(1) Where a domestic corporation is dissolved (excluding a dissolution by a merger or division), the liquidation income (hereinafter referred to as "liquidation income from dissolution") shall be calculated by deducting the sum of the paid-in capital or investment funds and the surplus funds (hereinafter referred to as "total amount of equity capital") as at the registration date of the dissolution from the value of the residual assets upon dissolution of the corporation.
(2) Where a domestic corporation in the process of liquidation due to a dissolution continues to conduct its business pursuant to Article 229, 285, 287-40, 519, or 610 of the Commercial Act after having distributed some residual assets upon dissolution to stockholders, etc., the liquidation income from dissolution of the domestic corporation shall be calculated by deducting the total amount of its equity capital as at the registration date of the dissolution from the total amount of the residual assets distributed during the period between the registration date of the dissolution and the registration date of the continuation. <Amended on Dec. 15, 2015>
(3) In calculating liquidation income from dissolution of a domestic corporation, the amount of corporate tax to be refunded under the Framework Act on National Taxes during the period of liquidation shall be added to the total amount of equity capital of the domestic corporation as at the registration date of the dissolution.
(4) Where a domestic corporation has losses carried forward prescribed by Presidential Decree as at the registration date of the dissolution for purposes of calculating the liquidation income from dissolution of the domestic corporation, an amount equivalent to the losses carried forward shall be offset from the total amount of its equity capital as at the registration date of the dissolution; provided, the amount of losses carried forward to be offset shall not exceed the amount of surplus funds among the total amount of equity capital, and where the losses carried forward exceed the surplus funds, such excess losses may be deemed nil.
(5) Where any surplus funds have been transferred into the paid-in capital or investment funds within two years prior to the registration date of the dissolution in calculating the liquidation income pursuant to paragraph (4), the relevant amount shall be deemed not have been transferred into the paid-in capital or investment funds for purposes of the same paragraph. <Added on Dec. 31, 2011>
(6) In calculating the liquidation income from dissolution of a domestic corporation, the income for each business year accrued during the period of liquidation shall be included in the amount of income for each relevant business year of the corporation.
(7) Articles 14 through 18, 18-2, 18-3, 19, 19-2, 20 through 31, 33 through 38, 40 through 42, 42-2, 43, 44, 44-2, 44-3, 45, 46, 46-2 through 46-5, 47, 47-2, 50, 51, 51-2, 52, 53, 53-2, 53-3, 54, and Article 104-31 of the Act on Restriction on Special Cases concerning Taxation shall apply mutatis mutandis to the calculation of the liquidation income referred to in paragraph (1) and the amount of income for each business year during the period of liquidation referred to in paragraph (6), except as provided in paragraphs (1) through (6). <Amended on Dec. 31, 2011; Dec. 22, 2020; Dec. 31, 2022>
(8) The calculation of the value of residual assets for the purposes of paragraphs (1) through (7) and other necessary matters shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2011>[This Article Wholly Amended on Dec. 30, 2010]