(1) Where a domestic corporation appropriates funds for retirement benefits as deductible expenses when the settlement of account is fixed for each business year in order to pay retirement benefits to its executives or employees, such retirement benefit appropriation 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. <Amended on Dec. 24, 2018>
(2) Where a domestic corporation which has included retirement benefit appropriation funds in deductible expenses under paragraph (1) pays retirement benefits to any executive or employee, it shall be deemed paid from the retirement benefit appropriation funds appropriated. <Amended on Dec. 24, 2018>
(3) Where a domestic corporation which has included retirement benefit appropriation funds in deductible expenses under paragraph (1) is merged or divided, the retirement benefit appropriation funds of the corporation as at the registration date of the merger or division which is succeeded to the surviving corporation, corporation established through division, or counterpart corporation to the division and merger (hereinafter referred to as "surviving corporation, etc.") shall be deemed retirement benefit appropriation funds held by the surviving corporation as at the registration date of the merger or division. <Amended on Dec. 24, 2018>
(4) Paragraph (3) shall apply mutatis mutandis where a business operator comprehensively transfers his or her business to a domestic corporation.
(5) A domestic corporation which intends to apply paragraph (1) shall submit a detailed statement on retirement benefit appropriation funds to the head of the tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>
(6) Matters necessary for disposition of retirement benefit appropriation funds under paragraphs (1) through (4) shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010]