(1) Where a domestic corporation operating an insurance business has appropriated the contingency reserve funds (hereinafter referred to as "contingency reserve funds") as deductible expenses under the Insurance Business Act and other statutes when the settlement of account is fixed, such contingency reserve funds appropriated shall be included in deductible expenses for the purpose of calculating the amount of income for the relevant business year up to the amount calculated, as prescribed by Presidential Decree.
(2) In applying paragraph (1), where a domestic corporation applying the K-IFRS has appropriated contingency reserve funds in the tax settlement invoice referred to in Article 60 (2) 2 and has accumulated an amount equivalent to such contingency reserve funds as reserves of contingency reserve funds in disposing of the profits during the relevant business year, it shall be deemed to have appropriated them in deductible expenses, when the settlement of account is fixed, up to the amount calculated, as prescribed by Presidential Decree.
(3) A domestic corporation which intends to apply paragraph (1) shall submit a detailed statement on the relevant contingency funds to the head of the tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree.
(4) Matters necessary for disposing of the contingency reserve funds in paragraphs (1) and (2) shall be prescribed by Presidential Decree.[This Article Added on Dec. 24, 2018]