(1) Where a foreign country imposes capital gains tax on overseas assets, and a taxpayer has paid or is to pay capital gains tax for transfer of overseas assets prescribed by Presidential Decree on such capital gains (hereafter referred to as "capital gains tax on overseas assets" in this paragraph), the taxpayer may choose to apply one of the following methods: <Amended on Dec. 31, 2019>
1. Credit method for foreign taxes paid: Deducting the amount of capital gains on overseas assets from the calculated amount of capital gains tax for the relevant taxable period, up to the limit calculated according to the following formula:(2) Matters necessary for tax credit and inclusion in necessary expenses under paragraph (1) shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009][Title Amended on Dec. 31, 2019]