(1) Where a domestic corporation that issues a donation receipt falls under any of the following circumstances, it shall pay any of the following penalty taxes, in addition to the corporate tax for the relevant business year: <Amended on Dec. 31, 2019>
1. Where the donated amount stated on a receipt is false (including where a receipt is issued without any essential description, such as the donated amount or the donor’s personal information):(a) Where the donated amount stated on a receipt is false: 5/100 of the difference [referring to the difference between the amount actually stated on the receipt (the amount of donation that the person to whom such donation receipt was issued includes as a deductible expense or a necessary expense or receives a tax credit on the donation, where the receipt has no amount) and the amount that should have been stated on the receipt];(b) In cases other than those falling under item (a), such as where personal information, etc. of the donor is stated falsely on receipt: 5/100 of the amount stated in the receipt;
2. Where a detailed statement of donation receipts by donator is not prepared and kept in Article 112-2 (1): 2/1,000 of the amount not prepared and kept in a statement.
(2) A "donation receipt" in paragraph (1) and Article 112-2 means any of the following receipts, including donation receipts issued electronically as prescribed by Presidential Decree (hereinafter referred to as "electronic donation receipts"): <Amended on Dec. 22, 2020>
1. A receipt necessary for including a donation in deductible expenses pursuant to Article 24;
2. A receipt necessary for including a donation in an incurred expense or receiving a tax credit on the donation pursuant to Articles 34 and 59-4 (4) of the Income Tax Act.
(3) A penalty tax in subparagraph 2 of paragraph (1) shall not apply where the penalty tax is imposed on the ground that a person fails to fulfill its obligation to submit a report under Article 78 (3) of the Inheritance Tax and Gift Tax Act or fails to fulfill its obligation to prepare and keep the books of accounting about donated assets under paragraph (5) of the same Article.
(4) The penalty tax in paragraph (1) shall be collected although the calculated amount of tax is nil.[This Article Added on Dec. 24, 2018]