(1) "Donation" in this Article means the expenses (including the amount deemed substantially donated through a transfer prescribed by Presidential Decree) that a domestic company gratuitously spends directly irrelevant to its business. <Amended on Dec. 24, 2018>
(2) Special donations referred to in subparagraph 1 among the donations spent by a domestic corporation for each business year and donations carried forward under paragraph (5) shall be sequentially included in deductible expenses within the ceiling on inclusion in deductible expenses calculated pursuant to subparagraph 2 , for the purpose of calculating the amount of income for each business year; and the amount in excess of the ceiling on inclusion in deductible expenses shall not be included in deductible expenses: <Amended on Dec. 22, 2020; Aug. 17, 2021; Dec. 21, 2021; Dec. 31, 2022; Dec. 31, 2024>
1. Special donation: Donation falling under any of the following:(a) The value of money and valuables gratuitously donated to the State or a local government; provided, this shall be limited to money and valuables received under Article 5 (2) of the Act on Collection and Use of Donations, where such money and valuables are subject to said Act;(b) The value of contributions for national defense and money and valuables contributed for the consolation and comfort of soldiers of the national armed forces;(c) The value of money and valuables contributed for victims of natural disasters;(d) Donations given to the following institutions (excluding hospitals) for facility expenses, educational expenses, scholarships, or research funds:(i) Private schools established under the Private School Act;(ii) Non-profit educational foundations (limited to non-profit incorporated foundations established for the purpose of paying facility expenses, educational expenses, scholarships, or research funds for national, public or private schools);(iii) Polytechnic colleges defined in the Act on the National Lifelong Vocational Skills Development Act;(iv) Lifelong educational facilities that may use the name of major college under the Lifelong Education Act and lifelong educational facilities in the form of a distance college;(v) Foreign educational institutions founded under the Special Act on Establishment and Management of Foreign Educational Institutions in Free Economic Zones and Jeju Free International City;(vi) Industry-academic cooperation groups defined in the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act;(vii) The Korea Advanced Institute of Science and Technology established under the Korea Advanced Institute of Science and Technology Act, the Gwangju Institute of Science and Technology established under the Gwangju Institute of Science and Technology Act, the DaeguGyeongbuk Institute of Science and Technology established under the DaeguGyeongbuk Institute of Science and Technology Act, the Ulsan National Institute of Science and Technology established under the Ulsan National Institute of Science and Technology Act, and Korea Institute of Energy Technology established under the Korea Institute of Energy Technology Act;(viii) Seoul National University established under the Act on Establishing and Administrating Seoul National University, Incheon National University established under the Act on Establishing and Administrating Incheon National University, and other similar schools prescribed by Presidential Decree;(ix) Korean schools prescribed in the Act on the Educational Support for Korean Nationals Residing Abroad (limited to schools that meet requirements prescribed by Presidential Decree);(x) Korea Student Aid Foundation established under the Act on the Establishment of Korea Student Aid Foundation(e) Donations given to the following hospitals and others for facility expenses, educational expenses, or research funds:(i) National university-affiliated hospitals established under the Act on the Establishment of National University-Affiliated Hospitals;(ii) National university-affiliated dental hospitals established under the Act on the Establishment of National University-Affiliated Dental Hospitals;(iii) Seoul National University Hospital established under the Establishment of Seoul National University Hospital Act;(iv) Seoul National Dental Hospital established under the Establishment of Seoul National Dental Hospital Act;(v) Hospitals operated by private schools as defined in the Private School Act;(vi) National Cancer Center established under the Cancer Control Act;(vii) Local medical centers established under the Act on the Establishment and Management of Local Medical Centers;(viii) National Medical Center established under the Act on Establishing and Administrating the National Medical Center;(ix) Hospitals operated by the Korean National Red Cross established under the Organization of the Korean National Red Cross Act;(x) Hospitals operated by the Korea Veterans Welfare and Healthcare Corporation established under the Korea Veterans Health Service Act;(xi) Korea Institute of Radiological and Medical Sciences established under the Radiation and Radioisotope Use Promotion Act;(xii) Hospitals operated by the National Health Insurance established under the National Health Insurance Act;(xiii) Medical institutions referred to in Article 43 (1) 1 of the Industrial Accident Compensation Insurance Act;(xiv) The Medical Technology Cooperation Foundation established under Article 28-2 (1) of the Health and Medical Service Technology Promotion Act, which is established by hospitals referred to in subitems (i) through (xiii);(f) Donations given to corporations that meet requirements prescribed by Presidential Decree, as non-profit organizations that mainly aim to raise and distribute funds necessary for supporting social welfare services and other social welfare activities;
2. Ceiling on amount includible in deductible expenses: the amount calculated according to the following formula: [The amount of standard income (the amount of income prior to including special donations referred to in subparagraph 1 and general donations referred to in paragraph (3) 1, excluding transfer gains or losses prescribed in Articles 44, 46 and 46-5, in deductible expenses; hereafter in this Article, the same shall apply) - losses referred to in Article 13 (1) 1 (it shall be up to 80 percent of standard income in the case of a corporation eligible for deduction of carry forward losses to the extent of 80 percent of its income for each business year pursuant to the proviso, with the exception of the subparagraphs, of Article 13 (1)] x 50 percent(3) Out of donations made by a domestic corporation in each business year and donations carried forward under paragraph (5), general donations referred to in subparagraph 1 shall be included in deductible expenses when calculating the amount of income for the relevant business year within the maximum amount includible in deductible expenses calculated under subparagraph 2; however, the amount exceeding the maximum amount includible in deductible expenses shall not be included in deductible expenses: <Amended on Dec. 22, 2020; Dec. 31, 2022>
1. General donations: Donations prescribed by Presidential Decree in consideration of public interest, such as social welfare, culture, arts, education, religion, charity, science, etc. (excluding donations referred to in paragraph (2) 1); hereafter in this Article the same shall apply)2. Ceiling on amount includible in deductible expenses: the amount calculated according to the following formula: [The amount of standard income - losses referred to in Article 13 (1) 1 (it shall be up to 80 percent of standard income in the case of a corporation eligible for deduction of carry forward losses to the extent of 80 percent of its income for each business year pursuant to the proviso, with the exception of the subparagraphs, of Article 13 (1)) ? amount included in deductible expenses pursuant to paragraph (2) (including an amount carried forward and included in deductible expenses pursuant to paragraph (5)] x 10 percent (it shall be 20 percent in the case of a social enterprise defined in subparagraph 1 of Article 2 of the Social Enterprise Promotion Act)(4) Donations, other than those prescribed in paragraphs (2) 1 and (3) 1, shall not be included in deductible expenses for the purpose of calculating the amount of income for the relevant business year. <Amended on Dec. 22, 2020>
(5) The amount of contributions that a domestic corporation spends in each business year that has not been included in deductibles in excess of the deduction limit for donations pursuant to paragraphs (2) and (3) shall be carried forward and included in deductible expenses for each business year which ends within 10 years from the start date of the business year following the relevant business year, for the purpose of calculating the amount of income for the business year carried forward, it shall be included in the deductible amount within the range of the deductible limit for each donation referred to in paragraphs (2) 2 and (3) 2. <Amended on Dec. 24, 2018; Dec. 31, 2019; Dec. 22, 2022(6) Where an amount carried forward pursuant to paragraphs (2) and (3) is included in deductible expenses, the amount carried forward pursuant to paragraph (5) shall be included in deductible expenses before the amount of donations paid in the relevant business year. In such cases, the amount carried forward shall be included in deductible expenses from the amount carried forward first. <Added on Dec. 31, 2019; Dec. 22, 2020>[This Article Wholly Amended on Dec. 30, 2010]