(1) A business year shall be one fiscal period prescribed by statutes or a corporation's articles of incorporation; provided, this period shall not exceed one year.
(2) A domestic corporation, the business year of which is not prescribed by statutes or its articles of incorporation shall separately determine its business year and report it to the head of the tax office having jurisdiction over the place of tax payment (the head of the tax office as prescribed in Article 12; hereinafter the same shall apply), along with a report on incorporation referred to in Article 109 (1) or the registration of business referred to in Article 111.
(3) A foreign corporation with a place of business in the Republic of Korea as prescribed in Article 94 (hereinafter referred to as "domestic place of business"), the business year of which is not prescribed by the Acts and subordinate statutes or its articles of incorporation shall separately determine its business year and report it to the head of the tax office having jurisdiction over the place of tax payment, along with a report on the establishment of a domestic place of business referred to in Article 109 (2) or the registration of business referred to in Article 111.
(4) A foreign corporation with no domestic place of business which earns income referred to in subparagraph 3 or 7 of Article 93 shall separately determine its business year and report it to the head of the tax office having jurisdiction over the place of tax payment within one month from the date such income is first earned.
(5) Where a corporation liable to file a report under paragraphs (2) through (4) fails to do so, the business year of such corporation shall be from January 1 to December 31 of each year.
(6) In applying paragraphs (1) through (5), matters necessary for determining the start date of a corporation's first business year shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010]