(1) Where a domestic corporation is paid insurance money due to the destruction or damage of its tangible assets (hereinafter referred to as "assets subject to insurance") and acquire the same type of assets in place of the destroyed assets subject to insurance or to improve the damaged assets subject to insurance (including the improvement of the acquired assets) by the end date of the business year which includes the date of the payment, an amount equivalent to the insurance marginal profits used for the acquisition or improvement of the relevant assets, among the value of such assets, may be included in deductible expenses for the purpose of calculating the amount of income for the relevant business year, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>
(2) Article 36 (2) and (3) shall apply mutatis mutandis to the inclusion of the value of assets acquired or improved by insurance marginal profits in deductible expenses. In such cases, "one year" referred to in Article 36 (2) shall be construed as "two years." <Amended on Dec. 24, 2018>
(3) A domestic corporation which intends to apply paragraphs (1) and (2) shall submit a detailed statement on the insurance money paid and the assets acquired or improved with the insurance money (a plan to use insurance marginal profits in cases falling under paragraph (2)) 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>
(4) For purposes of paragraphs (1) and (2), matters necessary for calculating the amount included in deductible expenses and the amount included in the gross income, the method of calculation, and other matters shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010][Title Amended on Dec. 24, 2018]