The terms used in this Act are defined as follows: <Amended on Jan. 1, 2013; Dec. 24, 2018; Dec. 31, 2022>
1. The term "domestic corporation" means a corporation with its headquarters, main office or actual business management place located in the Republic of Korea;
2. The term "non-profit Korean corporation" means any of the following corporations among Korean corporations:(a) A corporation incorporated pursuant to Article 32 of the Civil Act;(b) A corporation whose purpose is similar to that provided for in Article 32 of the Civil Act (excluding a corporation that may distribute profits to its stockholders, members, or investors, other than a cooperative corporation, etc. prescribed by Presidential Decree), which is incorporated pursuant to the Private School Act or other special Acts;(c) An organization deemed a corporation under Article 13 (4) of the Framework Act on National Taxes (hereinafter referred to as "organization deemed a corporation");
3. The term "foreign corporation" means an organization that has its headquarters or main office in a foreign country in the form of a corporation that meets the standards prescribed by Presidential Decree (limited to such a corporation that does not have a place for actual management of its business in the Republic of Korea);
4. The term "non-profit foreign corporation" means a foreign government, foreign local government or non-profit foreign corporation (including an organization deemed a corporation) among foreign corporations;
5. The term "business year" means one fiscal period for the calculation of income of a corporation;
6. The term "consolidated tax return system" means a system by which two or more domestic corporations file a corporate tax return and pay corporate tax as a single unit that calculates the amount of tax based on a single tax base, as prescribed in Chapter II-3;
7. The term "consolidated corporation" means a corporation to which the consolidated tax return system applies;
8. The term "consolidated group" means all consolidated corporations;
9. The term "consolidated parent corporation" means a consolidated corporation that consolidates and controls another consolidated corporation of a consolidated group;
10. The term "consolidated subsidiary corporation" means a corporation consolidated and controlled by a consolidated parent corporation;10-2. The term "consolidated control" means cases where a domestic corporation holds at least 90/100 of the total number of issued shares or the total amount of investment of another domestic corporation. In such cases, the holding ratio shall be calculated as follows:(a) Non-voting shares or investment shares shall be included;(b) Treasury stocks held under the Commercial Act or the Financial Investment Services and Capital Markets Act shall be excluded;(c) Up to 5/100 of the total number of issued stocks, as stocks acquired by workers through an employee stock ownership association referred to in the Framework Act on Labor Welfare and other stocks prescribed by Presidential Decree, shall be deemed to be held by the relevant corporation;(d) In cases prescribed by Presidential Decree, in which shares or investment shares of a domestic corporation are indirectly held through another domestic corporation, such shares or investment shares shall be aggregated, as prescribed by Presidential Decree;
11. The term "consolidated business year" means one fiscal period for the calculation of income of a consolidated group;
11. The term "consolidated business year" means one fiscal period for which the income of a consolidated group is calculated;
12. The term "specially related person" means a person who has an economic relationship with a corporation or a relationship prescribed by Presidential Decree, such as a management control relationship. In such cases, the person himself or herself is also regarded as a specially related person of that person;
13. The term "merging corporation" means a corporation incorporated following a merger or existing after a merger;14. "Merged corporation" means a corporation which ceases to exist following a merger;
15. The term "divided corporation" means a corporation that is divided according to division (including divisional mergers; hereinafter the same shall apply);
16. The term "corporation established through division" means a corporation incorporated following division.[This Article Wholly Amended on Dec. 30, 2010][Moved from Article 1; previous Article 2 moved to Article 3 <Dec. 24, 2018>]