(1) Where income meeting the following requirements is added to the tax base of a domestic corporation for each business year, the amount prescribed in paragraph (2) 2 may be deducted from the tax amount calculated for the relevant business year:
1. Income received from any of the following items (hereafter in this Article referred to as "indirect investment company, etc."):(a) Any 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), investment limited liability company, investment trust, investment limited partnership, and undisclosed investment association defined in the aforesaid Act;(b) Any corporate restructuring real estate investment company and real estate investment company for entrusted management as defined in the Real Estate Investment Company Act;(c) Any trust property deemed a domestic corporation under Article 5 (2);
2. An amount to be deducted from the tax amount calculated: The amount of a foreign corporate tax payable by an indirect investment company calculated as prescribed by Presidential Decree, taking into account the after-tax base price.
(2) For the purposes of paragraph (1), the income received by a domestic corporation from an indirect investment company, etc. and the amount to be deducted from the tax amount calculated for the relevant business year shall be as follows:
1. Income received from an indirect investment company, etc.: An amount calculated on the basis of the base price referred to in Article 238 (6) of the Financial Investment Services and Capital Markets Act (referring to the price after the foreign corporate tax payable by an indirect investment company is deducted; hereafter in this Article and Article 73 referred to as "after-tax base price"); provided, in the case of the income paid by an indirect investment company, etc. by reason of the sale of securities of an indirect investment company, etc. listed on the securities market, it shall be the amount calculated as prescribed by Presidential Decree;
2. An amount to be deducted from the tax amount calculated: The amount of a foreign corporate tax payable by an indirect investment company calculated as prescribed by Presidential Decree, taking into account the after-tax base price.
(3) An amount deductible from the calculated tax amount pursuant to paragraph (1) shall be limited to an amount calculated according to the following formula (hereafter referred to as "credit limit" in this paragraph). In such cases, if an amount referred to in paragraph (2) 2 exceeds the credit limit for the relevant business year, such excess may be carried forward to each business year ending within ten years from the start date of the business year following the relevant business year, and deducted to the extent of the credit limit for the business year to which such excess is carried forward. Deduction limit amount = A ? B/CA: Calculated tax amount for the relevant business year (excluding corporate tax on capital gains on the transfer of land, etc. under Article 55-2 and corporate tax calculated by applying special tax provisions for promoting investment and collaborative cooperation under Article 100-32 of the Restriction of Special Taxation ActB: Total amount of income paid by an indirect investment company, etc. (limited to where indirect investment foreign corporate tax has been paid on the relevant income)C: Tax base on income for the relevant business year.
(4) The method for calculating income received from an indirect investment company, etc. under paragraphs (1) through (3), and other matters necessary for tax credits shall be prescribed by Presidential Decree.[This Article Added on Dec. 31, 2022]