(1) Any of the following domestic corporations that distributes at least 90/100 of distributable profits (hereafter in this Article referred to as "distributable profits") prescribed by Presidential Decree, shall deduct the amount equivalent to such distribution (hereafter in this Article referred to as "distribution amount") from the amount of income for the business year subject to disposal of surplus from which distribution is resolved:
1. A special-purpose company established under the Asset-Backed Securitization Act;
2. An investment company, special purpose company, investment limited liability company, investment association (excluding an institutional private equity fund, as defined in Article 9 (19) 1 of the Financial Investment Services and Capital Markets Act), or investment limited liability company established under the aforesaid Act;
3. A corporate restructuring investment company established under the Corporate Restructuring Investment Companies Act;
4. A real estate investment company for corporate restructuring or real estate investment company for entrusted management, established under the Real Estate Investment Company Act;
5. A ship investment company established under the Ship Investment Company Act;
6. A special purpose corporation, etc., prescribed by Presidential Decree and established under the Special Act on Private Rental Housing or the Special Act on Public Housing;
7. A company specializing in cultural industries established under the Framework Act on the Promotion of Cultural Industries;
8. An overseas resources development company established under the Overseas Resources Development Business Act;
9. Deleted. <Dec. 22, 2020>
(2) Paragraph (1) shall not apply in any of the following cases: <Amended on Dec. 31, 2023>
1. Where no income tax or corporate tax is imposed on dividends paid to stockholders, etc., under this Act and the Act on Restriction on Special Cases concerning Taxation; provided, the same shall not apply where stockholders, etc., who received dividends are partnership firms subject to special taxation for partnership firms pursuant to Article 100-15 of the Act on Restriction on Special Cases concerning Taxation, in which cases such partners (if all or some of partners are higher partnership firms under paragraph (3) of that Article, referring to partners who have invested in the higher partnership firms) are fully imposed income tax or corporate tax on incomes corresponding to dividends allocated pursuant to Article 100-18 of that Act;
2. Where any domestic corporation that pays dividends is a corporation meeting the standards prescribed by Presidential Decree, giving due consideration to the number of its stockholders, etc.
(3) Each person who intends to seek the benefit of paragraph (1), shall file an application for income deductions, as prescribed by Presidential Decree.
(4) In applying paragraph (1), if the dividends exceed the amount calculated by subtracting the losses carried forward under Article 13 (1) 1 (hereafter referred to as "carried-forward losses" in this Article) from the incomes for the relevant business year for the first time, such excess amount may be carried forward to each business year ending within 5 years from the commencement date of the business year following the relevant business year, and deducted from the income amount of the business year to which it is carried forward; provided, in cases where a domestic corporation fails to distribute 90/100 or more of distributable profits in the business year carried forward, the amount carried forward shall not be deducted. <Added on Dec. 31, 2022; Dec. 31, 2024>
(5) If the amount of dividends for a business year following the business year to which the excess is first carried forward under the main clause of paragraph (4) exceeds the amount calculated by subtracting the carried-forward losses and the amount carried forward to the relevant business year (if the relevant amount is less than zero, referring to zero) in order from the income of the relevant business year, such excess amount may be carried forward to each business year ending within 5 years from the commencement date of the business year following the relevant business year and deducted from the amount of income for the business year carried forward: provided, if a domestic corporation fails to distribute at least 90/100 of distributable profits in the business year to which it is carried forward, the carried forward amount shall not be deducted. <Added on Dec. 31, 2024>
(6) If the amount carried forward pursuant to the main clauses of paragraphs (4) and (5) (hereafter referred to as "carried-forward deductible dividends" in this Article) is deducted from the income amount for the relevant business year, it shall be deducted by the methods specified as follows: <Added on Dec. 31, 2022; Dec. 31, 2024>
1. The carried-forward deductible dividends shall be deducted prior to the amount of dividends in the relevant business year;
2. If there are two or more carried-forward deductible dividends, the deduction shall be made starting from the carried-forward deductible dividends that accrues first.[This Article Wholly Amended on Dec. 30, 2010]