(1) Any domestic place of business of a foreign corporation (excluding non-profit foreign corporations) shall add the amount calculated by applying the tax rate provided in paragraph (3) to the taxable income provided in paragraph (2) (where a remittance of profits are taxable under the tax treaty concluded between the Republic of Korea and the foreign country where the foreign corporation is located, the taxable income shall be the amount of remittance prescribed by Presidential Decree) to the corporate tax calculated under Article 95 and pay it under the tax treaty concluded between the Republic of Korea and the country where the headquarters or main office of such foreign business corporation is located (hereafter in this Article, referred to as "country of residence"); provided, the same shall not apply where the country of residence of such foreign corporation does not impose the tax on the overseas place of business of a corporation of the Republic of Korea located in such country of residence.
(2) The amount of taxable income referred to in paragraph (1) shall be the amount computed by subtracting each of the following amounts from the amount of income from the relevant domestic place of business for each business year: <Amended on Dec. 31, 2011; Jan. 1, 2014; Dec. 24, 2018; Dec. 22, 2020>
1. The amount of corporate tax calculated under Article 95 less the amount referred to in item (a) but plus the amount referred to in item (b):(a) Tax credits on tax paid overseas under Article 57 (1), tax credits for losses from disasters granted under Article 58 that are applied mutatis mutandis under Article 97 (1), and the amount of tax reductions or exemptions and the amount of tax credits under other statutes;(b) Additional tax provided in Articles 75, 75-2 through 75-9 and Articles 47-2 through 47-5 of the Framework Act on National Taxes or tax paid additionally under this Act or the Act on Restriction on Special Cases concerning Taxation;
2. Local corporate income tax;
3. The amount prescribed by Presidential Decree, such as an amount deemed reinvested in business by the relevant domestic place of business;
4. The amount not included in deductible expenses under Article 22 of the Adjustment of International Taxes Act.
(3) The tax rate applied under paragraph (1) shall be the tax rate provided in Article 98 (1) 2, and where tax rates are separately stipulated by the tax treaty concluded between the Republic of Korea and the country of residence of the relevant foreign corporation, the treaty shall be complied with. <Amended on Dec. 24, 2018>[This Article Wholly Amended on Dec. 30, 2010]