(1) The tax base of income for each consolidated business year shall be an amount computed by subtracting the following amounts in sequential order from the income for each consolidated business year; provided, the amount deductible from the amount referred to in subparagraph 1 shall not exceed 80/100 (100/100 in cases of small and medium enterprises and consolidated corporations specified by Presidential Decree, such as corporations that implement a rehabilitation plan) of the individually reverted amount of consolidated income under paragraph (3) 1: <Amended on Dec. 30, 2010; Dec. 15, 2015; Dec. 24, 2018; Dec. 22, 2020; Dec. 31, 2022>
1. Losses (including losses incurred before the application of the consolidated tax return system by a consolidated corporation) incurred in a consolidated business year that began within 15 years prior to the start date of each consolidated business year, which was not deducted when the tax base for each consolidated business year (including a business year) was calculated thereafter;
2. The sum of all non-taxable income of each consolidated corporation under this Act and the Act on Restriction on Special Cases concerning Taxation;
3. The sum of income deductions of each consolidated corporation under this Act and the Act on Restriction on Special Cases concerning Taxation.
(2) "Losses incurred in a consolidated business year" referred to in paragraph (1) 1 means the relevant amount where the income for each consolidated business year under Article 76-14 (1) is less than zero, which are losses included in the tax base reported under Article 60, determined and corrected under Article 66 or reported for revision under Article 45 of the Framework Act on National Taxes, and losses on disposition excluded in deductible expenses when calculating the amount of income of the relevant consolidated business year under the latter part of Article 76-14 (2). <Amended on Dec. 30, 2010>
(3) Where losses are deducted under paragraph (1) 1, the following losses shall be deducted up to the amount specified in the relevant subparagraph: <Amended on Dec. 30, 2010; Dec. 31, 2011; Dec. 24, 2018>
1. Losses incurred before the application of the consolidated tax return system by a consolidated corporation: The amount of income prescribed by Presidential Decree (hereafter in this Article, referred to as "individually reverted amount of consolidated income") that reverts to the consolidated corporation among income for each consolidated business year;
2. Where a consolidated parent corporation acquires assets of a merged corporation following a qualified merger, losses referred to in Article 13 (1) 1 of the merged corporation (limited to a corporation, other than a consolidated corporation as at the registration date of the merger) as at the registration date of the merger: Income accruing from the business succeeded to from the merged corporation among the individually reverted amount of consolidated income of the consolidated parent corporation;
3. Where a consolidated parent corporation acquires assets of a disappearing divided corporation following a qualified division and merger, the amount that reverts to the business succeeded to by the consolidated parent corporation among the losses referred to in Article 13 (1) 1 of the disappearing divided corporation as at the registration date of the division: Income accruing from the business succeeded to from the disappearing divided corporation among the individually reverted amount of consolidated income of the consolidated parent corporation.
(4) Matters necessary in relation to losses, non-taxable income, and deduction of income deductions referred to in paragraph (1), and other matters, shall be prescribed by Presidential Decree. <Amended on Dec. 30, 2010; Dec. 24, 2018>[This Article Added on Dec. 26, 2008][Title Amended on Dec. 24, 2018]