(1) A domestic corporation that consolidates and controls another domestic corporation (excluding a corporation prescribed by Presidential Decree, such as a non-profit corporation; hereafter in this paragraph, referred to as "wholly-owning parent corporation") and the other domestic corporation (excluding a corporation prescribed by Presidential Decree, such as a corporation in the process of liquidation; hereafter in this Chapter, referred to as "wholly controlled subsidiary") may apply the consolidated tax return system with approval of the commissioner of the competent regional tax office having jurisdiction over the place of tax payment of the wholly-owning parent corporation, as prescribed by Presidential Decree. In such cases, where wholly-controlled subsidiaries are two or more, all relevant corporations shall apply the consolidated tax return system. <Amended on Jan. 1, 2013; Dec. 31, 2022>
(2) The business year of each consolidated corporation to which the consolidated tax return system applies under paragraph (1) shall coincide with the consolidated business year. In such cases, the period of a consolidated business year shall not exceed one year, and Article 7 shall apply mutatis mutandis to changes of a consolidated business year.
(3) In applying paragraph (2), where a domestic corporation that meets the requirements prescribed by Presidential Decree as a wholly controlled subsidiary that cannot make its business year coincide with the consolidated business year because the business year (hereafter referred to as "original business year" in Articles 76-9 and 76-10) is prescribed in statutes, etc, it may apply the consolidated tax return system, deeming the consolidated business year to be the business year of such domestic corporation. <Amended on Dec. 31, 2022>
(4) Notwithstanding Article 9 (1), the place of tax payment of a consolidated corporation shall be the place of tax payment of the consolidated parent corporation.
(5) Deleted. <Dec. 31, 2022>
(6) Where any of the following mergers, divisions, or comprehensive exchanges or transfers of stocks occurs, the consolidated tax payment system may be applied only to the consolidated business year in which the date of merger, division, or exchange or transfer falls, notwithstanding paragraph (2), Articles 76-11 (1) and 76-12 (1): <Amended on Dec. 31, 2011>
1. A qualified merger between consolidated parent corporations to which the consolidated tax payment system applies under paragraph (1);
2. Comprehensive exchange or transfer of stocks between consolidated parent corporations to which the consolidated tax payment system applies under paragraph (1) (limited to where the tax deferment is granted under Article 38 of the Act on Restriction on Special Cases concerning Taxation);
3. A qualified division of a consolidated parent corporation to which the consolidated tax payment system applies under paragraph (1).[This Article Wholly Amended on Dec. 30, 2010]