(1) The corporate tax base on the income of a foreign corporation with a domestic place of business or a foreign corporation that has domestic source income accrued from transfer of real estate referred to in subparagraph 3 of Article 93 for each business year shall be calculated by deducting, in sequential order, the following amount from the total amount of domestic source income (excluding the amount of domestic source income withheld under Article 98 (1), 98-3, 98-5, or 98-6); provided, the deduction from the amount referred to in subparagraph 1 shall be 80/100 of the income for each business year: <Amended on Dec. 31, 2011; Dec. 20, 2016; Dec. 24, 2018; Dec. 31, 2019; Dec. 31, 2022>
1. Losses (limited to losses incurred in the Republic of Korea) in Article 13 (1) 1;
2. Non-taxable income provided for in this Act and other statutes;
3. Income accrued from the international services of ships or aircraft; provided, this shall only apply where the country in which the headquarters or main office of the foreign corporation is located accords the same exemption to ships and aircraft of Korean corporations.
(2) For a foreign corporation which does not fall under paragraph (1), the tax base of corporate tax on its income for each business year shall be the amount of domestic source income classified under each subparagraph of Article 93.
(3) The tax base of corporate tax on domestic source income of a foreign corporation falling under paragraph (1), which is withheld under Article 98 (1), 98-3, 98-5, or 98-6, shall be the amount of domestic source income classified under each subparagraph of Article 93. <Amended on Dec. 31, 2011>
(4) Paragraph (1) 3 shall also apply to any foreign corporation which has no domestic place of business.
(5) In calculating the tax base in paragraph (1), losses carried forward in paragraph (1) 1 shall be deducted in sequential order of business years, and non-taxable income that is not deducted in the relevant business year shall not be carried over for deduction to business years subsequent the relevant business year. <Added on Dec. 24, 2018>[This Article Wholly Amended on Dec. 30, 2010]