(1) A corporation established through division, etc. that qualifiedly divides shall be deemed to have succeeded to the assets of a divided corporation, etc. at the book value, notwithstanding Article 46-2. In such cases, the corporation, etc. established through division shall appropriate the difference between the book value and the market price referred to in Article 46-2 (1) per asset, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>
(2) A corporation established through division, etc. that qualifiedly divides has succeeded to the assets of a divided corporation, etc. at the book value pursuant to paragraph (1), it shall succeed to the losses referred to in Article 13 (1) 1 as on the registration date of the division of the divided corporation, etc. and the amount included in or excluded from gross income or deductible expenses when the divided corporation, etc. calculates the amount of income and the tax base for each business year, other assets, liabilities, reductions, tax credits, etc. under Article 59, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018>
(3) Where any of the following occurs during the period prescribed by Presidential Decree not exceeding three years, a corporation established through division, etc. that qualifiedly divides shall include, as prescribed by Presidential Decree, in the gross income the difference between the book value of the succeeded assets and the market price referred to in Article 46-2 (1) (limited to where the market price exceeds the book value; hereafter the same shall apply in paragraph (4)) and the amount deducted from the succeeded losses when calculating the amount of income for the business year which includes the date the relevant grounds arise, and shall not apply reductions or tax credits starting from the relevant business year after paying the amount of reductions, tax credits, etc. deducted by succession from the divided corporation, etc. under paragraph (2) in addition to the corporate tax for the relevant business year, as prescribed by Presidential Decree; provided, the same shall not apply where inevitable circumstances prescribed by Presidential Decree exist: <Amended on Dec. 19, 2017; Dec. 24, 2018>
1. Where a corporation established through division, etc. discontinues the business succeeded to from a divided corporation, etc.;
2. Where stockholders, etc. of a divided corporation, etc. prescribed by Presidential Decree dispose of the stocks, etc. received from a corporation established through division, etc.;
3. Where the number of the employees specified by Presidential Decree (hereafter in this subparagraph, referred to as "employees") as employees of the corporation established through division as on the last day of each business falls below 80/100 of the number of employees of the divided business division as at one month before the date of registration of the merger; provided, in cases of a division and merger, it means either of the following cases:(a) Where the number of employees of the counterpart corporation to the division and merger as at the end of each business year falls below 80/100 of the sum of employees of the divided business division and the counterpart corporation to the division and merger as at one month before the date of registration of the division;(b) Where the number of employees of the corporation established through division as at the end of each business year falls below 80/100 of the sum of employees of the divided business division and the disappearing counterpart corporation to the division and merger as at one month before the date of registration of the division.
(4) Where a corporation established through division, etc. includes in gross income the difference between the book value of the succeeded assets under paragraph (3) and the market price referred to in Article 46-2 (1), etc., it shall include, as prescribed in Presidential Decree, in gross income or deductible expenses, the difference between the transfer value paid by the corporation established through division, etc. to the divided corporation, etc. and the net market price of assets as on the registration date of the division of the divided corporation, etc. until the date five years pass after the registration date of the division from the date any of the grounds referred to in paragraph (3) arises.
(5) A corporation established through division, etc. to which paragraph (1) applies shall file a detailed statement on the succeeded assets due to division to the head of the tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree.
(6) Matters necessary for criteria for determining the continuance or discontinuance of the succeeded businesses, calculation of the amounts included in gross income or deductible expenses, the method of the calculation under paragraphs (1) through (4), and other matters shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010][Title Amended on Dec. 24, 2018]