(1) Any amount other than the amount of use for business purpose specified by Presidential Decree (hereafter referred to as "amount of business use" in this Article), among expenses specified by Presidential Decree, including depreciation cost, rents, and fuel expenses, (hereafter referred to as "expenses related to business-use passenger vehicles" in this Article and Article 81-14) reflected or paid as necessary expenses during the relevant taxable period for passenger vehicles falling under Article 1 (2) 3 of the Individual Consumption Tax Act (excluding passenger vehicles specified by Presidential Decree as those directly used for transportation business, motor vehicle distribution business, or any similar business; hereafter referred to as "business-use passenger vehicles" in this Article and Article 81-14) that a person subject to double-entry bookkeeping under Article 160 (3) acquired or leased to use them during the relevant taxable period, shall not be included in necessary expenses when calculating the amount of business income for the relevant taxable period. <Amended on Dec. 8, 2021>
(2) In applying paragraph (1), if either of the following costs, out of the amount used for business purpose, exceeds eight million won (if the relevant taxable period is less than one year or if a person owned or leased such a vehicle during a certain period less than the relevant taxable period, the amount shall be calculated by multiplying eight million won by the number of months during the period of owing or leasing the vehicle and then by dividing the sum by 12) during the relevant taxable period, such excess (hereafter referred to as "excess of the maximum limit on depreciation cost" in this Article) shall not be included in necessary expenses for the relevant taxable period; but shall be carried over and included in necessary expenses by the method prescribed by Presidential Decree: <Amended by Act No. 15225, Dec. 19, 2017>
1. Annual depreciation cost for each business-use passenger vehicle;
2. An amount equivalent to the depreciation cost specified by Presidential Decree, out of annual rents for each business-use passenger vehicle.
(3) The amount exceeding eight million won for each business-use passenger vehicle, out of the loss incurred to a person subject to double-entry bookkeeping under Article 160 (3) by disposing of a business-use passenger vehicle, shall be included in necessary expenses by carrying forward the amount or by the method prescribed by Presidential Decree.
(4) A person subject to double-entry bookkeeping under Article 160 (3) who includes expenses, etc. related to business-use passenger vehicles in necessary expenses under paragraphs (1) through (3), shall submit a detailed statement of the expenses, etc. related to business-use passenger vehicles to the head of the tax office having jurisdiction over the place for tax payment, as prescribed by Presidential Decree.
(5) The method for calculating the amount of business use, the method for carrying over an excess of the maximum limit on depreciation cost, and other necessary matters, shall be prescribed by Presidential Decree.[This Article Newly Inserted by Act No. 13558, Dec. 15, 2015]