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Corporate Tax Act — Article 46-2 (Taxation on corporations established through division upon unqualified division)

법인세법 제46조의2

This English translation is based on the Korean text effective 2025-03-14. The Korean law has since been amended (current version effective 2026-07-01) — check the Korean original.

(1) Where a corporation established through division, etc. has succeeded to the assets from a divided corporation, etc. due to the division, it shall be deemed succeeded to the assets of the divided corporation, etc. at the market price as at the registration date of the division. In such cases, the corporation established through division, etc. may succeed to only the amount included in or excluded from gross income or deductible expenses when it calculates the amount of income and the tax base for each business year of the divided corporation, etc. and other assets, liabilities, etc. prescribed by Presidential Decree.

(2) A corporation and the transfer value paid by the corporation established through division, etc. to the divided corporation, etc. is less than the net market price of assets as at the registration date of the division of the divided corporation, etc., the corporation established through division, etc. 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 division.

(3) Where a corporation established through division, etc. is deemed to succeed to the assets of a divided corporation, etc. at the market price pursuant to paragraph (1) and the transfer value paid by the corporation established through division, etc. to the divided corporation, etc. exceeds the net market price of assets as at the registration date of the division in circumstances prescribed by Presidential Decree, the corporation, etc. established through division shall appropriate such 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 division.

(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]

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