Corporate Tax Act — Article 20 (Non-inclusion of losses from capital transactions in deductible expenses)

None of the following amounts shall be included in deductible expenses for the purpose of calculating the amount of income of a domestic corporation for each business year: <Amended on Dec. 19, 2017; Dec. 24, 2018>

1. The amount computed by counting the appropriation of surpluses as losses when settlement of accounts is fixed;

2. Margins from the issuance of stocks at below par value: Where shares are issued at a price below the par value pursuant to Article 417 of the Commercial Act, the sum of the price below the par value and the issuance price of new shares.[This Article Wholly Amended on Dec. 30, 2010]