(1) When calculating other income, the amount to be included in necessary expenses shall be as follows: <Amended on Dec. 29, 2020>
1. With regard to a refund payable to a purchaser of a horse racing ticket, winner wager ticket, bullfighting match wager ticket or sports promotion wager ticket pursuant to Article 21 (1) 4, the aggregate of the unit voting of the tickets won purchased by such purchaser shall be included in necessary expenses;
2. With regard to prize money and valuables, etc. under Article 21 (1) 14, the amount inserted into slot machines, etc. at the time of winning such prize money and valuables, etc. shall be included in necessary expenses;
3. With regard to income from virtual assets under Article 21 (1) 27, the actual acquisition price of the transferred virtual assets and the related expenses shall be included in necessary expenses.
(2) In cases, other than the following cases, the aggregate amounts commonly deemed expenses corresponding to the total revenue for the relevant taxable period shall be included in necessary expenses:
1. Where paragraph (1) applies;
2. Where prescribed by President Decree, such as computation, etc. of necessary expenses of money and valuables received in compensation for transfer of rights to mining.
(3) With regard to expenses, corresponding to the total revenue incurred prior to the relevant taxable period, determined for the relevant taxable period, only the expenses unappropriated as necessary expenses before the taxable period shall be deemed necessary expenses for the relevant taxable period.
(4) Article 33 shall apply mutatis mutandis to the amount not to be included in necessary expenses in calculating other income.
(5) When calculating the necessary expenses mentioned in paragraph (1) 3, the acquisition price of the virtual assets already held before January 1, 2025 shall be the greater of the market price as of December 31, 2024 and the acquisition price of the virtual assets. <Newly Inserted on Dec. 29, 2020; Dec. 8, 2021; Dec. 31, 2022>
(6) Matters necessary for calculating the necessary expenses for virtual assets, other than those provided for in paragraph (5), shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 29, 2020>[This Article Wholly Amended by Act No. 10408, Dec. 27, 2010][Enforcement Date: January 1, 2025] Articles 37 (1) 3, 37 (5), and 37 (6)