The official source lists more than one English text for this article (for example an amendment with a different effective date). Check the Korean original for the version in force.
version 1 of 2(1) Any of the following amounts, out of the amount that a resident has paid or shall pay for the relevant the taxable period, shall not be included in necessary expenses in calculating the amount of business income: <Amended by Act No. 10408, Dec. 27, 2010; Act No. 12153, Jan. 1, 2014; Dec. 31, 2018; Dec. 29, 2020; Dec. 31, 2022>
1. Income tax (including the amount of foreign income tax in the case of applying tax credit under Articles 57 and 57-2) and individual local income tax;
2. A fine, penalty (including the amount equivalent to a fine or a penalty by notification), and fine for negligence;
3. Penalty taxes and forced collection charges under the National Tax Collection Act and other Acts related to taxes;
4. Tax (including penalty tax) paid or payable due to nonperformance of the liability for collection under Acts related to taxes;
5. Expenses for domestic affairs prescribed by Presidential Decree, and expenses related thereto;
6. An amount exceeding the amount calculated, as prescribed by Presidential Decree, as depreciation expense of depreciable assets appropriated in each taxable period;
7. An appraisal loss of assets excluding assets pursuant to the proviso to Article 39 (3) and the subparagraphs of paragraph (4) of the same Article;
8. An amount in arrears of the individual consumption tax or liquor tax on the products carried out, but unsold: Provided, That this shall not apply where an amount equivalent to such amount of tax is added to the value of such products;
9. Input tax on value-added tax: Provided, That, the amount of tax in cases of value-added tax exempted or in other cases prescribed by Presidential Decree, and value-added tax paid by a person eligible for simplified taxation of value-added tax shall be excluded;
10. Interest on a loan appropriated for construction funds prescribed by Presidential Decree of the loans;
11. Interest on any loan, the creditor of which is obscure;
12. Utility charges that are not mandatory under Acts and subordinate statutes or those imposed as a disciplinary measure for non-performance of duties or violation of prohibited or restricted acts under Acts and subordinate statutes;
13. The amount, among expenses disbursed in each taxable period, deemed not directly related to the business prescribed by Presidential Decree;
14. Prepaid expenses;
15. Compensation for damage to be paid by infringing another person's right on purpose or by gross negligence in connection with business.
(2) Where paragraph (1) 5, 10, 11, and 13 are applicable at the same time, they shall be applied in the order prescribed by Presidential Decree.
(3) Matters necessary for exclusion from necessary expenses pursuant to paragraph (1) shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009][Enforcement Date: Jan. 1, 2025] Article 33 (1) 1
version 2 of 2(1) Any of the following amounts, out of the amount that a resident has paid or shall pay for the relevant the taxable period, shall not be included in necessary expenses in calculating the amount of business income: <Amended by Act No. 10408, Dec. 27, 2010; Act No. 12153, Jan. 1, 2014; Dec. 31, 2018; Dec. 29, 2020; Dec. 31, 2022>
1. Income tax (including the amount of foreign income tax in the case of applying tax credit under Articles 57 and 57-2) and individual local income tax;
2. A fine, penalty (including the amount equivalent to a fine or a penalty by notification), and fine for negligence;
3. Penalty taxes and forced collection charges under the National Tax Collection Act and other Acts related to taxes;
4. Tax (including penalty tax) paid or payable due to nonperformance of the liability for collection under Acts related to taxes;
5. Expenses for domestic affairs prescribed by Presidential Decree, and expenses related thereto;
6. An amount exceeding the amount calculated, as prescribed by Presidential Decree, as depreciation expense of depreciable assets appropriated in each taxable period;
7. An appraisal loss of assets excluding assets pursuant to the proviso to Article 39 (3) and the subparagraphs of paragraph (4) of the same Article;
8. An amount in arrears of the individual consumption tax or liquor tax on the products carried out, but unsold: Provided, That this shall not apply where an amount equivalent to such amount of tax is added to the value of such products;
9. Input tax on value-added tax: Provided, That, the amount of tax in cases of value-added tax exempted or in other cases prescribed by Presidential Decree, and value-added tax paid by a person eligible for simplified taxation of value-added tax shall be excluded;
10. Interest on a loan appropriated for construction funds prescribed by Presidential Decree of the loans;
11. A creditor prescribed by Presidential Decree;
12. Utility charges that are not mandatory under Acts and subordinate statutes or those imposed as a disciplinary measure for non-performance of duties or violation of prohibited or restricted acts under Acts and subordinate statutes;
13. The amount, among expenses disbursed in each taxable period, deemed not directly related to the business prescribed by Presidential Decree;
14. Prepaid expenses;
15. Compensation for damage to be paid by infringing another person's right on purpose or by gross negligence in connection with business.
(2) Where paragraph (1) 5, 10, 11, and 13 are applicable at the same time, they shall be applied in the order prescribed by Presidential Decree.
(3) Matters necessary for exclusion from necessary expenses pursuant to paragraph (1) shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009][Enforcement Date: Jan. 1, 2025] Article 33 (1) 1