offthe
t
hei nc omea
income mo
amountunto offits
itsd ome
domestic stic
b us i
ne
business ssp la c
place,e ,i ns
in ubs ta
substantial nt i
alc onne c
connection tionwiwithths uc
such hd o me
domestics ticb us ine
business s sp lac
place eo offthe
t
he
for eignc
foreign or por a
corporation tiono orrn onr es ide
nonresident; nt ;
2
2..
D ivide
Dividend ndi nc o
incomes me sa assp re s c r
prescribedibe di ns
in ubp a r
a gr
subparagraphs a phso offArticle
Ar ti
c le1 177( 1)(
(1) exc ludi
(excluding ngs ubp a ra gr
subparagraph ap h
6
6))received
rec eive df r o
from ma nyd
any o me
domestic st i
cc or po rat
corporation, i
o n,a nyo
any r ga ni za
organization tionc ons ide
considered re da assac orpo r a
a corporation, t
io n,
o
orro the
otherrd ome
domestic s tics our
sources,c e s ,a ndt
and hea
the mountd
amount i
s pos
disposed edo offd ivi de
dividendsndsu nde
under rA r tic
Articles les9 9
a nd1
and 4o
14 offt heA
the dj us
Adjustmenttme nto offI nt e rnat
InternationalionalT axe
Taxes sA c
Act;t ;
3
3..
I nc ome
Incomes sa c c r
accruing ui ngf r om at
from ra ns
a transfer,fe r,l e as
lease eo orro the
other ro pe r at
operationiono offa nyr
any e a
real le st a
estate teiinnK or
Koreae a
o
orrrights
right st os
to uc
such hr e
reala le s ta
estate, te,rights
r i
ght st omi
to ning,mining
mining, mi ni ngc o nc e ss
concession,io n,rights
right st od
to e ve l op
developmentme nt
a ndu
and s
useeo offg r oundwa
groundwater, te r ,rights
right st of
to i she r
fisheries,i
e s ,oorrrights
right st ot
to a ket
take hee
the a r t
earth,h,s a
sandnda nds
and to ne
stones, s,
wh i
whichc ha r
areea c qui
acquired re di nK
in or
Korea; ea :P r ovi
Provided,ded,T hatt
That het
the r ans
transferfe ri nc omea
income assp r es c r
prescribedibe di n
in
s ubpar
subpar- -a gr
agraph a ph9s hal
9 shall lbe bee xc lude
excluded; d;
4
4..
I nc ome
Incomes sa c c r
accruing ui ngf r om al
from ea
a lease s eo offa nyv
any e s s
vessel,e l
,a ir c raf
aircraft, t,registered
regi s t er edmomotor torv e hi cl
vehicles,e s,c on-
con-
s truc tio
structionnma c
machines,hi ne s ,o orri ndus tr
industrial,ial ,c omme
commercialr c ialoorrs c ient
scientificificma chi
machines,ne s ,e qui pme
equipment, nt ,a pp a
appara-ra-
t use
tuses,s,a ndt
and o ol
tools sa ndo
and t he
other ri ns trume
instruments nt sp re sc ri
be
prescribed db yP
by res ide nt
De c r e et oar
to es ide
a resident, nt ,
d o me s
domestic ti
cc o r po ra
corporation, tio n,o orrd ome
domestic st i
cb us ine
business s sp l
a c
placeeo offaf o re
a foreignignc or por a
corporation tiona assp r e sc r
prescribedi
be d
inA
in r t
ic
Articlele9 944o offt heC
the o rpor
Corporate a teT TaxaxA c
Act, t,oorrad ome
a domestic s ticb us ine
business s sp l a
placec eo offan onr es
a nonresident ide nt
a
assp r es cr i
prescribedbe di nA
in rti
Articlec l
e1 2 0;
120;
5
5..Inc ome
Incomes sa c c r
accruing ui ngf r om a
from nyb
any us ine
business s sc onduc
conducted te db byyn onr e si
nonresidentsde nt s( inc ludi
(including ngi nc ome
incomes s
t axabl
taxable ea assb usi ne
business s si nc ome
incomes sa cc rui
accruing ngf r om d
from ome
domestic st ics our
sourcesc esa cc or
accordingdi ngt ot
to het
the ax
tax
t rea t
y)
treaty), ,a nda
and assp r e s cr
prescribed ibe db byyP re si de
Presidentialnt i
a lD ec re
Decree: e :P rovi
Provided,ded,T ha
That tt hei
the nc o
incomesme sf al l
ing
falling
u nde
under rs ubpar
subparagraph agr aph6s 6 shallhal lbe
bee xc lude
excluded; d;
6
6..
I nc o me
Incomes sa c c r
accruing ui ngf r
fromomt heo
the ffe
offerro offp e rs ona
personal ls e rvi
servicesc esp res c ri
prescribedbe dbbyyP r e s i
de
Presidentialnt ia lD e c
Decreer
e e
inK
in ore
Korea. a.I Inns uc
suchhc as
cases,e s ,w he
where r et hep
the er s
persononr e c e ivi
receiving ngt heo
the ffe
offer ro offr e l evantp
relevant e rs ona
personal l
s ervi ce
services sb e
bearsa r se xpe ns
expenses, e s ,i nc ludi
including nga i
airrf e e
fees,s,aassp r e sc r
prescribedibe db byyP re s ide
Decree,e e ,t he
theyy
me
meanant hea
the mounte
amount x-c
ex- l udi
cluding ngt her
the ele vante
relevant xpe ns
expenses; es ;
- 218 -
-218-
7
7..Wage
Wages sr e ce
receivedive di innc ons ide
consideration rat i
ono offa nys
any e rvi
services ce sf ur ni s
furnished he di nK
in or
Korea e aa nds
and uc
such ho the
other r
s ervi c
services e sp re sc r
prescribedi be db byyP re side
Presidentialnt i
alD e c r
Decree; ee ;
8
8..R etir eme
Retirement ntbenefits
be ne f itsr e c e
receivedi
ve di nc
in ons ide r
consideration a tiono offa nys
any e rvi
servicesc e sf ur ni
furnishedshe di nK
in or
Korea, e a ,a nd
and
a
assp re s c
prescribed r ibe db by yP r e s ide
Presidential nt ia lD e c r
Decree; e e;
9
9..T rans
Transferfe ri nc o
incomemef ro
from ma s se
assets tso orrrights
r i
ght sf a ll
i ngu
falling nde
under ra nyo
any offthe
thef o l
lo wi
following ngi t ems
items; :Provided,
Pr ov ided,
T ha
That tiitti issl imi t
limitede dt oc
to a s
casese swh wheree ret hea
the s s
assetse tso orrrights
r ight st ha
that tyield
yi eldi nc omea
income r
areei innK or
Korea;e a:
(a
(a))A s s
Assets e t so orrr ight
rights su nde
under rA r ti
c
Article l
e9 944( 1
(1) )1a1 and nd2 2,,a nds
and ubpar agr
subparagraph aph4( 4 (a)a)a nd(
and b)
(b)
o
offt hes
the a mep
same ar agr
paragraph; aph;a nd
and
(b)S
(b) toc
Stocks kso orri nve s
investment t me nts ha
sharesres( he re af
(hereafter te rr e fe rr
referred e dt oa
to ass“ r eale
“real st a
estate tes t oc
stocks,ks ,e tc .
etc.””
i
innt hi
this sA rti c
Article) le )iinnac or por
a corporation at i
ont het
the ot
totala la mounto
amount offa s s
assetse tsi nA
in rtic
Article le9 944( 1
(1))1a1 andnd
2o
2 offwh which i
c hi iss5 0 /
50/100 1 0 0o orrmomore reo offthe
thet ot ala
total mounto
amount offa s s
assetse tso offthethec or por at
corporation iona ass
a
attt hec
the omme
commencement nc e me ntd at
date eo offbusiness
bus ine ssy yeareart toowhwhichicht het
the rans
transfer f e rd a
dateteb e longs
belongs
f rom a
from mongt
among hes
the t oc
stocks ksa andndi nve s t
investmentme nts ha
sharesr es( inc ludi
(including ngc e r tific
certificates at eso offd e pos
deposit it
a ndp
and r ee mpt
preemptive iver ight
rights si s sue
issued do nt
on heb
the a s
basis iso offs to c
stocksksa ndi
and nve stme
investment nts ha r
shares;es ;hereafter
he r e afte r
t hes
the ames
same hal
shall la ppl
apply yi nt
in hi
thissC hapt
Chapter) er )o offad ome
a domestic st icc or por at
corporation, ion,wh whichic hh a
haveven ot
not
be
beene nl is te
listeddo onnt hes
the e c ur i
securitiest iesma r
market;ke t ;
10
10..D e l
e te
Deleted; d;< <bybyA Act c tNo No..8144,81 44 ,Dec.
Dec .30,
3 0,2006>
2 00 6>
11
11..C ons ide r
Considerations a tionsf ort
for her
the ight
rights, s ,a ss e
assets t so orri nf or mat
information ion( he r eaf
(hereafter te rr e f er
referred re dt oa
to ass“ ri ght
“rights, s,
e tc.
etc.””i nt
in hi
thisss ubpar
subparagraph)agr aph)f al li
ngu
falling nde
under ra nyo
any offthe
t hef ol lowi
following ngi te
itemsmsu s
usede di nK
in or
Korea,e a,
o
orrc ons i de
considerations rati onst he r
therefore forp ai
paid di innK or
Korea,e a,a ndi
and nc ome
incomes sa c c rui
accruing ngf r om the
from thet rans
transferfe r
o
offs uc
such hr ight
rights, s,e tc
etc; .
:P ro v
Provided,ide d,T ha
That ti nc
in as
casese sw h
where eread o u
a doublebletaxation
ta xa ti
o na vo id a
avoidance nc ea gr ee
agreementme nt
w i
witht
hr e s
respectpe ctt oi
to nc omep
income re s c
prescribesribe swh e t
whetherhe rt her
the ele va
relevant nti nc
incomeomei issad o me
a domestic st ics o ur
source ce
inc o
incomemed e pe ndi
depending ngo onnt hep
the lac
place eo offi t
itssu s
use,e ,t hec
the ons ide r
considerationsat ionsf ort
for her
the ight
rights, s ,e tc
etc. .u s
useded
o ve rs
oversease a ss ha l
shallln noto tbe
bec o ns ide
considered r eda assad o me
a domestic s t ics o ur
source c ei nc o
income,me ,regardless
r e ga r dl e sso offwh e
whetherthe r
be i
ngp
being ai
paid di nK
in or
Korea. e a .I ns
In uc
such hc a s e
cases, s ,rights
r ight st hatr
that e qui
require r er e gi str at
registration iont tooe xe r
exercisec i
s et he
the
r i
ght
rights,s ,s uc
such ha assp at
patente ntr i ght
right, ,utility
ut il it ymomodelde lright,
r i ght ,trademark
trade mar kr ight
right, ,a ndd
and e s i
design gnr ight
right
( her e af
(hereafter te rr e fe r
referred re dt tooa ass“ pat
“patententright,
r ight ,e tc
etc.”.”i nt
in hi
thisss ubpar a
subparagraph)gr a ph)s ha
shall l
lbebed e e me
deemed d
t
tooh a
haveveb e
been enu s
used e di nK
in or
Korea,e a ,regardless
r e ga r dl e sso offw he
whether the rt her
the e le va
relevant ntp a
patenttentr ight
right, ,e tc
etc..h a
haveve
be e
beennr e gi s
registeredteredi nK
in o
Korea re ai nc
in a s
casese sw he
where ret hep
the a te
patentntright,
r ight ,e tc
etc. .c o nc e
concernedrne dw e
werer er egi s te
registeredr ed
o uts
outsidei
deK or
Korea,ea,a ndh
and aveb
have e
beene nu s
used e df orma
for nuf ac
manufacture, tur e ,s al
sale,e ,e tc
etc. .in i
nK or
Korea; e a:
(a
(a))C o pyr
Copyright ighto offa nys
any c ie nt
scientificifico orra r tist
artisticicwo r
works ks( inc l
udi
(including ngf ilmso
films offmomo- -t io
tionnp ict ur e
pictures), s),
pat
patente ntr i
ght
right, ,t r a de
trademarkma r kr ight
right, ,d e s igns
designs, ,mo de
models lso orrd r awi
drawings, ngs ,o orrs e c
secretre tf or mul
formula ao orr
pr oc e
processes, s s es ,f i lmsa
films ndt
and ape
tapes sf orradio
for r a dioa ndt
and e l
e vi s
television ionb r oadc
broadcasts, ast s ,a ndmi
and s c e llane
miscellaneous ous
a ss
assetse t so orrr i ght
rights ss i mi
similarlart he re
thereto;t o;a nd
and
(b)I
(b) nf or mat
Information iono orrk now-how o
know-how ni
on ndus t
industrial,r i
al ,c omme
commercial rc ialo orrs c ie nt
scientificifick nowl
knowledge e dgea nd
and
e xpe r i
experience; enc e ;
- 220 -
-220—
12.
12. Incomesp
Incomes rescribedb
prescribed yP
Presidential De
creea ccruingf
accruing romt
from het
the ransfero
transfer offstocks,investment
stocks, i
nvestment
shares(
shares includingr
(including eale
real states
estate tocks,e
stocks, tc.l
etc. istedo
listed nt
on hes
the ecuritiesm
securities arket),o
market), orrothers
other ecurities
securities
(includings
(including ecuritiesu
securities nderA
under rticle4o
Article 4 offtheF
the inancialI
Financial nvestmentS
Investment ervicesa
Services ndC
and apital
Capital
MarketsA
Markets ct;h
Act; ereinaftert
hereinafter hes
the ames
same halla
shall pply)falling
apply) f
allingu ndera
under nyo
any offthe
thef ollowingi
following tems:
items:
(a)S
(a) tocks,i
Stocks, nvestments
investment hares,o
shares, orrothers
other ecuritiesi
securities ssuedb
issued yad
by omesticc
a domestic orporation;
corporation;
and
and
(b)S
(b) tockso
Stocks orrinvestments
investment haresi
shares ssuedb
issued yaf
by oreignc
a foreign orporation(
corporation limitedt
(limited toothosel
those isted
listed
ont
on hes
the ecuritiesma
securities rket)a
market) ndo
and thers
other ecuritiesi
securities ssuedb
issued yad
by omesticb
a domestic usinessp
business lace
place
o
offaf oreignc
a foreign orporation;a
corporation; nd
and
13.
13. Incomesf
Incomes allingu
falling ndera
under nyo
any offthe
thef ollowingi
following tems,o
items, therthan
other t
hant hoser
those eferredt
referred oi
to ns
in ubpar
a-
subpara-
graphs1t
graphs hrough1
1 through 2:
122
(a)I
(a) nsurancemo
Insurance ney,i
money, ndemnity,o
indemnity, orrcompensationf
compensation orl
for ossesr
losses eceivedi
received nc
in onnection
connection
withr
with ealp
real ropertyo
property orrmiscellaneous
miscellaneousa ssetsl
assets ocatedi
located nK
in oreaa
Korea ndw
and itht
with radeo
trade orrbusiness
business
operatedi
operated nK
in orea;
Korea;
(b)P
(b) enal
t yo
Penalty orrindemni
t yp
indemnity aidi
paid nK
in oreaa
Korea assprescribedb
prescribed yP
by residentialD
Presidential ecree;
Decree;
(c)P
(c) rizemo
Prize ney,prize
money, pr
izec ontesto
contest orrreward,o
reward, orrothers
other imilari
similar ncome paid
income paidi nK
in orea:
Koreai
Provided,T
Provided, hatt
That hep
the rizem
prize oneya
money nds
and upplementaryp
supplementary rizep
prize rescribedi
prescribed ns
in ubparagraph
subparagraph
5( c)o
5 (c) offArt i
cle1
Article 122shallb
shall beeexcluded;
excluded;
(d)I
(d) ncomef
Income rom b
from uriedo
buried orrundergroundd
underground epositsd
deposits iscoveredi
discovered nK
in orea;
Korea;
(e)I
(e) ncomef
Income rom t
from het
the ransfero
transfer offal icense,permit,
a license, pe
rmit,oorrotherr
other ightss
rights etup
set upbys
by imilar
similar
administratived
administrative ispositionsu
dispositions ndert
under heK
the oreanl
Korean awsa
laws ndr
and egulations,o
regulations, orrincome
income
from t
from het
the ransfero
transfer offassetsl
assets ocatedi
located nK
in orea,o
Korea, thert
other hanr
than eale
real states;
estates;
(f)P
(f) rizemo
Prize neya
money ndo
and therv
other aluablesr
valuables eceivedb
received yawi
by nnero
a winner offal ottery,g
a lottery, iftcoupon,
gift c
oupon,
o
orrlotteryt
lottery icketi
ticket ssuedi
issued nK
in orea,a
Korea, ndr
and efundr
refund eceivedb
received yap
by urchasero
a purchaser offah orse
a horse
racingt
racing icket,wi
ticket, nnerv
winner otingt
voting icket,b
ticket, ul
l-f
bull- ightingma
fighting tchv
match otingt
voting icketo
ticket orrsports
sports
promotionv
promotion otingt
voting icket;
ticket;
(g)P
(g) rizemo
Prize neyo
money orrvaluablesr
valuables eceivedb
received yp
by articipatingi
participating na
in ctsu
acts sings
using lotma
slot chines,
machines,
etc.
;
etc;
(h)A
(h) mountt
Amount hath
that asb
has eend
been isposedo
disposed offa
assmiscellaneousi
miscellaneous ncomep
income ur-s
pur- uantt
suant oA
to rt i
cle
Article
67o
67 offtheC
the orporateT
Corporate axA
Tax cto
Act orrArticle
Art i
cle9o
9 offthe
theA djustmento
Adjustment offInternational
InternationalTaxes
Ta
xes
Act;
Act;
(i)I
(i) ncomesf
Incomes rom a
from ni
an ncreaseo
increase offvalueso
values offstockso
stocks orrinvestments
investment haresd
shares uet
due toothe
the
capitalt
capital ransactionp
transaction rescribedb
prescribed yP
Presidential De
cree,w hicha
which rep
are ossessedb
possessed yn
by on-
non-
residentsi
residents nas
in pecialrelationship
a special r
elationshipaassprescribedb
prescribed yP
Presidential De
cree( hereafter
(hereafter
inA
in rt i
cle1
Article 56,referred
156, r
eferredt oa
to ass“nonresidentsi
“nonresidents nas
in pecialrelationship”);
a special r
elationship”);oorr
- 222 -
-222-
(j)O
(j) the
Otherrt ha
thannt hos
those ef allingu
falling nde
under ri tems(
items a)through
(a) t
hrough( i),e
(i), conomi
economic cb enefit
sa
benefits cc rui
accruingng
from ab
from us i
ne
a businesssso pe rate
operateddi nK
in ore
Korea,a,the
theo f
f e
offerro
offpersonal
pe rs ona ls ervicesi
services nK
in orea
Korea,,oorra sset
assetss
locatedi
located nK
in or
Koreaea( exc ludi
(excludingngt hee
the xc e
excessssa mountwh
amount e
where ret her
the e de eme
redeemed da mounto
amount off
foreignc
foreign ur
cur--r e nc
rencyyb o ndsi
bonds ssue
issueddb yt
by heS
the tat
eo
State orrfinancial
fina nc i
alinstitutions
ins t
itut ionse sta b-l
estab- ishe
lishedd
u nde
underrs pe ci
specialalA c
Actst
se xc ee
exceedsdst hei
theirri ss ue
issued dv alue s
values),)
,oorrs uch o
such the
other rs imilari
similar nc ome
incomes s
a
assp resc ribe
prescribed di nP
in re sidenti
PresidentialalDecree.
De cree .
Ar ticl
Articlee1 1 9
119-2-2( Spe c
(SpecialialP rovi s
Provisions io nso onnT axa t
Taxationionc onc e r
concerningni ngI nc omeA
Income c c rui
Accruing ngf r om T
from rans
Transferfer
a ndI
and nt er e
Interest,s t,I nc ludi
Including ngS tat
State eB ondso
Bonds offN onr e side
Nonresidents) nt s )
( 1
(1))I nc o
Incomemet a xe
taxes ss hal
shallln o
nottb beei mp o
imposedse do ni
on nc o
incomemef a lli
ngu
falling nd
underera nyo
any offthe
thef ollowi
followingngs ubp ar
subpara-a-
g r a
phs
graphs, ,a mongi
among nc omeo
income offn o nre s i
nonresidentsde nt so onnwhwhichicht a xe
taxes sa r
areei mpos
imposed edb byyme t hodsr
methods efe rre
referred d
t
tooiinnA r ti
Articlecl e1 5
1566( 1 )
(1)3:
1
1..S tat
State eb ondsi
bonds s sue
issued du nde
under rA rt i
c
Article le3( 1
3 (1))o offt heS
the t at
State eB ondA
Bond c
Act,t,mo net
monetaryar ys t abi li
z ati
stabilizationon
b ondsu
bonds nde
under rB anko
Bank offK or
Korea e aMo ne
Monetarytar yS tabi liz at
Stabilization ionB ondA
Bond c
Actta ndb
and ondsp
bonds re scr i
prescribedbe d
byP
by re s ide
De c re e( he r e ina
(hereinafterfte rr e fe r
referred re dt tooa ass“ bondso
“bonds orrs uc
such” h”i nt
in hi
thissA rticle
Article), ),
a mongi
among nc omer
income e f er
referredredt oi
to ns
in ubpar agr
subparagraph a ph1o 1 offA rtic
Articlele1 19;a
119; nd
and
2
2..Inc omea
Income cc rui
accruing ngf rom t
from r ans
transferfe ro offs ta t
stateeb ondso
bonds orrs uc
such,h,a mongi
among nc omer
income efe r
referredr
e dt oi
to n
in
s ubpa r agr
subparagraph aph1 2o
12 offA r ti
Articlec le1 1
119.9.
( 2
(2))S tat
State eb ondso
bonds orrs uc
such, h,o onnwh i
which chi nc omet
income a xe
taxes sa r
areen otimposed
not impos edu nde
under rp a ragr
paragraph aph( 1)
(1),,
s hal
shall li nc l
udes
include ta t
stateeb o ndsa
bonds c qui r
acquired,e d,h e l
heldda ndt
and r a nsf e
transferredrre dt hr o ughf
through ore ignf
foreign i
na nc i
financiala linstitutions
ins tit
ut i
o ns
( her e inaf
(hereinafter terr e fe rr
referrededt oa
to ass“ c ompe
“competent tentf or ei
foreign gnf i nanc
financial ialinstitutions”)
inst i
t utions ” )a ppr ove
approved db yt
by he
the
C ommi s
Commissioner sio ne roofft heN
the ationalT
National Taxa xS e rvi
Service.ce .InIns uc
such hc as e
cases,s ,necessary
ne ce ssar yma t te
mattersr sc onc er ni
concerning ng
q ual
quali- i
-f ic at ionsa
fications nda
and ppr ova
approval lfor
forc ompe t
competent entforeign
fore ignf inanc
financialiali ns titut i
onsa
institutions ndma
and tte
matters rst o
to
b
beeo bs e
observedrve db byys uc
suchhf ina nc
financial iali ns tit
ut ionss
institutions hal
shall lbebep r es cri
prescribedbe db byyP resi de nt
De cre e.
( 3)A
(3) nyn
Any onr es
nonresidentide nto orrc ompe
competent te ntf o re i
gnf
foreign ina nc
financial iali ns t i
t uti
institutiononwh who oi nt endst
intends ob
to beee ligi bl
eligiblee
f o
forrn o n-t a xa
non-taxation t i
o nu nde
under rparagraph
pa ra gr a ph( 1)s
(1) ha
shalll
lfile
fil eaanna ppl ica t
applicationionf o
for rn o n-t axa
non-taxation ti
ont ot
to heh
the e a
headd
o
offad ist r
a districtictt a
taxxo ffic
officeeh a vi
havingngt hej
the ur i
s dic
jurisdic- -t io
tionno ve
over rthe
thep lac
placeeo offtax
taxp a yme
payment,nt ,aassp resc ribe
prescribed d
byP
by re s ide
Presidentialnt i alDecree.[This
De c ree .[Th isA r ti
ArticlecleNe wl
Newly yI ns e r
ActtNo.
No.9672,
9 67 2,May
Ma y2 1
2], ,2009]
2 0 09 ]
Art i
cle1
Article 20(
120 DomesticB
(Domestic usinessP
Business laceo
Place offNonresident)
Nonresident)
(1
(1))IIffan o nres ide
a nonresidentnth asaf
has ixe
a fixed dp lacet
place oc
to arryo
carry utt
out hew
the hol
wholeeo
orrp arto
part offtheb
the usines
businesss
inK
in or e
Korea,a,h es
he hal
shalllbbeec onside re
considered dt oh
to aveab
have usiness place
a business placein
i
nK ore
Korea a( h e
r einaft
e
re
ferred
toa
to assa“ do me s
a “domestict
icb us i
ne s
businesssp l
ace ”
place”).).
(2
(2))AAnynyd o me st
domesticicb us i
nes
business sp lacea
place assr e f
e rre
referreddt oi
to np
in ar a
grap
paragraphh( 1)s
(1) ha l
lb
shall ec
be onsidere
consideredd
toi
to nc ludet
include hef
the ollowi ngp
following la ce
placess:< Amendedb
<Amended byyA c
ActtNo
No..6557,
6557 , Dec.
Dec .3],
31,2001>
2001>
11..
B ranch,o
Branch, fficeo
office orrp l
aceo
place offb us i
ne s
business;s;
2
2..S tor
Storeeoorro the
otherrf i
xe
fixedds ellingp
selling laces
places; ;
—224—
- 224 -
3
3..
Workplace,f
Workplace, actoryo
factory orrwarehouse;
warehouse;
4
4..
C o
nstructionp
Construction lacec
place ontinuingt
continuing oe
to xistin
exist i
ne xcesso
excess offsixmo
six nths,fields
months, f
ie
ldsooffanyc
any onstruction,
construction,
assembl
ya
assembly ndi
and nstallationw
installation orks,o
works, orrplaces
placesw herea
where nys
any upervisorya
supervisory ctivit i
esr
activities elatedt
related o
to
suchwo
such rki
work isscarriedo
carried ut;
out;
5
5..
P lacewh
Place eres
where ervicesa
services reo
are fferedb
offered yt
by hen
the onresident’se
nonresident’s mployees,wh
employees, ichf
which allsu
falls nder
under
anyo
any offthef
the ollowingi
following tems:
itemsi
(a)P
(a) lacewh
Place eres
where ervicesa
services reo
are fferedf
offered ort
for hep
the eriode
period xceeding6mo
exceeding nthsi
6 months nt
in otalf
total rom
from
among1
among 2-monthp
12-month eriodd
period uringwh
during icht
which heo
the ffero
offer offser-v
ser- icesi
vices isscontinued;o
continued; orr
(b)P
(b) lacewh
Place eres
where erviceso
services offsimilark
similar inda
kind rec
are ontinuallya
continually ndr
and epeatedlyo
repeatedly fferedf
offered or2
for 2
o
orrmorey
more ears,i
years, nt
in hec
the aseo
case offnote
not xceeding6m
exceeding onthsi
6 months nt
in otalf
total roma
from mong1
among 2-month
12-month
periodd
period uringwh
during icht
which heo
the ffero
offer offser-v
ser- icesi
vices isscontinued;a
continued; nd
and
6
6..
Mine,q
Mine, uarryo
quarry orrplace
placew herea
where nys
any ubmarinen
submarine aturalr
natural esourcesa
resources nd o
and thernatural
other na
turalr esources
resources
arep
are robedo
probed orrtaken(
taken includingp
(including laceso
places nt
on hes
the eab
sea eda
bed nds
and ubsoilin
subsoil i
nt hes
the ubmarine
submarine
areai
area nwh
in ichK
which oreae
Korea xercisesi
exercises tss
its overei
gnt yo
sovereignty utsidet
outside het
the erritorialwa
territorial tersu
waters ndert
under he
the
internationall
international aws,a
laws, ndw
and hichi
which isscontiguoust
contiguous ot
to hec
the oastso
coasts offKorea).
Korea).
(3)I
(3) nc
In asew
case herean
where onresidenth
a nonresident avingn
having od
no omesticb
domestic usinessp
business lacec
place arrieso
carries nt
on heb
the usiness
business
bye
by mployingi
employing nK
in oreaap
Korea ersonw
a person hoi
who issauthorizedt
authorized oe
to nteri
enter ntoa
into nyc
any ontracto
contract nh
on is/her
his/her
behal
fa
behalf nde
and xercisesr
exercises epeatedlys
repeatedly ucha
such uthority,o
authority, orrap ersons
a person imilart
similar os
to uchap
such erson,a
a person, ass
prescribedb
prescribed yP
Presidential De
cree,h e
/shes
hdshe hallb
shall ec
be onsideredt
considered oh
to avet
have hed
the omesticb
domestic usiness
business
placea
place attthes
the eato
seat offsuchp
such erson’
sb
persons usinessp
business lace(
place thed
(the omicilei
domicile nc
in asewh
case eret
where herei
there iss
nob
no usinessp
business lace,a
place, ndt
and het
the emporaryd
temporary omicilei
domicile nc
in asewh
case eret
where herei
there issnoe
no xistenceo
existence off
thed
the omicile).
domicile).
(4)A
(4) nyd
Any omesticb
domestic usinessp
business lacea
place assreferredt
referred tooinp
in aragraph(
paragraph 1)s
(1) halln
shall oti
not ncludet
include hef
the ollowing
following
places:
placesi
1
l..
As
A peci
f icp
specific laceu
place sedb
used yan
by onresidento
a nonresident nlyf
only orp
for urchasinga
purchasing ssets;
assets;
2
2..
As
A peci
f icp
specific laceu
place sedb
used yan
by onresidento
a nonresident nlyf
only ors
for toringo
storing orrkeepinga
keeping nya
any ssetsn
assets ot
not
fors
for ale;
sale;
3
3..
A
As peci
f icp
specific laceu
place sedb
used yan
by onresidentf
a nonresident ora
for nya
any dvertisement,p
advertisement, ublicity,c
publicity, ollectiona
collection nd
and
furnishingo
furnishing offinformation,ma
information, rkets
market urvey,a
survey, ndo
and thera
other ctivitieso
activities offthep
the reliminarya
preliminary nd
and
auxiliaryn
auxiliary aturef
nature orc
for arryingo
carrying nh
on isb
his usiness;a
business; nd
and
4
4..
As
A peci
f icp
specific laceu
place sedb
used yan
by onresidento
a nonresident nlyf
only orhaving
for ha
vinga notherper-
another pe
r-s onp
son rocessh
process is
his
assets.
assets.
Art i
cle1
Article 21(
121 Methodo
(Method offTaxation o
Taxation nNo
on nresident)
Nonresident)
- 226 -
-226—
(1)A
(1) nyi
Any nc omet
income axo
tax on na nyn
any onr e s
nonresidentide nts ha
shallllb ec
be al c ulat
calculated e db byys e pa rat
separating ingt hec
the as
casese si nto
into
twoc
two a s e
cases: s :Where
Whe rei ittiissa ss es
assessedse db byya ddi
addingngu ph
up i
hissd ome s
domestic t i
cs our
sourcecei nc ome
incomes sa ndt
and hec
the as
casee
wh e
where rei itti issa s s ess
assessed e db byys e par at
separating i ngh i
hissd ome
domesticstics our
sourcec ei nc ome
incomes. s.< Amendedb
<Amended byyA Actct
No.6
No. 0 51
6051, ,Dec.
Dec .28,
2 8,1999>
1 99 9>
(2
(2))F oran
For onr e
a nonresidents i
de nth avi ngad
having ome
a domestic s ti
cb us ine
business ssp l
ac
place ea assp res c r
prescribedibe d in inA rt ic
Article le1 20
120
andan
and onr e
a nonresidents ide nth a vi
having nga ni
an ncomea
income assp r es c ri
prescribedbe di ns
in ub-p
sub- ar a gr
paragraph a ph3o3 offArticle
Ar tic l
e1 19
119,,
taxs
tax ha
shallllb beea s s e s
assessedse db byya dd i
addingngu uppt hei
the n-c
in- o me
comes sa assp res c ri
prescribedbe di ns
in ubp a ragr
subparagraphs a p hs1t hr o
1 through ugh
7a nd1
7 and 111t hr ough1
through 133o offArticle
Ar ti cle1 1
119 9( e xc ludi
(excluding nga nyi
any nc omewh
income whichichi isswi thhe
withheld lda atts our
sourcece
u nde
under rA r ti
Articles cl
e s1 5
1566( 1
(1))a nd1
and 5 6
156-3-3t hr ough1
through 56 -5
156-5), ),a ndf
and oran
for onr es i
a nonresidentde nthaving
ha vi nga anni nc o
incomeme
a
assp re s c r
prescribed ibe di ns
in ubpar agr
subparagraphs a phs8a 8 and nd9o 9 offArticle
Ar t i
c le1 1
119,9,a nyi
any nc o
incomemet axs
tax ha
shalll lbe
bea s se
assesseds sed
b
byyt hes
the ameme
same t
method hoda assiittiissf orar
for e s i
de
a resident. nt .< Amendedb
<Amended by yA ActctNo No..5031,
50 31 ,Dec.
Dec .29,
29 ,
1 99
1995;5;A Act c tNo.
No.5580,55 80 ,Dec.
Dec .28,
28 ,1998;
19 98 ;A ActctNo.
No.8144,814 4,Dec.
Dec .30,
30,2006;
2 00 6;AAct c tNo.
No.8825,88 25 ,
De
Dec. c.31,
31 ,2007;
20 07 ;A Act ctNo No..9270,
9 27 0,Dec.
Dec .26,
26,2008>
2 00 8>
(3
(3))F oran
For onr e
a nonresidentside nth avi
havingngn od
no ome
domestic sticb us ine
business ssp l
ac
place ea assp re sc r
prescribedibe di nA
in r tic
Article le1 20
120,,
anyi
any nc o
income met a
taxxs ha l
shalllbe
bea ss es
assessedse dbbyys ep arati
separatingngt hei
the n-c
in- ome
comes sa assp res c r
prescribedi
be di na
in nys
any ubp a
subpara- ra-
g rapho
graph offArticle
Ar tic le1 1
1199( e xc ludi
(excluding ngs ub-p
sub- a ragr a
paragraphs phs8a nd9
8 and ).<
9). Amende
<Amended db yA
by Act c tNo.
No.8144,8 1 4 4,
De
Dec. c.30,
30 ,2006>
20 06 >
(4
(4))F ori
For nc ome
incomes, s,o onnwh i
whichc ht a
taxxi isswi thhe
withheld ldu nde
under rA r t
ic
Articlesle s1 56(
156 1)a
(1) nd1
and 56
156-3-3t hr ough
through
15 6-5
156-5, ,aandndwh i
whichc ha r
areed ome s
domestic t i
cs our
source cei nc ome
incomes so offnonresidents
no nr eside nt sh avi
havingngad o me
a domesticst i
cb us ine
business ss
p l
ac
place eu nde
under rA r ti
c
Article le1 20
120, ,a nyi
any nc omet
income axs
tax hal
shall lbbeea ss es
assessed s edb byys e par at
separating ingt hei
the nc ome
incomes s
fa l
lingu
falling nde
under rs ubpa
subpara- r a-g ra phso
graphs offArticle
Ar tic le1 1 9
119..< Newl
<Newly yI ns er
Inserted t edb yA
by Actc No.5580,
tNo. 55 8 0 ,Dec.
Dec .
2 8,1998;
28, 1 99 8;A ActctNo No..9270,92 70 ,DeDec. c .26,
26 ,2008>
20 08 >
(5
(5))I nt
In axa
taxation t
ionu nde
under rp aragr
paragraphsaphs( 3
(3))a nd(
and 4 )
(4),,w he
whererean onr es
a nonresidentide nth av-i
hav- ngt
ing hei
the nc ome
income
unde
under rs ubpar
subparagraphagr aph6o 6 offA r tic
Article le1 11919a mongi
among nc omes
income ub-j
sub- ec
ject tto
towi thhol
withholdingdi ngma makes ke saa
fina
final lreturn
re t ur no onnt het
the axb
tax as
base eooffg lo ba
global li nc omeb
income byya pplyi
applyingngmu t a
mutatistismu ta
mutandis ndist hep
the r ovi si
provisions ons
o
offArticle
Ar tic le7 0,a
70, nyi
any nc
incomeomet a
tax xmamay yb beea c ce ss
accessed e db ya
by ddi
addingngu uppt hei
the nc ome
incomes sf allingu
falling nde
under r
subpa
subpara—r a -g ra phs1t
graphs hr
1 throughough7a 7 andnd1 111t hr ough1
through 3o
13 offArticle
Ar t icle1 19
119..< Newl
<Newly yI ns er
Inserted t edb y
by
Ac
Act tNoNo..7 8 37
7837, ,Dec.
Dec .31,
3 1,2005;
2 00 5;A Act c tNoNo..8825,
88 25 ,DeDec c.31,
31 ,2007>
20 07 >
Article1
Article 22(
122 Calcul atio
(Calculationno offT a
TaxxB a s
Base ea n
anddT a
TaxxA mo u
Amountntin
inC ase
Cases so offG loba
Global lT axa t
io
Taxationno nN
on onre si
de nt
Nonresident) )
Wi t
VVrthhr e spe
respectctt ot
to hec
the alculationo
calculation offa nyt
any axb
tax asea
base ndt
and a
taxxa mounto
amount offa nyi
any nc omet
income ha
thattisis
e arne
earned dbbyya nyn
any onr e s ide
nonresident ntp r ovi de
provided df orin
for inA r
ticl
Articlee1 2
1211( 2
(2))oorr( 5)o
(5) orra nyi
any nc omep
income r
ovi de
provided d
fori
for ns
in ubpa ragr
subparagraph aph7o 7 offA rt ic
Articlel
e1 1
1199t ha
that tis
ise ar ne
earneddb byya nyn
any onr e side
nonresident ntprovided
pr ovi dedf ori
for n
in
Ar ti
c
Articlele1 2
1211( 3)a
(3) nd(
and 4 )
(4),,t hep
the ro visionso
provisions offt hisA
this c
Acttc onc e rni
concerning ngt hec
the alcul ati
o
calculation no offa nyi
any nc o
incomeme
taxb
tax a s
baseea ndi
and nc omet
income axa
tax mounto
amount offar e s i
de
a resident nts halla
shall ppl
apply ymu tat
mutatis ismu t
andi
mutandis sa ccordi ngl
accordingly:y:
Pr ovi ded,T
Provided, ha
That tt hep
the e rsonald
personal educ t
deductionionu nde
under rA rticl
Articlee5511 -2(
-2 3
(3))s ha l
shalllbe
bea llowabl
allowable eo nl
onlyyf or
for
then
the onr eside
nonresidentnta ndt
and hes
the peciald
special ed uc ti
deductiononu nde
under rArticle
Ar ticl
e5 2s
52 ha
shallllnot
no tbe
bea llowa bl
allowable.e .< Ame
<Amendednded
b
byyA c
Act tNo.
No.5155,
5 15 5 ,Aug.
Aug.14, 14,1996;
199 6 ;Act
Ac tNo.
No.5580,
5580 ,Dec.
Dec .28,
2 8,1998;
19 9 8;Act
Ac No.7
tNo. 837
7837,,Dec
Dec .
3 1,2005>
31, 2 00 5>
- 228 -
-228—
Art i
cle1
Article 23(
123 Applicationo
(Application offNonresidentf
Nonresident orR
for eductiona
Reduction ndE
and xemption o
Exemption offTaxA
Tax mount)
Amount)
Wherean
Where onresidenth
having od
no omesticb
domestic usinessp
business lacea
prescribed nA
in rt i
cle1
Article 20,has
120, has
anyi
any ncomea
prescribed nA
in rt i
cle1
Article 3(
13 1),the
(1), t
hei ncomet
income axo
tax ns
on uchi
such ncomes
income hallbe
shall bereduced
reduced
ande
and xemptede
exempted veni
even iffthea
the ppl
i ca-t
applica- iona
tion assprescribedi
prescribed nA
in rt i
cle7
Article 5i
75 issnotf
not i l
ed.
filed.
Art i
cle1
Article 24(
124 Returna
(Return ndP
and aymentb
Payment yN
by onresident)
Nonresident)
Thep
The rovisionso
provisions offthisA
this ctc
Act oncerningr
concerning eturna
return ndp
and aymentby
payment byar esidents
a resident halla
shall pplym
apply utatis
mutatis
mutandist
mutandis ot
to her
the eturna
return ndp
and ayment(
payment includingt
(including hei
the nterimp
interim repayment)o
prepayment) offan onresident
a nonresident
w hoset
vvhose axb
tax asea
base ndt
and axa
tax mounto
amount offincomet
income axa
tax rec
are alculatedu
calculated nderArticle
under Ar
t i
cle1 22
1223:Provided,
Provided,
Thata
That nyi
any ncomewi
income thheldu
Withheld nderA
under rt i
c l
es1
Articles 56a
156 nd1
and 56-3t
156-3 hrough1
through 56-5i
156-5 issincludedi
included n
in
thet
the axb
tax aseo
base offan onresidenta
a nonresident assprescribedi
prescribed nA
in rt i
cle1
Article 22i
122 na
in ppl
yi ngA
applying rt i
cle7
Article 6mu
76 tatis
mutatis
mutandis,t
mutandis, het
the axa
tax mountw
amount ithhelds
Withheld hallbe
shall beconsidereda
considered assthet
the axa
tax mountd
amount eductedu
deducted nder
under
Art i
cle7
Article 766(3)4
(3) 4..<Amendedb
<Amended yA
by ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
2
008>
Art i
cle1
Article 25(
125 Determinationa
(Determination ndC
and ollectiono
Collection offTaxB
Tax asea
Base ndT
and axA
Tax mounto
Amount nN
on onresident)
Nonresident)
Inc
In aseswh
cases erea
where nyi
any ncomet
income axi
tax issassessedb
assessed ya
by ddingu
adding pt
up hed
the omestics
domestic ourcei
source ncomes
incomes
o
offan onresident,t
a nonresident, hep
the rovisionso
provisions offthisA
this ctc
Act oncerning t
concerning hed
the etermination,r
determination, eassessment,
reassessment,
collectiona
collection ndr
and efundo
refund offanyi
any ncome t
income axo
tax nar
on esidents
a resident halla
shall pplymu
apply tatismu
mutatis tandist
mutandis o
to
thed
the etermination,reassessment,
determination, r
eassessment,c ollectiona
collection ndr
and efundo
refund offsuchi
such ncomet
income ax:P
taxi rovided,T
Provided, hat
That
anyi
any ncomew
income ithheldu
Withheld nderA
under rt i
c l
es1
Articles 56a
156 nd1
and 56-3t
156-3 hrough1
through 56-5i
156-5 issincludedi
included nt
in het
the ax
tax
baseo
base offan onresidenta
a nonresident assprescribedi
prescribed nA
in rt i
cle1
Article 22i
122 na
in pplyingA
applying rt i
cle7
Article 6m
76 utatismu
mutatis tandis,
mutandis,
thet
the axa
tax mountwi
amount thhelds
Withheld hallbe
shall beconsidereda
considered assthet
the axa
tax mountd
amount eductedu
deducted nderA
under rt i
cle
Article
7
766(3)4
(3) 4..<Amendedb
<Amended yA
by ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
2
008>
Article1
Article 26(
126 Cal
c ul
a tiono
(Calculalion offTaxB
Tax asea
Base ndT
and axA
Tax mo unti
Arrount nC
in aseso
Casas offSepa-r
Sepa- ateT
rate axationo
Taxation nN
on on
res
ide
nt)
Numident)
(1)F
(1) oras
For eparatet
a separate axationo
taxation nan
on onresidentunder
a nonresident unde
rA rt i
cle1
Article 21(
121 3)a
(3) nd(
and 4),the
(4), t
het axb
tax ase
base
andt
and axa
tax mounts
amount hallbe
shall becalculatedb
calculated asedo
based nt
on hea
the mounto
amount offincomes
incomesf rom e
from achd
each omestic
domestic
sourcer
source eceivedb
received yt
by hen
the onresident:P
nonresidenti ro-v
Pro- ided,T
vided, hatthe
That t
het axb
tax asea
base ndt
and axa
tax mounto
amount off
thei
the ncomei
income nt
in hef
the ollowings
following ubparagraphsma
subparagraphs yb
may ec
be alculatedb
calculated asedo
based nt
on hea
the mountw
amount hich
which
i
issobtainedb
obtained yd
by eductingn
deducting ecessarye
necessary xpenses,e
expenses, tc.from
etc. f
rom the
thei ncomea
income mounta
amount assprescribed
prescribed
int
in hes
the ames
same ubparagraphs:<
<Amended yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998;
1
998;A ctNo
Act No..
6292,Dec.
6292, Dec.29,
29,2 000;A
2000; ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
2
008>
- 230 -
-230-
1
1..Asf
As ord
for ome s
domestic tics our c
source ei nc omep
income re s cri
prescribedbe di ns
in ubpar agr
12 offAr-
Ar -t icle1
ticle 1 9
119,,the
the
a mo unto
amount bta i
ne
obtained db byyd educ tingt
deducting hea
the cqui si
tio
acquisitionnv al uea
value ndt
and rans fe
transfer re xp ens
expenses eso offthe
thes ec ur i
ti
e
securitiess
v erifieda sp r es c ri
b edb yP resid en tia l D e c reef ro m
verified as prescribed by Presidential Decree from the income amount; and thei n c omea mo u n t ; a nd
2
2..
Asf
As orp
for rizem
prize one
money, y,s up p l
eme nt
supplementaryaryp riz e
prize,,e tc.prescribed
etc. pres c ri
b e db byyP res ident
PresidentialialDecree
De c reefrom
f
ro ma mo
amongng
thed
the ome s
domesticti
cs o urc
souroe ei n comeprescribed
income prescribe di ns
in ub p aragr
subparagraph aph1 133ooffArticle
Ar ticle1 1 9
119,,the
thea mo
amount unto bt a i
ne
obtainedd
byd
by educ t
deductingi
ngt hea
the mo untprescribed
amount pr esc r
ibe db yP
by r eside nt
De c r
e ef rom the
from t
hei nc o
income mea mo unt
amount. .
(2
(2))T het
The axa
tax mounto
amount offa nyd
any ome st
domestic i
cs our
sourcec ei nc omea
income assr e f
e rr
referrededt oi
to np
in ar
para- a-g raph(
graph 1),
(1),
shal
shall lb ec
be al cul at
calculatede db byymu lti
pl yi
multiplyingngt het
the axb
tax a
bases eaassr ef er
referredredt oi
to nt
in hes
the ai
said dp a ragr
paragraphaphb y
by
thet
the axr
tax at
rateea assp r es cr i
be
prescribed di ne
in ac
eachhs ubpar
subpara- a- g raphso
graphs offA rtic
Articlele1 56(
156 1)
(1)..
(3
(3))N otwi ths tandi
Notwithstanding ngt hep
the rovi sionso
provisions offp a ragr
paragraph aph( 1 )
(1),,iiffan onr e si
a nonresidentde ntwi tho
without utad o mi c
a domicileil
e
b u sine ssp lac ea sp r esc ribe di nA rti
c le1 2 0, ha sad o-m e stics o
business place as prescribed in Article 120, has a domestic source income as stipulatedurc ei n c o m ea ss tip ulated
ins
in ubpa ra gr
12 offArticle
Ar ti
c le1 1
1199t ha
thattmeets
me e tst hef
the ol l
o wi
following ngc o ndi tions
conditions, ,the
thea mo
amount unto offs uch
such
inc o
incomemes ha l
shalllbe
bet hen
the o rma
normal lp ri
c
pricee( her eafte
(hereafter rr e fe rr
referrededt tooaass“ no rma
“normal lp rice
price””i nt
in hi
thissp ara
para--g raph)
graph)
d e t
e rmi
determinedne dbbyyP res ide nt
PresidentialialD e cree
Decreei :< Newl
<Newly yI ns er
ActtNo.
No.5580,
558 0,Dec.
Dec .28,
28 ,1998>
1 998 >
1
1..
T rans ac
Transactiont
io nb ya
by ndb
and etwe
betweenenn o nres i
d e
nonresidentsntsw i
tho
without utad o me
a domestic sti
cb us ine
business ssp la c
placeea assp res cr i
be
prescribedd
inA
in rticl
Articlee1 2
1200a ndn
and onr e si
de
nonresidentsnt s( inc ludi
(includingng foreign
fore ignc o r pora ti
corporations)o ns)inins pe ci
speciala lrelationship
relations hip
d etermi
determinedne db byyP r eside nt
Presidential i
alD ecr e
Decree;e ;a nd
and
2
2..
C as
Casese sw he
whereret hep
the ric
priceeoofftra nsa cti
o
transaction nu nde
under rs ubpa ra gr
subparagraph a ph1i1 issl esst
less ha
thannt hen
the orma
normal lprice.
price .
Ar ti
c l
Article e1 2 6
126-2-2( Spe c
(Special ia lC a s
Casese sf orR
for e t
Returnur nbbyyN onr e side
Nonresidents nt so onnI nc o
IncomemeA mo
Amount untfrom
fro mT ra ns
Transferfer
o
offS e cur
Securitiesi
tiesa ndP
and a yme
Payment nto offT a
Tax xA mo
Amount,unt ,e t c
etc.) .
)
(1
(1))WhWhere er ean onr e
a nonresidents ide ntw i
tho
withoututad o me
a domestic sticb us ine
business s sp lac
place ec o me
comes st os
to at
sat--i s f
isfyyt hec
the rit
e ri
criteriaa
fort
for axa
taxationtionu nde
under rt her
the e levantt
relevant a
tax xt reat
treatyyb byyt rans f e
transferringrr ings toc
stockskso orri nve s tme
investment nts har e
shares s
o
offt hes
the a med
same o me
domestic s ticc o rp ora t
corporationiont wi
twicec eoorrmore
mo r et ime
times si innt hes
the ameb
same us ine
business s sy e
a
year r( re ferring
(referring
tot
to heb
the us i
ne
business s sy e a
year ro offt hed
the ome s
domestic ticc or por at
corporationiont hati
that s sue
issued ds uc
such hs toc
stockskso orri nve s
investmentt
me nt
shar
shares;e s;h ere af
hereafter te rt hes
the a mes
same ha l
shallla ppl
apply yi nt
in hi
thissA rt ic
Article),le ) ,he
hes hal
shall lmake
makear et ur
a return no onnt he
the
inc omef
income rom wh
from whichic hawi thhol
a withholdingdi ngt axh
tax asn
has otb
not ee
been nc ol l
e c t
collectededa atts our
sourcec ea attt het
the imeo
time off
the
theirirt r ans f
transfere r( he re a
(hereafterfte rr efe rre
referreddt tooa assaann“ inc ome
“income” ”i nt
in hi
thissA rt icl
Article)e )a ndp
and a
payyt hea
the mount
amount
equi val
equivalent e ntt ot
to hewi
the thhol
withholdingdingt axt
tax toot hec
the hi e
chief fo offata tax axo f fi
c
officeeh a vi
havingngj ur isdi c
over r
thep
the lac
place eoofft a
tax xp ay-me
payment ntwi thi
within nt hr
threeeemo nt
months hsf rom the
from thec los i
closingngd at
dateeo offthe
t
heb us ine
business s s
y earwh
year e
where ret het
the r ans
transferferd a
datet
eb e longs
belongs, ,u nde
under rc ondi t
conditionsionsp res cribe
Presidential ialD ecr
Decree.ee .
(2
(2))T Thehep r
ovi s
pa r agr aph( 1)s
(1) hal
shallla l
s
alsooa ppl
apply ymu tat
mutatis ismu tandi
mutandis sttoot hei
the nc omeo
income off
an onr e
a nonresidents i
de ntwi withthad o me
a domestics ticb us ine
business ssp lac
placeet hati
that issn notots ubs ta nt
substantiallyi
al lyr e lat
relatededt tooo orrd oe
does s
n otb
not e longt
belong tooh i
hissd ome
domestics t
icb us ine
business s s place.
plac e .
(3)I
(3) nc
In as
casesesw he
where rean onr es i
a nonresidentdentw ithoutap
without l ac
a place eo offb us ine
business ssi nK
in or
Korea eat rans f
transferse r ss t
oc ks
stocks, ,
inve s t
investmentme nts ha r
shares,es ,oorro t
he
other rs e curitie
securities s( he reafte
(hereafter rreferred
r efe rre dt tooaass“ sto c ks
“stocks, ,e tc
etc.”.
”in
int hi
sp
this ar agr
paragraph)ap h)
toa
to not
another he rn onr e
nonresidentside nto orraf or ei
a foreign gnc or por at
corporationionw it houtap
without lac
a place eo offb us ine
business ssi nK
in or e
Korea,a ,
andi
and iffs uc
suchhc a s
cases esa r
areep r es cribe
prescribed dbbyyP reside nt
Presidential i
a lDecree,
De c re e ,hehes ha
shallllreport
r epo rta ndp
and a
payyt hea
the mo
amountunt
thati
that nc omeo
income c c ur
occurred re db byys uc
suchht r ans
transfer fermu ltipl
multipliedie db byyt her
the ati
ratioou nde
under rA rti
Articlecl
e1 5
156 6( 1)4
(1) 4,,
tot
to hec
the hiefo
chief offt axo
tax ffic
officeeh avi
havingngj ur isdi ct
jurisdictioni
ono ve
over rt hep
the lac
place eo offt axat ion,a
taxation, assp r es cr
prescribed i
be d
byP
by r es ident
Presidential i
alD e c r
Decree,e e,until
unt ilthe
the1 0t
10thhd ayo
day off
- 232 -
-232-
twom
two onthsl
months aterf
later romt
from hem
the ontht
month owh
to ichd
which ayo
day offreceiving
recei
vi ngt hea
the mountbelong:
amount be
long:Provided,
Pr
ovided,
Thatt
That hes
the ames
same halln
shall ota
not pply,i
apply, iffap ayero
a payer offincome
incomea mounto
amount ccurredf
occurred rom t
from ransfero
transfer off
stocks,e
stocks, tc.paid,
etc. pa
id,pursuant
p
ursuantt oA
to rt i
cle1
Article 56,w
156, ithholdingi
withholding ncomet
income axo
taX nd
on omest
i cal
ly-ge nerated
domestically-generated
income,s
income, ucha
such assstocks,e
stocks, tc.,o
etc., wnedb
owned yt
by her
the elevantnonresident.
relevant nonr
esident.< NewlyI
<Newly nsertedb
Inserted y
by
ActNo
Act No..8825,
8825,Dec
Dec
.3],
3
1,2007;
2
007;A ctNo
Act No..9270,
9270,De c
Dec..26,
26,2008>
20
08>
(4)I
(4) Iffan onresidentf
a nonresident ailst
fails om
to aker
make eturnso
returns orrpayment
paymentpursuant
p
ursuantto
t
op ara-g
para- raphs(
graphs 1)through
(1) t
hrough
(3),ma
(3), kesar
makes eturno
a return nt
on hea
the mounts
amount horto
short offthet
the axb
taX asewh
base ichr
which equirest
requires ob
to beereturned,
returned,
o
orrunderpayst
underpays hep
the ayablet
payable axa
taX mount,the
amount, t
hec hiefo
chief offat axo
a taX fficeh
office avingj
having ur i
sdictiono
jurisdiction ver
over
thep
the laceo
place offtaxp
tax ayments
payment hallc
shall ollectthe
collect t
her elevanttaX
relevant t
axa mountby
amount byapplyingt
applying hep
the rovisions
provisions
o
offArticle
Art i
cle8 0mu
80 tatismu
mutatis tandis.<
mutandis. Amendedb
<Amended yA
by ctNo.
Act No.6557,
6557,Dec.
Dec.3],
31,2001;
2
001;Act
Ac
tNo.
No.
8144,Dec.
8144, Dec.30,
30,2 006;A
2006; ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000]
2
000]
CHAPTER Ⅴ
CHAPTER V WITHHOLDING T
WITHHOLDING AX
TAX
Art i
cle1
Article 27(
127 Liabilityf
(Liability orWi
for thholding)
Withholding)
(1)A
(1) nyp
Any ersonw
person hop
who ayst
pays hei
the ncomea
income mountsf
amounts allingu
falling ndera
under nyo
any offthef
the ollowings
following ubpar
a -
subpara-
graphst
graphs oar
to esidento
a resident orrnonresidenti
nonresident nK
in orea,s
Korea, hallc
shall ol
-l
col- ectt
lect hei
the ncomet
income axa
tax attsource
source
froms
from uchr
such esidento
resident orrnonresidentu
nonresident ndert
under hep
the rovisionso
provisions offthisS
this ect i
on:<
Section2 Amendedb
<Amended y
by
ActNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998;
1
998;A ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000;
20
00;A ctNo.
Act No.7528,May
7528, May
31,2005;
3], 2
005;A ctNo
Act No..7837,De
7837, c
Dec..3],
31,2005;
20
05;A ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2 006>
2006>
1
1..
I nteresti
Interest ncomea
income mount;
amount;
2
2..
D ividendi
Dividend ncomea
income mount(
amount excludingt
(excluding hed
the ividendi
dividend ncomea
income mount a
amount ddedt
added ot
to het
the otal
total
grossi
gross ncomea
income mountu
amount ndert
under hep
the rovisot
proviso oA
to rt i
cle1
Article 7(
17 3));
(3));
3
3..
B usinessi
Business ncomea
income mounta
prescribed yt
by heP
the residentialD
Presidential ecree;
Decree;
4
4..
C lassA
Class A earnedi
earned ncomea
income mount;
amount;
4-2.
4-2. Annuityi
Annuity ncomea
income mount(
amount referringt
(referring ot
to hei
the ncomea
income mountb
amount eforet
before hea
the nnui
t yi
annuity ncome
income
deductionu
deduction nderA
under rt i
cle4
Article 7-2i
47-2 nc
in asesf
cases allingu
falling nderA
under rt i
cle2
Article 0-3(
20-3 1)3
(1) 3,,4a nd4
4 and -2;
4-2;
hereinaftert
hereinafter hes
the ames
same halla
shall pply);
apply);
5
5..
Miscel l
aneousi
Miscellaneous ncomea
income mount:P
amount: rovided,T
Provided, hata
That na
an mountf
amount alling u
falling ndera
under nyo
any ne
one
o
offthef
the ollowingi
following temss
items hallb
shall ee
be xcluded:
excluded:
(a)A
(a) na
An mountf
amount allingu
falling ndert
under hep
the rovisiono
provision offsubparagraph7
subparagraph 7;;
(b)D
(b) amagesf
Damages orb
for reacho
breach offcontracto
contract orrindemnitiesu
indemnities ndert
under hep
the rovi
-s
provi- ionso
sions offArt i
cle
Article
2
211(1)1
(l) 0(
10 onlyt
(only hec
the asesw
cases heree
where arnestmo
earnest neyi
money issreplacedw
replaced ithd
with amagesf
damages orbreach
for br
each
o
offcontracto
contract orrindemnities);a
indemnities); nd
and
- 234 -
-234-
(c)An
(c) Anamountu
amount ndert
under hep
the rovisionso
provisions offArt i
cle2
Article 211(1)2
(1) 233o
orr2
2;;
6
6..
C lassA
Class retirementi
A retirement ncomea
income mount;a
amount; nd
and
7
7..
S ervicec
Service hargesd
charges eterminedb
determined yP
Presidential De
cree.
(2)A
(2) nya
Any ctso
acts offthep
the ersona
person ctingf
acting ort
for hep
the ersonl
person iablef
liable orwi
for thholdinga
Withholding assreferredt
referred o
to
inp
in aragraph(
paragraph 1),o
(1), orrthep
the ersone
person ntrustedb
entrusted yh
by ims
him hallbe
shall beconsidereda
considered assthoseo
those offthe
the
personl
person iablef
liable orwi
for thholdingo
Withholding orrthe
thee ntrustingp
entrusting ersonw
person ithint
Within hel
the imito
limit offthe
thee ntrustment
entrustment
o
orrdelegation,a
delegation, ndt
and hep
the rovi
-s
provi- ionso
sions offparagraph(
paragraph 1)s
(1) halla
shall pply.
apply.
(3)I
(3) Iffaf inanciali
a financial nstitutionf
institution allingu
falling ndera
under nyo
any neo
one offthe
thei temso
items offsub-p
sub- aragraph1o
paragraph 1 off
Art i
cle2o
Article 2 offtheA
the cto
Act nR
on ealName
Real Na
meF inancialT
Financial ransactions a
Transactions ndG
and uaranteeo
Guarantee offSecrecy
Secrecy
(hereinafterr
referred oa
to assthe“
the financiali
“financial n-s
in- titutions”)a
stitutions”) ccepts,s
accepts, ells,mediates
sells, me
diatesoorracts
acts
forab
for illo
a bill orrab ondi
a bond ssuedb
issued yad
by omesticp
a domestic erson,i
person, ittshallbe
shall beconsideredt
considered hatthere
that t
heree xists
exists
ar elationo
a relation offprocurationo
procuration orrtrustb
trust etweent
between hef
the inancialinstitution
financial i
nstitutionc oncerneda
concerned nds
and uch
such
domesticp
domestic erson,a
person, ndt
and hep
the rovisionso
paragraph( 2)s
(2) halla
shall pply.<
apply. Amendedb
<Amended yA
by ctN0.
Act No.
6051,Dec.
605], Dec.28,
28,1 999;A
1999; ctNo
Act No..8144,
8144,Dec.
Dec.80,
30,2006>
2
006>
(4)I
(4) nc
In alculatingt
calculating hei
the ncomea
income mounto
amount offthed
the omesticb
domestic usinessp
business lacea
prescribed n
in
thep
the rovisoo
proviso offArt i
cle2
Article 200(1)2(
(1) b),a
2 (b), nyw
any agea
wage ppropriated a
appropriated assnecessarye
necessary xpenseso
expenses orr
losss
loss hallbe
shall beconsidereda
considered assonep
one aida
paid attthed
the o-m
do- esticb
mestic usinessp
business lace,a
place, nds
and hallbe
shall besubject
subject
tot
to hea
the pplicationo
application offthisA
this ct.
Act.
(5)A
(5) nyp
Any ersonl
person iablef
liable orw
for ithholdingt
Withholding axa
tax assreferredt
referred tooinp
in aragraphs(
paragraphs 1)through
(1) t
hrough( 4),s
(4), hall
shall
b
beereferredt
referred tooa
assa“ withholdinga
a “Withholding gent”.<
agent”. Amendedb
<Amended yA
by ctNo.
Act No.5580,
5580,Dec.
Dec.28,
28,1998;
1
998;
ActNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
(6)I
(6) nc
In aseswh
cases erea
where nyi
any ncomea
income mounta
amount assreferredt
referred oi
to np
in aragraph(
paragraph 1)1a
(1) nd2a
1 and ccruing
2 accruing
from a
from nyb
any ondsa
bonds nds
and ecuritiesi
securities ssuedb
issued yaf
by oreignc
a foreign orpora-t
corpora- ioni
tion isspaidt
paid oar
to esident,
a resident,
thep
the rovisionso
paragraph( 1)s
(1) halla
shall pplyt
apply oap
to ersonw
a person hoa
Who ctsf
acts orthe
for t
hef oreignc
foreign orporation
corporation
o
orri
issdelegatedo
delegated orrentrustedb
entrusted yt
by hef
the oreignc
foreign orporationi
corporation nK
in orea,d
Korea, eemingt
deeming hathe
that hei
issa
a
withholding a
Withholding gent.<
agent. NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..508],
5031,Dec.
Dec.29,
29,1 995>
J995>
(7)T
(7) hep
The rovisionso
paragraph 1)s
(1) halla
shall pplyt
apply tooab usinessp
a business roprietor(
proprietor includingac
(including orpo-
a corpo-
ration;h
ration; ereaftert
hereafter hes
the ames
same halla
shall pplyi
apply nt
in hisp
this aragraph)wh
paragraph) or
Who eceivesas
receives ervicec
a service harge
charge
referredt
referred oi
to np
in aragraph(
paragraph 1)7t
(1) ogetherw
7 together ithac
With hargefor
a charge f
orthe
t
hes uppl
yo
supply offfood
fooda nda
and ccommodation
accommodation
serviceso
services orrothers
other ervices,a
services, ndp
and aysi
pays ittto
tot her
the elevanti
relevant ncomeg
income ainer,d
gainer, eemingt
deeming hathe
that he
i
issawi thholdinga
a Withholding gent.<
agent. NewlyI
<Newly nsertedb
Inserted yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,J998>
1
998>
(8)I
(8) nt
In hew
the ithholdinga
Withholding assreferredt
referred tooinp
in aragraphs(
paragraphs 1)3a
(1) nd(
3 and 2),the
(2), t
hes copeo
scope offwithholding
Withholding
agents,a
agents, ndo
and thermatters
other mat
tersn ecessaryf
necessary orwi
for thholdings
Withholding hallbe
shall bedeterminedb
determined yP
by residential
Presidential
Decree.<
Decree. Amendedb
<Amended yA
by ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
2
008>
Art i
cle1
Article 28(
128 Paymento
(Payment offWithholdingT
Withholding ax)
Tax)
- 236 -
-236-
(1)A
(1) nyw
Any i
thho ld
withholdingi
nga ge
agentnts ha l
shalllpay
payt hei
the nc omet
income axw
tax ithhe
withheldl
dt tooat a
a taxxo ffic
officeeh avingj
having ur i
sdict i
on
jurisdiction
ove
over rt hew
the ithhol di
withholding, ng,t heB
the anko
Bank offK or
Korea eaoorrt hep
the os tals
postal e rvi
service ceo rga niz at
organization ionb byyn nool ater
later
thant
than he1
the 0thd
10th ayo
day offt hemo
the nt
month hf ol lowi
following ngt hemo
the nt
month ht ow
to hi
which cht hec
the ol lec ti
collectionond a
day yb elongs
belongs
unde
under rc ondi ti
onsp
conditions re sc r i
prescribedbedb yP
by re s ident
Decree:e :Provided,
Pr ovided,T ha
That tthe
t hew ithhol
withholdingdinga ge nt
agent
w hoi
who issp rescribe
prescribeddb yP
by re si
de nt
De c reet akingi
taking ntoa
into cco untthe
account t hen umbe
number ro offregular
regul a re mp l
o ye e
employees,s,
type
types so offb us ine s
business, s,e tc
etc.,.
,mamayyp a
payyt hei
the nc omet
income axwi
tax thhe
withheldldb byyn nool ate
laterrt hant
than he1
the 0 t
hd
10th ay
day
o
offt hemo
the nt
monthhf o llowi
followingngt hel
the a s
lasttmonth
mo nt hoofft heh
the a
halflfyear
yeartotow hi
which c ht hec
the ollec ti
collectionond a
day yb e
lo ngs
belongs. .
< Amendedb
<Amended byyA c
Act tNoNo..5580,
5 58 0,Dec.
Dec .28,
28,1998>
1 998>
(2
(2))T The hew ithhol di
withholding nga gentp
agent rovi de
provided df ori
for nt
in hep
the r
ovi s
provisoot toop ar a gr
paragraph aph( 1)s
(1) hal
shall lpay
payt he
the
taxwi
tax thhe
withheld l
df r om t
from heb
the onus
bonus, ,d ivi de nds
dividends, ,a ndmi
and sce l
lane
miscellaneousousi nc ome
incomes sd is pos
disposed edo offpursuant
pur suant
toA
to r t i
Articlecle6 7o
67 offt heC
the o rp or
CorporateateT a
Tax xA c
Act,t,i na
in cco rda
accordancencew it
ht
with hem
the a
mainins e nte nc
sentence eo offparagraph
par a
gr a ph
(1 )
(1)..< Newl
<Newly yI ns er
Insertedtedb byyA c
Act tNoNo..7 31 9,Dec.
7319, Dec .31,
31,2004;
200 4;A Act c tNo
No..8144,
81 44 ,Dec.
Dec .30,
30,
200
2006>6>
Art i
cle1
Article 29(
129 WithholdingT
(Withholding axR
TaX ates)
Rates)
(1
(1))A nyi
Any nc o
incomemet a
tax xw i
thhe
withheld ldb by yaw ithho
a withholding ldinga ge
agent nts ha
shallllbe
bea anna mo
amountuntcalculated
c al culate d
bya
by pp ly i
applyingn gt h
theet axr
tax a t
e
ratessc las sifi
classifiede du n d
undererthe
th efollowing
follo wi n gs u
sub-b-p a ragr a
paragraphsph s( he rein aft
e
(hereinafter rreferred
r ef
e r
re d
toa
to asst h
thee“ wi th h old
“withholding in gt axr
tax ate ”
rate”) )t ot
to h
theei n co
incomemeo orrrevenue
re ve n uea mo u
amount n tpaid
p aidb byyt hew
the ith holdi
withholdingn g
age nt
agent: :< Amendedb
<Amended byyAActc tNo.
No.5031, 503 1,Dec.
Dec .29,
29,1995;
19 95 ;Act
Ac tNo.
No.5532,
55 32 ,Apr.
Apr .10,
1 0,1998;
19 98 ;
Ac
Act tNo
No..5552,
5 55 2,S ep.16,
Sep. 16 ,1998;
1 99 8;A c
Act tNoNo..5580,
5 58 0,Dec.
Dec .28,
28 ,1998;
199 8;A Actc tNo
No..6051,
605 1,Dec.
Dec .
28
28, ,1999;
19 9 9 ;Act
Ac tNo.
No.6292,
6 29 2,Dec
Dec .29,
2 9 ,2000;
2 0 00 ;Act
Ac tNo.
No.6557,
6 5 5 7,Dec
Dec .31,
3 1 ,2001;
2 00 1 ;Act
Ac tNo.
No.7 00 6
7006,,
De
Dec. c.30,
30 ,2003;
20 03 ;A Actc tNo
No..7 3 19
7319, ,Dec.
Dec .31,
31 ,2004;
20 04 ;AActc tNoNo..7 8 37
7837, ,Dec.
Dec .31,
3 1,2005;
200 5;A c
Act t
No.8144,
No. 81 44 ,Dec.
Dec .30,
3 0,2006;
2 00 6;A Act c tNo No..9270,
92 70 ,DeDec. c.26,
26 ,2008>
20 08 >
11..Wi thr
VVltl’l e spe
respect ctt oa
to nyi
any nt er e
interests ti nc omea
income mount
amount, ,t hef
the ollowi ngt
following axr
tax a te
rates:s:
(a)Wh
(a) Where e rear es ide
a resident ntwhwho op a
paidida nyi
any nt e re
interest sta ndd
and isc ounta
discount mounta
amount c
ac- -c ruingf
cruing rom
from
h i
hisso wnl
own o ng-t
long-term erm bonds
bo ndsa assd e termi
determined ne db byyP r es ide nt
De cr eem a ke
makes sa na
an pp li
ca t
io
application n
fors
for epa rat
separate et axat iont
taxation ot
to her
the e leva
relevant ntf inanc
financial ialinstitutions
ins titutionso orrt hei
their rp aye
payersrsu nde
under r
condi ti
conditionsonsp r e sc ri
be
prescribed dbbyyP re s i
de
Decree,ee ,3 0 /1
30/10000f ort
for hei
the nt e re
interests ta ndd
and i
sc ount
discount
a mount
amount; ;
(b)2
(b) 5/ 1
25/100 00f ora
for nyp
any rof i
t
profitssa c c rui
accruing ngf rom al
from oanf
a loan orn
for on-bus ine
non-business; s s ;a nd
and
(c)1
(c) 4/ 1
14/100 00f oro
for t he
other ri nt ere
interests ti nc omea
income mount
amount; ;
2
2.. 14/ 10
14/100 0o onna nyd
any ivi de
dividendndi nc o me
incomes s( 2 5 /1
(25/1000 0f o
forrthe
thed ivi de
dividend ndi nc omeo
income offthe
t hej ointinvestment
joint i
nve s t
me nt
bus ine
business s sp r opr ie
proprietorstorsu nde
under rt hep
the rovi s
provisionsionso offA rtic
Article le1 7(
17 1)6
(1) -3
6-3);)
;
3
3.. 3/1 00f
3/100 ora
for nyb
any us ine
business ssi nc omea
income mountd
amount e te rmi
determined ne db yP
by re side nt
Decree;ee ;
4
4.. B as
Basicict a
taxxr at
rateef ora
for nyC
any las
Class sA A e ar ne
earned di nc omea
income mount
amount; ;
4 -2
4-2. .TThehef ollowi
followingngt axr
tax ate
rates sf ora
for nya
any nnui
annuity tyi nc omea
income mount
amount: :
(a)T
(a) Theheb as
basicict axr
tax atef
rate ora
for an na nnui
annuity tyi nc omef
income al lingu
falling nde
under rA r ti
c
Articlele2 0-3(
20-3 1)1a
(1) nd
1 and
2
2;;o orr
- 238 -
-238-
(b)5
(b) /100f
5/100 ora
for nya
any nnui
t yi
annuity ncomef
income allingu
falling nderA
under rt i
cle2
Article 0-3(
20-3 1)3
(1) 3,,44and4
and -2;
4-2;
5
5..
8 /100f
8/100 ora
for nye
any arnedi
earned ncomea
income mounto
amount offad ai
l y-paidwo
a daily-paid rker;
worker;
6
6..
2 0/100f
20/100 ormi
for scellaneousi
income mount:Provided,
amount; Pr
ovided,T hatc
That aseswh
cases eres
where ubparagraphs
subparagraphs
8a nd9a
8 and pplys
9 apply halln
shall otb
not ei
be ncluded;
included;
7
7..
B asict
Basic axr
tax atef
rate ora
for nyC
any lassA
Class retirementi
A retirement ncomea
income mounta
amount nda
and ny e
any xcessr
excess efund
refund
o
offawo rkplacemu
a workplace tuala
mutual ida
aid ssociationa
association assprescribedi
prescribed nA
in rt i
cle6
Article 3;
63;
8
8..
5/100f
5/100 ora
for nyi
any ncomea
income mounta
amount ccruingf
accruing roms
from ervicec
service hargesd
charges eter
mi nedb
detennined yP
by residential
Presidential
Decree;a
Decree; nd
and
9
9..
30/100f
30/100 ora
for na
an mounti
amount ne
in xcesso
excess off300mi
300 llionw
million oni
won nc
in aseswh
cases eret
where hei
the ncomea
income mount
amount
fallingu
falling nderA
under rt i
cle1
Article 144(3)7e
(3) xceeds3
7 exceeds 00mi
300 llionwo
million n.
won.
(2)N
(2) otwithstandingt
Notwithstanding hep
the rovisionso
paragraph( 1),the
(1), t
hewi thholdingt
withholding axr
tax atef
rate ora
for ny
any
interesti
interest ncomea
income ndd
and ividendi
dividend ncomef
income allingu
falling ndere
under acho
each offthef
the ollowings
subparagraphs
shallbe
shall bea
assfollows:<
follows; Amendedb
<Amended yA
by ctNo.
Act No.6557,Dec.
6557, Dec.3],
31,2001;
2
001;Act
Ac
tNo.
No.7319,Dec.
7319, Dec.
31,2004;
3], 2
004;A ctNo
Act No..8144,
8144,De c
Dec..30,
30,2006>
20
06>
1
1..
1 4/100f
14/100 ora
for nyi
any nteresti
interest ncomea
income ccruingf
accruing rom the
from thes ecuri
t yd
security eposita
deposit ndk
and nockdownp
knockdown rice
price
paidt
paid oac
to ourtu
a court nderA
under rt i
c l
es1
Articles 13a
113 nd1
and 42o
142 offtheC
the ivilExecution
Civil Exe
cutionA ct;o
Act; orr
2
2..
35/100f
35/100 ora
for nyi
any ncomef
income orw
for hicht
which hea
the ctualn
actual amea
name assprescribedb
prescribed yP
Presidential De
cree
i
issnotv
not erif i
ed:P
verified; rovided,T
Provided, hatwh
That ereA
where rt i
cle5o
Article 5 offthe
theA cto
Act nR
on ealName
Real NameFinancial
Financial
Transactionsa
Transactions ndG
and uaranteeo
Guarantee offSecrecyi
Secrecy issapplied,it
applied, i
ts hallbe
shall bethet
the axr
tax atea
rate assstipulated
stipulated
ins
in aidA
said rt i
c l
e.
Article.
(3)N
(3) otwithstandingt
Notwithstanding hep
the rovisionso
paragraph 1)4a
(1) nd4
4 and -2(
4-2 a),t
(a), hes
the implifiedt
simplified ax
tax
tablef
table ore
for arnedi
earned ncomep
income rescribedb
prescribed yP
by residentialD
Presidential ecree(
Decree hereinafterr
referred oa
to assthe
the
“simplifiede
“simplified arnedi
earned ncomet
income axt
tax able”)a
table”) ndt
and hes
the implifiedt
simplified axa
tax mountt
amount ablef
table ora
for nnuity
annuity
incomep
income rescribedb
prescribed y Presidential
by PresidentialDecree
De
cree( hereinafterreferred
(hereinafter r
eferredttooa
assthe“
the simplifieda
“simplified nnui
t y
annuity
incomet
income axt
tax able”)s
table”) halla
shall pplyt
apply ot
to hew
the ithholdingt
withholding axr
tax atesf
rates orthe
for t
hem onthlye
monthly arnedi
earned ncome
income
o
offClassAo
Class A orrannui
t yi
annuity ncomef
income allingu
falling nderArticle
under Ar
ticle2 0-3(
20-3 1)1a
(1) nd2
1 and 2..<Amendedb
<Amended yA
by ct
Act
No.6
No. 292,Dec.
6292, Dec.29,
29,2000>
2
000>
(4)I
(4) nc
In alculatingawi
calculating thholdingt
a withholding axa
tax mountu
amount nderp
under aragraph(
paragraph 1),i
(1), iffthef
the oreigni
foreign ncome
income
taxa
tax mounta
amount assdeterminedb
determined yP
Presidential De
cree,o nt
on hei
the ncomea
income mounta
amount assprescribed
prescribed
inA
in rt i
cle1
Article 27(
127 1)1a
(1) nd2
1 and 2,,i
isspaidi
paid naf
in oreignc
a foreign ountry,the
country, t
hea mountc
amount alculatedb
calculated yd
by educting
deducting
suchf
such oreigni
foreign ncomet
income axa
tax mountfrom
amount f
rom the
thew ithholdingt
withholding axa
tax mountc
amount alculatedu
calculated nderparagraph
under p
aragraph
(1),s
(1), hallb
shall et
be hewi
the thholdingt
withholding axa
tax mount.I
amount. nt
In hisc
this ase,i
case, iffthef
the oreigni
foreign ncomet
income axa
tax mount
amount
exceedst
exceeds hew
the ithholdingt
withholding axa
tax mountc
amount alculatedu
calculated nderp
under aragraph(
paragraph 1),s
(1), uche
such xcessa
excess mount
amount
shallbe
shall beconsideredn
considered ott
not oe
to xist.<
exist. NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.503],
5031,Dec.
Dec.29,
29,J995>
1
995>
- 240 -
-240-
Art i
cle1
Article 30(
130 Methodo
(Method offWithholdingf
Withholding rom Interest
from InterestI ncome,e
Income, tc.)
etc.)
Whenaw
When ithholdinga
a withholding gentpays
agent p
aysa nyi
any nteresto
interest orrdividendi
dividend ncome,he
income, he shallw
shall ithhold
withhold
thei
the ncomet
income axc
tax alculatedb
calculated ya
by ppl
yi ngaw
applying ithholdingt
a withholding axr
tax atet
rate os
to uchi
such ncomea
income mount.
amount.
<Amendedb
<Amended yA
by ctNo
Act No..6292,Dec
6292, Dec
.29,
2
9,2000;
2
000;A ctNo
Act No..7319,Dec.
7319, Dec.3],
31,2004>
2
004>
Art i
cle1
Article 31(
131 Fictit i
ousP
(Fictitious aymentD
Payment ateo
Date offInterestI
Interest ncome)
Income)
(1)I
(1) Iffa personh
a person ass
has ubscribedf
subscribed ora
for fi
xedinstallment
a fixed i
nstallmentd eposi
tc
deposit onnectedw
connected ithaf
with i
xedd
a fixed eposi
t
deposit
forw
for hicht
which hef
the i
nanciali
financial nstitutionc
institution oncerneds
concerned ub-s
sub- titutesthe
stitutes t
heinterest
i
nterestooffthe
thefixed
f
ixe
dd eposit
deposit
fort
for hei
the nstallmentst
installments ob
to ep
be aidi
paid n,the
in, t
hei nteresto
interest offsuchf
such i
xedd
fixed eposits
deposit hallbe
shall beconsidered
considered
toh
to aveb
have eenp
been aidw
paid hent
when hef
the i
xedd
fixed eposito
deposit orrfixed
fi
xedi nstallmentd
installment epositis
deposit i
sc ancelled,o
canoelled, orr
the s
the avings period
savings period o
off the
the fixed
fixed installment
instal l
ment deposite
deposit xpires.
expires.
(2)T
(2) hep
The aymentt
payment imeo
time offthei
the nteresta
interest ndd
and iscounta
discount mounto
amount thert
other hant
than hosea
those sr
as eferred
referred
toi
to np
in aragraph(
paragraph 1),s
(1), hallbe
shall besuchd
such atea
date sd
as eterminedb
determined yt
by heP
Presidential De
cree.
Art i
cle1
Article 32(
132 Fictit i
ousP
(Fictitious aymentD
Payment ateo
Date offDividendI
Dividend ncome)
Income)
(1)I
(1) Iffac orporationf
a corporation ailst
fails op
to aya
pay nyd
any ividendi
dividend ncomea
income ccruingf
accruing romd
from is-p
dis- osalo
posal offany
any
prof
itso
profits orrsurplusw
surplus ithint
within hreemonths
three mo
nthsooffthe
thed eterminationo
determination offsuchd
such isposal,the
disposal, t
hed ividend
dividend
incomes
income hallbe
shall beconsideredt
considered oh
to aveb
have eenp
been aida
paid attthe
thee xpirationo
expiration offsucht
such hreem
three onths.
months.
(2)T
(2) imef
Time orp
for aymento
payment offdividends
dividend hallbe
shall b
ed eterminedb
determined yt
by heP
the residen-t
Presiden- ialDecree.
tial De
cree.
<Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
Art i
cle1
Article 33(
133 Deliveryo
(Delivery offWithholdingR
Withholding eceipto
Receipt nI
on nterestI
Interest ncome,e
Income, tc.)
etc.)
(1)A
(1) nyw
Any ithholdinga
withholding gent,w
agent, hop
who aysi
pays nK
in oreaa
Korea nyi
any nteresto
interest orrdividendi
dividend ncome,s
income, hall
shall
del
i vera
deliver awithholdingr
withholding eceipts
receipt peci
fy ingt
specifying heinterest
the i
nterestoorrdividendi
dividend ncomea
income ndo
and thernecessary
other n
ecessary
matters,t
matters, ot
to herecipient
the r
ecipientaattthe time
the timeooffpaynent
paymentthereof,
t
hereof,under
u
nderthe
t
hec onditionsa
conditions sprescribed
as p
rescribed
byt
by heP
the res-i
Pres- dentialDecreei
idential De
cree:Provided,
Pr
ovided,T hati
That iffthewi
the thholdinga
withholding gentn
agent otif i
est
notifies hei
the n-
in-
teresto
terest orrdividendi
dividend ncomea
income ndo
and thern
other ecessaryma
necessary tters,t
matters, ot
to hep
the ersonr
person eceivingt
receiving hei
the nterest
interest
o
orrdividendi
dividend ncome,b
income, yt
by hee
the ndo
end offMarchi
March nt
in he y
the earf
year ollowingt
following hey
the eart
year owh
to icht
which he
the
paymentd
payment ayb
day elongsu
belongs ndert
under hec
the onditionsa
prescribed yt
by heP
the residentialDecree,
Presidential De
cree,
hes
he hallbe
shall becon-s
con- ideredt
sidered oh
to aved
have elivereds
delivered uchwi
such thholdingr
withholding eceipt.
receipt.
—242—
- 242 -
(2)A
(2) nyw
Any ithholdinga
withholding gencyp
agency ursuantto
pursuant t
op aragraph(
paragraph 1)may
(1) ma
yn otissue
not i
ssueawi thholdingt
a withholding ax
tax
receipti
receipt iffinteresto
interest orrdividendh
dividend ep
he aysf
pays allss
falls horto
short offthe
thea mountprovided
amount p
rovidedf orin
for i
nt heP
the residential
Presidential
Decree:P
Decree: rovided,T
Provided, hath
That es
he hallissue
shall i
ssuet hewi
the thholdingt
withholding axr
tax eceipto
receipt orrmaket
make hen
the otice
notice
a
assprovidedu
provided nderp
under aragraph(
paragraph 1)i
(1) nc
in asesw
cases heret
where hes
the amei
same ississuedu
issued nderA
under rt i
cle4
Article 6
46
(2)o
(2) orrwheret
where her
the ecipiento
recipient offsuchi
such nteresto
interest orrdividendd
dividend emandst
demands hei
the ssu-a
issu- nceo
ance offthe
the
withholdingt
withholding axr
tax eceipt.<
receipt. NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.6292,
6292,Dec.
Dec.29,
29,2000;
2
000;Act
Ac
tNo.
No.
7319,Dec.
7319, Dec.3],
31,2 004>
2004>
Art i
cle1
Article 34(
134 Methodo
Withholding rom Earned
from EarnedI ncome)
Income)
(1)Wh
(1) enaw
When ithholdinga
a withholding gentp
agent aysa
pays nym
any onthlye
monthly arnedi
earned ncomeo
income offClassA
Class A,,hes
he hall
shall
withholda
withhold nyi
any ncomet
income axa
taX ccordingt
according ot
to hes
the implifi
ede
simplified arnedi
earned ncometaX
income t
axt able.<
table. Amended
<Amended
byA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000>
20
00>
(2)I
(2) nc
In aseswh
cases ereawi
where thholdinga
a withholding gentf
agent allsu
falls ndera
under nyo
any offthef
the ollowings
following ubparagraphs,
subparagraphs,
hes
he hallw
shall ithholda
withhold nyi
any ncomet
income axp
tax ursuantto
pursuant t
oA rt i
cle1
Article 37o
137 orr138;a
138; ndi
and nc
in aseo
case offsubparagraph
subparagraph
1
1,,hes
he hallwi
shall thholda
withhold nyi
any ncomet
income axf
tax rom the
from thee arnedi
earned ncomec
income orrespondingt
corresponding ot
to hep
the ortion
portion
paidi
paid nF
in ebruaryo
February offthey
the earf
year ollowingt
following hec
the orrespondingy
corresponding ear,p
year, ursuantt
pursuant op
to aragraph
paragraph
(1)
(1)2:<Amendedb
<Amended yA
by ctNo
Act N0..519],
5191,Dec.
Dec.30,
30,1996;
1
996;A ctNo
Act No..8825,
8825,Dec
Dec
.3],
31
,2007>
20
07>
1
1..
Whenh
When ep
he aysa
pays nye
any arnedi
earned ncomec
corresponding ot
to hep
the ortionp
portion aidi
paid nF
in ebruaryo
February off
they
the earf
year ollowingt
following hec
the orrespondingy
corresponding ear(
year inc
(in asesw
cases heret
where hee
the arnedi
earned ncomec
income orrespond-
correspond-
ingt
ing ot
to hep
the ortiono
portion offFebruaryi
February issnotp
not aidu
paid ntilt
until hel
the astd
last ayo
day offFebruaryo
February orrthere
there
i
issnoe
no arnedi
earned ncomei
income nF
in ebruary,t
February, hel
the astd
last ayo
day offFebruary;h
February; ereinaftert
hereinafter hes
the ames
same hall
shall
ap-p
ap- ly);a
ply); nd
and
2
2..
Whenh
When ep
he aysa
pays nye
any arnedi
earned ncomec
corresponding ot
to hep
the ortiono
portion offthe
themo nthwh
month en
when
ar etireer
a retiree etires.
retires.
(3)Wh
(3) enawi
When thholdinga
agent paysanye
any arnedi
earned ncomeo
income offad ai
l y-paidwo
a daily-paid rker,it
worker, i
ts hall
shall
withholdt
withhold hei
the ncomet
income axc
tax alculatedb
calculated ya
by pplyingt
applying hew
the ithholdingt
withholding axr
tax atet
rate ot
to hea
the mount
amount
obtainedb
obtained yma
by kingt
making hee
the arnedi
earned ncomed
income eductionf
deduction rom s
from uche
such arnedi
earned ncome.<
income. Amended
<Amended
byA
by ctNo
Act N0..519],
5191,Dec.
Dec.30,
30,J996>
19
96>
(4)Wh
(4) ent
When hei
the ncomet
income axo
taX nar
on esidentwi
a resident tht
with hef
the ollowingt
following axc
tax redit,i
credit, isswithheldu
withheld nder
under
paragraphs(
paragraphs 1)a
(1) nd(
and 2),t
(2), hew
the ithholdings
withholding hallbe
shall bemadea
made fterd
after eductingt
deducting hea
the mounto
amount offthe
the
taxc
tax reditu
credit ndert
under hec
the onditionsa
prescribed yt
by heP
the residentialD
Presidential ecree:
Decree:
1
1..
T axc
TaX redito
credit nt
on axesp
taxes aida
paid broad;a
abroad; nd
and
2
2..
T axc
TaX redito
credit nt
on hee
the arnedi
earned ncomes.
incomes.
—244—
- 244 -
(5)I
(5) Iffa
a monthly wa
monthly gei
wage sd
is ivideda
divided nd p
and aidb
paid yt
by hes
the amee
same mployer,a
employer, assthe
the
workplaceo
workplace offthe p
the erson h
person aving a
having ny e
any arnedi
earned ncome i
income sc
is hanged,t
changed, he i
the n-
in-
comet
come ax s
tax hallb
shall ewi
be thheldf
withheld rom t
from het
the otala
total mounto
amount offsuch mo
such nthly wa
monthly ge
wage
a
attthe c
the hanged wo
changed rkplace by
workplace by applying the
applying the provisions
provisions o
offparagraphs (
paragraphs 1)
(1)
through(
through 4).
(4).
(6)D
(6) eleted.<
Deleted. byA
<by ctNo
Act No..519],
5191,De c
Dec.30,
30,1 996>
1996>
Art i
cle1
Article 35(
135 Fictit i
ousP
(Fictitious aymentD
Payment ateo
Date offEarnedI
Earned ncome)
Income)
(1)I
(1) Iffaw ithholdinga
a withholding gent,w
agent, hoi
who sl
is iablet
liable op
to aya
pay nye
any arnedi
earned ncome,f
income, ailst
fails op
to ayt
pay hew
the ages
wages
forJ
for anuaryt
January hroughN
through ovemberb
November yD
by ecember3
December 311int
in hec
the orrespondingy
corresponding ear,t
year, hew
the ages
wages
shallb
shall ec
be onsideredt
considered oh
to aveb
have eenp
been aido
paid nt
on he3
the 1sto
31st offDecember.
December.
(2)I
a withholding gentf
agent ailst
fails op
to ayw
pay agesf
wages orD
for ecemberb
December yt
by hel
the astd
last ayo
day offFebruary
February
int
in hef
the ollowingy
following ear,t
year, hew
the agess
wages hallb
shall ec
be onsideredt
considered oh
to aveb
have eenp
been aido
paid nt
on hel
the astd
last ay
day
o
offFebruary.<
February. Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.8],
31,2007>
20
07>
(3)I
(3) Iffac orporationf
a corporation ailst
fails op
to aya
pay nyb
any onust
bonus ob
to ep
be aidb
paid yad
by isposalo
a disposal offanyp
any rofitso
profits orr
surplus,w
surplus, ithint
within hreem
three onthso
months offthed
the eterminationo
determination offthed
the isposal,t
disposal, heb
the onuss
bonus hallb
shall beeconsidered
considered
toh
to aveb
have eenp
been aido
paid nt
on hed
the atewh
date ens
when ucht
such hreemo
three nthse
months xpire:P
expire: rovided,That
Provided, Thatin
inc ase
case
wheret
where hed
the is-p
dis- osali
posal issdeterminedb
determined etweenN
between ovember1a
November ndD
1 and ecember31
December 3
1i nt
in hec
the orrespond-
correspond-
ingy
ing earb
year utt
but heb
the onusi
bonus issnotp
not aidb
paid yt
by hel
the astd
last ayo
day offFebruaryi
February nt
in hef
the ollowingy
following ear,
year,
i
ittshallbe
shall beconsideredt
considered oh
to aveb
have eenp
been aido
paid nt
on he l
the astd
last ayo
day offFebruary.
February.< Amendedb
<Amended y
by
ActNo
Act No..8825,
8825,Dec
Dec
.3],
3
1,2007>
2
007>
(4)A
(4) nyb
Any onust
bonus ob
to ed
be isposedo
disposed offundert
under heC
the orporateT
Corporate axA
Tax cts
Act hallbe
shall beconsideredt
considered o
to
haveb
have eenp
been aido
paid ns
on uchad
such aya
a day assdeterminedb
determined yt
by heP
the resi
-d
Presi- entialD
dential ecree.<
Decree. Amended
<Amended
byA
by ctNo
Act No..8144,
8144,Dec
Dec
.30,
3
0,2006>
20
06>
Art i
cle1
Article 36(
136 TaxA
(Tax mountWi
Amount thheldf
Withheld rom B
from onus,e
Bonus, tc.)
etc.)
(1)Wh
(1) erea
Where awithholdinga
withholding gentw
agent ithholdsa
withholds nyi
any ncomet
income axf
tax roma
from nyb
any onusc
bonus orresponding
corresponding
tot
to hee
the arnedi
earned ncomeo
income orranyw
any ageh
wage avingt
having hen
the atureo
nature offbonus(
bonus hereinafterr
referred o
to
a
ass“bonus,e
“bonus, tc.
”),s
etc”), uchw
such ithholdingi
withholding n-c
in- omet
come axs
tax hallb
shall beecalculateda
calculated assfollows.T
follows. his
This
provisions
provision halla
shall lsoa
also pplyt
apply oa
to nyb
any onus,e
bonus, tc.p
etc. aidt
paid oap
to ersonw
a person hoi
who se
is xemptedf
exempted rom
from
thei
the ncomet
income axo
tax nt
on hee
the arnedi
earned ncomea
income fterm
after akingt
making heg
the lobali
global ncomed
income eduction:
deductioni
- 246 -
-246-
1
1.. B onus
Bonus, ,e t c
etc..wiwiththt hep
the ayabl
payable ep e riod:
period:
T
Thehet axa
tax mounts
amount ha
shallllbe
bec alc ul a
calculated te db byyd e duc t
deductingingt hep
the ai
paiddwi t
hhol di
withholding ngt axa
tax mount
amount
( e x clu din gt h ea d d itio n a l taxa mo u nt)o nt hee ar
(excluding the additional tax amount) on the earned income accruing duringn e di n-c omea c cr u i
n gd urin gt he
the
p ayabl
payable ep e riod,f
period, rom t
from hea
the mountc
amount alc ul a
calculatedtedb byymu l
tipl yi
multiplying ngt hea
the mountc
amount omput
computed edb byy
a ppl yi
applying ngt hes
the i
mpl if
simplified i
e dt axt
tax abl
table et ot
to hea
the mounts
amount ummi
summing ngu uppt hea
the mountc
amount alc ul at
calculatede d
b
by yd ividi
dividingngt hea
the mounto
amount offt heb
the onus
bonus, ,e tc
etc..bbyyt hen
the umbe
number ro offmo nt
months hsf ort
for hep
the ay-
pay-
a bl
able ep e ri
o d,a
period, ndt
and hemo
the nt
monthly hl ya ve r
averagea gew age
wages so the
other rthan
tha nt heb
the onus
bonus, ,e tc.a
etc. c c rui
accruing ngd ur i
ng
during
t hep
the aya bl
payable ep eriod,b
period, byyt hen
the umbe
number ro offmo nt
months hs f ort
for hep
the ayabl
payable ep er iod;
period;
2
2..B onus
Bonus, ,e t c
etc..w ithoutp
without a ya
payablebl ep e ri
periodod:
T
Thehet axa
tax mounts
amount ha
shallllbebec al cul at
calculated e du nde
under rs ubpar a
subparagraphgr a ph1o 1 onnt hea
the s
as- -s umpt
sumption i
ont hat
that
t h ep ay ab lep erio di sf ro m Jan u a r y1i nt hey e aro
the payable period is from January 1 in the year of the receipt of the bonus, etc.ft h er e ce i
p to ft h eb o nu s, etc .
t
toot hemo
the nt
month ho offt hep
the ayme
payment nto offs uc
such hb onus
bonus, ,e tc
etc..I nt
In hi
thissc a se
case, ,if
ift heb
the onus
bonus, ,e tc
etc..iiss
p a
paididt woo
two orrmore
mor et i
me
times si nt
in hec
the o rr e spondi
year,r ,the
thet axa
tax mounts
amount hal
shall lbebec alcul at
calculatede d
o
on nt hea
the s s umpt
assumption iont hatt
that hep
the ayabl
payable ep eriodi
period issf r om t
from hemo
the nt
month hf ollowi
following ngt hemo
the nt
month h
o
offt hep
the ayme
payment nto offt hei
the mme di
immediatelyat e lyp re ce di
precedingngb onus
bonus, ,e t c
etc..t ot
to hemo
the nt
month ho offt hep
the a yme
payment nt
o
offt hes
the ubs e que
subsequent ntb onus
bonus, ,e t c
etc;.;a nd
and
3
3..Int
In hec
the al c ulat
calculation i
ona assr ef err
referred edt oi
to ns
in ubpar agr
subparagraphs a phs1a 1 and nd2 2,,if
ift hep
the a
pay-y-a bl
able ep eriod
period
e xc e
exceeds edso ney
one ear
year, ,iitts hal
shall lbebeo ney
one e a
year,r,a ndi
and ifft hep
the aya
payablebl ep e riodd
period oe
does sn notote xc e
exceede d
o nemo n t h , its h a ll b
one month, it shall be one month. eo nemo n th .
(
(2) Iffawi
2 )I thho
a withholdingl
di nga ge
agentntp aysa
pays nyb
any onus
bonus, ,e tc
etc..by
byd ispos
disposal alo offa nys
any ur
sur--p lus
plus, ,t hei
the nc ome
income
ta
taxxt ob
to ec
be olle c
collectedte dt hr oughwi
through t hhol
withholding di ngs hal
shalllbbeec al cu-l
calcu- at e
lateddu nde
under rt hec
the ondi ti
conditionsonsa ass
p re s cri
prescribed be db byyt heP
the r e side
Presidentialnt ialD e c r
Decree. ee .
(3
(3))I Innt hec
the al cul at
calculation iono offt het
the a
taxxa mountto
amount tob ec
be ol lec
collectedte df r om ab
from onus
a bonus, ,e tc
etc,.
,the
theme t
methodhod
o
offa ppl ica t
applicationi
ona asst op
to ayabl
payable ep er i
oda
period ndo
and the
otherrn e c e ss
necessary ar yma tt
matterser ss hal
shall lbe
bep re s c r
prescribedi
be db byy
theP
the re side nt
Decree.e e .< Newl
<Newly yI ns er
Inserted tedb byyA Act ctNo No..519],
51 91 ,Dec.
Dec .30,
3 0,1996>
1 99 6>
Art i
cle1
Article 37(
137 Year-EndA
(Year-End djustmento
Adjustment offEarnedI
Earned ncomeT
Income axA
Tax mount)
Amount)
(1
(1))WhWhen enaw i
thho l
a withholdingdinga ge nta
agent attt h
theep r i
nc ip
principalalw ork pl
workplace acep a
paysysa nye
any arne
earned di nc o
incomemef o
forr
F ebr ua
February ryi nt
in hey
the ea
year rf o l
lo wi
followingngt hec
the orre spo nd
corresponding ingy e a
yearro orrthat
t ha tfor
fo rthe
them ont
month hi nw
in h i
whichch
ane
an mp l
o
employee ye eretires,
r
e t
ire s,h es
he ha l
shalllmake
ma k ethe
t heg lob
globala
lin-
in-c omed
come e
d uc t
deductionionf ro
fromm the
thee a rne
earneddi nc ome
income
amo
amountu nta ccr uin
accruinggd u rin
duringgt hec
the o rres p on
correspondingdingy ea
yearro orrup
u pt ot
to hemonth
the mo n tho offretirement,
reti
reme nt ,a cc o r
d
accordinging
tot
to hec
the o nte nt
contents sr ep or t
reportededb yt
by hep
the er s
persononh a vi
havingngs uc
such he a rne
earned di nc o
incomemeu nd
undererAr-
Ar -t ic
ticlele1 40
140,,
ands
and ha
shalllld eter mi
determinenet hec
the a lcul at
calculatede dg loba
global lincome
inc o met axa
tax mo
amountuntusing
us ings uc
suchha mo unta
amount asst he
the
g loba
global li nc omet
income a
taxxb a s
base,e,making
ma kingt h
theetax
taxc red i
ta
credit assprescribed
p resc ribe di ns
in ubp aragr
subparagraphsa phso offArticle
Ar t
i cle
13
1344( 4)a
(4) n
anddd educ ti
deductingngt h
theew it
h ho
withhold-ld-i ngt
ing ax,w
tax, h
whilei
lew ithho ld
withholdingingt h
theebalance.
bala nce .< Amended
<Amended
b
byyA Act ctNo No..519],
5 19 1,Dec.
Dec .30,
30 ,1996;
19 96 ;A c
Act tNo
No..8825,
88 25,Dec.
Dec .3],
31 ,2007>
20 07 >
(2
(2))I nt
In hec
the a s
caseeaassr e ferre
referreddt oi
to np
in a ragr
paragraphaph( 1 )
,if
(1), ifthe
thew i
t hho l
di
withholding ngi nc o
incomemet a
taxxp ai
paidda lready
already
int
in hec
the or re spondi
year, ,e xc ee
exceeds dst hea
the mounto
amount bt aine
obtained da f
te
after rma ki
making ngt het
the a
taxxc r e di
credit taass
pr es c ri
prescribedbe di ns
in ubpar agr aphso
subparagraphs offA rtic
Articlele1 34(
134 4)f
(4) rom the
from thec al cul at
calculated edg loba
globallincome
inc omet ax
tax
amo unt
amount, ,t hea
the mo unti
amount ne
in xc es
excess ss ha l
shalllbe
ber e funde
refunded dt ot
to hep
the erso
personnw hoh
who a
hasse a rne
earneddt hei
the ncome
income, ,
unde
under rt hec
the ondi tionsa
conditions assp resc r i
be
prescribed db yt
by heP
the res ide nt
Decree.ee.
- 248 -
-248-
(3)I
a withholding genta
agent attthes
the econdaryw
secondary orkplaceo
workplace offthe
thep ersonw
person hoi
who issnotad
not ai
ly-p aid
a daily-paid
worker,a
worker, ndr
and eceivesw
receives agesf
wages romt
from woo
two orrmore
morep ersons,wi
persons, thholdsa
withholds nyi
any ncomet
income ax,he
tax, heshall
shall
deductt
deduct hewi
the thholdingt
withholding axp
taX aida
paid l
-r
al- eadyi
ready nt
in hec
the orrespondingy
corresponding ear,f
year, rom t
from hec
the alculated
calculated
globali
global ncomet
income axa
tax mountc
amount alculatedb
calculated ya
by ppl
yi ngt
applying heb
the asict
basic axr
taX atet
rate ot
to hee
the arnedi
earned ncome
income
amountpaid
amount pai
daattthes
the econdarywo
secondary rkplacei
workplace nt
in hec
the orrespondingy
corresponding ear,a
year, ndwi
and thholdt
withhold he
the
balance.
balance.
(4)Wh
(4) enawi
When thholdinga
a withholding gentwi
agent thholdsa
withholds nyi
any ncomet
income axb
tax ya
by pplyingt
applying hep
the rovisionso
provisions off
paragraph(
paragraph 1)t
(1) oap
to ersonh
a person avinga
having nye
any arnedi
earned ncomewh
income oh
who asf
has ailedt
failed oma
to ket
make her
the eport
report
a
assprescribedi
prescribed nA
in rt i
cle1
Article 40,t
140, heb
the asicd
basic educ-t
deduc- iono
tion nlyf
only ort
for her
the elevantp
relevant ersonh
person imself
himself
andt
and hes
the tandardd
standard eduction s
deduction hallb
shall ea
be llowable.<
allowable. Amendedb
<Amended yA
by ctNo
Act No..5155,
5155,Aug.
Aug.
14,1996;
14, 1
996;A ctNo
Act No..8144,
8144,De c
Dec..30,
30,2006>
20
06>
(5)F
(5) ort
For hose,o
those, thert
other hand
than ai
l y-paidwo
daily-paid rkers,wh
workers, oh
who avea
have nye
any arnedi
earned ncomeo
income offClassA
Class A
anda
and nye
any arnedi
earned ncomeo
income offClassB
Class from wh
B from icht
which hei
the ncomet
income axh
tax asb
has eenc
been ollectedb
collected y
by
at axa
a tax ssociationa
association assreferredt
referred oi
to nA
in rt i
cle1
Article 50(
150 3),awi
(3), thholdinga
a withholding genta
agent attthe
thep rincipal
principal
workplacew
workplace hichp
which ayst
pays hee
the arnedi
earned ncomeo
income offClassA
Class mayc
A may onductthe
conduct t
hey ear-enda
year-end djustment
adjustment
ont
on hes
the um a
sum mounto
amount offthee
the arnedi
earned ncomeo
income offClassA
Class A andt
and hato
that offClassB
Class B..<Newly
<Newly
In-s
In- ertedb
serted yA
by ctNo
Act No..6051,Dec.
605], Dec.28,
28,1999>
1
999>
Article1
Article 38(
138 Year-EndA
(Year-End djustmento
Adjustment offEarnedI
Earned ncomeT
Income axA
Tax mountfor
Amount f
orRe-
Re
-e mployedP
employed erson)
Person)
(1)Wh
(1) enawi
When thholdinga
a withholding gent,w
agent, hop
who aysa
pays nye
any arnedi
earned ncomeo
income offClassA
Class toap
A to erson
a person
whoi
who issemployedd
employed uringt
during hec
the orrespondingy
corresponding ear,pays
year, pa
yst os
to uche
such mployeet
employee hee
the arnedi
earned ncome
income
forF
for ebruaryo
February offthey
the earf
year ollowingt
following hey
the eart
year owh
to icht
which hed
the ateo
date offemploymentbelongs,
employment be
longs,
thewi
the thholdinga
withholding gents
agent hallwi
shall thholda
withhold nyi
any ncomet
income axu
taX nderA
under rt i
cle1
Article 37f
137 rom the
from thea mount
amount
summingu
summing pt
up hee
the arnedi
earned ncomep
income aidb
paid yt
by hewi
the thholdinga
withholding genta
agent ndt
and hee
the arnedi
earned n-c
in- ome
come
paidb
paid yt
by hep
the reviousw
previous orkplacei
workplace nc
in asew
case heret
where hee
the mployeeh
employee ass
has ub-mi
sub- ttedt
mitted her
the eport
report
ont
on hei
the ncomed
income eductiona
deduction assprovidedb
provided yA
by rt i
cle1
Article 40(
140 1)a
(1) fters
after ummingu
summing pt
up hee
the arnedi
earned ncome
income
paidb
paid yt
by hewi
the thholdinga
withholding genta
agent ndt
and hee
the arnedi
earned ncomer
income eceiveda
received attthe
thep reviousw
previous orkplace
workplace
from J
from anuaryi
January nt
in hec
the orrespondingy
corresponding eart
year ot
to hemo
the ntht
month owh
to icht
which hed
the ateo
date offretirement
retirement
belongsu
belongs nderArticle
under Ar
t i
cle1 41.<
141. Amendedb
<Amended yA
by ctNo.
Act No.503],
5031,Dec.
Dec.29,
29,1995;
1
995;Act
Ac
tNo.
No.519],
5191,
Dec
Dec..30,
30,1 996;A
1996; ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
(2)Wi
(2) thr
Wlth espectt
respect ow
to ithholdingo
withholding offthei
the ncometax
income t
axooffap ersonw
a person hor
who etiredd
retired uringt
during hec
the orrespond-
correspond-
ingy
ing ear,a
year, ndi
and issemployeda
employed gaina
again fterpaying
after pa
yingt hei
the ncomet
income axu
taX nderArticle
under Ar
t i
cle1 37,a
137, ndt
and hen
then
retiresa
retires gaind
again uringt
during hec
the or-r
cor- espondingy
responding ear,t
year, hep
the rovisionso
paragraph 1)s
(1) halla
shall pply
apply
mutatismu
mutatis mu--tandis.
tandis.
Art i
cle1
Article 39(
139 Collection o
(Collection offCarry-OverS
Carry-Over hortagei
Shortage nC
in ollection)
Collection)
- 250 -
-250—
Inwi
In thhol di
withholding nga assp r
e scribe
prescribeddiinnA rt
icl
Articlee1 37o
137 orr1 38(
138 he reinafte
(hereinafterrr e ferre
referreddttooaass“ year-end
“year-end
a dj
us tme
adjustment nto offear ne
earned di ncomet
income axa
tax mount ”
amount”),)
,if
i
fthe
thei n-c
in- omet
come axt
taX toob
beec olle cte
collectedde xceeds
exceeds
thee
the arne
earned di nc omet
income ob
to beep aid,s
paid, uc
suchhe xc es
excesssa mounts
amount ha l
lbe
shall bec ol
l ecte
collecteddwh
whene nt hee
the arne
earnedd
incomei
income issp a i
paiddi nt
in hef
the ollowi ngmo
following nt
month h:P rovided,T
Provided, ha
That tif
i
fthere
ther eiissnoe
no a r
ne
earned di ncomet
income o
to
b
beep aidi
paid nt
in hef
the ollowi ngmo
following nt
month, h,t het
the axa
taX mounts
amount hal
shall lb
beewi thhe
withheld l
di nf
in ul l
.
full.
Art i
cle1
Article 40(
140 Reporto
(Report nI
on ncomeD
Income eductionf
Deduction orP
for ersonHa
Person vingE
Having arned I
Earned ncome)
Income)
(1
(1))WhWhen ena nyp
any e rs
person onw hor
who e c e i
receivesve sa nye
any arne
earned di nc omeo
income offC las
Class sA A d e s ir
desires est ob
to bees ubj e
subject ct
tot
to heb
the asi
basic cd e duc t
deduction,ion,a ddi tiona
additional ld educ t
deduction,io n,a ddi tio
additionalna ld e
de--d uc t i
o
duction nf orpersons
for pe r so nsw i
withthmamany ny
chi ldr
childrene na nds
and pe c
speciali
ald e duc
deduction ti
onf orhis
for hiss po
spouseus eo orrd epe nde
dependents, nts ,h
he es ha
shall llf ileaw
file rit
a writtente nr e po
report rt
indi ca ti
indicatingngt hec
the a us
cause eo offd e duc t
deductionion( he r e i
na
(hereinafterf terreferred
re f
e r r
e dt tooa asst he“
the re p o
“report rto ni
on nc o
income med educ t
deductioni on
forap
for ers
a persono nh a vi
havingnga nye
any ar ne
earned di nc o me
income”) ”)w it
with ht hew
the i t
hho l
withholdingd i
nga ge nta
agent attthe
thep rinc i
principalpalw or kp l
workplacea ce
w hi
whichchc olle ct
collects sh i
his si nc o
incomemet a
taXxb e fo
before reh he er e ce i
receivesve st hew
the a
wage gef orFebruary
for Fe br ua r yooffthe
they ea
year rfollowing
followi ng
thec
the or res po
correspondingndi ngy e
yeara r( inc
(in a s
case ewh wheree reh heeh asr
has e tire
retired,d,before
be foreh heer ec e ive
receives st hewa
the wagegef or
for
themo
the monthntht ow
to hi
whichc ht hed
the at
date eh he er et ire
retired db e l
ongs
belongs) )u nde
under rt hec
the o ndi t
conditionsionsa assp res c ri
prescribedbe db byy
theP
the res i
de nt
Presidential ialDecree:
De cr ee :P rov ide
Provided, d,T ha
That tap ers
a person o nwwhohoi isse mpl oye
employed dd ur i
duringngt hec
the o rr esp o
correspondingndi ng
y ea
year,r,s ha
shallllf il
fileei ittb e for
before eh er
he e c e i
receivesve st hef
the ir s
firsttwawagegea attt hew
the or kpl a
workplace. c e .< Amendedb
<Amended byyA Actc t
No
N0. .519],
5 19 1,Dec.
De c .30,
30 ,1996;
1 9 96 ;Act
Ac tNo.
No.8144,8 14 4 ,Dec.
Dec .30,
3 0 ,2006;
2 0 0 6;Act
Ac tNo.
No .8825,
8 82 5 ,Dec.
De c.3],
3 1 ,2007>
2 00 7 >
(2)T
(2) hewi
The thhol
withholding di nga ge
agent nta attt hep
the r inc i
principalpalwo r kpl
workplace a ces hal l
shall,,u ponr
upon e
re--c e i
vi
ceivingngt her
the e por
report t
o
onni nc omed
income e duc
deduction tionf orap
for er
a persons onh avi
having nga nye
any ar ne
earned di nc ome
income, ,report
r e por ti ittt ot
to hec
the hi e
chief fo off
at axo
a tax ffic
officeeh avi
havingngj ur isdi c
over rt hep
the l
ac
place eo offwi t hhol
withholding di ngt axp
tax a yme
payment, nt ,a ndn
and ot i
notifyfy
thewi
the thhol
withholdingdi nga ge
agentnta attt hes
the e c onda
secondary r
yw orkpl
workplace,ac e ,u nde
under rt hec
the o ndi ti
conditionso nsa assp re s cri
prescribedbe db byy
theP
the re
Pres-s-i de nt
idential i
a lD e c
Decree.re e.
(3
(3))T hep
The r ovi s
provisionsi onso offp ar agr aphs(
paragraphs 1)a
(1) nd(
and 2
(2))s hal
shall lnot
nota ppl
apply yt tooad ai ly-pa
a daily-paid idw or ke
worker. r
.
(4)A
(4) nyp
Any e r
personsonh a vi
havingnga nye
any ar ne
earned di nc ome
income, ,wh
who oi isse mpl
employedoye do orrhhasa sr e
re- -t i re
tired dd ur i
ngt
during he
the
cor r es po ndi
year,r,s ha
shall lls ubmi
submit tt her
the epo
reportr toonni nc o
incomemed e duc t
deduction,i
o n,together
to ge the rw i
withtht hec
the e rt i
f
certifiedied
co pyo
copy offh isr
his e side
resident ntregistration
r egi s trat ionc a r
d.In
card. Int hi
thissc a se
case,,the
thep ro vi si
o
provisionsnso offthe
thep ro vi
proviso s oo offArticle
Ar tic l
e
16
1677( 1)s
(1) ha
shalll la ppl
apply ymu t
mutatisatismu ta
mutandisndi st ot
to hes
the ubmi s
submission s iono offthe
thec e rtif
certifiediedc opyo
copy offar e
a res- s-
ide ntr
ident e gis tr at
registration ionc ar
card. d.
Art i
cle1
Article 41(
141 Reporto
(Report nI
on ncomeDe
Income duction b
Deduction yR
by eemployedP
Reemployed erson)
Person)
I
Iffap e rs
a persononh avi
havingnga nye
any ar ne
earneddi ncome
income, ,w hoh
who hasasr e tire
retireddd uringt
during hec
the or
cor--r es pondi
respondingngy e ar
year, ,
i
issn ewl
newly ye mpl oye
employed da atta not he
another rw orkpl a
workplace,ce ,andr
and e cei ve
receives sa nye
any ar ne
earned di nc omef
income orF
for ebr uar
February y
o
offt hey
the earf
year ollowi
followingngt hey
the ea
yearrtow
to hi
whichcht hed
the at
date eooffhis
hisn e
newwe mpl oyme
employment ntb elongs
belongs, ,h
heema
may y
c onduc
conduct tt hey
the ea r-e
year-end nda dj ustme
adjustmentnto offe arne
earneddi nc omet
income axb
tax byyf ili ngt
filing her
the epor
report to ni
on nc ome
income
d educ ti
deductiononw i
tht
with hen
the e
newww orkplace
workplace, ,a f
t e
rs
after ummi
summing ngu uppt hee
the arne
earned di nc ome
incomes sr e ceive
received daattt he
the
n e
neww wo rkpla
workplacecea ndt
and hee
the a rne
earneddi nco me
incomes sr eceive
received daattt hep
the re viousw
previous or kpl
workplace ac ef r o
frommF ebr ua
Februaryry
int
in h
theec orrespond ingy
corresponding ea
yearrt ot
to hem
the ont
monthht ow
to h i
c
whichht hed
the at
dateeooffh isr
his et i
r e me
retirement ntb elongs
belongs. .< Ame n
<Amended de d
b
byyA c
Act tNo
N0..519],
5 19 1,Dec.
Dec .30,
30,1996;
19 96 ;A c
ActtNoNo..8825,
88 25 ,Dec.
Dec .3],
31 ,2007>
20 07 >
- 252 -
-252-
Art i
cle1
Article 42(
142 Reporto
(Report nWo
on rkplace)
Workplace)
(1)A
(1) nyp
Any erson,o
person, thert
other hanad
than ai
l y-paidw
a daily-paid orker,w
worker, hor
who eceivesa
receives nye
any arnedi
earned ncomesf
incomes rom
from
twoo
two orrmorew
more orkp l
aces,s
workplaces, halld
shall ecidethe
decide t
heprincipal
p
rincipala nds
and econdaryw
secondary orkp l
aces,before
workplaces, be
forehe
he
receivess
receives uche
such arnedi
earned ncomesf
incomes rom two
from twooorrmore
morew orkp l
aces,a
workplaces, ndr
and eportit
report i
tto
t
oaawithholding
withholding
agenta
agent attthep
the rincipalw
principal orkp l
ace,under
workplace, und
erthe
t
hec onditionsa
conditions sp
as rescribedb
prescribed yt
by heP
the residential
Presidential
Decree.
Decree.
(2)T
(2) hew
The ithholdinga
withholding gents
agent hall,u
shall, ponr
upon eceivingt
receiving her
the eporta
report sr
as eferred
referred
toi
to np
in aragraph(
paragraph 1),report
(1), r
eportt hereported
the r
eportedm attersto
matters t
othe
t
hec hiefo
chief offa taxo
a tax ffi
cehaving
office h
avingj ur i
sdiction
jurisdiction
overt
over hep
the rincipalw
principal orkplace
workplace,andn
and oti
f yt
notify hew
the ithholding
withholdinga genta
agent attthe
thes econdaryw
secondary orkp l
ace,
workplace,
undert
under hec
the onditionsa
conditions sp
as re-s
pre- cribedb
scribed yt
by heP
Presidential De
cree.
Art i
cle1
Article 43(
143 Deliveryo
(Delivery offReceipto
Receipt offWithholdingf
Withholding rom Earned
from EarnedI ncome)
Income)
Anyw
Any ithholdinga
withholding gent,w
agent, hopays
who p
aysa nye
any arnedi
earned ncome,s
income, halld
shall el
i verthe
deliver t
hew ithholdingr
withholding eceipt
receipt
spec
if yingt
specifying hee
the arnedi
earned ncomea
income ndo
and thern
other ecessarym
necessary atters,to
matters, t
ot heperson
the p
ersonr ecei
vi ngi
receiving t,no
it, no
latert
later hant
than hee
the ndo
end offFebruary
Februaryooffthe
they earfollowing
year f
ollowingt hec
the orrespondingy
corresponding ear,under
year, unde
rthe
t
he
conditionsa
conditions sp
as rescribedb
prescribed yt
by heP
the residentialDecree:
Presidential De
cree:Provided,
Pr
ovided,T hatwi
That thr
with espectt
respect oa
to a
personwh
person oh
who asr
has etiredd
retired uringt
during hec
the orrespondingy
corresponding ear,i
year, ittshallb
shall ed
be el
iv-e
deliv- redn
ered ol
no ater
later
thant
than hee
the ndo
end offthemo
the nthf
month ollowingt
following hemo
the ntht
month ow
to hicht
which hep
the aymentd
payment ateo
date offthewa
the ge
wage
fort
for hemo
the nthh
month er
he etiresb
retires elongs,a
belongs, ndi
and nt
in hec
the aseo
case offanye
any arnedi
earned ncomeo
income offad ai
l y-paid
a daily-paid
workeru
worker ndert
under hep
the rovi
-s
provi- ionso
sions offthep
the rovisoo
proviso offArt i
cle1
Article 64(
164 1),i
(1), ittshallb
shall ed
be eliveredn
delivered o
no
latert
later hant
than hee
the ndo
end offthem
the onthf
month ollowingt
following hel
the astmonth
last mo
nthoofftheq
the uartert
quarter ow
to hicht
which hep
the ayment
payment
datet
date hereofb
thereof elongs(
belongs thee
(the ndo
end offFebruaryo
February offnexty
next earf
year ort
for hee
the arnedi
earned ncomep
income aidi
paid n
in
the4
the thq
4th uarter).<
quarter). Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.30,
30,2006>
2
006>
Art i
cle1
Article 43-2(
143-2 Methodo
Withholding rom Annuity
from AnnuityI ncome)
Income)
(1)Wh
(1) enaw
When ithholdinga
agent p
aysa nya
any nnui
t yi
annuity ncomefalling
income f
allingu nderAr-
under Ar
-t icle2
ticle 0-3(
20-3 1)
(1)
1o
1 orr2
2,,hes
he hallw
shall ithholdt
withhold hei
the ncomet
income axa
taX ccordingt
according ot
to hes
the implifi
eda
simplified nnui
t yi
annuity ncomet
income ax
tax
table.
table.
(2)Wh
(2) enaw
When ithholdinga
a withholding gentp
agent aysa
pays nya
any nnui
t yi
annuity ncomef
income allingu
falling nder Article
under Art i
cle2 0-3(
20-3 1)
(1)
3
3,,4a nd4
4 and -2,h
4-2, es
he hallc
shall ollectt
collect hew
the ithholdingt
withholding axb
tax ya
by p-p
ap- lyingt
plying hew
the ithholdingt
withholding axr
tax ate
rate
tot
to hea
the nnui
t ya
annuity mountp
amount aid.<
paid. Amended b
<Amended yA
by ctNo
Act No..7837,Dec.
7837, Dec.3],
31,2005>
2
005>
(3)Wh
(3) ent
When hew
the ithholdinga
withholding gentpays
agent pa
yst hea
the nnui
t yi
annuity ncomef
income orJanuary
for J
anuaryooffthe
they earfollowing
year f
ollowing
thec
the orrespondingy
corresponding ear,h
year, es
he hallc
shall ollectthe
collect t
hewi th-h
with- oldingt
holding axp
tax ursuantt
pursuant oA
to rticle1
Article 43-4.
143-4.
Ins
In uchc
such ases,t
cases, hei
the ncomet
income axs
tax hallbe
shall bewithheldo
withheld nt
on heJ
the anuarya
January nnui
t yo
annuity offthe
thef ollowing
following
yearp
year ursuantt
pursuant tooparagraph(
paragraph 1).<
(1). Amendedb
<Amended yA
by ctNo
Act No..6557,
6557,Dec.
Dec.3],
31,200]>
2
001>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000]
2
000]
—254—
- 254 -
Art i
cle1
Article 43-3D
143-3 eleted.<
Deleted. byA
<by ctNo
Act No..6557,
6557,Dec
Dec
.3],
31
,2001>
20
01>
Art i
cle1
Article 43-4(
143-4 Year-EndR
(Year-End econcilemento
Reconcilement offAnnuityI
Annuity ncomeT
Income ax)
Tax)
( 1
(1))WhWhen ent h
the ew i thh o
withholdingld inga ge
agent ntu nd
undere rA rtic
Article l
e1 4 3
143-2 -2( 1
(1))p aysa
Days nnu
annuity ityi n c o
income mef orJ
for anu a
January ry
o
offt h
theey ea
yearrf o l l
o wi
following ngt h
theec o r re s p o
corresponding n d ingy ea
year,r,hhees h
shalla llc o llec
collectta assw ithh ol
withholdingd ingt a
taxxt h
theebalance
ba l
a n ce
a fte
afterrs ubt r
a c t
subtracting ingt hew
the i
t hho l
withholding d i ngi nc o
incomemet a
taxxa lr e
alreadya d yc o llec t
collectede dd ur ingt
during h
theec o rr es po
correspondingndi ng
y ea
year rf r o
frommt h
theeg lo ba
global li nc o
incomemet a
tax,x,w h
whichichi sc
is omp
computedu te db a s
basede do nt
on h
theeg l
o b
globala lincome
in co metaxta xb a
basese
a rriv
arrivede d
b
byym ak
makingingt h
the eb a s
basic icr e d uct
reduction,ion ,a d ditio
additionaln alr e du ct
reductioni
o na n
and ds tan d a
standard rdr e du cti
reductiono nf ro
fromm thet hea n nu
annuityit
y
inc o
incomemea mo unta
amount c cru
accruing ingd ur i
during ngt hec
the o rre s p ond
corresponding ingy e
yeararb as
basede do on nt hed
the e t a
detailsi l
sreturned
retur ne db y
by
t h
theea nnui
annuitytyi nc o
income mee a rne
earner rp ur s
pursuant ua ntt oA
to rt i
c
Article l
e1 4 3
143-6.-6 .< Amendedb
<Amended yA
by Actc tNo No..6557,
65 57 ,
De
Dec c .3],
31 ,2001>
20 01 >
( 2
(2))I nc
In as
caseseswhwheree rep ar agr
paragraph a ph( 1
(I))iissa ppl ic a bl
applicable, e,i ifft hewi
the t hhol
withholdingdi ngi n- c
in- omet
come a
taxxa lre a
alreadydy
c olle c
collectedtedd ur i
during ngt hec
the or re s pondi
corresponding ngy e
yearare xc e e
exceedsdst hec
the or re
corre- -s pondi
sponding ngc al cul
calculatedat edg loba
global l
inc omet
income axa
tax mount
amount, ,t hee
the xc
excesse s sa mounts
amount hal
shalllbeber efunde
refunded dt ot
to hec
the or re spondi
corresponding nga nnui
annuity ty
inc omee
income arne
earner ra assp rovi
providedde di nt
in heP
the res ide
President ntD e c
Decree.re e.
( 3
(3))IInnc a se
casessw he
where r ei nc o
incomemet a
taxxi issc o llecte
collected db yw
by ithho l
withholdingdi nga atts our
sourcec ep ur
pur--s ua
suantntt op
to a ragr a
paragraph ph
( 1
(1))f rom a
from na
an nnui
annuity tyi nc omee
income ar
earnerne rwhwho oh asf
has ail e
failed dt oma
to make ket het
the axr
tax et ur
return nu nde
under rA r
t ic
Article l
e
1 43 -6
143-6, ,o nl
onlyyt heb
the as
basic icd e duc t
deductioni onf o
forrs uc
such ha nnui
annuitytyi nc o
incomemee ar ne
earner rhimself
hims e lfa ndt
and hes
the t
andar
standard d
d educ
deductiontions ha
shall llb beema
made. de .
( 4
(4))I nc a seswh er et hea n nu ityi n co mee arn
hicaseswhereflieanmityfimreeerrerdeceasesmflrecorresponcfing erd ec eas esi nt h ec orre sp o n dingy e a
year, r,the
thew ithho l
d i
withholding ng
a ge
agentnts hal
shalllm a
make ket hey
the e ar-e
year-end ndt a
tax xr e c onc il
e me
reconcilement n tfor
f
o rthethed ecea s
deceasede da nnui
annuity tyi nc o
incomemee arne
earner rby
byt he
the
e ndo
end offt hem
the o
nnnthnthf ol
lo wi
following ngh i
hissd e a
deaththb byym u tat
Imtatisism u t
mtmdisa nd isa p p l
yi
applyingngp ara gr ap
paragraphs h s( 1)through
(1) thr ough( 3)
(3)..
( 5
(5))WhWhere eret hea
the nnui
annuity t yi nc omep
income ai
paiddb yt
by hewi
the t hhol
agentntu nde
under rA Ar-r -
t i
cl
ticlee1 4 3
143-2-2( 1
(1))i issn otmo
not morer et han6mi
than ll
6 millionionwo won np e
per ry ear
year, ,the
thep r ovi s i
provisionsonso offp ar agr a
paragraphs phs
( 1
(1))t hr ough(
through 4)s
(4) ha l
shallln otb
not beea ppl i
applied,e d,a ndi
and na
in ppl
applyingyi ngt hep
the r ovi si
Articlec le7733( 4)
(4),,
i
itts hal
shall lbe
bed e e
deemedme dt hatay
that e a
a year-endr -e ndr e con-c
recon- ile me
cilement nthasha sb e e
been nma de
made. .< Newl
<Newly yI ns er
Insertedted
b
byyA Act c tNo
No..6557,
6 55 7,Dec.
Dec .3],
31 ,2001;
20 01 ;A c
Act tNoNo..8825,
88 25 ,Dec.
Dec .3],
31 ,2007>
20 07 >
[ Thi
[This sA rtic
Article l eNeNewly wl yI ns er
Inserted t edb yA
by c
Act tNoNo..6292,6 29 2,Dec.
Dec .29,
2 9,2000]
2 00 0]
Art i
cle1
Article 43-5(
143-5 Collectiono
(Collection offDeficientT
Deficient axA
Tax mountsC
Amounts arried-Over)
Carried-Over)
Wheret
Where hei
the ncomet
income axa
tax mountt
amount hats
that houldb
should ec
be ollectedb
collected yw
by ithholdinga
withholding attsourcepursuant
source p
ursuant
toA
to rt
i cl
e1
Article 4 3
-4(
143-4 hereinafter“
(hereinafter year-endr
“year-end econcilemento
reconcilement offannui t
annuityyi nc omet
income ax”)e
tax”) xceeds
exceeds
thea
the nnui t
annuityya mountpayable,
amount paya ble,s uche
such xcessa
excess mo un
amount tshallbe
shall bec ollecteda
collected attthe
thetime
t
imeo offpaying
paying
th
theefollowingm
following onth’
sa
months nnui ty.
annuity.
[Thi
[ThissA rti
c l
eNe
Article wl
NewlyyI ns er t
InsertededbbyyA c
ActtNo
No..6292,
6292,Dec.
Dec .29,
2 9,2000]
200 0]
Art i
cle1
Article 43-6(
143-6 Returno
(Return nI
on ncomeD
Income eductionb
Deduction yA
by nnuityI
Annuity ncomeE
Income arner)
Earner)
- 256 -
-256—
(1)Wh
(1) ena
When na
an nnui
t yi
annuity ncomee
income arnerf
earner allingu
falling nderA
under rt i
cle2
Article 0-3(
20-3 1)1a
(1) nd2i
1 and ntendst
2 intends too
applyt
apply heb
the asica
basic nda
and dditionald
additional eductionsf
deductions orhis
for hi
ss pouseo
spouse orrdependents,he
dependents, heshalls
shall ubmit
submit
ar eturn(
a return hereinafterr
referred oa
to assa
a “returno
“return na
on nnuityi
annuity ncomed
income eduction”)i
deduction”) ndicating
indicating
thep
the articularso
particulars offsuchd
such eductionst
deductions ot
to hew
the ithholdinga
withholding gentb
agent eforeD
before ecember3
December 311o
offthe
the
corre-s
corre- pondingy
sponding eara
year assprovidedb
provided yt
by heP
the residentialD
Presidential ecree:Provided,
Decreei Pr
ovided,That
That where
where
thea
the nnui
t yi
annuity ncomee
income arnerd
earner eceasesi
deceases nt
in hec
the urrentyear,
current ye
ar,his
hi
sp red-e
pred- cessors
ecessor halls
shall ubmit
submit
suchr
such eturnf
return ora
for nnui
t yi
annuity ncomed
income eductionb
deduction yt
by hee
the ndo
end offthemo
the nthf
month ollowingt
following hed
the eath
death
o
offthed
the eceasedi
deceased nheritee.<
inheritee. Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
(2)T
(2) hewi
The thholdinga
withholding gentwh
agent or
who eceivess
receives uchr
such eturnso
returns na
on nnuityi
annuity ncomed
income eductions
deduction hall
shall
submitt
submit hei
the nformationo
information offsuchr
such eturnst
returns ot
to hes
the uper
in-t
superin- endento
tendent offthed
the istrictt
district axo
taX ffice
office
responsiblef
responsible ort
for hewi
the thholdingt
withholding axc
taX ol
-l
col- ectiona
lection assprovidedi
provided nt
in heP
the residentialD
Presidential ecree.
Decree.
(3)T
(3) hea
The nnui
t yi
annuity ncomee
income arnert
earner ow
to homa
whom nnui
t yi
annuity ncomea
income ccruesf
accrues ort
for hef
the irstt
first imed
time uring
during
thec
the urrenty
current ears
year halla
shall ttachh
attach isr
his esidentregistration
resident r
egistrationc ardd
card uplicatet
duplicate oh
to isr
his eturno
return na
on nnui
t y
annuity
incomed
income eduction.
deduction.
(4)A
(4) na
An nnuityi
annuity ncomee
income arnermay
earner ma
yf ilef
file orthe
for t
hea nnuityi
annuity ncomed
income eductionb
deduction ys
by uchm
such eans
means
prescribedb
prescribed yt
by heP
the resi
dentialD
Prwidential ecreea
Decree assinformationc
information om- munication
com- municationn etworks.<
networks. Newly
<Newly
Insertedb
Inserted yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000]
2
000]
Art i
cle1
Article 43-7(
143-7 Issuanceo
(Issuance offWithholdingT
Withholding axR
Tax eceiptsf
Receipts orA
for nnuityI
Annuity ncome)
Income)
Thew
The ithholdinga
withholding gentpaying
agent p
ayinga nnui
t ys
annuity hallissue
shall i
ssueaw ithholdingt
a withholding ax receipt
tax receiptindicating
i
ndicating
thea
the nnui
t yi
annuity ncomepaid
income p
aida ndo
and thern
other ecessarym
necessary attersto
matters t
ot hea
the nnui
t yi
annuity ncomerecipient
income r
ecipientby
by
thee
the ndo
end offFebruary
Februaryoofftheyear
the ye
arfol-
f
ol
-l owingt
lowing hec
the urrentyear
current y
eara sprovided
as p
rovidedi nt
in hePresidential
the Pr
esidential
Decree:Provided,
Decree: Pr
ovided,T hatw
That heret
where hea
the nnui
t yi
annuity ncomee
income arnerd
earner eceasesi
deceases nt
in hec
the urrenty
current ear,s
year, uch
such
receipts
receipt hallbe
shall beissuedb
issued yt
by hee
the ndo
end offthemo
the nthf
month ollowingh
following isd
his eath.
death.
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000]
2
000]
Article1
Article 44(
144 Methodo
(Method offCollectiono
Collection offTaxo
TaX nB
on usinessI
Business ncomet
Income hroughWi
through thholdinga
Withholding nd
and
Deliveryo
Delivery offWithholdingR
Withholding eceipt)
Receipt)
(1)Wh
(1) enawi
When thholdinga
agent pa
ysa nyr
any eceipta
receipt mounto
amount ns
on uchb
such usi
-n
busi- essi
ness ncomea
income ass
prescribedb
prescribed yt
by heP
the residentialDecree,
Presidential De
cree,h es
he hallwi
shall thholdt
withhold hei
the ncomet
income axc
tax alculatedb
calculated y
by
appl
yi ngt
applying hewi
the thholdingt
withholding axr
taX atet
rate os
to uchp
such ayablea
payable mount.
amount.
(2)T
(2) hewi
The thholdinga
withholding gent,wh
agent, op
who ayst
pays her
the evenuea
revenue mounto
amount ns
on uchb
such usi
-n
busi- essi
ness ncome
income
a
assprescribedb
prescribed yt
by heP
the residentialD
Presidential ecree,s
Decree, halld
shall elivert
deliver o the
to thep ersonr
person eceivingi
receiving t,t
it, he
the
withholdingr
withholding eceipts
receipt peci
f yingt
specifying her
the evenue a
revenue mounta
amount ndo
and thern
other ecessaryma
necessary tters,wh
matters, en
when
i
ittpayst
pays her
the evenuea
revenue mounto
amount ns
on uchb
such usinessi
business ncome,u
income, ndert
under hec
the onditionsa
conditions assprescribed
prescribed
byt
by heP
the res-i
Pres- dentialD
idential ecree.
Decree.
- 258 -
-258—
(3)T
(3) hep
The rovisionso
provisions offp aragr aphs(
paragraphs 1)a
(1) nd(
and 2)s
(2) halla
shall ppl
applyymu tatismu
mutatis mu--t andisi
tandis iffthet
the ax
tax
w i
t hhol
dinga
withholding ge ntpays
agent p ayst hei
the ncomea
income mo untfrom
amount f
ro ms er
-v
ser- ic
viceefeed
fee eterminedb
detennined yt
by heP
the r esi
de ntia
Presidentiall
D e cre
e
Decree..< Newl
<Newly yI ns er t
edb
Inserted yA
by c
ActtNoNo..5580,
5 58 0,Dec.
Dec .28,
2
8,1998>
1998>
Ar ticl
Articlee1 44-2(
144-2 Se ttl
e me
(Settlement nto offAccounts
Ac count si nY
in e ar -Endo
Year-End nT
on axA
Tax mounto
Amount offBusiness
Bus ine ssI nc ome
Income
E xc e
Except ptf orF
for inalR
Final etur
Return no offTTaxaxB as
Base)e)
(1
(1))AA w ithho l
di
withholdingnga ge ntpaying
agent pa yi ngr eve nuea
revenue mo untf
amount ro
fromms uchb
such us ine
business ssi nco mea
income assp resc ri
be
prescribedd
inA
in rticl
e7
Article 3(
73 1)5s
(l) ha
5 shallllw i
thho
withhold l
dt hei
the nc o
incomemet axd
tax ete rmine
determined di nt
in hey
the ear-endr
year-end e conc il
eme
reconcilement nt
o
offt heb
the us ine
businessssi nc omet
income a
tax xf orthe
for thec ur re
currentnty eara
year assp rescribe
prescribeddb byyt heP
the re si
de nt i
PresidentialalD e cree
Decree..
< Amendedb
<Amended byyA ActctNo
No..6292,
62 92 ,Dec.
Dec .29,
29,2000>
2 000>
(2)T
(2) hea
The mounto
amount offb us i
ne
income assp re sc ribe
prescribed di np
in aragr aph(
paragraph 1)s
(1) ha l
lb
shall beet hea
the mount
amount
ca lcul at
calculatede
db byymu ltiplyi
multiplying ngt her
the eve nuea
revenue mo unto
amount onnb us
busi- i
- ness
ne ssi nc o
incomemewh i
c
whichhaw i
thho ldi
a withholding ng
a ge
agentnth asp
has aidb
paid byyt her
the at
rateea assp re
pre- -s cribe
scribed db yt
by heP
the reside nt
De cr
e e.
(3
(3))I na
In ppl yingp
applying a ragr
paragraphaph( 1)
(1),,o t
he
otherrn ece ss
necessaryar yma t t
matterserss uc
suchha asst hes
the ub-mi
sub- s s
missioni
ono offthe
the
inc omed
income educ t
deductionionr etur
returnns hal
shall lb ep
be r e scribe
prescribed db yt
by heP
the res i
-d
Presi- e nti
dentialalD ec re
e
Decree..
[ Thi
[This sA rtic
Article l
eNe Newlywl yI ns er
Inserted t edb yA
by c
Act tNo
No..5191,
519 1,Dec.
Dec .30,
3 0,1996]
1 99 6]
Ar ticl
Articlee1 45(
145 Me thodo
(Method offC ollec t
Collectioniono offT a
TaxxoonnMi s c ellane
Miscellaneous ousI ncome
Incomes st hr oughWi
through thhol di
Withholdingng
a ndD
and el
ive
Delivery ryo offWi thhol
Withholdingdi ngR ec eipt
Receipt) )
( 1
(1))WhWhene naw i
thho l
di
a withholding nga ge
agentntp aysa
pays nymi
any s cella ne
miscellaneousousi nc ome
income, ,it
its hallw
shall ithho
withhold l
dt hei
the nc ome
income
t a
taxxc a lcula t
calculatededb byya ppl yi
applyingngt hewi
the thhol di
withholdingngt axr
tax at
rateet os
to uc
such hmi sc e l
lane
miscellaneousousi nc omea
income mo unt
amount. .
( 2
(2))A nyw
Any it
hho ldi
withholdingnga ge
agentntw whohop a ysa
pays nym
any isce l
lane
miscellaneous ousi nc omes
income ha
shalll
ld e
de--l ive
liver raw i
thho l
ding
a withholding
r ece i
receiptpts pe c i
f yi
specifyingngt hei
the nc omea
income mounta
amount ndo
and the
otherrn ec
nec--e ssar
essary yma tt
e
mattersr st ot
to hep
the ersonwh
person who o
i
issp ai
paiddw he
when nh heep a ysi
pays ittunder
unde rthe
thec on-d
con- i
tionsa
ditions assp r es c ri
be
the r es ide nt
Presidential ialDecree:
De cre e:
P rovi ded,T
Provided, hatwh
That e
wherereh heep aysa
pays nymi
any sc ellane
miscellaneous ousi nc omef
income al l
ingu
falling nde
under rA r
t icl
e2
Article 211( 1)
(1)
1
155( a),a
(a), nd1
and 199( a
(a))a nd(
and b)that
(b) tha td oe
doessn o
notte xc e
exceededt hea
the mo
amountuntd et
e rmi ne
determined dbbyyt heP
the resident i
Presidentialal
D ec r
Decree,ee ,h ema
he may yn otd
not e l i
ve
deliver raw i
thhol di
a withholding ngr e ceipte
receipt xc e
exceptptt hec
the as e
casessw he
where ret hep
the e r
s
persononwwhoho
i
issp ai
paidda sksf
asks ort
for hed
the e live
deliveryryo offthe
t
hewi thho l
withhold-d-i ngr
ing e cei pt
receipt. .< Amendedb
No.8144,
814 4,
Dec
Dec. .30,
30 ,2006>
20 06 >
Ar ti
cle1
Article 46(
146 Me t
h o
(MethoddooffWithholding
Wi thho l
din
gf r o
frommR e
tireme n
RetirementtInoorne
I
n co mea n
anddD e
De--l iver
livayyooffWithholding
Wi t
hh o
ld i
ngR ece
ipt)
Receipt)
(1
(1))Wh
When e naw it
hho ldi
a withholdingnga ge ntp
agent a
pays ysa nyC
any l
assA
Class re t
ir eme
A retirement nti nc o me
income, ,h es
he hallw
shall i
thhol
withhold dthe
the
inco met
income axc
tax al
culate
calculateddbbyya pplyi
ngt
applying hew
the i
thho ldi
ng tax
withholding ta xr a t
et
rate toot hetax
the taxb a s
baseeooffs uc
such hr etireme nt
retirement
inc ome
income. .< Amendedb
<Amended byyA c
ActtNo.
No.5155,
515 5,Aug.
Aug.1 4
14,,1 99 6
1996;;Act
Ac tNo.
No.6292,
629 2,Dec
Dec .29,
29,2000>
2 0
00 >
(2
(2))AAnynywi t
hholdi nga
withholding ge nt
agent,,w hop
who aysar
pays etireme
a retirementnti nc ome
income, ,s hal
shallld elive
deliver rawi thhol di
a withholding ng
re ceipts
receipt pec i
fyingt
specifying her
the e t
ireme nti
retirement ncomea
income ndo
and t
he
other rn ece
neces- s-s ar
saryyma tte
mattersrsttoot hep
the erson
person
w hoi
who issp ai
d,n
paid, ol
no ate
laterrt ha
thannt hee
the ndo
end offthe month
the mo nt hf ollowi ngt
following hemo
the nt
month ht ow
to hic
ht
which hep
the a yme
payment nt
d at
dateeb elongsu
belongs nde
under rt hec
the ondit i
onsa
conditions assp resc ri
be
prescribeddb byyt heP
the res ident
Presidentiali
alD ec re
Decree.e.
- 260 -
-260-
Art i
cle1
Article 47(
147 Fictit i
ousP
(Fictitious aymentD
Payment ateo
Date offRetirementI
Retirement ncome)
Income)
(1)I
(1) Iffa
awithholdinga
withholding gent,w
agent, hoi
who sto
is t
op ayt
pay heretirement
the r
etirementincome,
i
ncome,fails
f
ailsto
t
op ayt
pay heretirement
the r
etirement
allowancea
allowance mountt
amount ot
to hep
the ersonw
person hoh
who asr
has etiredf
retired rom his
from hiss erviceb
service etweenJ
between anuarya
January nd
and
November,b
November, yD
by ecember3
December 311int
in hec
the orrespondingy
corresponding ear,the
year, t
her etirementa
retirement llowancea
allowance mount
amount
shallb
shall ec
be onsi
d-e
consid- redt
ered oh
to aveb
have eenp
been aido
paid nt
on he3
the 1sto
31st offDecember.
December.
(2)I
(2) Iffthew
the ithholdinga
withholding gentf
agent ailst
fails op
to ayt
pay heretirement
the r
etirementa llowancea
allowance mountto
amount t
oa personw
a person ho
who
hasr
has etiredi
retired nD
in ecemberb
December yJ
by anuary3
January 311int
in hef
the ollowingy
following ear,the
year, t
her etirementa
retirement llowance
allowance
amounts
amount hallb
shall ec
be onsideredt
considered oh
to aveb
have een paid
been paido nt
on he3
the 1sto
31st offJanuary.
January.
(3)I
(3) Iffa
acorporationf
corporation ailst
fails op
to aya
pay nyr
any etirementa
allowance mountt
amount ob
to ep
be aidb
paid yt
by hed
the isposal
disposal
o
offanyp
any rof
itso
profits orrsurplus,w
surplus, ithint
within hreem
three onthso
months offthe
thed eterminationo
determination offsuchd
such isposal,the
disposal, t
he
retirementa
allowance mount s
amount hallb
shall ec
be onsideredt
considered ob
to ep
be aida
paid attthe
thee xpirationo
expiration offsuch
such
threem
three onths:P
monthsi rovided,T
Provided, hati
That iffther
the etirementa
allowance mountt
amount hed
the isposalo
disposal offwhich
which
i
issdecidedf
decided rom November
from November1t oD
1 to ecember3
December 1,i
31, issnotp
not aidb
paid yJ
by anuary3
January 311 int
in hef
the ollowing
following
year,t
year, her
the etirementa
allowance mounts
amount hallb
shall ec
be onsi
d-e
consid- redt
ered ob
to ep
be aido
paid nt
on he3
the 1sto
31st off
January.
January.
(4)T
(4) hep
The rovisionso
paragraphs( 1)a
(1) nd(
and 2)s
(2) halln
shall otbe
not b
ea ppliedt
applied toothe
thec aseo
case offretirement
retirementincome
i
ncome
underA
under rticle2
Article 222(1)1(
(1) d)a
1 (d) nd(
and e).<
(e). NewlyI
<Newly nsertedb
Inserted byyActNo.
Act No.6557,
6557,Dec.
De
c .3],
31,2001>
2
001>
Art i
cle1
Article 48(
148 WithholdingT
(Withholding axA
TaX mounto
Amount nR
on etirementI
Retirement ncome)
Income)
Inc
In asesw
cases herea
where awithholdinga
withholding genti
agent st
is om
to akepayments
make p
aymentso nr
on etirement,the
retirement, t
hecalculation
c
alculationooff
withholdingi
withholding ncomet
income axs
tax hallb
shall em
be adei
made na
in ccordancew
accordance itht
with hef
the ollowings
following ubparagraphs:
subparagraphsi
<Amendedb
<Amended yA
by ctNo
Act No..5155,
5155,Aug.
Aug.14,
14,1996;
19
96;A ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000>
20
00>
1
1..
I nt
In hea
the bsenceo
absence offotherp
other aymentso
payments nr
on etirementa
retirement lreadyma
already det
made oar
to esidenti
a resident nt
in he
the
yearo
year offassessment,t
assessment, hea
the mounto
amount offtaxs
tax hallb
shall ec
be al
-c
cal- ulatedb
culated ym
by ultiplyingt
multiplying hew
the ithholding
withholding
taxr
tax ateb
rate yt
by het
the axb
tax aseo
base offther
the etirementi
retirement ncome;a
income; nd
and
2
2..
I nc
In aseo
case offthee
the xistenceo
existence offotherpayments
other payme
ntso nr
on etirementa
retirement lreadyma
already det
made oar
to esident
a resident
int
in hey
the earo
year offassessment,the
assessment, t
hea mounto
amount offtaX
taxs hallbe
shall bedecidedb
decided yt
by hed
the eductiono
deduction off
thet
the axa
tax mounto
amount nt
on hep
the aymentso
payments nr
on e-t
re- irementa
tirement lreadyp
already aidf
paid rom t
from hea
the mounto
amount off
taxwh
tax ichi
which isscalculatedb
calculated ymu
by ltiplyingt
multiplying hewi
the thholdingt
withholding axr
tax ateb
rate yt
by het
the axb
tax aseo
base off
retirementi
retirement ncomee
income qualto
equal t
ot hea
the ggregateo
aggregate offpayments
paymentso nr
on etirementa
retirement lreadyp
already aida
paid nd
and
tob
to ep
be aid.
paid.
Art i
cle1
Article 49(
149 Organization o
(Organization offTax As
TaX sociation)
Association)
Ther
The esidentsf
residents allingu
falling ndera
under nyo
any offthe
thef ollowings
following ubparagraphs,ma
subparagraphs, yo
may r-g
or- anizeat
ganize ax
a tax
associationu
association ndert
under hec
the onditionsa
prescribed yt
by heP
the res-i
Pres- dentialDecree
idential De
cree:
- 262 -
-262-
1
1..
T hosewh
Those oh
Who avet
have hee
the arnedi
earned ncomeso
incomes offClassB
Class B;;and
and
2
2..
B usinessmena
Businessmen assprescribedb
prescribed yt
by heP
Presidential De
cree.
Art i
cle1
Article 50(
150 Liabilityo
(Liability offTax As
TaX sociation f
Association orC
for ollection o
Collection offTaxes)
Taxes)
(1)T
(1) het
The axa
tax ssociations
association hallc
shall ollecte
collect achmo
each ntht
month hei
the ncomet
income axo
tax nt
on hee
the arnedi
earned ncomes
incomes
o
offClassB
Class B o
orrbusinessi
business ncomeso
incomes offitsme
its mbers.
members.
(2)Wh
(2) ent
When het
the axa
tax ssociationo
association rganizedb
organized yt
by heb
the usinessmena
businessmen assprescribedi
prescribed ns
in ubparagraph
subparagraph
2o
2 offArticle
Art i
cle1 49,c
149, ollectsu
collects nderp
under aragraph(
paragraph 1)the
(1) t
hemo nthlyi
monthly ncomet
income axf
taX orits
for i
tsme mbers,
members,
i
ittshallc
shall ollecta
collect assincomet
income ax,t
tax, hea
the mounto
amount btainedb
obtained yd
by eductingt
deducting hea
the mounte
amount quivalent
equivalent
t
too10/100o
10/100 offthet
the axa
tax mount.
amount.
(3)Wh
(3) ent
When het
the axa
tax ssociationo
organized yt
by hosewh
those oh
Who avet
have hee
the arnedi
earned ncomeo
income offClass
Class
Bs hall,a
B shall, assthemo
the nthlyi
monthly ncomet
income ax,c
tax, ollectthe
collect t
hea mounto
amount btainedb
obtained ys
by ubtractinga
subtracting na
an mount
amount
equivalentt
equivalent o1
to 0/100o
10/100 offthep
the ayablet
payable axa
tax mountfrom
amount f
rom its
itsm embers’incomei
members’ i
ncome:P rovided,T
Provided, hat
That
whereaf
Where i
nalt
a final axb
tax aser
base eturnf
return org
for lobalincomes
global i
ncomesiissfiledu
filed nderArticle
under Ar
t i
cle7 0o
70 orray ear-end
a year-end
reconcilementi
reconcilement issmadeu
made nderA
under rt i
c l
es1
Articles 37a
137 nd1
and 38,the
138, t
hea mounto
amount btainedb
obtained yd
by eductingt
deducting he
the
amounte
amount quivalentt
equivalent o1
to 0/100o
10/100 offthe
thec alculatedg
calculated lobalincome
global i
ncometax
t
axa mounto
amount nt
on hee
the arnedi
earned ncomes
incomes
withhelda
Withheld attsourceb
source yt
by her
the elevanttaX
relevant t
axa ssociations
association hallbe
shall bepaido
paid orrcollecteda
collected assthet
the ax
tax
amount.<
amount. Amendedb
<Amcnded yA
by ctNo.
Act No.519],
5191,Dec
Dec
.30,
3
0,1996;
1
996;Act
Ac
tNo.
No.6292,
6292,Dec.
Dec.29,
29,2000;
20
00;
ActNo
Act No..6557,Dec.
6557, Dec.3],
31,2001>
20
01>
(4)T
(4) hed
The eductiona
deduction assreferredt
referred tooinp
in aragraphs(
paragraphs 2)a
(2) nd(
and 3)s
(3) hallbe
shall bere-f
re- erredt
ferred tooa
ass“tax
“tax
associationd
association eduction”.
deduction”.
(5)Ma
(5) ttersn
Matters ecessaryf
necessary orthe
for t
hemo nthlyi
monthly ncomet
income axt
taX ob
to ec
be ollectedb
collected yt
by het
the axa
tax ssociation
association
underparagraph
under p
aragraph( 2),a
(2), ndt
and hec
the ollectiono
collection offsuchi
such ncomet
income axo
tax ni
on tsm
its embers,s
members, hallbe
shall bedeter
mi ned
detennined
byP
Presidential De
cree.
Art i
cle1
Article 51(
151 Paymento
(Payment offTax Amo
TaX untC
Amount ollectedb
Collected y Ta
by x As
Tax sociation)
Association)
Thet
The axa
tax ssociations
association hallpay
shall paythemo
the nthlyi
monthly ncomet
income axc
taX ollectedu
collected nderA
under r-t
Ar- icle1
ticle 50t
150 o
to
thed
the istrictt
district axo
tax fficeh
office avingj
having urisdictiono
jurisdiction vert
over het
the axa
taX ssocia-t
associa- ion,the
tion, t
heB anko
Bank offKorea
Korea
o
orrap ostala
a postal gency,n
agency, ol
no atert
later hant
than he1
the 0tho
10th offthe
themo nthf
month ollowingt
following hemo
the ntho
month offthe
thed ate
date
o
offcollectionu
collection ndert
under hec
the onditionsa
prescribed yP
by residentialD
Presidential ecree.
Decree.
Art i
cle1
Article 52(
152 Methodo
(Method offCollection b
Collection y Ta
by x As
TaX sociation)
Association)
- 264 -
-264-
(1)T
(1) het
The axa
tax ssociationa
prescribed nA
in rt i
cle1
Article 50(
150 2)s
(2) hallc
shall ollecta
collect assincomet
income axt
tax he
the
amounto
amount btainedb
obtained yma
by kingt
making hed
the eductiono
deduction offthe
thet axc
tax redita
credit ndt
and het
the axa
tax ssociationd
association eduction
deduction
from t
from hea
the mounte
amount quivalentto
equivalent t
o1 /12o
1/12 offthe
thet axa
tax mountc
amount alculatedb
calculated ya
by pplyingt
applying heb
the asic
basic
taxr
tax atet
rate ot
to hea
the mounto
amount btaineda
obtained fterma
after kingt
making heg
the lobali
global ncomed
income eductionf
deduction rom the
from the
amountc
amount alculatedb
calculated ymu
by ltiplyingt
multiplying hemo
the nthlyi
monthly ncomeo
income offeachme
each mbero
member offthe
thea ssociation
association
calculatedu
calculated nderc
under onditionsp
prescribed yP
Presidential De
cree,by
by12.In
12. I
ns uchc
such ases,if
cases, i
fthere
t
here
i
issaf ractiono
a fraction offlesst
less hano
than nemo
one nth,it
month, i
ts hallbe
shall beonemo
one nth.
month.
(2)T
(2) het
The axa
tax ssociationa
prescribed nA
in rt i
cle1
Article 50(
150 3)s
(3) hall,wi
shall, thr
With espectto
respect t
ot hemo
the nthly
monthly
incomeo
income offitsm
its ember,c
member, ollectthe
collect t
hea mounto
amount btainedb
obtained yma
by kingt
making het
the axa
tax ssociationd
association eduction
deduction
from t
from hei
the ncomet
income axc
tax alculatedb
calculated asedo
based nt
on hes
the implifiede
simplified arnedi
earned ncomet
income axt
tax ableu
table nder
under
Art i
cle1
Article 34,but
134, butaccordingt
according ot
to hee
the xampleso
examples offcollectingt
collecting axt
tax hroughwi
through thholding,o
Withholding, nt
on he
the
earnedi
earned ncomeo
income offClassA
Class A..<Amendedb
<Amended yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000>
2
000>
Art i
cle1
Article 53(
153 Managemento
(Management offTaxP
Tax aymentb
Payment yT
by axA
Tax ssociation)
Association)
(1)T
(1) het
The axa
tax ssociationm
association aya
may cta
act st
as het
the axm
tax anagero
manager offits
itsm embers,handling
members, ha
ndlingm atters
matters
concerningt
concerning her
the eturn,p
return, ayment,o
payment, orrrefund
refundooffits
itsm embers’income
members’ i
ncomet ax.<
tax. Amendedb
<Amended y
by
ActNo
Act No..6292,Dec.
6292, Dec.29,
29,2000>
20
00>
(2)I
(2) 1ffthet
the axa
tax ssociationd
association esirest
desires oa
to cta
act assthet
the axma
tax nagero
manager offits
itsm embersu
members nderparagraph
under pa
ragraph
(1),i
(1), ittshallr
shall eporti
report itttot
to hec
the hiefo
chief offat axo
a tax fficeh
office avingj
having urisdictiono
jurisdiction verthe
over t
het axa
tax ssociation,
association,
underc
under onditionsp
prescribed yP
by residentialD
Presidential ecree.
Decree.
Art i
cle1
Article 54(
154 Exemption f
(Exemption rom Wi
from thholding)
Withholding)
Whenawi
When thholdinga
a Withholding gentp
agent aysa
pays nyi
any ncomea
prescribed ns
in ubparagraphs
subpara- graphsooffArt i
cle
Article
127(
127 1),o
(1), nw
on hichn
Which oi
no ncomet
income axi
tax issleviedo
levied orrwhichi
Which issexemptedf
exempted rom the
from thei ncomet
income ax,
tax,
hes
he halln
shall otwi
not thholdt
withhold hei
the ncomet
income ax.
tax.
Art i
cle1
Article 55(
155 Exclusion f
(Exclusion rom Wi
from thholding)
Withholding)
Int
In hee
the ventt
event hata
that nyi
any ncomea
prescribed ns
in ubparagraphso
subparagraphs offArticle
Art i
cle1 27(
127 1)o
(1) nw
on hich
which
noi
no ncomet
income axi
tax isswithheldd
Withheld uet
due on
to on-paymentt
non-payment hereof,i
thereof, issaddedt
added ot
to heg
the lobali
global ncome
income
andt
and hei
the ncomet
income axi
tax issleviedo
levied ns
on uchg
such lobalincome,
global i
ncome,the
t
hei ncomet
income axs
tax hallnot
shall notbe
bew ithheld
Withheld
from s
from uchi
such ncome.
income.
Art i
cle1
Article 55-2(
155-2 SpecialC
(Special asesf
Cases orWi
for thholding o
Withholding offSpecifiedMo
Specified ney Tr
Money ust,e
Trust, tc.)
etc.)
- 266 -
-266-
A
Assf o
forrt rusto
trust the
otherrt hanc
than ollec ti
vei
collective nve s tme
investment nts che
schememeu nde
underrA rti
cle4(
Article 2)
4 (2),,thep
the er sonw
person ho
who
co l
lec t
collectssi nc o
met
income axa
tax attso urc
sourceea assp ro
proxyxyo orrw hoh
who a
hassb ee
ne
been ntrus t
entrustededw i
t
withhc o llectio
collectionnooffincome
i
nc ome
taxa
tax atts our c
sourceeu nde
under rArticle
Artic l
e1 27(
127 2)s
(2) ha
shallllc ollec
collectti ncomet
income axa
tax attsour c
source ed ee mi
deemingngas pec ifi
e
a specifiedd
d at
datee( limi t
e
(limiteddt oad
to at
a dateewi thi
withinnt hes
the amey
same earo
year offreversion)
reversi
on)w it
hi
withinnt hre
threeemo nt
monthshsf rom t
from he
the
d at
dateewhwhen eni nc ome
incomes su nde
under rs ubpa ra gr
subparagraphs aphso offA rti
c
Articlel
e1 2
1277( 1)we
(1) r
wereer eve r t
e
reverteddt ot
to het
the rust
trust
a
asst her
the e cei
vi ngd
receiving at
dateeu nde
underrArticle
Ar ticle2 244a ndp
and a yingd
paying at
eu
date nde
under rArticle
Ar ti
cl e1 30,n
130, ot withs tandi
notwithstanding ng
Ar t i
cl
Article e1 30.
[Thi
130.[This sAr ticl
Article eNe
Newlywl yI nser
Insertedtedb byy Ac
ActtNo
No..9 270,De
9270, Dec.c.2 6,2
26, 008]
2008]
A rti
cle1
Article 5 5-3(
155-3 Spec i
alC
(Special asesf
Cases orWi
for thholdingo
Withholding offC oll
e ct
i veI
Collective nve s t
me
InvestmentntS cheme
Scheme))
T hei
The ncomea
income mountunder
amount unde rs ubpar agraphso
subparagraphs offArticle
Ar ti
cle1 27(
127 1)s
(1) halln
shall otbe
not bed e
eme
deemed dt oh
to ave
have
be e
beennp aida
paid attthet
the imew
time he
whenni ittwa
wassr evertedt
reverted ot
to hec
the ollec t
i vei
collective nves tme
investmentntpropertyu
property nder
the
underthe
Financ ialI
Financial nve stme
InvestmentntS ervic
Servicesesa ndC
and apita
CapitallMarkets
Mar ke t
sA c
Act.t.
[Thi
[ThissA r
t i
c l
eN
Article ewl
NewlyyI nserte
Inserteddb yA
by c
ActtN o.9
No. 270
9270, ,Dec.
De c.2 6,2
26, 0 0
2008]8]
A r tic
Articlele1 5
156 6( Spe c
(SpecialialC as
Cases e sf orWithholding
for Wi thhol dingf r om Domestic
from Dome s ticS our
Source c eI nc omeo
Income offN onr es i
de
Nonresident) nt )
(1)N
(1) ot wi t
hs t
Notwithstandingandi ngA r t i
Articlec le1 27,a
127, nyp
any e rson(
person e xc ludi
(excluding nga nyr
any e s i
de
resident nto orrn onr eside
nonresident ntwh who o
p aysa
pays ni
an nc omeu
income nde
under rt hep
the r ovi si
provisionsonso offs ubpa r agr
subparagraph aph9o 9 offArticle
Ar t icle1 19
119) )w whohop ayst
pays tooa a
n onr es i
nonresidentde nta ni
an nc omea
income cc rui
accruing ngf rom d
from o-me
do- s
mestictics our
sourcesce sa assp r es c r
prescribedibe di ns
in ubpar agr
subparagraphsaphs
1
1,,22,,44t hr ough6
through 6,,9a9 andnd1 111t hr ough1
through 133o offArticle
Ar tic le1 1
1199( inc ludi
(including nga nya
any mountpaid
amount pa idt tooa a
n onr e
nonresi-s i-d e ntwi
dent t houta
without nyd
any ome
domesticsticb us ine
business ssp l ac
place)e )t ha
that th asn
has noos ubs tant
substantial ialr ela tions
relationship hip
wi t
with ha nyd
any ome
domestics ticb us ine
business s sp lac
place ep rovi de
provided df ori
for nA
in rti
Articlecle1 2
1200o orrd oe
does sn otbelong
not be l
ongt os
to uc
such h
d ome s
business s sp lac
place, e ,s hal
shall lw i
t hhol
withhold dt hea
the mountf
amount a lli
ngu
falling nde
under ra nyo
any offt hef
the ollowi
following ng
subpa ra gr
subparagraphs aphsa asst hei
the nc omet
income axf
tax rom the
from thed ome
domestic s tics our
sourcecei nc omeo
income offt hen
the onr e si
nonresidentde nt
a
attt het
the imeh
time heep aysi
pays t
it,,a ndp
and ayt
pay hewi
the thhe
withheld l da mountto
amount tot het
the axo
tax ffic
office eh avi
havingngj ur isdi c t
jurisdictionion
o ve
over rt hew
the ithhol di
withholding, ng,t heB
the anko
Bank offK or
Koreaeao orrap os
a postalt ala ge nc
agency yb byyn nool at e
later rt hant
than he1
the 0t
10thh
d ayo
day offt hemo
the nt
month hf ol l
owi
following ngt hemo
the nt
month ht owh
to whichic ht hed
the a
day yo offs uc
such hwi thhol
withholding dingb e l
ongs
belongs, ,
u nde
under rc ondi ti
conditionsonsp r es c r
prescribed ibe db yP
by res ide nt
PresidentialialD e cr
Decree; ee :P r ovi de
Provided, d,T hatt
That hei
the nc ome
incomes sp r ovi
providedde d
fo
forri ns
in ubpa ra gr
subparagraph a ph5o 5 offArticle
Ar t
ic le1 1
1199w hic
which hmamay yb beet a xabl
taxable ea assab us i
a businessne s si nc o
incomemea c cr ui
accruing ng
from d
from ome
domestic stics our
sourcesc e si na
in cc or da
accordancenc ewi
withtht het
the a
taxxt re a
treatytys hal
shall lbebee xc lude
excluded; d:< Ame
<Amended nde d
b
byyA c
Act tN No.o.5 58
5580,0 ,Dec.
De c .2 8
28, ,1 99
1998;8;Act
Ac tNo.
No .6292,
6 29 2,Dec.
De c .2 9,2
29, 00 0
2000; ;Act
Ac tNo.
No.7 0 06
7006, ,Dec.
De c.3 0
30,,2 0 0
2003;3;
A
ActctN o.8
No. 1 44
8144, ,D e
Dec. c .3 0,2
30, 00
2006; 6;Act
Ac tNo.
No.8 82
8825,5 ,Dec.
De c .3 1,2
31, 00
2007;7;Act
Ac tNo.
No.9 27 0
9270, ,Dec.
De c.2 6
26,,2 008
2008> >
1
1.. Wi
Withthr es pe
respect c tt ot
to hei
the nc omea
income assp re sc ri
be
prescribed di ns
in ubpa r agr
subparagraphs aphs4a 4 andnd5o 5 offArticle
Ar ti cl
e1 1 9
119,,2 / 10
2/100 0
o
offt hea
the mountp
amount ai
paid;d;
2
2.. Wi
Withthr es pe
respect ctt toot hei
the nc omea
income assp r es cribe
prescribed di ns
in ubpa r agr
subparagraph aph6o 6 offA Ar-r -t icl
ticlee1 19
119, ,2 0 / 1
20/10000
o
offt hea
the mountp
amount ai
paid;d;
3
3.. Wi
Withthr es pe
respect ctt ot
to hei
the nc
incomeomea assp re scr i
be
prescribed di ns
in ubpar agr
subparagraphs aphs1 1,,22,,1 111a nd1
and 3o
13 offArticle
Ar t icle
1 19,2
119, 0 /1
20/100 00o offt hea
the mountpaid
amount pai d( asf
(as orthe
for thep riz
prize emomoney,ne y,s uppl eme
supplementary nt ar yp rize
prize,,e tc
etc. .u nde
under r
A r
t ic
Articlele1 26(
126 1
(1))2 2,,iitts hal
shall lbe
bea anna mountc
amount al c ul a
calculatedte da c cor di
according ngt toot hes
the ames
same ubpa ra gr
subparagraph);aph) :
- 268 -
-268-
Provided,T
Provided, hatwi
That thr
With espectto
respect t
ot hei
the nterestincome
interest i
ncomea ccruingf
accruing rom the
from theb ondsi
bonds ssued
issued
byt
by heS
the tate,l
State, ocalg
local overnmentsa
governments ndd
and omesticc
domestic orporations,i
corporations, ittshallbe
shall be14/100o
14/100 offthe
the
amountp
amount aid;
paid;
3-2.With
3-2. Wi
thr espectt
respect ot
to hei
the ncomep
income rescribedi
prescribed ns
in ubparagraph9o
subparagraph 9 offArticle
Art i
cle1 19,1
119, 0/100o
10/100 off
thea
the mountp
amount aid:P
paid: rovided,T
Provided, hatw
That heret
Where hea
the cqui
s i
-t
acquisi- ionv
tion aluea
value ndt
and ransfere
transfer xpenses
expenses
o
offthea
the ssett
asset ransferreda
transferred rev
are erif i
ed,i
verified, ittshallb
shall ea
be na
an mounte
amount quivalentt
equivalent o1
to 0/100o
10/100 off
thea
the mountp
amount aido
paid orrana
an mounte
amount quivalentt
equivalent o2
to 0/100o
20/100 offtheg
the ainsf
gains rom the
from thet ransfer
transfer
o
offthe relevant
the relevanta sset,wh
asset, icheveri
Whichever isssmaller;a
smaller; nd
and
4.With
4. Wi
thr espectt
respect ot
to hei
the ncomep
income rescribedi
prescribed ns
in ubparagraph1
subparagraph 2o
12 offArticle
Art i
cle1 19,1
119, 0/100o
10/100 off
thea
the mountp
amount aid(
paid ifi
(if ittfallsu
falls nderA
under rt i
cle1
Article 26(
126 3),it
(3), i
trefers
r
efersttoothe“
the normalprice”
“normal pr
ice”u nder
under
thes
the amep
same aragraph;h
paragraph; ereafterreferred
hereafter r
eferredttooa
ass“amountpaid,
“amount pa
id,e tc.”i
etc.” nt
in hiss
this ubparagraph)
:
subparagraph)
Provided,T
Provided, hati
That iffthea
the cquisitionv
acquisition aluea
value ndt
and ransfere
transfer xpenseso
eXpenses offthe
ther elevants
relevant ecurities
securities
arev
are erifiedu
verified nderA
under rt i
cle1
Article 26(
126 1)1
(1) 1,,i
ittshallb
shall beeana
an mounte
amount quivalentt
equivalent too10/100o
10/100 off
thea
the mountp
amount aid,e
paid, tc.o
etc. orrana
an mounte
amount quivalentt
equivalent o2
to 0/100o
20/100 offthea
the mountc
amount alculated
calculated
pursuantt
pursuant ot
to hes
the ames
same ubparagraph,wh
subparagraph, icheveri
Whichever isssmaller.
smaller.
(2)I
(2) nc
In aseswh
cases erea
where nyd
any omestics
domestic ourcei
source ncomea
income assreferredt
referred oi
to np
in ara-g
para- raph(
graph 1),i
(1), iss
paido
paid verseas,i
overseas, iffthep
the ayerh
payer asi
has nK
in oreaa
Korea na
an ddress,resi-
address, r
esi
-d enceo
dence orrdomici l
e,head
domicile, he
ado ff i
ce,
office,
principalo
principal fficeo
office orrdomesticb
domestic usinessp
business lace(
place includinga
(including nyd
any omesticb
domestic usinessp
business lacea
place ass
prescribedi
prescribed nA
in rt i
cle9
Article 4o
94 off theC
the orporateT
Corporate axA
TaX ct),it
Act), i
ts hallbe
shall beconsideredt
considered hatthe
that t
hep ayer
payer
paysi
pays nK
in oreas
Korea uchd
such omestics
domestic ourcei
source ncomea
income mount,a
amount, ndt
and hep
the rovisionso
provisions offpar-a
par- graph
agraph
(1)s
(1) halla
shall pplyt
apply oi
to t.<
it. Amendedb
<Amended yA
by ctNo
Act No..5580,
5580,Dec.
Dec.28,
28,1998;
1
998;A ctNo
Act No..8144,
8144,
Dec
Dec..30,
30,2006>
20
06>
(3)A
(3) nyp
Any ersonwh
person op
who aysa
pays nyd
any omestics
domestic ourcei
source ncomea
prescribed ns
in ubparagraphs
subparagraphs
1
1,,5
5,,6a nd1
6 and 111o
offArt i
cle1
Article 19wi
119 tha
With nyf
any oreignl
foreign oanf
loan undst
funds oan
to onresidenth
having o
no
domesticb
domestic usinessp
business lacea
prescribed n Article
in Art i
cle1 20,s
120, hallwi
shall thholdt
withhold hei
the ncomet
income ax
tax
from s
from uchi
such ncomea
income assreferredt
referred oi
to np
in aragraph(
paragraph 1),w
(1), henevers
Whenever uchi
such ncomei
income isspaidp
paid ursuant
pursuant
tot
to het
the ermsa
terms ndc
and onditionso
conditions offpaymento
payment nt
on hec
the ontract,e
contract, veni
even nc
in aseswh
cases ereh
Where heedoes
does
notp
not ayi
pay ittdirectlya
directly ccordingt
according ot
to het
the ermsa
terms ndc
and onditionso
conditions offthec
the ontract.
contract.
(4)Wh
(4) enap
When ersonw
a person hoi
Who issad omestica
a domestic gento
agent offan onresidento
a nonresident peratingav
operating esselo
a vessel orraircraft
aircraft
navigatingt
navigating tooandf
and rom f
from oreignc
foreign ountriesa
countries ndd
and oesn
does otfall
not f
allunder
unde
rA rt i
cle1
Article 20(
120 3),pays
(3), pa
ys
tot
to hen
the onresidenta
nonresident nyi
any ncomea
income ccruingf
accruing rom the
from then avigationo
navigation offthev
the esselo
vessel orraircraftn
aircraft avigating
navigating
toa
to ndf
and rom f
from or-e
for- ignc
eign ountries,he
countries, heshallwi
shall thholdt
withhold hei
the ncomet
income axf
tax rom the
from thed omestic
domestic
source i
source ncomeo
income offthen
the onresidentu
nonresident nderp
under aragraph(
paragraph 1).
(1).
—270—
- 270 -
(5)Wh
(5) eres
Where ecuritiesu
securities nders
under ubparagraph1
subparagraph 2o
12 offArt i
cle1
Article 19a
119 ret
are ransferredt
transferred hrougha
through n
an
investmentt
investment radero
trader orrinvestmentb
investment rokeru
broker ndert
under heF
the inancialInvestment
Financial I
nvestmentS ervicesa
Services nd
and
CapitalMarkets
Capital Mar
ketsA ct,t
Act, her
the elevantinvestment
relevant i
nvestmenttrader
t
raderoorrinvestmentbroker
investment br
okers hallcollect
shall c
ollect
incomet
income axa
tax attsourcea
source assprescribedi
prescribed np
in aragraph(
paragraph 1)
(1)1:Provided,
Provided,T hatin
That i
nc asesw
cases heres
where tocks
stocks
areb
are eingl
being istedu
listed ndert
under heF
the inancialI
Financial nvestmentS
Investment ervicesa
Services ndC
and apitalMarkets
Capital Mar
ketsA ct,a
Act, nd
and
wheres
where tockst
stocks hath
that aveb
have eena
been lreadyi
already ssueda
issued ret
are ob
to et
be ransferred,the
transferred, t
hec orporationt
corporation hat
that
hasi
has ssuedt
issued hes
the tockss
stocks hallc
shall ollecti
collect ncomet
income axa
taX attsource.<
source. Amendedb
<Amended yA
by ctNo.
Act No.9270,
9270,
Dec
Dec..26,
26,2008>
20
08>
(6)A
(6) nyp
Any ersonwh
person op
who ayst
pays oan
to onresidenta
a nonresident nyd
any omestics
domestic ourcei
source ncomea
income ccruingf
accruing rom
from
anyb
any uildingo
building orrconstruction,i
construction, nstallation,a
installation, ssemblyo
assembly orr otherw
other orko
work offmachines,
machines,a pparatus,
apparatus,
etc.
,o
etc, orroffero
offer offanys
any ervicea
service asstod
to irec-t
direc- ion,c
tion, ontrol,e
control, tc.o
etc. offsuchwo
such rks,o
works, orranyd
any omestic
domestic
sourcei
source ncomea
income asspre-s
pre- cribedi
scribed ns
in ubparagraph6o
Art i
cle1 19,s
119, hallwi
shall thholdt
withhold hei
the ncome
income
taxa
tax assreferredt
referred oi
to np
in aragraph(
paragraph 1),e
(1), vent
even hought
though hen
the onresidenthas
nonresident ha
st hed
the o-m
do- esticb
mestic usiness
business
placea
prescribed nA
in rt i
cle1
Article 20,e
120, xceptin
except i
nc asewh
case eret
where hen
the onresidenthas
nonresident hasmadet
made he
the
registrationo
registration offbusinessu
business nderA
under rt i
cle1
Article 68.
168.
(7)T
(7) hep
The rovisionso
provisions offArt i
cle8
Article 4s
84 halla
shall ppl
ym
apply utatism
nwtatis ut
andi
st
nmmdis ot
to hec
the asew
case heret
where hep
the rovisions
provisions
o
offparagraph
paragraph( 1)a
(1) pplyt
apply toothei
the ncomeu
income nders
under ub-p
sub- aragraph1
paragraph 133(f)o
(f) offArticle
Art i
cle1 19(
119 limited
(limited
toa
to nyr
any efundo
refund offah orser
a horse acingt
racing icket,wi
ticket, nnerv
winner otingt
voting icket,b
ticket, ullfightingma
bullfighting tchv
match oting
voting
ticketa
ticket nds
and portsp
sports romotionv
promotion otingt
voting icket)a
ticket) nds
and ubparagraph1
subparagraph 3(
13 g)o
(g) offthe
thes ameA
same r ti
c l
e.
Article.
<NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.6292,De
6292, c
Dec..29,
29,2000;
20
00;Act
Ac
tNo.
No.8144,
8144,Dec.
Dec.30,
30,2006>
20
06>
(8)T
(8) hewi
The thholdinga
withholding gentu
agent nderp
under aragraphs(
paragraphs 1)t
(1) hrough(
through 7)s
(7) hall,u
shall, ponw
upon ithholdingt
withholding he
the
incomet
income ax,d
tax, el
i veraw
deliver ithholdingr
a withholding eceipts
receipt peci
f yingt
specifying hei
the ncomea
income mounta
amount ndo
and thernecessary
other ne
cessary
matterst
matters oap
to ersonw
a person hoi
who isspaid,u
paid, nderthe
under t
hec onditionsa
prescribed yP
Presidential De
cree.
<Amendedb
<Amended yA
by ctNo
Act No..6292,
6292,Dec.
Dec.29,
29,2000;
2
000;A ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
(9)Wi
(9) t hr
VVlth espectt
respect ot
to hed
the omestics
domestic ourcei
source ncomeu
income nders
under ubparagraph1
subparagraph 3(
13 i)o
(i) offArt i
cle1
Article 19,
119,
thed
the omesticc
domestic orporationw
corporation hichh
which asi
has ssueds
issued tockso
investment haress
shares hallmake
shall makethe
the
withholdinga
withholding attthet
the imea
time assprescribedb
prescribed yP
by residentialD
Presidential ecreef
Decree rom t
from heo
the verseasp
overseas erson
person
inas
in pecialr
a special elationshipwh
relationship op
who ossessest
possesses her
the elevants
relevant tockso
investment hares.<
shares. Newly
<Newly
Insertedb
Inserted yA
by ctNo
Act No..7006,Dec.
7006, Dec.30,
30,2003>
20
03>
(10)D
(10) etailedme
Detailed thodso
methods offthewi
the thholdingu
withholding ndert
under hep
the rovisionso
provisions offpar-
par-a graph(
agraph 9)s
(9) hall
shall
bep
be rescribedb
prescribed yP
Presidential De
cree.< NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.7006,Dec.
7006, De
c .30,
30,2003>
2
003>
(11)I
(11) na
In ppl
yi ngt
applying hep
the rovisionso
paragraph( 1),wh
(1), eret
where hen
the onresidenthaving
nonresident ha
vingt hei
the ncome
income
unders
under ubparagraph9o
Art i
cle1 19h
119 asma
has det
made he payment
the paymentin
i
na dvanceo
advance offthe
thei ncome
income
taxo
tax nt
on her
the elevanti
relevant ncomeu
income ndert
under hec
the onditionsa
prescribed yP
Presidential De
cree,
o
orrprovent
proven hatt
that her
the elevanti
relevant ncomei
income issnon-taxableo
non-taxable orrfallss
falls horto
short offtaxat i
on,t
taxation, hei
the ncome
income
taxs
tax halln
shall otbe
not becollectedt
collected hroughw
through ithholdingo
withholding nt
on her
the elevantincome.
relevant i
ncome.< NewlyI
<Newly nserted
Inserted
byA
by ctNo
Act No..7837,Dec.
7837, Dec.3],
31,2005>
20
05>
- 272 -
-272-
Art i
cle1
Article 56 -2(
156-2 Ap pl
ica ti
onf
(Application o
forrNon-Taxation,
No n-Ta xatio n,e tc.o
etc. nD
on ome st
Domestici
cS ourc
Source eI ncome
Incomes so
offNonresident)
No nr esi
d ent
)
A nyn
Any onr eside
nonresidentntwhwho oi nte ndst
intends ob
to es
be ubj e ct
subjectede dt oan
to on-t axa t
a non-taxationiono orrex-e
ex- mpt ionu
emption nde
underr
thet
the axt
tax re a
tie
treatiessont
on hed
the o me s
domestict
ics ourc
sourceei nc ome
incomes su nde
under rA r ti
cle1
Article 1
1199( excludingt
(excluding hei
the ncome
incomess
u nde
under rs ubpar agraphs5a
subparagraphs nd6o
5 and 6 offt he s
the ameA
same rti
c l
Article)e)s hall
,u
shall, nde
under rc ondi tionsp
conditions r
esc r i
be
prescribeddb y
by
P res i
de nt
PresidentialialD ec
re
Decree,e,f i
lea
file na
an pplic ati
onf
application ors
for uc
such hn on-t axat
non-taxationi
ono orre xe mpt i
exemptiononw i
tht
with hec
the hie
f
chief
o
offat a
a taxxo f
fic
office eh avi
havingngj ur i
s dictiono
jurisdiction ve
overrt hep
the la c
placeeo offtaxp
tax ayme
payment.nt .
[ Thi
[This sA rtic
ArticleleNe
Newlywl yI ns er t
Insertededb yA
by ActctNoNo..6557,
6 55 7,Dec.
Dec .3],
31,200]]
2 001]
Ar ti
cle1
Article 56-3(
156-3 Spe ci
(SpecialalC as
Casesesf o
forrWi thho l
di
Withholding ngo onnD ebe ntur
Debentures,es ,etc
etc..ooffN on-r
Non- e si
de nt
resident) )
A nyp
Any e rso
personnwh who op ayst
pays hei
the nt eres
interest ta ndd
and i
s counta
discount mo
amountunt( herea f
t e
(hereafterrreferred
re ferr edt oa
to ass“ inte r
es t
“interest,,
etc.”i
etc.” nt
in hisA
this rticl
Article)e)ooffthed
the ebe nt ur
debentures, es ,etc
etc..u nde
under rt hep
the rovi si
onso
provisions offA rt i
c
Articlele4466( 1)(
(1) he reafte
(hereafterr
refer re
referreddt oa
to ass“ de bent ur
“debentures,es,e tc.”i
etc.” nt
in hisA
this rticl
e)t
Article) on
to onr e si
de nt
nonresidents, s,oorrwh
who op urc has
purchases est he
the
d ebe nture
debentures,s ,e tc.f
etc. rom n
from onr es ident
nonresidents sb efor
beforeer ec ei
vi ngt
receiving hei
the nteres t
interest,,e tc
etc..ooffd ebe ntur
debentures, es ,etc.
etc.
sha l
shalllma ket
make hewi
the thhol di
withholdingngu nde
under rc ondi tionsp
conditions r
es cribe
prescribed dbbyyP res ident i
PresidentialalD e cre
Decreeeb byyt aking
taking
ac counto
account offt hep
the osse ss
possessingi
ngp e riodo
period offther
the eleva ntn
relevant onr es i
de nt
nonresidents.s .
[ Thi
[This sA rtic
Article l
eNe wl
Newly yI ns er
Insertedt
edb yA
by Actc tNo
No..7 83 7,Dec.
7837, Dec .3],
3 1,2005]
2 00 5]
Ar ticl
Articlee1 56-4(
156-4 Spe c i
(Speciala lC a s
Casese sf orP
for roc edur
Procedures e sf orWi
for thhol
Withholding dingo onnN on-r
Non- esi de nt
residents) s )
(1
(1))WhWhereer eawi thhol
a withholdingdi nga ge
agent ntu nde
under rA rticl
Articlese s1 5
156 6a nd1
and 5 6
156-3-3ma makeske st hewi
the thhol
withholding di nga ass
inc omet
income a xe
taxes so nt
on hei
the nc omeu
income nde
under rs ubpar agr
subparagraph aph1 1,,22,,1111oorr1122o offArticle
Ar ticle1 1
119 9f r om a
from mong
among
thed
the ome
domesticsti cwi thhol
withholdingdingi nc omeo
income offn onr eside
nonresidents nt sl oc at
located edi nt
in hec
the ount
country ryo orra r e
areaan ot i
fi
notifieded
p ublic
publiclylybby yt heMi
the nis t
Ministere rooffS t
r ate
Strategygya ndF
and ina nc
Finance, e ,he
hes ha
shalll
lmake
ma ket hew
the ithho ld
withholding i
ngb byyp r
e fe r
e
preferen- n-
tial l
ya
tially ppl yi
applying ngt het
the axr
tax at
rateeu nde
under rthe
thep r ovi si
provisionso nso offe a c
eachhs ubpa ragr
subparagraph apho offA rti
Articlec l
e1 5
156 6( 1),
(1),
n ot wi ths tandi
notwithstanding ngA r tic
Articlele1 5 6
156-2-2a ndt
and hep
the rovi si
provisionsonso offn ont axa
nontaxation,ti
on,e xe mpt
exemption i
ono orrl i mi t
limiteded
ta
taxxr at
rate ei nt
in het
the a
taxxt r e at
treaty:y:P rov ide
Provided, d,T ha
That tt hes
the a mes
same ha
shalll
lnot
no ta p pl
apply yw he
where ret heC
the ommi s
Commissionersione r
o
offt heN
the a tio
NationalnalT a
Tax xS e rvi
Servicecemamakeske sp rio
priorra ppr o
approvalva lthat
t ha the
hem maya yb bees ubj e
subjectcttotot hep
the rovi si
o
provisions ns
o
offn ont axa
nontaxation,tion,e xe mpt
exemption i ono orrl imi t
limitededt a
taxxr at
rateei nt
in het
the axt
tax r eat
treaty, y,a assp res c r
i
prescribedbe db byyP res
Presi-i-
d ent i
dentialalD e cr
Decree. ee.< Amendedb
<Amended yA
by ActctNoNo..8852,
88 52 ,Feb.
Feb.29, 29,2008;
9 27 0,Dec.Dec .
2
26,6,2008>
2 00 8>
(2)Wh
(2) Wheree ret hep
the ersonwh
person who oa ctual
actually l
yh asad
has ome
a domestic st i
cwi t hhol
withholdingdi ngi nc omep
income r ovi
providedde df or
for
inp
in ar agr
paragraph aph( 1
(1))( inc ludi
(including ngh i
hissa ge nto
agent orrat axma
a tax nage
manager ru nde
under rt hep
the rovi si
provisionsonso offA rt
i
Articlecle
8
822o offt heF
the rame
Frameworkwor kA c
Actto onnN at i
onalT
National axe
Taxes) s)intends
int endst toob bees ubj
subjectec tto
t oa anna ppl ic at
application ion
o
offt hep
the r ovi s
provisionsi
onso offn ont a xat
nontaxation,ion,e xe mpt
exemption iono orrl i mi
limitedtedt axr
tax at
rateei nt
in het
the axt
tax re at
treaty yt ot
to he
the
re l
e va
relevant nti nc o me
income, ,h
heemamay yr e que
request star e vi si
a revisionont toot hec
the hi
chiefefooffat a
a taxxo f
f i
officeceh a vi
havingngj ur is di ct
jurisdictionion
o ve
over rt het
the axp
tax ayme
payment ntplace
pla ceo offt hep
the er s
persononl iabl
liableef orwi
for th-hol
with-holding di ngu nde
under rt hec
the ondi t
conditionsi
ons
a
assp re scr i
prescribedbe db yP
by re side nt
Presidential i
a lDecree
De cr eew ithi
within n3y e
3 yearsarsf ro
fromm the
t
hel as
lasttd a
day yo offthe
themomonthnt hw he r
whereto eto
thed
the ayo
day onnwh ic
whichht het
the axa
tax mounth
amount a
hassb e
beenenw ithhe
withheld ldu nde
under rt hep
the ro vis i
o
pa ra gra ph
(1 )
(1)..
—274—
- 274 -
(3)T
(3) heh
The e ado
head offt axo
tax ffic
officeeinr
in eceipto
receipt offrequest
r
e que s
tfor
forar evisionu
a revision nde
underrt hep
the rovisionso
provisions off
par agraph(
paragraph 2)s
(2) hallmake
shall ma kear e visi
ono
a revision offthe
t
het axat i
ons
taxation t
an-d
stan- ar
dardda ndt
and axa
tax mountw
amount i
thin
within
6mo nths
6 months, ,o orrn ot i
fyt
notify hep
the e
rsonwh
person whooh a
hassma
madedet her
the e levantrequest
relevant reque sto
offthe
thep urpor
purporttthat
that
the r
thereee xistn
exist noor eas onf
reason orma
for ki
makingngar e vis
ion.
a revision.
[Thi
[This sA rt ic
ArticleleNe wl
Newly yI nser t
Insertededb yA
by Actc
tNo
No..7 837,Dec.
7837, Dec .3],
31,2005]
2 005]
Ar ticl
Articlee1 5 6-5(
156-5 Spe
(Specialc ialC a s
Cases e sc onc er
concerningni ng Withholding
Wi thhol di ng Procedures
Pr oc e dur e sR e la
Relatedted to toS er vi
Servicesce s
P er for
Performed me db byyN onr e
Nonresidents ide ntE nt er tai
Entertainers)ne r s)
(1
(1))WhWhere e r en onr e s
nonresidentide nte nt e rta i
entertainersne r so orrs po r
sportst sp laye
playersrs( he re af
(hereafterte rr e f er
referredr edt oa
to ass“ nonr e s i
“nonresidentde nt
ent e r t ai
entertainers ne rso orrs uc
such”)h” )r e ce i
receivevec o mpe ns
compensation atio no orrfees
fe esf o
forrtheir
the i
rs e rvic
servicese sp erfo r
performedme dd ome stic
domesticallyally
(inc l udi
(including ngt hos
those eu nde
under rs ubpar
subpara- a-g r a
graphsphs6 6,,7 7,,a nd1
and 133o offArticle
Ar tic l
e1 1
119;9;hereafter
he r ea f tert hes
the ame
same
sha
shalll
la p pl
apply yi nt
in hi
this sA rt i
c l
Article),e),ap a yo
a payor, r,wwhohop a ysc
pays o mp ens
compensationatio no orrfees
feest tooaf ore
a foreignignc o rp or a
corporationti
o n
tha
thatti isse xe
exemptmptf r
fromom t axa t
taxationiond uet
due os
to uc
such hr e as
reasonsonsa assh a vi
havingngn noor e gul
regular a rp l
a c
place eo offbusiness
bus ine s s
o
orrnnototb e longi
belonging ngt ot
to her
the egul
regular arp la
placec eo offbusiness
bus ine s sp ur
pur- -s uantto
suant tot axt
tax reat i
treaties es( he re a
(hereafterft
e r
re fer r
referred edt oa
to ass“ f or e
“foreign igne nt e rtai
entertainersne r so orrc o rpo ra
corporationstionse xe mptfrom
exempt f rom taxation”
taxat ion”i nt
in hi
thissA rt icl
Article)e)
fort
for hes
the e rvi
servicescesp e rf or
performed me dd o me stic
domesticallya llyb byyn o
non nr es i
de
residentnte nt e rta ine
entertainers r so orrs uc
such,h,s ha l
shalllw ithho
withhold ld
20 /1
20/10000o offt hep
the ayme
payment nta mounti
amount ns
in pit
spite eo offt a
taxxt reat ie
treaties, s,a ndt
and he
then np a
pay yt ot
to het
the a
taxxo ffi
c
office e
h avi
over rt hep
the lac
place eo offt axp
tax ayme
payment, nt,Bank
Banko offK or
Korea, e a,o orrc ommuni
communicationsc at ions
age nc
agency ya assp r es c r
prescribed ibe db byyP re s ide nt
De c r e e ,until
unt ilthe
the1 0 t
10th ho offthe
t hemo monthnt hf ol l
owi
following ngt he
the
mo nt
month ht toowh whichicht hed
the ayo
day offwi thhol
withholdingdi ngb e l ong.
belong.
(2
(2))N ot wi ths
Notwithstanding tandi ngA rtic
Article le1 5
156 6( 1)
(1),,w he
whereref or ei
foreigngne nt er tai ne
entertainers rso orrc or
cor- -p or at i
porationsonse xe mpt
exempt
from t
from axat
taxation i onp pay ayf orc
for ompe ns
compensation a tiono orrf e e
fees sf ort
for hes
the er
ser--v ice
vices sp e rfor
performed me dd ome st i
domesticallyca l
l y
byn
by o nr e
nonresidentside nte nt ert a
entertainersine r so orrs uc h,t
such, hef
the o r ei
foreign gne nt e rta i
ne
entertainers rso orrc or por a
corporationst ionse xe mptf
exempt rom
from
taxat
taxation ions hal
shall lwi thhol
withhold d2 0/ 1
20/1000 0o offt hep
the ayme
payment nta mount
amount, ,a ndt
and he
then np a
pay yt ot
to het
the axo
tax ffi
c
office e
h avi
havingngj ur is dic
over rt hep
the lac
placeeo offtax
taxp ayme
payment, nt ,Bank
Banko offK or e
Korea, a,o orrc ommuni
communi- -c at ions
cations
age nc
agency ya assp re sc r
prescribedibe db byyP re si dent
De cr e e ,until
unt ilt he1
the 0t
10thho off t hemo
the monthnt hf ol l
owi
following ngt he
the
m o nt
month ht ow
to h i
whichc ht hed
the a
day yo offw it
h ho l
d
withholding ingb elong.In
belong. Ins uc
suchhc as e
cases,s,if
ifap aye
a payer, r ,wwhohop a ysc
pays o mp en s
compensationati
o n
o
orrf e e
fees sf o
forrt hes
the e rvi
servicesc e sp e rfo r
performedme dd ome stic
domestically a l
lyb byyn o nr es ide
nonresident nte nt e rt a ine
entertainers, r s,e tc
etc. .to
toaf or ei
a foreigngn
co rp o r a
corporation ti o nt ha
thatti isse xe mp
exempt tf ro
frommt axa tio
taxation, n,p a i
ds
paid uc
such hw ithho ldi
withholding nga mo untpursuant
amount pur sua ntto top ara gr
paragraphap h
(1 )
(1),,h hisisp ayme
payment nts hal
shall lbbeed e eme
deemed da assp ai
paiddwi thi
within nt hes
the c opeo
scope offt hea
the mountp
amount ai d.
paid.
(3
(3))I Ifft hew
the ithho
withholdingldi nga mo
amountuntpaid
pa idu nde
under rparagraph
pa ra gr aph( 1
(1))isi
sl a rge
larger rthan
tha nt ha
that tunder
unde rparagraph
pa ragr ap h
(2 )
(2),,af or
a foreign e igne nt e r t
entertainera ine ro orrc or por a
corporationtione xe
exemptmptf r om taxation
from ta xat ionma may ya ppl
apply yf orar
for e fund
a refund
o
offs uc
such hd i
ff er enc
difference et toot hec
the hi e
chief fo offta
taxxo ff
ic
office eh avi
having ngj ur isdi cti
jurisdictionono ve
over rt hep
the la c
place eoofftax
taxp a yme
payment nt
a
assp r es c
prescribed ribe db by yP re s ide
Decree.e e .
[ Thi
[This sA rt
Articleic leNe Newlywl yI ns er
Inserted tedb byyA Act ctNoNo..8825,882 5,Dec.
Dec .3],
3 1,2007]
2 00 7]
Art i
cle1
Article 57(
157 Successiont
(Succession oWi
to thholding)
Withholding)
—276—
- 276 -
(1)I
(1) nc
In aseswh
cases ereac
Where orporationi
a corporation issdissolved,if
dissolved, i
fthe
t
hei ncomet
income axt
tax ob
to e wi
be thheldi
Withheld issnot
not
collected,o
collected, orrincomet
income axc
tax ollectedi
collected issnotpaid
not pai
da ndt
and her
the emainingp
remaining ropertyi
property issdistr i
buted,
distributed,
thel
the iquidators
liquidator hallbe
shall beliablet
liable op
to ayt
pay hei
the ncomet
income axj
tax ointlya
jointly nds
and everallywi
severally tht
with hep
the erson
person
whoh
who ast
has hep
the ropertyd
property istributed,w
distributed ithint
Within hel
the imito
limit offthea
the mountd
amount istributed.<
distributed Amended
<Amended
byA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
(2)I
(2) nc
In aseswh
cases erec
Where orporationsa
corporations reme
are rged,the
merged, t
hec orporationt
corporation hatc
that on-t
con- inuest
tinues oe
to xist
exist
aftert
after heme
the rgero
merger orrestablishedb
established yt
by heme
the rger,s
merger, hallbear
shall be
arthe
t
hel iabilityt
liability op
to ayt
pay axes,wh
taxes, ich
Which
i
isstob
to ec
be ollecteda
collected ndp
and aidt
paid hroughwi
through t h-h
With- oldingb
holding yt
by hec
the orporatione
corporation xtinguishedb
extinguished y
by
theme
the rger.<
merger. Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.8],
31,2007>
2
007>
Art i
cle1
Article 58(
158 AdditionalT
(Additional axf
Tax orUnfaithfulness
for Unf
aithfu l
nessi nWi
in thholding,C
Withholding, ollectiona
Collection ndP
and aymento
Payment offTax)
Tax)
(1)I
(1) Iffawi thholdinga
a Withholding gento
agent orrap ersonl
a person iablef
liable orw
for ithholdingt
Withholding het
the axu
tax nderA
under rt i
c l
es1
Articles 56
156
and1
and 56-3t
156-3 hrough1
through 56-5f
156-5 ailst
fails op
to ayt
pay het
the axa
tax mountc
amount ollectedo
collected orrto
tobbeecollected,in
collected, i
nt he
the
prescribedp
prescribed eriod,o
period, orrheh
he asp
has aidi
paid ittinsufficiently,h
insufficiently, es
he hallp
shall aya
pay asstaxa
tax mountt
amount hea
the mount
amount
obtainedb
obtained ya
by ddingt
adding hel
the argero
larger neo
one offthea
the mountsp
amounts rovidedf
provided orin
for i
nt hef
the ollowings
subparagraphs
withint
Within hel
the imito
limit offthea
the mounte
amount quivalentto
equivalent t
o1 0/100o
10/100 offthe
thet axa
tax mountnot
amount no
tpaid
p
aidoorrinsufficient,
insufficient,
tot
to het
the axa
tax mountt
amount ob
to ec
be ollected:Provided,
collected Provided,T hatt
That hep
the rovisionso
paragraph 2)s
(2) hall
shall
governt
govern hec
the aseswh
cases eret
Where hewi
the thholdinga
Withholding gento
agent orrthep
the ersonl
person iablef
liable orwi
for thholdingt
Withholding he
the
taxu
tax nderA
under rt i
c l
es1
Articles 56a
156 nd1
and 56-3t
156-3 hrough1
through 56-5i
156-5 isstheS
the tate,l
State, ocalg
local overnment,o
government, orrlocal
local
governmentsa
governments ssociation(
association hereafterr
(hereafter eferredt
referred tooa
assthe“
the State,e
“State, tc.”i
etc.” nt
in hisA
this rticle)
:<
Article) Amended
<Amended
byA
by ctNo.
Act No.6781,Dec.
678], Dec.18,
18,2002;
2
002;Act
Ac
tNo.
No.7319,Dec.
7319, Dec.8],
31,2004;
2
004;Act
Ac
tNo.
No.8825,
8825,Dec.
Dec.
31,2007;
3], 2
007;A ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
20
08>
1
1..
T axa
Tax mountu
amount npaid(
unpaid ifi
(if nsufficientlyp
insufficiently aid,s
paid, uchi
such nsufficienta
insufficient mount)×P
amount) eriodf
>< Period rom
from
thed
the aten
date extt
next oap
to aymentd
a payment eadlinet
deadline ot
to hev
the oluntaryp
voluntary aymentd
payment ayo
day orrthed
the ateo
date off
taxp
tax aymentn
payment otice×I
notice nterestr
X Interest atep
rate rescribedb
prescribed yP
by residentialD
Presidential ecree,t
Decree, akingap
taking enal
t y
a penalty
interestr
interest atea
rate ppliedo
applied nl
on oansi
loans na
in rrearso
arrears offfinanciali
financial nstitut i
onsi
institutions ntoa
into ccount;a
account; nd
and
2
2..
5 /100o
5/100 offthet
the axa
tax mountu
amount npaid(
unpaid ifi
(if nsufficientlyp
insufficiently aid,s
paid, uchi
such nsuf
fi-c
insuffi- ienta
cient mount).
amount).
(2)Wh
(2) ena
When nyp
any ersonwh
person oi
who isspaidt
paid hee
the arnedi
earned ncomef
income rom the
from theS tate,e
State, tc.has
etc. hasreceived
received
theu
the njustif i
ablei
unjustifiable ncomed
income eductionb
deduction yw
by ritingt
writing her
the eporto
report nd
on eductiono
deduction offincome
incomeb yp
by erson
person
havinge
having arnedi
earned ncomeu
income nderA
under rt i
cle1
Article 40(
140 1)d
(1) ifferentlyf
differently rom the
from thef act,a
fact, ndp
and aidt
paid het
the ax
tax
amountt
amount ob
to ewi
be thheldb
Withheld yt
by heS
the tate,e
State, tc.insufficiently
etc. i
nsufficientlywi thint
Within her
the elevantp
relevant eriod,t
period, he
the
State,e
State, tc.s
etc. halla
shall ddt
add hea
the mountc
amount alculatedp
calculated ursuantto
pursuant t
op aragraph(
paragraph 1)to
(1) t
ot het
the axa
tax mount
amount
tob
to ec
be ollected,a
collected, ndc
and ollecti
collect ittfrom
from the
ther elevantperson
relevant pe
rsonh avinge
having arnedi
earned ncome,a
income, ndp
and ay
pay
it.<
it. NewlyI
<Newly nsertedb
Inserted yA
by ctNo.
Act No.678],
6781,Dec.
Dec.18,
18,2002;
2
002;Act
Ac
tNo.
No.7319,Dec.
7819, Dec.8],
31,2004>
2
004>
—278—
- 278 -
(3
(3))T hea
The mo unta
amount dde
added du nde
underrp a r
a gr a
paragraphsphs( 1)a
(1) nd(
and 2)s
(2) ha
shallllbe
ber eferredt
referred tooa
assthe“
the addi tiona
“additionall
ta
taxxf orb
for eingu
being nfai thf
unfaithfululi nwi
in thhol di
Withholding,ng,c ol l
ectiona
collection ndp
and ayme nt
payment”.”.< Amendedb
<Amended byyAActct
No.6
No. 781
678], ,Dec.
Dec .I8,
1 8,2002>
200 2>
(4)T
(4) hep
The rovisionso
provisions offp a ragra
paragraphph( 1)s
(1) halln
shall o
notta p pl
yt
apply toot heU
the nite
UniteddS t
atesa
States r
me
armeddf orcess
forces tatio ne
d
stationed
inK
in orea.
Korea.
(5)T
(5) hep
The rovisio
provisionsnsooffparagraph
pa ragraph( 1
(1))s ha
shalll
ln o
nottbebea pp lie
applieddttoot hep
the ersonw
person hop
Who ayst
pays hei
the nco me
incomess
u nde
under rA rti
cle2
Article 0-3(
20-3 1)1a
(1) nd2
1 and 2,,o
orr2222( 1)1(
(l) d)a
l (d) nd(
and e )
(e)..< Newl
<Newly yI ns ertedb
Inserted byyAActctNo.
No.
6 557,Dec.
6557, Dec .3],
31 ,2 00
2001>1>
Art i
cle1
Article 59(
159 AdditionalT
(Additional axf
TaX orN
for onpaymentb
Nonpayment yT
by axA
TaX ssociation)
Association)
(1)I
(1) Ifft het
the a
taXxa s so ciati
associationonf ailst
fails oc
to o l
lecte
collect a c
eachhm ont
month ht h
theei nc omet
income a xe
taxes sooffi t
sm
its emb
membersers
andt
and op
to a
payyt hemi
them nt
in hep
the a yme
payment ntterm,
t
erm,o orrit
ithas
ha sp ai
paiddi n-s
in- uf fi
cienttax
sufficient taxa mo unt
amount, ,it
its hall
shall
pa
payya asst h
theet a
taXxa mo
amountuntt hea
the mo
amountunto b
ob--t aine
taineddb byya ddingt
adding h
theea mo unte
amount q ui val
equivalententto
t o5 /100
5/100
o
offt het
the axa
taX mo untn
amount otp
not ai
paidde a c
eachhm o nt
monthho orri ns ufficient
insufficient,,totot hec
the alcul at
calculatededt a
taxxa mo unt
amount. .
(2)T
(2) The hea mo u
amountnta dd
addededt ot
to h
theec alc ul
atedt
calculated a
taxxa mo
amountun tu nd e
underrp ara gra
paragraphp h( 1),s
(1), ha l
lb
shall beer eferred
referred
toa
to ass“ ad ditiona
“additional lt a
taxxa mo untf
amount o
forrn o npa yme
nonpayment ntby byat a
a taXxa s so c
iation”
association”. .
(3)I
(3) Innt h
theec a s
caseeaassr eferredt
referred oi
to np
in aragrap
paragraphh( 1),t
(1), hec
the hiefo
chief offat a
a taXxo ffi
c
officeeh a vi
havingngj uri sdi
c ti
on
jurisdiction
ove
overrt het
the axa
taX sso c i
a t
io
associationns ha l
shalllc ollec
collecttthe
themonthly
mo nt h lyt a
taxxa mo untnot
amount notpaid
paido orrunderpaid
un d erpa id,from
f r
om
thet
the a
taXxa ss ociatio
association nc o nc erne
concemed. d.
CHAPTER Ⅵ
CHAPTER VI SUPPLEMENTARY PROVISIONS
SUPPLEMENTARY PROVISIONS
Art i
cle1
Article 60(
160 Keepinga
(Keeping ndE
and ntryo
Entry offBooks)
Books)
( 1
(1))A Anynyb us ine
businesss so pera
operatorto rs ha
shallllk ee
keep pt hes
the up p ort
supporting i
ngd o c ume
documents, nt s ,e tc
etc..ssooaasst oc
to alcul at
e
calculate
a nyi
any nc o
incomemea mo unt
amount, ,a nde
and nt e
enterra l
ltransactions
all trans ac tio nsr e l
a te
related dt ot
to heb
the us ine
business s si nt
in heb
the ooksb
books y
by
m ea
means nso offd oub
doublelee nt
entryrya n
anddm a na
manage gethem
the ms sooa sto
as tob ee
be xp la
explainedi
ne di iffnecessary.
ne ce s sary.< Amended
<Amended
b
byyA c
Act tNoNo..5580,
55 80 ,Dec
Dec .28,28,1998>
19 98 >
( 2
(2))WhWhen e na nyo
any pe r a
operatorto ro offt heb
the us ine
businesss sw hos
Whose es ca
scalel
ei isss ma ll
smaller ert ha
thannt ha
thattaassd e termi
determinedned
b
byyP re side nt
De c r eeb yt
by yp e
types sooffb usine
businesss st aki
takingngt hei
the ndus
industry,try,s iz
size,e,e tc
etc. .into
intoc o ns ide ra
considerationti
on
c onduc
conducts tsas i
mpl
a simple eb oo kke e
bookkeeping pi nga assd ete rmi ne
determined db yP
by res i de nt
Presidential ialD e
Decreecr ee( he reina f
(hereinaftert
e rr efe rr
ed
referred
t
tooaasst he“
the s i
mp l
“simpleeb o ok k eep
bookkeeping”)i
n g” )a ndh
and a
hasss incer e
sincerelylye nt ere
entereddt h
the ed etail
details so offhis
hi
sbusiness
b usines stransactions,
tra nsa cti
ons,
h
hees ha l
shalllbe
bed eeme
deemed dt tooh a vek
have ep
kept ta nde
and nt ere
entereddt heb
the oo
bookkr e ferr
referred edt tooi innp ar agr a
paragraphph( 1)
(1)..< Ne
<Newlywly
I ns er
Inserted tedb byyAActctNoNo..5580,
55 80 ,Dec.
Dec .28,
28 ,1998;
19 9 8;A c
Act tNo
No..8144,8 144 ,Dec.
Dec .30,
3 0,2006>
2 00 6>
( 3
(3))A nyo
Any p era
to
operatorro offt heb
the us i
ne
business s sw h o
Whose ses c al
scaleeiisss ma l
le
smaller rt h
thanant ha
thatta assd etermi ne
determined db yP
by re si
d enti
a
Presidentiall
D ec
Decreere ebbyyt het
the ype
types so offb us i ne
business ssu nde
under rt hep
the rovi sionso
paragraph aph( 2
(2))s hal
shalllbeber efer r
ed
referred
t
tooaasst he“
the per sons
“person ubj e
subjectc tt os
to i
mpl
simple eb ookke e
bookkeeping”ping”a nda
and nyb
any us i
businessne sso pera t
operatororo the
other rt han
than
thep
the er so
personns ub je
c
subjecttttoos imp l
simpleeb o okk eep
bookkeeping ings ha l
lbe
shall b er efer re
referreddt tooa assa“ p e
a “personrso nl iablef
liable o
forrbookkeeping
bo o kkee pi
ng
b
byyd oubl
double ee ntry”
entry”..< Newl
<Newly yI ns er
Insertedtedb byyA c
Act tNo.
No.5580,
5 5 8 0,Dec
Dec .28,
28 ,1998;
199 8 ;Act
Ac tNo.
No.8144,
81 44,
De
Dec. c .30,
30 ,2006>
20 06 >
- 280 -
-280-
(4
(4))I nt
In hec
the a
caseseooffparagraph
par agr aph( 1)o
(1) orr( 2)
(2),,a nyb
any us i
ne
business s so perat
operatororhaving
havi ngb ot
bothha nyr
any ea
realle s t
a t
estatee
re ntali
rental nc omea
income nda
and nyb
any us ine
business ssi nc ome
income, ,s hal
shallls e
sep-p-a ratel
aratelyya c countt
account he
themm.In Int hisc
this as
case,e,
anyc
any ommo
common ni ncomea
income mo
amountunti ndi vis
indivis- -i bleb
ible byyi nc omea
income ndt
and hec
the ommo
common ne xp ens
expenses esc o r respo nd
correspondinging
tos
to uc
such hc ommoni
common nc omea
income mounts
amount hal
shall lbebed ivi de
dividedda nde
and nte re
entered di nb
in ooksi
books np
in r opor t
proportioni
ont o
to
thet
the otali
total nc omea
income mo
amount.unt .< Amendedb
No.5580,
55 80 ,Dec.
Dec .28,
2 8,1998;
1 9 9 8;Act
Ac tNo.
No.8144,
8 14 4 ,
De
Dec. c .30,
30 ,2006>
20 06 >
(5
(5))AAnynyb us ine
business ssp ropr i
e
proprietortorh a vingt
having woo
two orrmo
morerep l
a c
placese sooffb us ine
business s ss ha
shallllc o nduc
conduct tab oo
a book-k-
ke ep i
keepingngi ns
in u c
such hm a nne
manner rt ha
thattt hed
the eta i
detailslso offtransaction
tra nsac tionb byyp la
c
placeeooffbusiness
bu sine ssmmayayb ed
be is ti
ngu ishe
distinguished d
from e
from ac
each ho ther
other..
(6
(6))FForort hes
the tockso
stocks orri nve stme
investment nts ha
sharesr est r ans f er
transferredre db yma
by j
o
major rs toc kho lde
stockholders rso offac o r
po ra
a corporationt
io n
(inc ludi
(includingnga nys
any ma
small lla ndme
and di
mediumum e nt e rp r
enterprises),ise s),t het
the r ans a c
ti
transactiononp art i
c ular
particulars, s,e tc
etc..by
byt rans ac t
io
transaction n
d at
date ewi
withthac lassi f icat
a classification ionb byyi te
itemma assd ete r mi
determinedne db byyP reside nt
De c re es hal
shall lbe
bee nt ere
entered d
int
in heb
the oo
books,ks ,a ndi
and tss
its uppor t
documents nt ss ha
shalll
lb ek
be ept
kept::Provided,
Pr ov ided,T ha
That ti nc
in a s
caseseswh e
wherere
thewr
the i tt
writtene nt rans ac
transactiontionp ar ticul ar
particulars si s s ue
issued db byya ni
an nve s tme
investment nttrader
tr ade ro orri nve st me
investment ntb r oke
broker r
u nde
under rt heF
the inanci
Financial alI nve st me
Investment ntS e r vi
Services c esa ndC
and api
CapitaltalMarkets
Mar ke tsA c
Act ta r
areek ept
kept, ,the
theb ooks
books
shal
shall lbbeed ee
deemedme dt toob beee nte r
enterede do orrn e c e
necessaryss ar yma t te
matters rss hallbe
shall bed e eme
deemed dt ob
to ek
be e
keptptini
nt he
the
b ooks
books. .< Newl
<Newly yI ns er
Inserted tedb byyA Actc tNo.No.6051,6 05 1,Dec.
Dec .28,
2 8,1999;
19 99 ;ActAc tNo.
No.6292,
6 29 2,Dec.
Dec .29,
29 ,
2 00
2000;0;A Act c tNo.
No.8144,
81 44 ,Dec.
Dec 30
.30, ,2006;
20 06 ;AAct ctNo.
No.8825,8 82 5,Dec.
Dec .31,
3 1,2007;
200 7;A Actc tNo.
No.9270,
92 70 ,
De
Dec. c .26,
26 ,2008>
20 08 >
(7
(7))Ma tt
Matterse rsn e ces s
necessary ar yf ore
for ntr
entryya ndk
and e e pi
keeping ngo offt heb
the ooksa
books nds
and uppor t
documents nt saass
re fer r
referrededt tooi np
in ar a gr
paragraphsaphs( 1
(1) thr ough(
)through 5)
(5),,s hal
shalllbbeed eter
deter--mi ne
mined db byyP res ide nt
Presidential i alD ec re
Decree.e .
< Amendedb
<Amended yA
by Act ctNoNo..5580,
55 80 ,Dec.
Dec .28,
2 8,1998;
1 99 8;A ActctNo
No..8825,
8 82 5,Dec.
Dec .31,
31,2007>
2 00 7>
Ar ti
c l
Articlee1 60 -2(
160-2 Rec e i
(Receiptpta ndK
and eepi
Keeping ngo offE videnceo
Evidence offD i
sbur se
Disbursementme nto offE xpe ns
Expenses, es,e tc.
)
etc.)
(1)Wh
(1) When ena nyr
any es ide
resident nti nt endst
intends oc
to a lc ulat
calculate en e ce ss
necessarya rye xpe ns
expenses esu nde
under rt hep
the rovi sionso
provisions off
A rt i
c
Articlele2 7i
27 nc
in a l
cul at
calculatinginga nyr
any e a
real le s tat
estate er e nt
rentalalincome
inc omea mount
amount, ,business
bus ine ssi nc o
incomemea mount
amount
o
orrmi s cellane
miscellaneous ousi nc omea
income mo unt
amount, ,he
hes ha l
shalllreceive
r ece ivet hes
the uppo rti
supportingngd oc ume
documents nt sc onc e rni
concerningng
thed
the isbur seme
disbursement ntooffs uc
such he xp end it
expenditureu rea ndk
and ee
keeppt he
themm for
f
o rfive
fi
vey ea r
sf
years rom the
from t
h ed a t
dateeo offtennination
t
ermi nation
o
offt hep
the e ri
odf
period orf
for inalreturn:
final re tur n:Provided,
Pr ovi ded,T hatthe
That thep er s
persononw hoh
who asb
has e e
been ng ive
given nd educ t
i
deductiono n
o
offd e fici
to
deficit c c ur
occurredredf ivey
five ear
years sb e for
before et hes
the tar t
ingd
starting at
date eo offe ac
eachht axabl
taxable ep e ri
periodods ha l
lkeep
shall ke ep
thes
the uppor t
supportingi
ngd oc ume
document nto offt het
the axa bl
taxable ep e rio
perioddi nw
in hi
whichc ht her
the ele vantd
relevant e f
ic
deficitito c cur
occurredredu nt i
untill
Ma
May y3311oofft hey
the ea
year ra fte
afterrt hen
the e
nextxto offt hey
the e
yeararo offthe
thet axabl
taxable ep eri
odi
period nwh
in i
which chd educ t
i
deductiono n
w a
was sg i
ve n.<
given. Ame
<Amended nde db byyA ActctNo.
No .8144,
8 1 4 4,D e
Dec. c.30,
3 0,2006;
20 0 6;Act
Ac tNo.
No .9270,
927 0,Dec
Dec .26,
26,2008>
2 0 0
8 >
(2)I
(2) nc
In as e
casessu nde
under rparagraph
pa ragr aph( 1)
(I),,wh
whene na nyp
any e rs
persononh avi
havingnga nyr
any eale
real sta
estateter e nta
rentalli nc o
me
income
o
orrb us i
ne
businessssi nc omer
income e ce i
ve
receives sg oodso
goods orrs ervi c
services e
sr el ate
related dt oh
to i
sb
his us i
ne
businesss sf r om ab
from us ine
a business ss
pro pr iet
proprietoror( inc ludi
(includingngac o rpor at
a corporation)ion)a ndd
and i
s bur s
disbursese st hep
the r i
c
priceet he re
thereofofto
toh im,he
him, hes ha l
shalllreceive
re c e
i ve
suppor t
supportingi
ngd oc ume
documents nt sf allingu
falling nde
under ra nyo
any offt hef
the ol lowi
following ngs ubpa ragr a
subparagraphsiphs :Provided,
Pr ovi ded,That
Tha t
thes
the ames
same hal
shall ln ota
not ppl
apply yt oc
to as
casesesd e termi
determined ne db byyP re side nt
PresidentialialD e cre
Decreei e:< Amendedb
<Amerided byy
Ac
Act tNoNo..8144,
81 44 ,Dec.
Dec .30,
3 0,2006>
2 00 6>
- 282 -
-282-
11..A c c
o
Accountunts tateme
statementntunder
und erArticle
Ar t
ic le1 63o
163 offt hisAct
this Ac ta ndA
and rti
c l
e1
Article 2
1211oofftheC
the orpo r
a t
CorporateeT a
TaxxA ct
Act;;
2
2.. T
Taxaxi nvoi
invoiceceu nde
underrA r t
i c
Articlele1166o offt heV
the alue -Adde
Value-Added dT a
Tax xA c
Act;t;
3 .C red itc a rds aless li
p su nde rt h eS pe
3. Credit card sales slips under the Specialized Credit FinanciallBusi-
cia l
iz e dC re di
tF in an ci
a Bus i-n es
ness sA c
Act t( ifa
(if a
c ar
cardds imi la
similarrt oac
to reditc
a credit a rd
card,,a
assd e termi ne
determined db yP
by resid enti
a
PresidentiallDecree,
De cree,is
isu sedf
used orat
for rans acti
a transactionon,
thes
the uppor t
documentsnt st he re
thereof ofs hal
shall lb ei
be nc lude d)
included); ;a nd
and
4
4.. C as
Cash hr e c eipt
receipt. .
(3
(3))I na
In ppl yi
applying ngt hep
the r ovi sio
provisions nsooffparagraph
pa ragr aph( 2),w
(2), he
Wherer ea nyb
any us ine
business sso p-e
op- ra t
orhas
erator hasf ail e
d
failed
tor
to e cei
receiveveat axi
a tax nvoi c
invoice er efe rr
referrededt oi
to ns
in ubpar agr
subparagraph a ph2o2 offthe
thes amep
same ar agrapha
paragraph ndwh
and e
Where r
e
hei
he s sue
issues sa ndk
and e e
keepspsat axi
a tax nvo ic
invoice e issued
iss ue db byyap ur c ha
a purchaser seru nde
under rt hep
the rovisi
o nso
provisions offA rticl
Articlee
12 6
126-4-4( 1)o
(1) offt heR
the es t
r ict
i
Restrictionono offS pe c
SpecialialT axa t
Taxation i
o nA c
Act,t,he
hes ha l
shalllbe
bed eeme
deemed dt oh
to avef
have ulfille
d
fulfilled
th eo b l
iga tiont or ece i
v ea ndk eept h es u pp ortingd oc um ent
su n
the obligation to receive and keep the supporting documents under paragraph (2). <de r p ar-a g ra
p h( 2). Newl
<Newly y
Ins er
Inserted tedb yA
by c
Act tNoNo..8144,
8 14 4,Dec.
Dec .30,
30 ,2 00 6>
2006>
(4
(4))I na
In ppl yi
applyingngt hep
the r ovi sionso
provisions offp aragr aphs(
paragraphs 1)t
(1) hr ough(
through 3),the
(3), t
her e
re--c eipta
ceipt ndk
and eepi
keepingng
o
offt hes
the up po rt
supportingingd ocume
documentsntso nt
on hed
the is bur seme
disbursement nto offe xpe ns
expensesesa ndo
and thernecessary
other nec ess aryma tte
mattersrs
sha
shalll lbe
bed e te rmi
determinedne db byyt heP
the re s ide nt
<Amended yA
by c
ActtNo
No..8144,
814 4,Dec.
Dec .
30,2006;
30, 200 6;A ActctNoNo..8825,
8 82 5,DecDec .3],
31 ,2007>
20 07 >
[Thi
[This sA rtic
Article leNeNewlywl yI ns er
Insertedtedb byyA Actc tNo
No..5580,
558 0,Dec.
Dec .28,
2 8,I998]
199 8]
Ar ticl
Article e1 6 0
160-3-3( Obl i
gat
(Obligation iont oMa
to Make kea ndK
and e
Keepe pR ec o
Recordsr dso nI
on ss ua
Issuancenc eo offD ona
DonationtionR e c ei
Receipts)pt s )
(1
(1))WhWheree reap e r
a person sonwh who ot ake
takes sc ha
chargergeo offi s s ui
issuing ngd onat
donation ionr e ce i
pt
receipts sr e
re--q ui r
quirededf ort
for he
the
inc l us
inclusioniono offd ona ti
donationsonsi nn
in e ce s
necessarysar ye xpe ns
expenses e so orrf ort
for hed
the e
de--d uc ti
ductionono offd onat
donationsi
onsf rom
from
thei
the nc omea
income mo
amountuntunder
unde rArticles
Ar ticle s3 4,52
34, 52( 6
(6))ooffthis
thisA Actcta ndA
and rt i
c
Articlele7733( 1)o
(1) offthe
t heR es tri
c
Restrictiont i
o n
o
offS pe c
SpecialialT axat
Taxation i
onA c
Act ti s s ue
issues sd ona
donationtionr e ce ipt
receipts st ot
to hep
the e rs onsw
persons whohof a ll
fallningu nde
under rt he
the
fo ll
o wi
followingngs ubp a ragr a
subparagraphs, p hs ,hhees ha
shallllmake
ma ker e co r
recordsdst he re
thereof off o
forre a
eachchs uc
suchhc o nt ribut
contributor ora assp re scr
prescribedibe d
byP
by re side nt
De cre ea ndt
and he
thennk e
keepept he
themm for
fo rfive
fi
vey ea
yearsr sf r o
fromm the
thed a
datet
eo offissuance
is sua nc et he r e
thereofiof :
< Amendedb
<Amended byyA c
Act tNo
No..7 837
7837, ,Dec.
Dec .8],
31,2005;
2 00 5;A Actc tNoNo..8825,
8 82 5,Dec.
Dec .3],
3 1,2007>
2 00 7>
11.. Unt
Untili
lD e c embe
December r3 1,2
31, 00
200828 :d onorwh
donor Who od onat
donates e smo more ret hano
than nemi
one lli
milliononwo won nay e
a year; ar ;
22.. Fr om J
From anua
January ry1 1,,2 0
200909t oD
to ec e
Decembermbe r3 1
31,,2 0 09
20091 :d onorwh
donor Who od ona t
donatese smo moreret hanah
than a
a halflf
mi llionwo
million won nay e
a year;ar ;o orr
33.. Fr om January
From Januar y1 1,,2 0 0
200919:a nyp
any e r
persons onwhWho oma ke
makes sd ona t
donation,ion,nonoma tt
matter erh howow much
muc hi ittis.
is .
(2
(2))A pe
A personrsonwh who ot ake
takes sc ha
chargergeo offi ss uingd
issuing ona
donationtionr ec e i
receiptspt ss ha l
shallls ub-mi
sub- mittthe
t her ec or
records ds
o
offi s sui
issuingngd o na t
donationi
onr ec eipt
receipts sf ore
for a
eachchd onorkept
donor ke ptunder
unde rparagraph
pa ra gr aph( 1)to
(1) tot heC
the ommi
Commissioners sio ne r
o
offt heN
the at ionalT
National TaxaxS er vi
Service,c e ,t heC
the ommi s
Commissioner sione ro offt hec
the ompe
competentte ntR egi onalTax
Regional TaxO ff i
c
Office e
o
orrt hec
the hi e
chieffo offat a
a taxxo ffic
office eh a vi
havingngj ur i sdic t
i
jurisdictiono no ve
over rt hep
the l
a c
place eo offtax
taxp a yme
payment, nt ,if
i
fs or
so eque
requesteds ted.
<AmendedbyAc
<Amended by Act tNo.88
No. 25
8825, ,DecDec. .3 1,2
8], 00
2007> 7>
(3
(3))A pe
A personrsonw whohot ake
takes sc har
charge geo offi ss uingd
issuing onat
donation i
onr e c e i
pt
receipts ss hal
shallls ubmi
submit tthe
t her e c or
record do off
d o nat
donationio nr e ce i
receiptpti ss uanc
issuance ew he
Where ret ot
totala ln umbe
numbers r so offr e ce i
receiptpti ss ua nc
issuance ea ndd
and ona t
donation iona mount
amounts s
d ur i
duringngt hec
the o rr es po ndi
corresponding ngt axat
taxationi
onp pe-e-r iod,t
riod, oc
to hi
chiefefo offt a
taxxo ffic
officeeh a vi
having ngj ur is di ct
over r
thep
the la c
placeeo offt axat i
taxationonp ur s
pursuantuantt tooA rti
Articlecle1 68(
168 5)u
(5) nt
until ilJune
J une3 300o offt hey
the e arf
year ol lowi
following ng
thec
the or r es pondi
corresponding ngt axat
taxationionp e riod.<
period. Amendedb
<Amended byyA Actc tNo No..8825,
88 25 ,Dec.
Dec .3],
31 ,2007>
20 07 >
[ Thi
[This sA rtic
Article leNe Newlywl yI ns er
Inserted t edb by yA Actc tNo
No..7 31
7319,9,Dec.
Dec .3],
3 1,2004]
200 4]
- 284 -
-284-
Article1
Article 60-4(
160-4 Obligationo
(Obligation offFinancialI
Financial nstitut i
onst
Institutions oMa
to kea
Make ndK
and eepR
Keep ecordso
Records nI
on ssuance
Issuance
o
offCertifi
cates)
Certificates)
(1)Wh
(1) ereaf
Where inanciali
a financial nstitutioni
institution ssuesc
issues ertificatesr
certificates equiredf
required orthe
for t
hed eductionf
deduction rom income
from income
amountsu
amounts ndert
under hisA
this cto
Act orrtheR
the estrictiono
Special axationA
Taxation ct,it
Act, i
ts hallmake
shall ma
ker ecords
records
thereoff
thereof ore
for achr
each esidentc
resident oncerneda
concerned assprescribedb
prescribed yP
by residentialD
Presidential ecreea
Decree ndt
and henk
then eep
keep
themf
them orf
for ivey
five earsf
years rom t
from hed
the ateo
date offissuancet
issuance hereof.<
thereof. Amendedb
<Amended yA
by ctNo
Act 8144,
No..8144,
Dec
Dec..30,
30,2006;
20
06;A ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
(2)A
(2) A financiali
financial nstitutions
institution halls
shall ubmitt
submit her
the ecordso
records offissuingc
issuing er
tif i
- c
certifi- atesf
cates ore
for ach
each
residentk
resident eptu
kept nderp
under aragraph(
paragraph 1)t
(1) ot
to heC
the ommissionero
Commissioner offthe
theN ationalT
National axS
Tax ervice,if
Service, i
f
sor
so equested.<
requested. Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
2
007>
[ThisA
[This rt i
cleNe
Article wlyI
Newly nsertedb
Inserted yA
by ctNo
Act No..7319,Dec.
7319, Dec.3],
31,2004]
2
004]
Art i
cle1
Article 60-5(
160-5 Obligationt
(Obligation oO
to pena
Open ndU
and seB
Use usinessA
Business ccount)
Account)
(1)I
(1) nc
In aseo
case offanyd
any ealwh
deal ereinap
wherein ersons
a person ubjectto
subject t
ob ookkeepingb
bookkeeping yd
by ou-b
dou- lee
ble ntryi
entry iss
suppliedo
supplied orrsuppliesg
supplies oodso
goods orrservicesi
services nc
in onnectionw
connection ithh
with isb
his usiness,the
business, t
hep ersons
person ubject
subject
tob
to ookkeepingb
bookkeeping yd
by oublee
double ntrys
entry hall,w
shall, henh
when heefallsu
falls ndera
under nyo
any neo
one offthef
the ollowings
following ubpar
a-
subpara-
graphs,u
graphs, seab
use usinessa
a business ccounta
account assdeterminedb
determined yP
by residentialD
Presidential ecree(
Decree hereinafterr
(hereinafter eferred
referred
t
tooa
assthe“
the businessa
“business ccount” )
account”)2:<Amendedb
<Amended yA
by ctNo
Act No..8825,
8825,Dec.
Dec.3],
31,2007>
20
07>
1
1..
Whenh
When ep
he ayso
pays orrreceivest
receives hes
the ettlementf
settlement undt
fund hroughaf
through i
nanciali
a financial nstitut on;a
i
institution; nd
and
2
2..
Whenh
When ep
he ayso
pays orri
isspaidl
paid aborc
labor ostso
costs orrrental
rentalf ees:P
fees: rovided,T
Provided, hatin
That i
nc aseso
cases offtransactions
transactions
wherel
where aborc
labor ostsa
costs rep
are aido
paid orrreceive,
receive,the
t
het ransactionsp
transactions rescribedb
prescribed yP
by residentia
Presidential De
cree
lDecree
from a
from mongt
among ransactionwh
transaction ichi
which issnotmade
not madethroughab
through usinessa
a business ccountd
account uet
due ot
to he
the
otherp
other arty’sc
party’s ircumstances.
circumstances.
(2)D
(2) eleted.<
Deleted. byA
<by ctNo
Act No..9270,
9270,De c
Dec..26,
26,2008>
2
008>
(3)A
(3) nyp
Any ersons
person ubjectt
subject ob
to ookkeepingb
bookkeeping yd
by oublee
double ntrys
entry hallo
shall penab
open usi
-n
a busi- essa
ness ccount
account
withint
within hreem
three onthsf
months romt
from hec
the ommencingd
commencing ateo
date offthe
thet axablep
taxable eriodwh
period ereinh
wherein ei
he isssubject
subject
tob
to ookkeepingb
bookkeeping yd
by oublee
double ntry(
entry thec
(the ommencementd
commencement ateo
date offthe
then exttaxable
next t
axablep eriodi
period n
in
casesw
cases hereh
where ei
he isssubjectto
subject t
ob ookkeepingb
bookkeeping yd
by oublee
double ntrya
entry attthe
thes amet
same imeo
time offhis
hisb usiness
business
commencement),a
commencement), ndf
and i
lear
file eportt
a report hereonw
thereon itht
with hec
the hiefo
chief offat axo
a tax ffi
ceh
office avingj
having urisdiction
jurisdiction
overh
over isp
his laceo
place offbusiness:Provided,
businessi Pr
ovided,T hatwh
That eret
where heb
the usinessa
business ccounth
account asa
has lready
already
beeno
been peneda
opened ndr
and eported,the
reported, t
hes ames
same halln
shall ota
not pply.<
apply. Amendedb
<Amended yA
by ctNo.
Act No.9270,
9270 Dec
,Dec..
26,2008>
26, 2
008>
(4)A
(4) nyp
Any ersons
person ubjectt
subject ob
to ookkeepingb
bookkeeping yd
by oublee
double ntrys
entry hall,i
shall, nc
in asesw
cases hereh
where heechanges
changes
o
orraddi
t ional
l yo
additionally pensab
opens usinessa
a business ccount,report
account, r
eports uchc
such hangeo
change orradditionalo
additional peningwi
opening thin
within
ad eadlinef
a deadline allingu
falling ndera
under nyo
any offthef
the ollowings
following ubparagraphs:
subparagraphsi
- 286 -
-286-
1
1..Wh
Whenenh ei
he issl iablef
liable o
forrreporting
r epo
r ti
ngo np
on rese nts
present ituationo
situation offbusiness
bus i
ne ssp laceu
place nde
underrthe
thep rovisions
provisions
o
offA r ticl
Articlee7 8,wi
78, thi
Within nt hed
the eadl inef
deadline orr
for epor ti
reportingngu nde
under rt hes
the ameA
same r ticle
Article;;a nd
and
2. When he is a business proprietor under the provisions of Article 2 of the Value-Added T
2 .Wh enh e i
s a busine s s p rop
rietor un der the prov is
ion s of A rt
icl
e 2 of the V a l
ue -A d d e
d axA
Tax ct,
Act,
w ithi
nt
Within hed
the e ad li
n
deadlineef orreporting
for re
po rt
ingu nd
undererthe
thep ro vi
s i
o n
provisionssooffArticles
Ar ti
c l
e s1199a nd2
and 7o
27 offthe
th es ameA
same ct
Act..
(5)Ma
(5) tte
Mattersrsn ece s
necessarysaryf oro
for pe ning,reporting,
opening, repo rting,c ha ngi ng,a
changing, d dingab
adding us i
ne
a businessssa cc ount
account, ,reporting
repor ti
ng
me t
hodt
method he re
thereof,of,t hes
the copeo
scope offd ealswh
deals ere
whereinint heu
the s
useeooffab us ine
a business ssa c c
ounti
account issr equi red,
required,
drawi
drawingngu uppal is
a list tooffp a r
tic
ul ars
particulars,,e tc
etc..s hallbe
shall bep rescribe
prescribed dbbyyP re si
de nt
De cree .
[Thi
[This sA r t
ic
Article l eNe wl
Newly yI nser tedb
Inserted byyA ActctNo
No..8144,
814 4,Dec.
Dec .30,
3 0,2006]
200 6]
Art i
cle1
Article 61(
161 SeparateE
(Separate ntry)
Entry)
A nyp
Any er
s o
person nw hod
who esi
rest
desires oh
to avea
have nyi
any nco met
income axr
tax e duce
reduceddo orrexe mp
exemptedt
e du nderArticle
under Art i
cle1 3
13
(1)3
(1) 3,,shalle
shall ntert
mter her
the educibleo
reducible orrexemptib l
ei
exemptible ncomesi
incomes nt
in heb
the ookss
books eparatel
yf
separately romm
from i
sc
ellaneous
miscellaneous
inc ome s.[Thi
incomes.[This sA rticl
ArticleeWh o
Whollyll
yA mend
Amendede dbbyyA ctNo.
Act No .5580,
5 580,Dec.
De c.2 8,1
28, 99
1998]8]
Art i
cle1
Article 62(
162 Installationa
(Installation ndU
and seo
Use offCashR
Cash egister)
Register)
(1)N
(1) otwi t
hs ta ndi
Notwithstandingngt hep
the r
o visionso
provisions offA rti
cle2
Article 4(
24 1),i
(1), iffab us i
ne s
a businesssp rop ri
etorp
proprietor re scri
bed
prescribed
byP
by residentialD
Presidential e
creei
Decree nstallsa
installs ndu
and s e
uses sac ashr
a cash egis t
e
register,r
,t hec
the alcu l
ationo
calculation offthet
the otali
total ncome
income
am o
u nt mayb e basedo nt he s
um of t he am ou nt
s r ece i
v edd u ri
ngt he c
o rresp
amount may be based on the sum of the amounts received during the corresponding year.ond i
n gy ear.
(2)Ma
(2) tt
er
Matterssn e cessar
yf
necessary ori
for nstal
linga
installing ndu
and si
ngac
using a
a cashshr egisters
register ha l
shalllb ed
be e t
e rmi ne
detennined db y
by
Pre si
d enti
alD
Presidential ecree
Decree..
Ar ti
c l
Articlee1 6 2
162-2-2( Ob li
g at
(Odigafioniont oS
to ub s cri
Subscribebef o
forrC r e
d
Credt itC a
CardrdM emb
Member e rS to r
Storeea n dt
andto oI s su
IssueeC r ed
Credt itC a
CardrdS al
esS
Sales l
ip)
Slip)
(1
(1))T h
TheeC o mmi s
Commissioners ion ero offt h
the eN at ion
National a lT TaxaxS ervi
Servicecem a
may,y,w h
whenenh heef in
findsd si ittn e ces s
necessarya ryf o
forr
taxa
tax dmi ni s tra
administration,tion,g iveg
give ui da
guidancen cet ot
to heb
the us ine
business ssp ro p riet
proprietorso rsf allin
falling gu n d
undere rt h
theer equ ireme
requirement n t
se
settbbyyP re s id en
Presidential ti
a lD e c
Decreer eec o ns i
d er
considering in gt yp
typese so orrs ca le
scalesso offb u si ne
business ssi n t
intooa cc ou
account, n t,f roma
from mo
among ng
th os
thosees up plyi
supplying n gg oo
goodsdso orrs e rvi c
services esm ai
mainlynlyt oc
to o nsu me
consumers rsw h
who oa r
areen o
nottb u s i
n
businesse s sp ro p ri
e to
proprietors,rs,
toj
to o i
ni
join nc
in r ed
credititc a
cardrdm e
membermb e rs to res
stores. .< Amende
<Amended db byyA c
Act tNoNo..8825,
8 82 5,Dec.
De c .3],
3 1,2007>
20 07 >
(2
(2))Wh
Wheree r eac r edi
a credit tc ar
card dme mbe
member rs or
t
store e( re f erri
(referringngt oab
to us i
ne
a business ssp ropr ie
proprietortorf a ll
ingu
falling nde
under r
ther
the equi r eme
requirements ntsp ur sua
pursuant ntt toop a ragr
paragraphaph( 1 )
(1);;h e rea ft
hereaftere rt hes
the a mes
same ha
shall lla ppl
apply yi innt hisA
this rtic l
Article)e)
suppl i
suppliesesg oodso
goods orrs er vi
services ce swiWiththr e ga
regard r dt ob
to us ine
businesss sa ndt
and heo
the the
other rparty
pa rtyi nt e
intends ndst os
to et tl
settlee
thet
the ra ns a ct
transaction i
o nw i
Withthac r e
a creditdi tc ar
card du nde
under rArticle
Ar t icle3355( 2
(2))1( a
1 (a),),the
thec re di
credit tcard
ca rdme mbe
member rs tor
store e
shal
shallln otr
not e fus
refuse ei ittoorri ss
issueueac redi
a credit tc ar
card ds al e
salesss lipu
slip nde
under rA rtic
Article le1 60-2(
160-2 2
(2) )3( he reaf
3 (hereafter t
e r
re ferre
referred dt tooa ass“ c re di
“credit tc ar
card ds ale
sales ss lip”i
slip” nt
in hi
this sA rticl
Article)e )d iffe rent
from hef
the a
factct :Provided,
Pr ovi ded,
T ha
That tap e rs
a person o nw hoo
who p er a
operatestesas up er st
a superstoreo reu nde
under rs ubp a ra gr
subparagraph ap h3o
3 offArticle
Ar ti
c le2o
2 offthet heD is t
ribut i
Distributionon
Indus t
Industryr yD eve lopme
Development ntA Actcto orras por
a sports tsf ac i l
facilityi
tyu nde
under rs ubpa ragr
subparagraph aph1o 1 offArticle
Ar tic l
e2o2 offt he
the
Ins ta l
la ti
Installationona ndU
and ti
liz a t
Utilization iono offS por
Sports tsF ac ilit
Facilitiesie sAActct( he r eaf
(hereafterterr e f e r
referredre dt tooa ass“ supe rs tor
“superstore, e,
etc .
etc.””i nt
in hi
this sA rtic
Article)le)i s sue
issues sac re
a creditditc ar
card ds al e
salesss lipa
slip fte
afterra ddi
addingngu uppt hes
the al
saleseso offo the
other r
bus i
ne s
businessesse si nt
in her
the ele va
relevant nts upe r st
superstore,or e,e t
c
etc. .( limi te
(limiteddt oc
to a se
casessw he
Where ret hep
the e rs
persono nw Whohoo pera
operatest
e s
thes
the upe r s tor
superstore, e ,e tc
etc..o pe ra
operates test hee
the qui pme
equipment ntf orp
for ointo
point offs a l
es
sale ys te
system, m,a ndw
and he
Where reb us ine
business s s
pr opr ietor
proprietors sh avea
have gr e
agreede du ponb
upon e twe
between e nt he ms e
themselves l
ve si na
in dvanc
advance), e ),hehes ha
shalllln otbe
not bed ee me
deemed d
toh
to a vei
have s s ue
issued dac redi
a credit tc a r
cardds a le
salesss lipd
slip iffe re nt
from hef
the ac t
fact..< Amendedb
No.
814
8144,4,Dec
Dec .30,
30 ,2006;
2 00 6;Act Ac tNo.No.8825,
8 82 5,DecDec .3],
31 ,2007;
2 00 7;Act
Ac tNo.
No.9270,9 27 0,Dec.
Dec .26,
26 ,2008>
20 08 >
- 288 -
-288-
(3
(3))A nyp
Any e rs
person onwhwho oi issr e fus
refusede dat rans ac
a transaction tionb yc
by re di
credit tc ar
card db byyac redi
a credit tc a
cardrdme mbe
member r
stor
storeeo orriissi ss ue
issued dac re
a creditditc ar
cardds al e
sales ss li
slippd iffe rent
differentlylyf rom t
from hef
the actmay
fact mayr e po
reportr tt hed
the eta i
detailsl
s
o
offd ea
deallt he r
thereofe oft ot
to heC
the ommi ss
Commissioner ione ro offt heN
the at ionalT
National axS
Tax ervic
Service, e ,the
theC ommi s
Commissioners ione rooff
thec
the ompe
competentt e ntR egi onalT
Regional axO
Tax ffic
Office eo orrt hec
the hi e
chieffooffat
a taxaxo f
fi
officec eh a vi
havingngj ur i
s di ct
jurisdictioniono ve
overr
thep
the la c
placeeo offt axp
tax ayme
payment. nt.< Newl
<Newly yI ns er
Inserted tedb byyA ActctNoNo..8144,
81 44 ,Dec.
Dec .30,
30 ,2006;
2 00 6;A Actct
No.9270,
No. 927 0,Dec.Dec .26,
26 ,2008>
20 08 >
(4)A
(4) nyp
Any e rs
person onwhWho oh hasasr e ceive
received dt her
the e por
report tu nde
under rt hep
the r ovi s i
provisionsonso offp ar agr aph(
paragraph 3)s
(3) ha l
shalll
n otif
notifyyt hec
the hi
chiefefooffat axo
a tax ffic
officeeh avi
having ngj ur isdi c
jurisdictionti
ono ve
over rt hep
the lac
placeeo offt axp
tax ayme
payment nto offthe
t he
cr edi
credit tc a r
card dme mbe
member rs tor
storeet her eof
thereof. .I ns
In uc
such hc a s e
cases,s ,the
t
hec hie
chief fooffs uc
suchht a
taxxo f fi
c
office es hal
shall lnotify
not ify
ther
the eleva
relevant ntc redi
credittc a
cardrdme mbe
member rs t o
storereo offt her
the e por t
reportededa mountd
amount ur i
ngt
during her
the el
e va
relevant ntt a xa bl
taxable e
pe riod.<
period. Newl
<Newly yI ns er
Inserted t
edb byyA Actc tNoNo..8144,
814 4,Dec.
Dec .80,
30 ,2 00
2006> 6>
(5
(5))T heC
The ommi s
Commissioners ione ro offt heN
the ati onalT
National TaxaxS e rvi
Servicec emamay yi s suea
issue anno rde
order rn e ces
necessarysar yf or
for
cor r ecti
correctionont he r
thereofe
oft ot
to hec
the r edi
credit tc a r
card dme mbe
member rs tor
storeewh i
Whichchh asr
has ef us
refusede dat rans a c
a transaction ti
onb byy
cr edi
credittc ar
carddo orrh a
si
has s sue
issued dac redi
a credittc ar
cardds a le
sales ss lipd
slip iffere ntl
differentlyyf ro
fromm the
thef a ct
fact..< Newl
<Newly yI ns er
Insertedte d
b
byyA ActctNoNo..8144,81 44 ,Dec.
Dec .30,
3 0,2006;
20 06 ;A Actc tNoNo..9270,
92 70 ,Dec.
Dec .26,
26 ,2008>
20 08 >
(6
(6))T hea
The dmi nis tr
administrativeat iveg ui danc
guidance ef ors
for ubs cript
subscription iont oc
to r edi
credit tc ar
carddme mbe
member rs t or
store,e,me thod
method
o
offr e por ti
reporting nga ndn
and ot ific at
notificationi onf orr
for e fus
refusal alo offt r ans act
transactionionb byyc re di
credittc a r
card da ndf
and ori
for ss uanc
issuance e
o
offc r edi
credittc a
cardrds aless
sales lipma
slip made ded iffe r ent
differentlylyf ro
fromm the
thef a ct
fact, ,a ndo
and the
otherrnecessary
ne ce ssar yma tt
matterse rss ha l
shalll
bep
be re sc r i
prescribedbe db yP
by r es ide nt
De c r ee.< Newl
<Newly yI ns er
Insertedtedb byyA c
Act tNoNo..8144,
8 14 4,Dec.
Dec .30,
30 ,
200
2006;6;A Actc tNoNo..8825,
8 82 5,Dec.
Dec .31,
31 ,2007;
20 07 ;A Actc tNoNo..9270,
92 70 ,Dec.
Dec .26,
26 ,2008>
20 08 >
[Thi
[This sA r ti
Article c leNeNewlywl yI ns er
Inserted t
edb byyAAct c tNo
No..5580,
5 58 0,Dec.
Dec .28,
2 8,1998]
1 99 8]
Ar ti
cle1
Article 62
162-3-3( Ob liga ti
o
(Obligation nttooS ub s c
Subscriberibef orC
for as
Cash hR e cei
Receiptp tMember
Me mb erS tor
Store ea ndt
and oI
to ss
IssueueC as
CashhR eceip
Receipt)t)
(1
(1))A nyb
Any us ine
business s sp ropr ie
proprietortorwh Who os uppl
suppliesi
e sg oodso
goods orrs e rvice
services sma i
nl
mainly yt oc
to ons ume
consumers rswhWho o
ar
areen o
nottproprietors
pr o pr ietor sa ndm
and e e
meets tst her
the e qui reme
requirements ntsd e termi
determinedne dbbyyP resident i
PresidentialalDecree
De cre ei nc
in o ns i
consid-d-
er atio
no
eration offt het
the ypeo
type offbusiness,
bus ine s s,s ca le
scale, ,e tc.s
etc. ha l
shallls ubs cri
subscribebef orac
for a s
a cashhr ece i
receiptptmember
me mbe rs tor
storee
wi thi
Withinnt hr e
three emo nt
months hsf rom t
from hed
the ayh
day es
he ati sfie
satisfies ss uc
suchhr equi re me
requirements.nt s .
(2
(2))A nyb
Any us ine
business s sp r opr ie
proprietortorwh Who os ubs c r
subscribesibe sf orac
for as
a cash hr ece i
ptme
receipt mbe
member rs tor
store eu nde
under rt he
the
p rovis i
onso
par agr aph( 1)s
(1) hal
shall lput
putup upas ignboar
a signboard di ndi c ati
indicatingngac as
a cash hr ece i
receiptptmember
me mbe r
stor
storeeu nde
under rc ondi t
ionsd
conditions e te rmi
determined ne db byyt heC
the ommi s
Commissioners i
one ro offt heN
the a ti
ona
National lTTaxaxS e rvic
Service. e.
(3
(3))Wh
Wheree rea nyc
any ashr
cash e ce
receiptiptme mbe
member rs tor
store es uppl
suppliesiesg oodso
goods orrs e rvic
servicesesi nr
in elati
relationont oa
to a
b usine
business ssa ndt
and heo
the the
otherrp ar
partytyt he r e
thereofofr e que s
requests tst oi
to ssueac
issue as
a cash hr ec eipta
receipt fte
afterrp ayi
payingngt he
the
p ri
c
priceet he re
thereof ofi nc
in ash,i
cash, itts hal
shall ln otrefuse
not r e fus et oi
to ss uet
issue hec
the a s
cash hr eceipto
receipt orri s s
issueuei ittd if fer ent
differentlyly
from t
from hef
the ac t
fact..
(4)Wh
(4) Wheree rea nyp
any ers
persononwh Who oi isss uppl i
supplied edg oodso
goods orrs e rvice
services sf rom ac
from as
a cash hr e
re--c e iptme
ceipt mbe
member r
sto r
storeeiissr efus
refused edt oi
to s sueac
issue a
a cashs hr ec eipta
receipt fte
afterrp ayi
paying ngt he p
the r
ic
priceet he reo
thereof fi nc
in a s
cashho orriissi ss ue
issued d
ac a
a cashs
hr ec e
receiptiptd iff
er ent
differentlylyf rom the
from t
hef ac t
fact,,he
hema may yr e por
report tt hed
the eta i
l
detailsso offt her
the e l
e vantd
relevant eal
deal
inc
in as
cashht ot
to heC
the ommi
Commis- s -s i
one
sioner roofft heN
the ationalT
National axS
Tax e rvic
Service,e,the
theC ommi ss
Commissioner ione ro offt he
the
compe
competentt
e ntR egi ona
Regional lT axO
Tax f
f i
Officec eo orrt hec
the hie
chieffo offat a
a taxxo ffice
office..
- 290 -
-290-
(5
(5))A nyp
Any e rs
persononwhwho oh a
hassr e ceive
received dt her
the epo r
reporttu nde
under rt hep
the rovi sonso
i
provisions offp aragr a
paragraphph( 4)s
(4) ha l
l
shall
re por
report tiitttot
to hec
the hi e
chieffooffat a
a taxxo ffic
office eh avi
havingngj ur i
sdi c
jurisdic-- tion
t
iono ve
over thep
rthe laceo
place offtax
taxp a yme
payment nt
of thec ashr ece i
p t m em b er store .I nt hisc a se, thec h i
e f of s
u chat a xo ffi
ces
of the cash receipt member store. In this case, the chief of such a tax office shall notify the ha l
l n
o tifyt he
releva ntc
relevant as
cashhr ece i
p
reoeipttm embe
member rs toreo
store offthe
ther epo rt
reportededa mo
amountuntd uringt
during her
the e l
eva nttaxable
relevant t a
xa bl
ep er
iod.
period
(6
(6))T heC
The ommi ss
Commissionerione ro offt heN
the at ionalT
National axS
Tax ervi c
Serviceemamay yi ssuea
issue anno rde
orderrn ecess a
necessary ryf or
for
cor re cti
correctiono nt hereo
thereof ft ot
to hec
the as
cashhr ecei
receiptptme mbe
member rs tor
storeew hi
whichchr e f
us e
refusessttooi ssueac
issue as
a cashhr ece i
pt
receipt
o
orri s sue
issues siittd i
ffe rentl
differentlyyf rom t
from hef
the a ct
fact..
(7
(7))S ubs cr ipt
Subscription i
onf oro
for orrwi thdr awalf
Withdrawal rom ac
from as
a cash hr ec e i
ptme
receipt mbe
member rs t ore
store,,a mount
amounts ss ubjec
subjectt
toa
to ni
an s sua nc
issuance, e,method
me t
hodo offreport
repo rta ndn
and ot i
fic ationf
notification orar
for efus a
a refusallo is s uanc
offissuance eooffcash
cashr ece i
pt
receipt
anda
and ni
an ssua nc
issuanceem a
maded ed iffe rentl
yf
differently romt
from hef
the ac
factta ndo
and the
otherrn ece s
s ar
necessaryym a tte
mattersrss hallb
shall beepre scri
be
prescribedd
by the Presi- dential Decree. [This Article Newly Inserted by Act No. 8144, Dec. 30, 2006]]
byt h eP res i-d en tial D ec ree .[
T h isA rticleN e w lyI nse rtedb yA ct N o . 8144, D e c.30 , 2006
Art i
cle1
Article 63(
163 Preparation,De
(Preparation, livery,e
Delivery, tc.o
etc. offAccountS
Account tatement)
Statement)
(1
(1))WhWhen e nab us ine s
a businessman sma nw Whohoh a
hassmamadedeab us ine
a business ssr e gi s tra
registrationtio nu nde
under r Article
Ar t i c l
e1 6
1688s upp l
suppliesi
e s
a nyg
any o
goodsodso orrs e rvi c
services, es,hhees ha
shall l
lprepare
pr epa rea na
an cc o unts
account ta t eme
statement nto c e
orrreceipt
re ipt( he r eina
(hereinafter fterreferred
refe r r
e d
toa
to asst he“
the ac counts
“account ta teme
statement, nt ,e tc .
”
etc”) )a ndd
and e li
ve
deliver riittt ot
to hep
the ers
person onwh Who oi isss uppl
suppliedieds uc
suchh
g oo
goodsdso orrs e rvi c
services esu nde
under rt hec
the ondi ti
conditionsonsa assp r es cribe
the re s i
de nt
De c r e e.< Ame
<Amended nde d
b
byyA Actc tNo
No..6557,
65 57 ,Dec.
Dec .3],
3 1,ZOOI>
20 01 >
( 2)I nc as eo ft h es ale so
(2) In case of the sales on consignment nc o ns ign me nto orrb byyp roxyo
proxy offs uc
such hp roduc
products t so offa gr i
c ul tur
agriculture, e,
live s t oc
livestock, k,f ishe
fishery,ry,a ndf
and or e
forestrys trywh i
Whichc ha r
areee xe mpt
exempted e df rom a
from nyv
any al ue -adde
value-added dt a
taxxu nde
under r
A rtic
Articlel e1 2(
12 1
(1))1o1 offt heV
the al ue
Value-Added-Adde dT a
Tax xA c
Act,t,ac o ns i
gne
a consignee eo orrproxy
pr oxys hal
shall lprepare
pr epar ea c c ount
account
s tat eme
statements, nt s,e t c
etc..a ndd
and elive
deliver rt he
themmt ot
to hep
the er s
persononb e i
beingngs uppl
suppliedie ds uc
such hg oods
goods, ,by
byd ee mi
deeming ng
thatt
that hec
the on-s
con- igne
signee eo orrp r oxys
proxy uppl i
suppliesess uc
such hg oods
goods :Provided,
Pr ovi ded,T hati
That iffa c counts
account tat
state-e-
me nt
ments, s ,e tc
etc..a r
areed e live
delivered redp ur s
pursuantuantto top ar agr
paragraph aph( 1)u
(1) nde
under rt hec
the ondi tionsa
conditions assp r esc r
prescribedibed
b
byyt heP
the re side nt
De c ree ,i itts ha l
shallln otb
not es
be o.<
so. Newl
<Newly yI ns er
Inserted t edb byyAActc tNo.No.5580,5 5 80 ,Dec.
Dec .
2 8,1998;
28, 1 99 8;A Actc tNoNo..8144,81 44 ,De Dec.c.30,
30 ,2006>
20 06 >
( 3
(3))WiVVlth thr e s pe
respect c tt toot hei
the mpor
imported tedg oods
goods, ,the
theh e ado
head offa nyc
any us toms
customshousehous es hal
shalllissue
iss uea n
an
a ccounts
account ta te me
statement ntt ot
to hei
the mpo
importerrt erunder
unde rt hec
the ondi tionsa
conditions assp r es c ri
prescribedbe dbbyyt heP
the r e side nt
Presidential ial
D ec r
Decree.e e .< Newl
<Newly yI ns er
Inserted tedb yA
by Actc tNo
No..6 55
6557, 7,Dec.
Dec .8],31,2001>
2 00 1>
( 4
(4))T Thehep ro vi si
provisionsonso offp a ra gr
paragraphs aphs( 1
(1))through
thro ugh( 3)s
(3) ha
shall l
ln otbe
not bea ppl i
applieded totot hec
the a se
cases sw he
Where re
a
anni s s uanc
issuance eo offa c c ounts
account t at eme
statements, nt s,e tc.is
etc. isd e e me
deemed dt ob
to beei mpr ope
improper, r,s uc
such ha asst hec
the as e
cases,s,
e tc
etc..o offas a
a saleleo offreal
re ale s t
at
estate,e ,wh i
Whichc ha rep
are r es c r
the res ide nt
Decree. re e.< Newl
<Newly y
I ns er
Inserted t edb byyA ActctNo No..6557,
65 57 ,Dec.
Dec .3],
31 ,2001;
20 01 ;AActc tNo No..8825,
88 25 ,Dec.
Dec .3],
3 1,2007>
2 00 7>
( 5
(5))A Anynyb us ine s
businessman sma ns ha l
shall ls ubmi
submit tat abl
a table eo offt o ta
total la cc o
accountunts ta te me
statements ntsb byyb uye
buyer ra nds
and e ll
er
seller,,
wh i
Which chh heeh asi
has s sue
issued do orrb e
been e ni s sue
issued du nde
under rp ar a- g
para- ra phs(
graphs 1)t
(1) hr ough(
through 3)(
(3) he re ina
(hereinafterft
e r
r efe rr
referred e dt oa
to asst he“
the tabl
“table eo offt ota
total la c
ac--c ounts
count tat eme
statements nt sb byyb uye
buyer ra nds
and e lle
seller”),r ”) ,to
tot hec
the hie
chieff
o
offat
a tax axo ffi
officeceh avi
having ngj ur is dic
jurisdiction ti
ono ve
over rt hes
the e ato
seat offt hep
the la
placec eo offb us ine
business s swi thi
Within ns uc
suchh
timel
time i mi
limit taassd e ter mi
the res ident
Presidential i
a lDecreei
De c ree :Provided,
Pr ov ided,T ha
That tt hei
the mpo
importer r t
e rin
inr ec ei
receiptpt
o
offaanni s sua nc
issuance eo offa c co
accountunts t a teme
statements ntsu nde
under rthe
thep r ovi s i
provisionsonso offparagraph
pa ra gr aph( 3
(3))mayma yn o
not ts ubmi
submit t
thet
the a bl
table eo offt ot a
total la c counts
account t at eme
statement ntbybys e l
le
seller.r.< Amendedb
No.519], 5 19 1,Dec.
Dec .30,
30 ,
1 99
1996;6;A c
Act tNo.
No.5580,55 80 ,Dec
Dec .28,
28 ,1998;
19 98 ;AAct ctNo.No.6557,
6 55 7,Dec.
Dec .3],
3 1,2001;
2 00 1;A Act c tNo.
No.7 8 37
7837, ,
De
Dec c .3],31 ,2005;
20 05 ;A Act ctNoNo..8825,88 25 ,Dec.
Dec .3],
31 ,2007>
20 07 >
- 292 -
-292-
(6)T
(6) hep
The orti
oni
portion nwh
in ic
which hat axi
a tax nvoi c
invoice eoorrar ece i
a receipt pti issp repa r
eda
prepared ndd
and eliv-e
deliv- redo
ered orra
a
tabl
tableeooffs um o
sum offt axi
tax nvoi ce
invoices sb byyb uye
buyer ra nds
and elleri
seller isss ubmi
submittedttedu nde
under rt heV
the a lue -Adde
Value-Added d
T axA
Tax ct
Act,,s ha l
lbe
shall bec ons ide r
considerede daasst hep
the ortioni
portion nwh
in i
whichcha anna ccounts
account tat eme
statement, nt,e tc.has
etc. hasb een
been
pre pare
prepared da ndd
and el
i vere
delivered do orrat abl
a table eo offtotal
tot ala ccounts
account tat e me
statements nt sbyb
by uye
buyer ra nds
and ell
e
sellerrh as
has
bee
beenns ubmi t
t
submittededp ur sua
pursuantntttoot hep
the ro vis i
onso
p aragr a phs( 1
(1))through
through( 3)a
(3) nd(
and 5).<
(5). Ame
<Amendednded
byA
by c
Act tNo.
No.519],
51 91 ,Dec.
Dec .30,
30 ,1996;
19 96;ActAc tNo.
No.5580,
55 80 ,Dec.
Dec .28,
28,1998;
1998 ;Act
Ac tNo.
No.6557,
6 5 57,Dec.
Dec .
31,2001;
3], 200 1;A c
ActtNoNo..8144,
814 4,DecDec .30,
30 ,2006;
20 06 ;A c
Dec .3],
31 ,2007>
20 07 >
(7)Ma
(7) tte
Mattersrsn e ces s
necessaryar
yf ort
for hep
the re par ati
preparationona ndd
and e l
i ve
delivery r
yo offa
anna ccounts
account t ate me
statement, nt ,e tc.a
etc. nd
and
thes
the ubmi s s
submissioni
ono offat a bl
a table eoofft ot ala
total ccounts
account tate
state-- ments
me nt sb yb
by uye
buyerra nds
and e l
ler
seller, ,s ha
shallllbe
be
det ermi ne
determined db yt
by heP
the r
e side nt
Presidentiali
a lDe-
De -c ree
cree..< Amendedb
<Amended yA
by c
ActtNo.
No.5580,
55 8 0,Dec.
Dec .28,
2 8 ,1998>
19 9 8>
Art i
cle1
Article 63-2(
163-2 Submissiono
(Submission offTableo
Table offSum o
Sum offTaxI
Tax nvoicesb
Invoices yS
by ellers)
Sellers)
( 1
(1))A n
Any yb u s ines s
businessmanma nw whohoh a
hasst of
to ilear
file ep o
a report rtoonnp r esen
presentts ituationo
situation offt heb
the us i
nes
business sp l
a c
placee
und
underert hep
the r ovi sio
Ar ticle7 8(
78 1)s
(1) h a l
shall,l,w he
when nh ei
he sissued
is is sue daannt a
taxxi nvo i
invoiceceunder
underthe
the
p rovisio
provisionsnsooffArticle
Ar t
i c
le1 6(
16 1)a
(1) n
andd( 3
(3))ooffthe
theValue-Added
Va lue -Ad de dT
TaxaxA c
Actta fterhaving
after h a v ingb e e
ns
been upplied
supplied
g oo
goodsdsoorrs e rvi ce
services,s,s ub mi
submit tat ab
a tableleooffs um o
sum offtax
taxi nvo i
c e
invoicessb ys
by ellerto
seller tot hec
the hie
chieffooffat a
a taxx
o ffi
officeceh avingj
having ur i
sd ic ti
jurisdictiono no ve
over rt hep
the lac
placeeo offtax
t axp a yme
paymentntw i
thi
withinn3 311d a
daysysf ro
fromm the
thee nd
end
o
offt hec
the orre sp ond
correspondingingt a xa
taxableblep e rio
periodd( forab
(for us ine
a business sso p era t
operatororre-
re-f e rre
ferred dt oi
to nA
in rtic
le7
Article 8
78
( 1
(1))11,,i
ittrefers
ref er st ot
to het
the i
mel
time imi
limit tfor
f
o rt hef
the ina
final lreturn
retur noofftax
taxb as
baseeu nd
under ert hep
the rovisio ns
provisions
o
offA rti
c l
Articlee7 4
74)1):Provided,
Pr ovi ded,T ha
That tt hes
the ames
same ha
shalll
ln ota
not pplywh
apply whenenhheeh ass
has ubmi
submittedtt
e dp ursuant
pursuant
t
tooA rticl
Articlee2200( 4)o
(4) offt heV
the alue -Adde
Value-Added dT TaxaxA c
Act.t.
( 2
(2))Ma tte
Mattersrsn e cessa
necessaryryf ort
for hes
the ubmi ss
submission, i
on,e tc.o
etc. offat ableo
a table offs um o
sum offt axi
tax nvo i
c
invoicesesb ys
by e l
ler
seller
s hal
shalllbbeep r es cribe
prescribed db byyP res ide nt
Presidential ia
lD ecr
Decree.ee .
[ Thi
[This sA rti c
ArticleleNeNewlywl yI ns er
Insertedtedb byyA c
Act tNoNo..8144,
814 4,Dec.
Dec .30,
3 0,2006]
200 6]
Art i
cle1
Article 64(
164 Submissiono
(Submission offPaymentR
Payment ecord)
Record)
(1)Ap
(1) e r
A personso nw h
who op aysa
pays na
an mo u
amount ntf a l
lingu
falling n d
undere ra nyo
any offthef
the ollowi n
following gs u b
sub--p a ragr ap
paragraphsh sin
in
K o r
Koreae attooa ni
an nd i
vi d u
individualall iab l
liableef o
forrthe
th epayment
p ay me ntooffincome
inc ometax
taxu n de
underrthe
th eprovisions
p r ovi
sion sooffArticle
Ar t
icl
e
1
1 ( in clu di
(includingn gac or po r
a t
i
a corporation,on ,ap erso
a person nw whoh om ak
makese sav icar i
ou
a vicarious spayment
p ayme n tooffincome
i
n c
omea mo
amountunto
orr
w h
who oi sd
is elega t
delegatededo orre nt ru st
entrustede dw i
t
with ht hep
the a yme
payment ntthereof
there ofunder
u nde rthe
t hep ro visi
onso
Ar t
icl
e
12
1277( 6),a
(6), at axa
tax sso ciatio
associationnu nd
underert h
theeprovisions
pr ov i
sio nso offArticle
Ar ticl
e1 50,a
150, p ers
a persononf o
forrw ho
whommt hea
the d
d re
ss
address
o
offm a
mainino ffi
officeceoorrprincipal
p ri
n cip a lo ffic
officeei st
is hep
the l
a c
placeeo off w ithh old
withholdingi
ngt a
taxxp ayme
payment n
tunder
u n derArticle
Ar t
icl
e
7o
7 offt h
thisi
sA c
ActtoorrArticle
Ar t
icle9o9 offt h
theeC orp ora
Corporate teT a
Tax xA ct
Act,,a n
anddab us ine
a business ssp ropri
e to
proprietorrqualified
q uali
fi
ed
forc
for o ns olida
consolidatedt
e dr e t
u r
returnnu n d
undere rArticle
Ar ticl
e44o offthe
t
h eValue-Added
Va lue- Ad de dT a
TaxxA ct)
Act),,s ha l
shallls u
b mi
submit ta p ayme
a paynentn t
rec or
record dttoot hec
the hiefo
chief offa
at a
taxxo ffic
offioeehaving
h av in gj urisd ictio
jurisdictionno ve
overrthe
theplace
p l
aceo offw ithh oldi
n
withlpldinggt axp
tax aymen
paynmt,t,
theC
the o mmi ss
Commissionerione rooffthec
the omp et
competente ntRegional
Re gio na lT a
TaxxO ff
ic
Officeeoorrthe
t
h eC ommi ss
Commissionerio nero
offthe
theNational
Na t i
onal
T a
Tax xS e rvi
Service c
eu n de
under rc o nd itio
conditionsn sp res c r
i
prescribedbedb byyP r esiden t
ia
Presidential lDecree
De creeb byyn o
nottlater
l
a t
erthan
th ant hee
the nd
end
o
offFebruary
Fe br ua ry( Ma r
(Marchch1 0o
10 offt hef
the ollo wi
followingngy ea
yearrininc aseso
cases offe arn e
earned di nc o
incomemeu n de
underrs ub p
ar
subparaa
- 294 -
-294-
g r aph4
graph 4,,a nde
and ndo
end offt hemo
the month nt ha f t
after ern exto
next offthe
themo monthnt ht ow
to hi
which c ht hed
the at
date eo offs us pe ns
suspension ion
o
orrc los ur
closure eb el ongsi
belongs nc
in as
cases e swh where e r eb us i ne
business s sh asb
has e
beene ns us pe
suspendednde do orrc los e
closed) d)o offthe
t hey ea
year r
fol lowi
following ngt hey
the e
yearart ow
to hi
which c ht hed
the ayo
day offp a yme
payment ntb e longs(
belongs wi
(with thr e spe
respect ctt ot
to hei
the nc ome
income
fal lingu
falling nde
under rA r t i
c
Article l
e7 73 3( 1
(l))5a5 assp re
pre- -s cr ibe
scribed db byyP re s ide
Presidentialnt ialDecree
De c reea ndt
and hei
the nc ome
income
subj
subjecte ctt toot hea
the ppl ica
application ti ono offArticles
Ar tic les1 35(
135 2)a
(2) nd(
and 3
(3))aandnd1 47(
147 2)through
(2) thr ough( 4 )
(4),,referring
re ferr ing
tot
to hel
the a
lasts td ayo
day offt het
the axabl
taxable ey e
yeararf ort
for her
the ele vantincome
relevant inc omea mount
amount; ;hereafter
he reaf te rt hes
the ame
same
shal
shall la ppl
apply yi nt
in hi
this sp ar agr
paragraph)2 aph) :Provided,
Pr ovi ded,T ha
That tf ora
for nye
any ar ne
earned di nc omeo
income offad a ily-pai
a daily-paid d
w o r
workerke rprescribed
pr es c ri be db byyP r es ide
Presidential nt ia lD ec
Decreer eef ro
from ma mo
among nge a rne
earned di nc o me
incomes su nde
under rs ubpa ragr
subparagraph aph
4
4,,ap a yme
a payment ntr ec o
record r ds ha
shall l
lb bees ubmi
submitted tte db byyn otl
not at
laterert hant
than hee
the ndo
end offt hemo
the monthnt hf ol l
owi
following ng
thel
the as
lasttmo monthnt ho offt heq
the uar
quarter t ert owh
to i
whichc ht hep
the a yme
payment ntd at
date et he r
thereofeofb elongs(
belongs r efe rri
(referringngt o
to
thee
the ndo
end offF e br ua
February ryo offn e
nextxty e
yeararf ort
for hee
the a rne
earned di nc omep
income a
paididi innt he4
the thq
4th ua rte
quarter);r ):
1
1.. Int er e
Interest s ti nc ome
income; ;
2
2.. D ivi de
Dividend ndi nc ome
income; ;
3
3.. P roc e
Proceeds edsa c c r
accruingui ngf r om s
from uc
such hb us ine
business s sa assp re s cr
prescribedibe db byyP re side nt
Presidential i
alDecree;
De c re e;
4
4.. Ea rne
Earned di nc omeo
income orrr et i
r e me
retirement nti nc ome
income; ;
4 -2
4-2. .A nnui
Annuity t yi nc ome
income; ;
5
5.. Mi sc e lla
Miscellaneous ne ousi nc ome
incomes s( noti
(not nc ludi
including ngs e rvi
servicec ec har
chargesge su nde
under rs ubpa
subpar- r-a gr aph7
agraph );
7);
6
6.. D e le t
Deleted; e d;< <bybyA Actc tNo No..6 2 92
6292, ,DecDec .29,2 9,2000>
2 00 0>
7
7.. S e rvi
Service c ec ha r
chargesge sd e t er
determinedmi ne db byyP r es ide
Presidentialntia lDecree;
De c re e ;a nd
and
8
8.. G a
Gaininf r om l
from ong-t
long-term er ms avi ngsi
savings ns ur a
insurancesnc e sp r e sc r
prescribedi be db byyt heP
the re side
Presiden- n-t ialD
tial ec r
Decree.e e.
(2
(2))T Thehep ro vi s
provisionsion so offp a r a gr
paragraph a p h( 1
(1))mmay ayn o
not ta pp
applyl
yt toos u
suchchi n c o
incomemea assd e termi
determined nedb yP
by resid enti
Presidentialal
D e c
Decreer eef r
fromoma mongt
among ho
those s ea assr e fe r
referredre dt tooi na
in nys
any ubpa r agr
subparagraphs a phso offp a ragr
paragrapha ph( 1 )
(1)..
(3
(3))A nyp
Any e rs
person onl iabl
liable ef orf
for ilingap
filing ayme
a payment ntr ec or
record du nde
under rp ar agr
paragraph aph( 1
(1))s hal
shall le ithe
either rs e nd
send
them
the a t
t
matterse r st ob
to beee nt e r
entered edo onnt hep
the a yme
payment ntr ec o
recordrdt hr o
throughught hei
the nf o rma
infomnationtio na ndc
and ommuni c
communicationsa ti
o ns
n e twor
network ku nde
under rt hep
the rovi s
provisions ionso offs ubpa r a
subparagraphgr aph1 8o
18 offA r ti
Articlecl e2o2 offt heF
the r ame
Framework wor kA Actct
o
onnN a tiona
National lT axe
Taxes, s ,oorrputputt he
them mo on nama gne
a magnetic tict apeo
tape orrd is ke
diskettet tep r oc e s
processed se db byyac omput
a computer er
a nds
and ubmi
submit ti t.I
it. nt
In hi
thissc as
case, e ,a nyp
any er
personsonwh who op ayst
pays hei
the nc omep
income re s cr
prescribedibe db byyP res ide nt
Presidential ial
D ec
Decree reef r om a
from mongt
among hei
the nc ome
incomes sf alli
ngu
falling nde
under re a
eachc hs ubpar agr
subparagraph apho offparagraph
par agr aph( 1)may
(1) may
s ubmi
submit tap ayme
a payment ntr e c
recordor dt he r
thereof eofb byym e
meansa nsa assp r es cr
prescribedibe db byyP r e side nt
Presidential ia lD e cre
Decree, e,s uc
suchh
a
asst hei
the s s ui
issuing nge qui pme
equipment nto offc a
cash shr e ce i
pt
receipts su nde
under rt hep
the rovi s
provisionsionso offA r tic
Articlele1 26 -3o
126-3 offthe
the
R e s tr i
c
Restrictiont iono offS pe c
Special ialT axa
Taxation t ionA c
Act. t .< Amendedb
No.7 0 0
7006,6 ,Dec.
Dec .30,
3 0 ,2003;
2 0 0 3;Act
Ac t
No.7
No. 83
7837, 7,Dec.Dec .3],
31 ,2005;
20 05 ;A Act c tNo No..8825,
88 25 ,Dec
Dec .3],
3 1,2007>
2 00 7>
(4
(4))N ot wi t hs
Notwithstanding tandi ngt hep
the r ovi s
provisions ionso offparagraph
par agr a ph( 3 )
(3),,the
theC ommi s
the at i
ona
National l
T
Taxa xS e r vi
Service c ema may ya ll ow t
allow hep
the e rs
person, on,o pe r at
operatingingt heb
the us
busi- i-n es
ness so offas pe c
a specificifict ypeo
type orrt he
the
b us ine
business s swh whoseos es c a
scale lei isss ma
smallerlle rt ha
than nas pe
a spe- -c ifi
cificcs c a
scalelet of
to ileap
file a yme
a payment ntrecord
re co rdi nw
in riting
writing
ina
in cc or da
accordance nc ew i
witht ht heP
the re
Pres-s -i de nt
idential ialD e cr
Decree. ee .< Amendedb
<Amended by yA c
Act tN0.
No.7 0 06
7006, ,Dec.
Dec .30,
30 ,
2 00
2003; 3;A Act ctNo No..8825,8 82 5,Dec. Dec .3],
31 ,2007>
20 07 >
- 296 -
-296-
(5
(5))D ele te
Deleted. d.< <by byA Actc tNoNo..503],
50 31 ,DeDec.c .29,
2 9,1 99
1995> 5>
(6
(6))WhWhereer eap or
a portionti ono offr e lat
relatede dd oc ume
documents ntsc onc e r
concerningni ngt het
the axwi
tax thhol
withhold- d-i ng,filed
ing, fil
e db ya
by a
w i
thho ldi
withholding nga ge
agentntunder
unde rPresidential
Pr e side nt ialDecree,
De c ree ,c o rr es p
correspondsondst oap
to a yme
a payment ntrecord
rec o rd,the
t hep ayme
payment nt
re cor
record dc or re spondi
to hep
the or ti
portionons hal
shall lbe
bec ons ide
considered re dt oh
to aveb
have e e
been nf i l
e d.<
filed. Amended
<Amended
b
88 25,De Dec. c .3],
31,2 007>
2007>
(7
(7))WhWhereer eap or
a portiont iono offt het
the abl
table eo offtotal
tot ala cc ounts
account tat eme
statements nt sb byyb uye
buyer ra nds
and eller
seller, ,filed
file d
u nde
under rA rtic
Article le1 6
1633( 2)w
(2) i
witht ht hec
the hie
chief fooffat axo
a tax ff ic
office eh avi
over rt heb
the us i
ne
business ss
p lac
place,e,a ndt
and het
the a bl
table eo offt ot
totala lt axi
tax nvo ic
invoicese sb yb
by uye
buyer ra nds
and e ll
e r
seller,,filed
f i
le du nde
under rthe
theV a lue -Adde
Value-Added d
T
TaxaxA c
Act tw i
withtht hec
the hi e
chief fo offat axo
a tax ffic
officeeh avi
havingngj ur i
s di c
over rt hes
the ea
seat to offthe
thep lac
place eo off
b us ine
businesss sc orr e s po
corresponds ndst oap
to ayme
a payment ntr ec or
record d,t hep
the a yme
payment ntr e co
recordr dc o rr es po
correspondingndi ngt ot
to hep
the ortio
portionn
s hal
shall lb ec
be ons i de
considered re dt oh
to aveb
have e
beenenf i l
ed.<
filed. Amendedb
<Amended byyA ActctNo.No.8 14
8144,4,Dec.
Dec .30,
30,2006;
200 6;
Ac
Act tNoNo..8825,
882 5,Dec Dec .3],
31 ,2007>
20 07 >
(8
(8))T hec
The hie
chief fooffat a taxaxo f
f
officeiceh a vi
havingngj uris dic ti
jurisdictionono ve
over rthe
thep l
a c
placeeo offw it
with-h-h oldi
holdingngt a
taxxp a yme
payment,nt ,
theC
the ommi s s
Commissioner i
o ne ro offt hec
the ompe
competentte ntR egi ona
Regional lTTaxa xO f fic
Office, e,t heC
the o mmi s
Commissioner sione ro offt heN
the atio na
National l
T a
Tax xS e rvi c
Service,e ,mmaya yd ema
demand ndap a
a pay-y-m e
ment ntrecord
r ec or dw he ne
whenever ve rhehed e emsi
deems ittnecessary.
ne ces sa r y.< Ame
<Amended nde d
b
8 82 5,Dec Dec .3],
31 ,2007>
20 07 >
(9
(9))A nya
Any c
act toofft hep
the er s
person ona c tingf
acting ort
for hep
the aye
payer ra assr e ferr
referred edt tooi innp ar a-g
para- r a
graphph( 1
(1))oorrt he
the
p er s
personona uthor
authorizediz e db yh
by im,s
him, ha
shallllbebec ons ide
considered r eda asst hea
the c
actto offthe
t hep ersonh
person ims
himself elfo orrt he
the
ma ndat
mandator ori nt
in hel
the i mi
limit to offt hea
the ut hor i
authoriza-z a-
tiono
tion orrma ndat
mandate, e ,a ndt
and hep
the r ovi si
provisionsonso offp ar a gr
paragraph a ph( 1
(1) )s hal
shallla ppl
apply yt oi
to t.
it.
(1 0
(10))WhWheree ret heC
the o mmi
Commissionerss ione ro offt heN
the a tiona
National lTTaxaxS er vi
Service ceh a
has sr e c ei
receivedve dap a yme
a payment ntr ec or
record d
fo
forrm isc e ll
a ne
miscellaneous o usi nc o
income mep r esc r
prwcribedibe db yt
by heP
the re side
Presiden- n-t i a
tiallDecree
De c reef r o
from ma mo
amongngm isce llane
miscellaneous ous
inc ome
incomes su nde
under rt hep
the rovi s
par agr aph( 1)5
(1) 5,,he
hes hal
shall lprovide
pr ovi det hec
the ont e
contents nt st he re
thereofof
tot
to hep
the e rs
persono nl i-a
li- bl
able et op
to a
pay yat a
a taxxo nt
on her
the e leva
relevant ntmiscellaneous
mi s ce llane o usi nc omea
income mo
amountuntby byu s ing
using
then
the atio na
national lt a
taxxi nf o rma
information t i
o na ndc
and ommuni c
communicationsatio nsn e two
network rku nd
underert hep
the ro
pro--v isi o
visionsnso offs ubpa
subpara-ra-
g raph1
graph 9o
19 offA rt
Articleic l e2o2 offt heF
the rame
Frameworkwor kA c
Act to onnN at iona
National lT axe
Taxes su nde
under rt hec
the ondi t
ions
conditions
a
assp re sc r i
be
the re s ide
Presidential ntialDecree.
De c re e.< Newl
<Newly yI ns er
Insertedtedb by yA ActctNo.
No.8144,81 44 ,Dec
Dec .
3 0,2006;
30, 2 00 6;A Actc tNo No..8825,
8 82 5,Dec.
Dec .3],
31 ,2007>
20 07 >
(1 1
(11))O t he
Other rma t
matterste r sn ec e s
necessarys aryf ort
for hes
the ubmi s
submissions iono offthet
hep ayme
payment ntr e cor
record da assr efe rr
referrededt o
to
inp
in a ragr a
paragraphsphs( 1
(1))t hr ough(
through 9),s
(9), ha l
shalllbebed ete rmi
determined ne db yt
by heP
the r
e s ide nt
Presidential i
a lDecree.
De c r ee .< Amended
<Amended
b
8 82 5,Dec Dec .3],
31 ,2007>
20 07 >
Art i
c l
Articlee1 64 -2(
164-2 Spe cia
(SpeciallC ase
Cases sc onc erni
concerningngD ut i
Dutiesesf orS
for ubmi s s
Submissioniono offP ay-me
Pay- ntR
ment ecor
Recordsdso onn
N onr e side
Nonresident’snt’sD ome s
Domesticti
cS our
Sourcec eI ncome
Income, ,e tc.)
etc.)
(1
(1))A nyp
Any er s
o
personnw hop
who a ysad
pays ome s
a domesticti
cs our c
sourceei nc omeu
income nde
underrA rticl
Articlee1 1
1199 to
toan onre side
a nonresident nt
sha
shalll
ls ubmi
submit tap a
yme
a paymentntr ec or
recorddt ot
to hec
the hi e
chieffooffat a
a taxxo ffic
officeeh avingj
having uris dict
io
jurisdictionno ve
overrthe
thep lac
place e
o
offt axp
tax a yme nt
payment, ,notl
not a t
e
laterrt hant
than he e
the ndo
end offFebruary
Fe br ua ry( thee
(the ndo
end offtwo
t wom onthsf
months ollowi ngt
following he
the
m o nt
month ht ow
to hic
whichht hed
the at
dateeooffs us pens
suspensioni
ono orrc l
o s ur
closure eb e longsi
belongs nc
in as
caseew he
whereret heb
the usine
businessssi iss
sus p e
nd
suspendededo orrclosed)o
closed) offtheyear
the yearfollowing
fol
lowingt heyear
the ye arto
tow hi
whichcht hed
the ateo
date offs uchp
such ayme
payment ntbelongs:
be longs :
- 298 -
-298-
P rovide
Providedd,T ha
Thattt hiss
this halln
shall ota
not pplyt
apply ot
to hec
the asew
case her
et
Where hei
the ncomep
income res
c r
ibedb
prescribed yt
by heP
the res
idential
Presidential
D e cr
e
Decree,e
,s uc
suchha asst he i
the nc omewh
income ic
Whichhi issv erif
iedu
verified nde
underrA rti
cle1
Article 56-2a
156-2 assb eings
being ubjectto
subject to
an on-t ax ati
o no r taxe xem pt
ion, i
sp a id
. < A me nd
a non- taxation or tax exemption, is paid <Amended by Act No. 6557, Dec 3], 2001;;
e db yA ct No .6 55 7, De c .3 1,2 001
Ac
Act tNo
No..7 00 6,Dec.
7006, Dec .30,
30,2003;
2003 ;AActc tNoNo..8825,
88 25,Dec.
Dec .8],
3 1,2007>
2 007>
(2)T
(2) hep
The rovisio nso
Ar t
icl
e1 64s
164 ha l
shallla ppl
applyym utat
i
mtatissm utandi
mutandisst ot
to hes
the ubmi ssi
submissiononooffpayment
payme nt
rec ordsp
records urs uantt
pursuant toop a r
agr aph(
paragraph 1)
(I)..< Amendedb
<Amended yA
by c
ActtNo
No..8825,
882 5,Dec.
Dec .3],
31 ,2007>
20 07 >
[Thi
[ThissA rticl
ArticleeNeNewly wl yI ns er t
edb
Inserted byyA c
ActtNo
No..6292,
629 2,Dec.
Dec .29,
2 9,2000]
200 0]
Ar ticl
Article e1 65(
165 Submi
(Submission ss ion o off S uppor
Supporting ting D oc ume
Documents nt s forfor Income
Inc ome Deduc-
De duc - tion
tion a nd
and
A dmi nis t
Administrativer at iveG ui da nc
Guidance) e)
( 1) A n yp er s oni s s uin
(1) Any person issuing supportinggs u pp o r ti
ngd oc ume
documents nt sr equi r
requirede df o
forrthe
thei nc o
incomemed ed uc ti
deduction ona assp r e sc ri
be
prescribed d
b
byyt heP
the re s ide nt
De c r ee( he re inaf
referred edt oa
to ass“ suppor
“supporting ti
ngd oc ume
documents ntsf ori
for nc ome
income
d e duc t
deduction”)i
on” )f r om a
from mongt
among hei
the n-c
in- omed
come e duc
deductiont i
onu nde
under rt hi
this sA c
Act toorrt heR
the e stri ct
Restrictioni ono off
S pec
SpecialialT axat
Taxation io nA Actcts hal
shall ls ubmi
submit tthe
thes uppor
supporting tingd oc ume
documents nt sf ori
for nc o
incomemed e duc
deductiont
iont ot
to he
the
C om-mi
Com- ss ione
missioner ro offt heN
the a ti ona
National lT TaxaxS e rvi
Service c eu nde
under rt hec
the ondi t
conditionsi
onsa assp re sc ri
prescribedbe db byyt he
the
P r es ide nt
De cr e es uc
such ha asst heu
the t il
iz a t
i
utilizationono offinformation
inf or ma t
io na ndc
and om-mu
com- ni ca t
municationsionsn et wo
networksirks :
P rovi
Provided,ded,T hatt
That hes
the a mes
same hal
shall ln ota
not ppl
apply yt toot hec
the as
casese sa assp re sc ri
the re si de nt
Presidential ial
D ecr
Decree,e e,s uc
suchha asst hep
the er s
person o nb e i
beingngi s sue
issued ds up po r
supportingtingd oc ume
documents nt sf o
forrincome
inc omed educ
deductionti
o nr e fus
refuseses
t os ub mi tt h es u p p ort
to submit the supporting documents.i n gd o c ume n ts.
( 2
(2) )AAnynyp e r s
persononwh Who oh hasasb e
beene ni s s ue
issued dt hes
the uppor
supportingt i
ngd oc ume
documents ntsf ori
for n-c
in- omed
come e duc
deductiont
ion
u nde
under rt hep
the r ovi s
provisions ionso offparagraph
par a gr aph( 1)s
(I) ha
shalllln otprovide
not pr ovi det he
them m to too the
otherrpersons
pe r sonso orrd ivul
divulge ge
t he
them,m,o orru s
use et he
them mf oro
for the
other rp ur pos
purposes est hant
than axa t
taxationionp ur pos
purposes. es.
( 3
(3))A Anynyp er so
person, n,o the
other rt ha
than nt hep
the ubl
public i
co ffic ia
officials,ls ,wWhohoh a
has sb e
beeneni s s ue
issued ds up
sup--p o rti
ngd
porting o c ume
documents nts
f ori
for nc omed
income e duc
deduction t
ionu nde
under rt hep
the rovi s i
provisionsonso offpara-
par a-g raph(
graph 1)s
(1) hal
shalllbeber e gar de
regarded da asst he
the
p ubl
public ico ffic i
officialali na
in ppl yi
applying ngt hep
the e
penalna lp r ovi s
provisionsionsu nde
under rt heC
the ri
mi
CriminalnalA c
Act to orro the
other rA ct
Acts.s.
( 4
(4))T heC
The ommi s
Commissioners i
o ne roofft heN
the at i
o
National na lT a
Tax xS er vi
Servicec emmay ayg uidea
guide nyp
any e rso
person ni s s ui
issuingngs upp or
supportingti
ng
d o cume
documents nt sf o
forri nc o
incomemed e duc
deduction tio nt os
to ubmi
submit tthe
thes up-p
sup- o rti
portingngd o c ume
documents ntsf orincome
for inc omed educ
deductiontion
t
tooh ims
himself.elf.
( 5
(5) )Ma t
Matterster sn e c e s
necessarys ar yf ort
for heg
the ui danc
guidance eu nde
under rt hep
the rovi si
provisions onso offpara-
pa ra- g raph(
graph 4)s
(4) hal
shalll
b
beep r es c r
the res ide
Presidential nt ialD e cr
Decree.e e .
( 6
(6) )Wh
Wheree r et heC
the ommi s
the at ionalT
National a
Tax xS er vi
Servicec eh a
hasso bt aine
obtained da ppr ova
approval lo offthe
t he
p e rs
person ons ubj e
subject ctt ot
to heb
the as
basici cd educ
deduction tiono nt
on hes
the uppl
supply yo offi nf or mat
information iono onnt hes
the uppor
supporting t
ing
d oc ume
documents nt sf ori
for nc omed
income e duc
deduction ti
onb yame
by a methodt hodp r e sc ri
prescribedbe db byyP re si
de nt
De cre e ,s uc
suchh
a
assi nwr
in iting,h
writing, heemamay ys uppl
supply yt her
the elevanti
relevant nf or mat
information i
ono nt
on hed
the e penda
dependant ntf ami
familylyt toot he
the
r es i
de
resident nth a vi
havingngg loba
global li nc omeu
income nde
under rA r tic
Article le5 500( 1).<
(1). Newl
<Newly yI ns er
InsertedtedbyAc
by Act tNo.9
No. 27 0
9270, ,
Dec
Dec. .26,
26 ,2008>
20 08 >[ Thi
[This sA rtic
Article leN e
Newly wl yI ns er
Insertedt edb byyA ActctN No.o.7837,
78 37 ,Dec.
De c.31,
3 1,2 00
2005]5 ]
Ar tic
le1
Article 6
1666( Useo
(Use offC omput
Computere rP rocessingI
Processing nf or mat
Information ionD a t
ao
Data nR
on esidentR
Resident egi stration)
Registration)
F o
Forrt hep
the urpos
purposeeo offe ffi
cientl
yd
efficiently ea l
ingw
dealing it
ht
With hea
the ffairsc
affairs oncerni
ngt
concerning hea
the ssessme nta
assessment ndc
and o
llection
collection
o
offanyi
any nc omet
income ax,t
tax, hem
the atte
mattersr
sn ecessaryf
necessary ort
for heu
the s
useeooffthec
the omp ut
computererprocessing
proce s
s i
ngi nfo r
ma ti
informationon
d at
dataao nr
on es i
dentr
resident egi str
at i
o
registrationnaassp rescribedb
prescribed byyt heR
the esidentRegistration
Resident Re gist
rationA ct
Act,,s ha l
lbe
shall bed e-
de-
termi ne
termined db byyP re
Pre--s identialD
sidential e cre
Decree.e.< Amendedb
<Amended yA
by c
ActtNo
No..8144,
8144,Dec.
Dec .30,
30 ,2006>
20 06 >
- 300 -
-300-
Art i
cle1
Article 67(
167 Submissiono
(Submission offCertifiedC
Certified opyo
Copy offResidentR
Resident egistration,e
Registration, tc.)
etc.)
( 1)Wh
(1) When enar eside
a resident ntf i
l e
filessaf ina
a final lr et ur
return no nt
on axb
tax as
base,e,t hec
the hi e
chieffo offat a
a taxxo ffic
office eh avi ng
having
j urisd icti
jurisdictionono v e
overrt hep
the laceo
place offt a
taxxp a y me
payment n ts h a
shallllc on f
ir
confirmm his
h ismident
re si
d en tregistration
re gis t
rat i
o n( acertificate
(a certi
fi
c ate
o
offf a mi
familylyr elat i
on,w
relation, he
when nh i
hissf a mi
familylyr e-l
re- a ti
lationonc anno
cannot tbe
b ep rove
proved db byyac e rtif
a certifiediedc o p
copyyo off
r es ide
resident ntr e gis tratio
registration;n ;h er e
here- -a f t
aftererr e f er
referredredt tooaass“ r esiden
“resident tregistration,
re gistr ation,e t
c .
”in
etc.” int hi
thissArticle)
Article)
v i
viaai nf o r
ma t
informationio ns ys te
systemsmsa ndr
and e vi
reviewe w his
hisf a mi
family l
ym embe
members’ rs’e ligi bi li
t
eligibilityyf o
forrt hes
the p ouse
spouse, ,aa
d epe nde
dependent nts ubj ec
subject tt ot
to hei
the nc o
income med ed uc ti
deduction,o n,ah and ica
a handicappedpp e dp e rs
persono ns ubj e
subjectcttotod e duct i
o
deductionn
o
orras e ni
a seniorors ubj ec
subject tt od
to e duc t
deduction: ion:P rovi
Provided,ded,T hati
That iffar es ide
a residentntd oe
does sn ota
not gr
agreeeewi t
withhs uc
suchh
c onf irmat
confirmation ionv i
ai
via nf orma
informationtions ys te
systems msb yt
by hec
the hi e
chieffooffat axo
a tax ffic
officeeh avi ngj
having ur isdict i
on
jurisdiction
o ve
over rt hep
the lac
place eoofft axp
tax ayme
payment nts hal
shall ls ubmi
submit tac ertif
a certifiedi
e dc opyo
copy offhis
hi sr eside
residentntregistration
re gistrat i
on
a longwi
along t
hh
with i
sf
his inalr
final et ur
return no onnt axb
tax as
base,e,h owe
however ve rhheema
may yn ots
not ubmi
submit tac e rtifi
a certifiededc opy
copy
o
offh isr
his esi
de
residentntr egis trat i
registration,on,i iffhhees ubmi
submittedtt e dac ertif
i
a certifiededc opyo
copy offh i
hissr e side
residentntr e gistrat i
on
registration
b ef or
before,e ,a ndh
and heed o e
doessn o
notth avea
have nyc
any ha nge
changes si nh
in i
hissf ami l
familyym embe
members’rs ’e ligibi l
ityf
eligibility orthe
for thes pous e
spouse, ,
ad e pe nde
a dependent nts ubj e
subjectctttoot hei
the nc o
income med e duc t i
deduction,on,ah andi c appe
a handicapped dp ers
personons ubj ec
subject tto
tod educt i
on
deduction
o
orras eni
a seniorors ubj ec
subject tt od
to educ
deduction.tion.< Amendedb
<Amended yA
by c
Act tNoNo..8825,
8 82 5,Dec.
Dec .3],
31 ,2007>
20 07>
( 2)I
(2) Iffan onr e side
a nonresident ntma ke
makes saf ina
a final lr e tur
return no nt
on axb
tax ase
base, ,h es
he ha
shalll
ls ubmi
submit tac e rtif
a certifiediedc opy
copy
o
offh isf
his oreigne
foreigner rr egis trati
registrationonc ar
card doorra nyd
any oc ume
documents ntsc or
cor--r espo ndi
responding ngt he ret
thereto,o,to
tot hec
the hie
chieff
o
offat axo
a tax ffic
officeeh a vingj
having ur isdi ct
jurisdictioniono ve
over rthe
thep lac
place eo offtax
ta xp a yme
payment,nt,under
unde rconditions
condi tionsp rescribe
prescribedd
b
byyP re si
de nt
PresidentialialD e cre
Decree. e.
Ar t
ic l
Articlee1 6
1688( Re gis trati
(Registrationono offBusiness
Bus ine ssP r o pri
eto
Proprietors rsa ndA
and s s i
gnme
Assignment nto offT a xpa
Taxpayerye rC o deN
Code umbe
Numbers)rs
)
(1
(1))A nyb
Any usine
business ssp ropr iet
proprietororwhwho os tar
startstsan e
a neww business,
bus ine ss ,s ha
shallllregister
re gis teriittwi t
ht
with hec
the hi e
f
chief
o
offat axo
a tax ff
ic
office eh avi ngj
having ur isdic t
iono
jurisdiction ve
over rt hes
the eato
seat offthe
theb us ine
business ssp lac e
place..< Amendedb
<Amended y
by
Ac
Act tNoNo..605],
6 05 1,Dec.
Dec .28,
28 ,1999>
19 99 >
(2
(2))A ny b
Any us ine
businesss sp r opr iet
proprietororwh whooh asma
has det
made her
the e gistra ti
registrationon o offb us ine
businessssu nde
under rt he
the
V al ue -Adde
Value-Added dT axA
Tax c
Act,t,s hal
shalllbe
bec ons i
de
consideredredt oh
to avema
have madedet her
the e gi strat
registrationi
ona assr eferred
referred
toi
to np
in ara gra
paragraphph( 1)w
(1) i
t
withhr e spe
respectctto
tot her
the elevantb
relevant us ine
business. s s.< Amendedb
<Amended byyA c
ActtN0.
No.8144,
814 4,
De
Dec. c .30,
30,2006>
20 06 >
(3
(3))T hep
The rovis io
provisionsnso offA rticl
Articlee5o
5 offt heV
the alue-Adde
Value-Added dTTaxa xA c
Actts ha
shalll
la pp
applylymu tat
mutatis i
smu tandi
mutandis s
toa
to nyb
any us ines
business sp r opr i
e
proprietortorwhwho omamakeskest her
the e gis t rat
registration iono offb us ines
business su nde
underrt hi
thissA ct
Act..
< Amendedb
<Amended byyA c
Act tNoNo..8144,
8 14 4,Dec.
Dec .80,
3 0,2006>
2 00 6>
(4
(4))D eleted.<
Deleted. <bybyA Actc tNo
No..519],
5 19 1,DeDec.c .80,
30 ,1 99
1996>6>
(5)T
(5) hec
The hiefo
chief offat a
a taxxo ffice
office,,h a vingj
having urisdicti
o
jurisdictionno ve
over rthe
thep laceo
place offab us
a busi-i
-n e ss
ness,,a na
an s sociati
on
association
o
orraf ounda t
io
a foundation, n,o t
he
otherrt ha
thanno rga niza tio
organizations nsc onside r
considered eda assc orpo ra tions
corporations, ,oorro the
other ro rgani zati
o ns
organizations,,
ma
may ya ssignat
assign axpaye
a taxpayer rc oden
code umbe
number raassp res cri be
prescribed db yP
by res ide nt
PresidentialialDecree,
De c ree ,to
t
oap erson
a person
fa llingu
falling nde
underra nyo
any offt hef
the ollowi
followingngs ubpar agr aphs
subparagraphsi :< Amendedb
<Amended yA
by ActctNo.
No.8825,
8825 ,Dec.
Dec .
3 1,2007>
3], 200 7>
- 302 -
-302-
1
l..
A person
A personwh oh
who aveg
have lobali
global ncome,but
income, butnotab
not usinessp
a business roprietor;a
proprietor; nd
and
2
2..
A person
A personwh oi
who issdeemedn
deemed ecessaryf
necessary ore
for fficientp
efficient rocesso
process offtaxi
tax nfor-ma
infor- tion,a
mation, nd
and
post-factum i
post-factum nspectiono
inspection ni
on ncomed
income eductiono
deduction offorganiza-t
organiza- ionsr
tions egisteredu
registered ndert
under he
the
Assistancef
Assistance orN
for on-profit,Non-govern-
Non-profit, Non-gove
rn-me ntalO
mental rganizationsA
Organizations ct.
Act.
(6)D
(6) eleted.<
Deleted. byA
<by ctNo
Act No..6292,De
6292, c
Dec..29,
29,2000>
2
000>
Art i
cle1
Article 69(
169 Paymento
(Payment offGrant)
Grant)
TheC
The ommissionero
Commissioner offtheN
the ationalT
National axS
Tax ervices
Service hallp
shall ayt
pay heg
the rantt
grant oa
to nyp
any ersonw
person ho
who
hasc
has ollecteda
collected ndp
and aidt
paid hei
the ncomet
income axu
tax nderA
under rticle1
Article 50,a
150, sp
as rescribedb
prescribed yP
by residential
Presidential
Decree.
Decree.
Art i
cle1
Article 70(
170 Questiona
(Question ndI
and nvestigation)
Investigation)
Anyp
Any ublico
public ffi
cialw
official hoi
who se
is ngagedi
engaged nt
in heb
the usinessesc
businesses oncerningt
concerning hei
the n-c
in- omet
come axm
tax ay,
may,
i
iffi
ittisn
is ecessaryf
necessary orc
for onductings
conducting uchb
such usinesses,p
businesses, utf
put or-w
for- arda
ward nyq
any uestiont
question ot
to hep
the erson
person
fallingu
falling ndera
under nyo
any offthef
the ollowings
following ub-p
sub- aragraphs,o
paragraphs, orrinvestigatea
investigate nyb
any ooks,d
books, ocuments,
documents,
ando
and thert
other hings,o
things, orrorderh
order imt
him op
to resentt
present hem:<
them; Amendedb
<Amended yA
by ctNo
Act No..8144,
8144,Dec.
Dec.
30,2006;
30, 2
006;A ctNo
Act No.. 8825,
8825,Dec.
Dec.3],
31,2007;
2
007;A ctNo
Act No..9270,
9270,Dec.
Dec.26,
26,2008>
2
008>
1
l..
A person
A personl iablet
liable op
to ayat
pay axo
a tax orrap ersonw
a person hoi
who issdeemedl
deemed iablet
liable op
to ayat
pay ax;
a tax;
2
2..
A wi
A thholdinga
withholding gent;
agent;
3
3..
At
A axa
tax ssociation;
association;
4
4..
A person
A personl iablet
liable os
to ubmitp
submit aymentr
payment ecords;
records;
5
5..
A wi
A thholdinga
withholding genta
agent assprescribedi
prescribed nA
in rt i
c l
es1
Articles 56a
156 nd1
and 56-3t
156-3 hrough1
through 56-5;
156-5;
6
6..
A
At axma
tax nagera
manager assprescribedi
prescribed nA
in rt i
cle8
Article 2o
82 offtheF
the rameworkA
Framework cto
Act nN
on ationalT
National axes;
Taxes;
7
7..
A person
A personw hoi
who issdeemedt
deemed oma
to kea
make nyt
any ransactionwi
transaction tht
with hep
the ersona
person assreferredt
referred oi
to n
in
subparagraph1
subparagraph 1;;
8
8..
At
A radea
trade ssociationo
organized yp
by ersonsl
persons iablet
liable op
to ayt
pay axesa
taxes nda
and no
an rganizations
organization imilar
similar
thereto;a
thereto; nd
and
9
9..
Ani
An ssuero
issuer offdonationr
donation eceipts.
receipts.
Art i
cle1
Article 71(
171 Consultation)
(Consultation)
I
Iffi
itti
issrequiredf
required ort
for her
the eturn,d
return, etermination,r
determination, eassessmento
reassessment orrinvest
i-g
investi- ationo
gation nt
on hei
the ncome
income
tax,t
tax, hec
the hiefo
chief offat axo
a tax ff i
ce,the
office, t
heC ommissionero
Commissioner offthe
thec ompetentRegional
competent Re
gionalTax
TaxOffice
Office
o
orrtheC
the ommissionero
Commissioner offthe
theN ationalT
National axS
Tax ervicema
Service yc
may onsultthe
consult t
hema ttersc
matters oncerning
concerning
thei
the ncomet
income ax,w
tax, ithat
with radea
a trade ssociationo
organized yb
by usinessp
business roprietorsa
proprietors nda
and no
an rganization
organization
similart
similar hereto,o
thereto, orranyp
any ersonw
person hoi
who isswellinformed
well i
nformedooffthe
thec ircumstancesa
circumstances asstos
to uchb
such usiness.
business.
- 304 -
-304-
Art i
cle1
Article 72(
172 Perusal,e
(Perusal, tc.o
etc. offDocuments
DocumentsR elatedt
Related oS
to ale,Registration,
Sale, Re
gistration,Entry,
Ent
ry,e tc.)
etc.)
Wh
Where eret hec
the h i
chiefefoofft h
theec o mp ete
competent n ttax
taxo ff i
c
officeeoorrthe
t
h eC ommi ssi
Commissioner on erooffthe
th ec o mpe te
conpetentntRegional
Re gional
T a xOf
TaxOflice,fice,o rt axo fficiale ntrustedb yh imr e quest sthep er
ortaxoffidalehustelbylimreqimsflepamalmrqxairfimofrdateddnmtsusalo rr ep rodu ctiono frel
a tedd ocume nt
s
ont
on h
theed at
dataaf a l
li
n
fallinggunder
u n d ere a c
eachhoofft hefollowing
the f
o l
lowi ngs u bpara gra
subparagraphsph sini
no rd
ordererto
t
oa s certai
nthe
ascertain theproperty
pro per
ty
an
and di nco meo
income offa n
anyyi nd ividu a
individual,l
,t h
theerelated
rel
a teda ge n ci
agenciesess h al
shalllc o mp
conply lyw i
t
withhiittunless
un l
e ssthey
t heyh av
haveea ny
any
ju s tifiab
justifiable l
eg ro u
groundsnd st ot
to hec
the on tra r
contrary:y:< Amendedb
<Amended yA
by c
ActtNo.
No.8825,
88 25,Dec.
Dec .3],
3 1
,2007>
2 007>
1
1.. D at
Dataao onnt hes
the al
sale, e ,e nt ry,registration
entry, regi s t
r ationo offhouse,
ho us e,l a nd,factory
land, fa ctor yf ounda t
ion,mining
foundation, mini ngi ndus t
ry
industry
founda ti
foundation,on,s hi
ship,p,a i
rc raft
aircraft,,c ons t
r uc t
constructionionma chine
machinery, ry,a utomobi
automobile, le,e tc
etc;.
;
2
2.. D at
Dataao nt
on hei
the nc ome
income, ,a sset
assets sa nda
and llowanc
allowances e
so offb ene ficiar i
e
beneficiaries, s,e tc
etc..under
unde rt heN
the ati
onal
National
B as
BasicicL i
vi
LivingngS e cur
Security i
tyA c
Act;t;
3
3.. D at
Dataao nt
on hei
the nc ome
income, ,a sse t
assetssa nda
and llowanc
allowances eso offs ubs cr i
be
subscribers,r s,e t c
etc..under
unde rt heN
the ati
onal
National
P ens i
PensiononA c
Act;t;
4
4..D at
Dataao onnt hei
the nc ome
income, ,a sse
assetstsa ndme
and dic
medicalalc ar
ee
care xpe ns
expenses eso offs ubs c ribe
subscribers,rs,e tc
etc..under
unde rthe
the
N ati onalH
National ea l
Health thI ns ur anc
Insurance eA ct
Act;;
5
5..D at
Dataao onnt hew
the a
wagesge sa nda
and llo wa nc
allowances e sooffthe
thei nsur ed,e
insured, tc.under
etc. unde rthe
t
heE mpl oyme
Employment ntInsurance
I
ns urance
Ac t
Act;;
6
6.. D at
Dataao onnt hew
the wagesage sa nda
and llowanc
allowances eso offbeneficiaries,
be ne ficia ri
e s,e tc.under
etc. unde rt heI
the ndus tria
IndustriallAccident
Ac ci
dent
C ompe ns
Compensation ationI ns uranc
Insurance eA c
Act; t;a nd
and
7
7..D a
Datatap res c ribe
prescribed db by yP res i
dent i
Presidentiala lDecree
De creew hic
which ha res
are imi l
a
similarrto
t ot hed
the a t
dataau nd
underers ubp aragraphs
subparagraphs
1t hr ough6
1 through .[ Thi
6.[This sA r ti
cl
ArticleeN ewl
Newly yI ns ert
Insertede db yA
by c
ActtN o.7837,
No. 7 8 37,Dec
De c .31,
31,2 00 5
2005]]
Art i
cle1
Article 73(
173 Cooperation f
(Cooperation orC
for ollection o
Collection offTaxat i
on Da
Taxation ta)
Data)
(1)A
(1) nyp
Any e rsonsp
persons res cribe
Decreereewhwho oi isst hei
the ndi vi dua
individual ll ia bl
liable et op
to ay
pay
ani
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Art i
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Article 74(
174 Submissiono
(Submission offMaterial
MaterialooffPayment
PaymentooffInsurance
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Money gainstLoss)
against Lo
ss)
- 306 -
-306-
Wh
When ena nyn
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200 6]
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(Sample urveys)
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ic
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n
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o
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proceduresesf oras
for amp
a samplel
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surveyys ha l
lb
shall ep
be resc ri
b e
prescribedd
b
byyP re sidentia
Presidential lDecree.
De c ree.
[ Thi
[This sA rt i
cl
Article eNeNewlywl yI nser
Insertedtedb yA
by ActctNo
No..8825,
882 5,Dec.
Dec .3],
3 1,2007]
2 007]
- 308 -
-308-

7 Income Tax Act 1

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Table

CHAPTERI GENERAL PROVISIONS ································································

Article 7 (Place of Tax Payment in Cases of Withholding Tax,

Article 18 (Real Estate Rental Income) ·················································································· 30

Article 19 (Business Income) ····································································································· 32

Article 20 (Earned Income) ········································································································· 34

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

Article 48 (Retirement Income Deduction) ············································································ 78

Article 51 (Additional Deduction) ······························································································ 82

Article 56-2 (Tax Credit for Book-Keeping) ·································································· 104

Article 57 (Tax Credit for Payments in Foreign Country) ··········································· 104

Article 58 (Tax Credit for Casualty Losses) ····································································· 106

Article 59 (Tax Credit for Earned Income) ········································································ 108

Articles 66 Deleted. ····················································································································· 118

Article 77 (Payment in Installments) ····················································································· 130

Article 81 (Additional Tax) ····································································································· 134

Article 82 (Occasional Assessment) ······················································································ 144

Article 83 (Notification of Tax Base and Tax Amount) ················································ 146

Article 85-2 (Refund by Retroactive Deduction of Deficit) ·········································

Article 87 (Special Cases for Joint Business Place) ······················································· 152

Article 88 (Definition of Transfer) ························································································· 162

Article 89 (Non-Taxable Transfer Income) ······································································· 162

Article 97 (Calculation of Necessary Expenses for Transfer Income) ····················

Article 115 (Additional Tax

Article 157 (Succession to Withholding) ·············································································· 276

CHAPTERVISUPPLEMENTARY PROVISIONS ······································

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