(1) The income of a domestic corporation for each business year shall be the amount calculated by subtracting the total amount of deductible expenses incurred during the relevant business year from the total amount of gross income accrued during the relevant business year. <Amended on Dec. 24, 2018>
(2) Where the total amount of deductible expenses incurred during a business year exceeds the total amount of gross income accrued during the business year, such excess shall be the losses of a domestic corporation for each business year.
(3) Losses carried forward of a domestic corporation are the losses of each business year incurred before the start date of each business year and those that are not deducted when calculating the tax base of the subsequent business years. <Added on Dec. 24, 2018>[This Article Wholly Amended on Dec. 30, 2010]