(1) Losses referred to in Article 13 (1) 1 as on the registration date of the merger of a surviving corporation, excluding the amount of losses that a surviving corporation succeeds to pursuant to Article 44-3 (2), shall not be deducted to the extent of income (referring to an amount calculated by proportionally dividing the amount of income by the rate of value of asset prescribed by Presidential Decree where no separate accounting has been kept as the corporation fell under the proviso to Article 113 (3); hereafter in this Article, the same shall apply) accruing from the business that has been succeeded to from the merged corporation when calculating the tax base for each business year of the surviving corporation. <Amended on Dec. 24, 2018; Dec. 22, 2020>
(2) Losses of a merged corporation succeeded to by a surviving corporation under Article 44-3 (2) shall be deducted to the extent of income accruing from the business succeeded to from the merged corporation when calculating the tax base for each business year of the surviving corporation.
(3) A surviving corporation that qualifiedly merges shall include, in deductible expenses, losses on disposition of the assets (limited to the difference only where the market value of the relevant assets under Article 52 (2) as of the registration date of the merger is lower than book value and to the losses incurred during the business years ending within five years after the registration date of the merger) held by the surviving corporation and the merged corporation prior to the merger to the extent of income (referring to the amount of income before the relevant losses on disposition are deducted) accruing from business of the relevant corporation prior to the merger in calculating the amount of income of the relevant business year. In such cases, paragraphs (1) and (2) shall apply accordingly, deeming that losses on disposition excluded from deductible expenses were incurred from the business of the relevant corporation prior to the merger at the time of disposition of the assets. <Amended on Dec. 31, 2011; Dec. 20, 2016>
(4) Reductions or tax credits of a merged corporation that a surviving corporation has succeeded to under Article 44-3 (2) shall apply to the extent of income accruing from the business that has been succeeded to from the merged corporation or the amount of corporate tax equivalent thereto, as prescribed by Presidential Decree.
(5) Notwithstanding the clues other than each subparagraph of Article 13 (1), deductions for losses as of the merger registration date of the merged corporation pursuant to paragraphs (1) and (2) and the losses of the merged corporation succeeded by the merged corporation shall be 80/100 of the income amount under each of the following subparagraphs (100/100 in the case of a corporation prescribed by Presidential Decree, such as a small and medium-sized enterprise and a company implementing a rehabilitation plan): <Added on Dec. 31, 2019; Dec. 31, 2022>
1. In cases of losses as of the registration date of the merger of the merged corporation: Amount calculated by subtracting the amount of income accruing from the business succeeded to from the merged corporation from the amount of income of the merging corporation;
2. Where losses of a merged corporation succeeded to by a surviving corporation: The amount of income accruing from the business succeeded to from the merged corporation.
(6) As of the merger registration date of a surviving corporation, out of an amount not included in deductible expenses when calculating the amount of income for each subsequent business year (hereafter in this Article referred (6) As of the merger registration date of a surviving corporation, out of an amount not included in deductible expenses when calculating the amount of income for each subsequent business year (hereafter in this Article referred to as "amount exceeding the ceiling on donations") as an amount carried forward under Article 24 (5) out of the donations referred to in paragraph (2) 1 and (3) 1 of the same Article, the amount excluding an amount exceeding the ceiling on donations that a surviving corporation succeeds to under Article 44-3 (2) 2 shall be included in deductible expenses to the extent of the respective ceilings on donations includible in deductible expenses prescribed in Article 24 (2) 2 and (3) 2 on the basis of the amount of income accruing from the merging corporation's business before the merger for the purpose of calculating the income amount for each business year of the surviving corporation. <Added on Dec. 22, 2020>
(7) An amount that a surviving corporation succeeds to under Article 44-3 (2), as an amount exceeding the ceilings on donations as of the merger registration date of the merged corporation, shall be included in deductible expenses to the extent of the respective ceilings on donations includible in deductible expenses referred to in Article 24 (2) 2 and (3) 2 on the basis of the amount of income accruing from the business succeeded from the merged corporation, for the purpose of calculating the amount of income for each business year of the surviving corporation. <Added on Dec. 22, 2020>
(8) Matters necessary for the calculation of losses to be deducted when calculating the tax base for each fiscal year, the inclusion of the losses on disposition of the succeeded assets in deductible expenses, the inclusion of the amount exceeding a ceiling on donations succeeded, the calculation of the amount of corporate tax constituting the amount of income accruing from the business that has been succeeded under paragraphs (1) through (7), and other matters, shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2019; Dec. 22, 2020>[This Article Wholly Amended on Dec. 30, 2010]