(1) Where a surviving corporation succeeds to the assets of a merged corporation due to a merger, it shall be deemed to have succeeded to the assets from the merged corporation at a market price as at the registration date of the merger (referring to the market price provided in Article 52 (2); hereafter in this Sub-section, the same shall apply). In such cases, a surviving corporation may only succeed to the amount included in or excluded from the gross income or deductible expenses when calculating the amount of income and the tax base for each business year of the merged corporation, and other assets, liabilities, etc., prescribed by Presidential Decree.
(2) Where a surviving corporation is deemed to have succeeded to the assets of a merged corporation at a market price under paragraph (1) and the transfer value paid by the surviving corporation to the merged corporation is less than the amount calculated by deducting the total liabilities from the total assets as at the registration date of the merger of the merged corporation (hereafter in this Sub-section, referred to as "net market price of assets"), the surviving corporation shall appropriate such difference in the tax settlement invoice referred to in Article 60 (2) 2 and include it in gross income in equal installments for five years from the registration date of the merger.
(3) Where a surviving corporation is deemed to have succeeded to the assets of a merged corporation at a market price under paragraph (1) and the transfer value paid by the surviving corporation to the merged corporation exceeds the net market price of assets as at the registration date of the merger in circumstances prescribed by Presidential Decree, the surviving corporation shall appropriate the difference in the tax settlement invoice referred to in Article 60 (2) 2 and include it in deductible expenses in equal installments for five years from the registration date of the merger.
(4) Matters necessary for calculating the amounts included in gross income or deductible expenses and the method of calculation under paragraphs (1) through (3) and other matters shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010][Title Amended on Dec. 24, 2018]