(1) In calculating the corporate tax on income for each consolidated business year, if a consolidated group is regarded as a domestic corporation and the consolidated group constitutes a small or medium enterprise or a middle-standing enterprise under this Act or the Act on Restriction on Special Cases concerning Taxation, the provisions regarding small and medium enterprises or medium-sized enterprises under this Act or the Act on Restriction on Special Cases concerning Taxation shall apply, in accordance with the classification of the following subparagraphs:
1. Where a consolidated group constitutes a small or medium enterprise: The following provisions shall apply:(a) A consolidated corporation that constitutes a small and medium enterprise: The regulations on small and medium enterprises shall apply;(b) A consolidated corporation that constitutes a middle-standing enterprise: The provisions on middle-standing enterprises shall apply;
2. Where a consolidated group constitutes a middle-standing enterprise: The provisions on middle-standing enterprises shall apply to a consolidated corporation that constitutes a small and medium enterprise and a consolidated corporation that constitutes a middle-standing enterprise, respectively.
(2) Where a corporation corresponding to a small and medium enterprise as at the time of the business year immediately preceding the first consolidated business year in which the consolidated tax return system is applied becomes no longer subject to the application of the provisions concerning small and medium enterprises due to the application of the consolidated tax return system, the provisions on small and medium enterprises shall apply until the consolidated business year that ends within 5 years from the commencement date of the first consolidated business year in which the consolidated tax return system is applied and the following consolidated business year, notwithstanding paragraph (1).[This Article Wholly Amended on Dec. 31, 2024]