(1) Where a non-profit domestic corporation (excluding any non-profit domestic corporation that runs profit-making business referred to in Article 4 (3) 1; hereafter in this Article, the same shall apply) earns income accruing from the transfer of any of the following assets (hereafter in this Article, referred to as "capital gains on transfer of assets"), being the revenue provided for in Article 4 (3) 4 through 6, it may choose not to file a tax base, notwithstanding Article 60 (1); in such cases, capital gains on transfer of assets, the tax base of which is not filed, shall be disregarded for the purpose of calculating the amount of income for each business year: <Amended on Dec. 24, 2018; Dec. 21, 2021; Dec. 31, 2024>
1. Stocks, etc. under Article 94 (1) 3 of the Income Tax Act and stocks, etc. prescribed by Presidential Decree;
2. Land or buildings (including facilities or structures appurtenant to such buildings);
3. Assets referred to in Article 94 (1) 2 or 4 of the Income Tax Act.
(2) An amount calculated by applying rates prescribed in each subparagraph of Article 104 (1) of the Income Tax Act to the tax base calculated by applying mutatis mutandisArticle 92 of the same Act shall be paid as corporate tax on capital gains on transfer of assets, the tax base of which is not filed under paragraph (1). In such cases, Article 55-2 shall not apply where tax rates weighted under Article 104 (4) of the Income Tax Act apply.
(3) In applying paragraph (2), the tax base calculated by applying mutatis mutandisArticle 92 of the Income Tax Act shall be the amount calculated by first deducting incurred expenses from the total income accruing from the transfer of assets (hereafter in this Article, referred to as "transfer value") and re-deducting the amounts provided for in Articles 95 (2) and 103 of the Income Tax Act from the amount deducted (hereinafter referred to as "transfer marginal profits").
(4) Articles 96 through 98 and 100 of the Income Tax Act shall apply mutatis mutandis to the calculation of the transfer value, expenses incurred and transfer marginal profits referred to in paragraph (3); provided, where any non-profit corporation that has received the contribution of any asset which is not included in the taxable value of the inheritance tax or the taxable value of the gift tax under the Inheritance Tax and Gift Tax Act, transfers any asset prescribed by Presidential Decree, the acquisition value of the relevant assets by the contributor thereof shall be the acquisition value of the relevant corporation, and in the case of an organization deemed a corporation under Article 13 (2) of the Framework Act on National Taxes, the acquisition value prior to obtaining approval therefor under the same paragraph shall be deemed the acquisition value.
(5) Articles 101 and 102 of the Income Tax Act shall apply mutatis mutandis to the calculation of the tax base on capital gains on transfer of assets, and Article 92 of the same Act shall apply mutatis mutandis to the calculation of the amount of tax on income accruing from the transfer of assets. <Amended on Dec. 31, 2023>
(6) The provisions governing the filing of a tax base, payment, determination, correction, and collection of corporate tax on income for each business year, in which the date of transfer of assets falls, shall apply mutatis mutandis to the filing of a tax base, payment, determination, correction, and collection of corporate tax referred to in paragraph (2), and such corporate tax shall be filed, paid, determined, corrected, and collected being added to other corporate tax. In such cases, Article 75-3 shall apply mutatis mutandis. <Amended on Dec. 24, 2018>
(7) Corporate tax calculated under paragraph (2) shall be voluntarily paid upon filing a preliminary return on the tax base of capital gains by applying mutatis mutandisArticles 105 through 107 of the Income Tax Act. Article 112 of the Income Tax Act shall apply mutatis mutandis to such cases. <Amended on Dec. 15, 2015>
(8) Where any non-profit domestic corporation files a preliminary return on the tax base of capital gains under paragraph (7), it shall be deemed to have filed a tax base pursuant to paragraph (6); provided, where any non-profit domestic corporation falls under the proviso to Article 110 (4) of the Income Tax Act, it shall file a tax base pursuant to paragraph (6).
(9) The methods for applying special cases concerning capital gains on transfer of assets pursuant to paragraphs (1) through (8), and other necessary matters, shall be prescribed by Presidential Decree.[This Article Wholly Amended on Dec. 30, 2010][Title Amended on Dec. 24, 2018]