(1) Any of the following amounts shall be deemed the amount of profit dividends or surpluses distributed from a corporation when calculating the amount of income for the business year of a domestic corporation which is a stockholder or investor (hereinafter referred to as "stockholder, etc.") of other corporation: <Amended on Dec. 31, 2011; Dec. 20, 2016; Dec. 24, 2018>
1. The sum of money acquired by a domestic corporation which is a stockholder, etc. through the retirement of stocks, reduction of capital, retirement or withdrawal of an employee, or reduction of investment and the value of other assets in excess of the amount necessary to acquire the relevant stocks or investment shares (hereinafter referred to as "stocks, etc.");
2. The value of stocks, etc., that a domestic corporation which is a stockholder, etc. acquires by transferring all or some of corporation's surplus to capital or financing; provided, the same shall not apply where any of the following amounts is transferred to capital:(a) An amount prescribed by Presidential Decree as the capital reserve referred to in Article 459 (1) of the Commercial Act;(b) The revaluation reserve prescribed in the Assets Revaluation Act (excluding an amount equivalent to any difference in the revaluation of land under Article 13 (1) 1 of the same Act);
3. Where the equity ratio of any domestic corporation which is a stockholder, etc. of a corporation, other than the corporation, increases because such corporation transfers its capital, as prescribed in the items of subparagraph 2 while holding treasury stocks and equity shares, the value of stocks, etc., equivalent to the equity ratio so increased;
4. The amount of money and the value of other assets acquired by a domestic corporation which is a stockholder, etc. of a dissolved corporation (including members of an organization deemed a corporation) through distribution of residual assets of the corporation in excess of the amount necessary for the acquisition of the relevant stocks, etc.;
5. The cost of a merger acquired by a domestic corporation which is a stockholder, etc. of a merged corporation, in excess of the amount necessary for the acquisition of the stocks, etc., of the merged corporation;
6. The costs of a division acquired by a domestic corporation which is a stockholder, etc. of a corporation established through division or the disappearing counterpart corporation to a division and merger, in excess of the amount necessary for the acquisition of the stocks of the divided corporation or disappearing counterpart corporation to a division and merger (limited to stocks reduced by retirement or other means where the divided corporation survives the division).
(2) The cost of a merger and division in paragraph (1) 5, 6, Articles 44 and 46 shall be the following amounts: <Added on Dec. 24, 2018>
1. The cost of a merger: The sum of values of stocks, etc., of a merging corporation acquired through merger from the merging corporation (including a domestic corporation holding the total number of outstanding stocks or total investment amount of a merging corporation as at the registration date of the merger) and the values of money or other assets;
2. The cost of a division: The sum of values of stocks of a corporation newly established through division or the counterpart corporation to the division (including the domestic corporation that holds the total number of outstanding stocks of the counterpart corporation to the division and merger or the total amount of investment) acquired through division from a corporation newly established through division or the counterpart corporation to the division and the values of money or other assets.
(3) In applying paragraph (1), matters necessary for the timing for the distribution of profit dividends or surpluses, the evaluation of the value of stocks, etc., and other matters, shall be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>[This Article Wholly Amended on Dec. 30, 2010]