(1) Where a small and medium enterprise under Article 25 (1) 1 has losses incurred for each business year as prescribed in Article 14 (2), it may apply for a refund of the amount calculated, as prescribed by Presidential Decree, up to the limit of corporate tax (referring to the amount of corporate tax prescribed by Presidential Decree) imposed on income during the business year immediately preceding the business year in which such losses incurred. In such cases, such losses shall be construed as the deducted amount in applying subparagraph 1 of Article 13: <Amended on Dec. 24, 2018>
1. The computed amount of corporate tax for the immediately preceding business year (excluding corporate tax on capital gains on the transfer of land, etc. under Article 55-2);
2. The amount calculated by applying the relevant tax rate in Article 55 (1) for the immediately preceding business year to the amount computed by subtracting a loss for the relevant business year that intends to be deducted retroactively from the tax base for the immediately preceding business year.
(2) A domestic corporation which intends to obtain a refund of corporate tax under paragraph (1) shall file an application to the head of the tax office having jurisdiction over the place of tax payment until the filing deadline specified in Article 60, as prescribed by Presidential Decree.
(3) Upon receipt of an application under paragraph (2), the head of the tax office having jurisdiction over the place of tax payment shall determine the amount of tax to be refunded and refund it under Articles 51 and 52 of the Framework Act on National Taxes, without delay.
(4) Paragraphs (1) through (3) shall apply only when a domestic corporation files a report on the tax base and amount of the corporate tax on income for the business year in which the losses incur and for the immediately preceding business year by the filing deadline specified in Article 60.
(5) In any of the following cases, the head of the tax office having jurisdiction over the place of tax payment shall collect an amount computed by adding an amount equivalent to the interest calculated, as prescribed by Presidential Decree, to the amount of tax to be refunded (the amount equivalent to the tax amount over-refunded in cases of subparagraphs 1 and 2) as corporate tax for the business year in which the relevant losses have been incurred: <Amended on Jan. 1, 2013; Dec. 24, 2018>
1. Where losses have decreased after correcting the tax base and the amount of corporate tax pursuant to Article 66 for the business year in which the losses incurred after corporate tax was refunded, as prescribed in paragraph (3);
2. Where the amount of tax to be refunded has decreased as a result of the rectification of the tax base and tax amount for corporate tax pursuant to Article 66 for the business year immediately before the business year in which the losses were incurred;
3. Where a domestic corporation, other than small and medium enterprises has received a refund of corporate tax.
(6) Where there is any change to the amount of corporate tax or tax base for the immediately preceding business year which becomes a basis for calculating the original amount of tax to be refunded (hereafter in this paragraph, referred to as "original amount of tax to be refunded"), after the head of the tax office having jurisdiction over the place of tax payment determines the amount of tax to be refunded pursuant to paragraph (3), he or she shall immediately correct the original amount of tax to be refunded and then refund it additionally or collect the amount equivalent to the tax amount over-refunded. <Added on Dec. 24, 2018>
(7) In applying paragraphs (1) through (6), matters concerning the calculation of the amount of tax to be refunded by retroactive deduction of losses shall be prescribed by Presidential Decree. <Amended on Dec. 24, 2018>[This Article Wholly Amended on Dec. 30, 2010][Title Amended on Dec. 24, 2018]