(1) Each business entity (including the nonresident who has a domestic place of business or the income under subparagraph 3 of Article 119; the same shall apply hereinafter) shall keep supporting documents, etc. so as to calculate the amount of income, and enter all transactions in a ledger and manage it by double-entry bookkeeping so that all transactions in relation to his/her business may be understood objectively. <Amended by Act No. 11611, Jan. 1, 2013>
(2) Where a business entity below a certain scale by type of business prescribed by Presidential Decree in consideration of a type of business, scale, etc. has faithfully entered transactions on his/her business in a simple book prescribed by Presidential Decree (hereinafter referred to as "simple book") which he/she keeps, he/she shall be deemed to have kept books and records under paragraph (1).
(3) Any business entity below a certain scale by type of business prescribed by Presidential Decree under paragraph (2) shall be referred to as "person subject to simple bookkeeping" and any business entity, other than a person subject to simple bookkeeping, shall be referred to as "person subject to double-entry bookkeeping".
(4) In cases of paragraph (1) or (2), any business entity whose business income includes income generated from real estate rental business shall conduct accounts by each type of income. In such cases, the amount of common income that cannot be divided by income and the common expenses corresponding to such common income shall be divided and entered in books in proportion to the amount of respective gross income.
(5) Any business entity having two or more places of business shall enter the details of transactions by place of business in a book so that such details may be distinguished, where different rule applies for tax reduction by each place of business pursuant to the Restriction of Special Taxation Act. <Amended by Act No. 10408, Dec. 27, 2010>
(6) Deleted. <by Act No. 10408, Dec. 27, 2010>
(7) Matters necessary concerning entry in and keeping of books and supporting documents pursuant to paragraphs (1) through (5) shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]