(1) Where a domestic corporation which engages in business prescribed by Presidential Decree exchanges assets prescribed by Presidential Decree (hereafter in this Article, referred to as "business assets") used directly for such business for at least two years for the same type of business assets (hereafter in this Article, referred to as "assets acquired by exchange") directly used for the relevant business for at least two years by another domestic corporation, other than a related party provided in Article 52 (1) (including an exchange among several corporations prescribed by Presidential Decree), an amount equivalent to transfer marginal profits of the business assets accrued by the exchange from the value of assets acquired by the exchange 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. 31, 2011; Dec. 24, 2018>
(2) Paragraph (1) shall only apply where a domestic corporation uses assets acquired by exchange for its business until the end date of the business year in which the date of the exchange falls.
(3) A domestic corporation which intends to apply paragraph (1) shall submit a detailed statement on the exchange of assets to the head of the tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree.
(4) In applying paragraph (1), matters necessary for the amount included in deductible expenses and the method of inclusion of such amount in gross income shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010]