(1) If the amount of a resident's global income includes income that meets any of the following requirements, the amount specified in paragraph (2) 2 may be deducted from the calculated tax on global income for the relevant tax period:
1. The income shall have been received from any of the following entities (hereafter referred to as "indirect investment company, etc." in this Article and Article 129):(a) An investment company, an investment purpose company, an investment limited company, an investment limited partnership company (excluding an institutional private equity fund as defined in Article 9 (19) 1 of the same Act), an investment limited liability company, investment trust, investment limited partnership, and undisclosed investment association as defined in the Financial Investment Services and Capital Markets Act;(b) Corporate restructuring real estate investment trust and entrusted management real estate investment trust as defined in the Real Estate Investment Company Act;(c) Trust property deemed to be a domestic corporation under Article 5 (2) of the Corporate Tax Act;
2. An indirect investment company, etc. shall have paid an amount of foreign corporate tax as defined in Article 57 (1) and (6) of the Corporate Tax Act (if the indirect investment company, etc. invests in a structure that involves acquiring securities issued by any other indirect investment company, etc., and if there is an amount of foreign corporate tax paid by such other indirect investment company, etc. under the same provisions, including the relevant tax amount; hereafter referred to as "indirect investment foreign corporate tax" in this Article and Article 129 ) on the income paid to the resident.
(2) For the purpose of applying paragraph (1), the amount of income received by a resident from an indirect investment company, etc. and the amount deductible from the calculated tax on global income shall be as follows:
1. Income received from an indirect investment company, etc.: The amount calculated based on the base price specified in Article 238 (6) of the Financial Investment Services and Capital Markets Act (which means the price after deducting the amount of indirect investment foreign corporate tax; hereafter referred to as "after-tax base price" in this Article and Article 129): Provided, That income received from an indirect investment company, etc. due to the sale of securities of the indirect investment company, etc. listed on the stock market shall be the amount calculated as prescribed by Presidential Decree;
2. Amount deductible from the calculated tax on global income: The amount calculated as prescribed by the Presidential Decree, taking into account the after-tax base price of the indirect investment foreign corporate tax.
(3) The amount deductible from the calculated tax on global income under paragraph (1) not exceed the amount calculated by the following formula (hereafter referred to as "credit limit amount" in this paragraph). In such cases, if the amount specified in paragraph (2) 2 exceeds the credit limit amount for the relevant taxable period, the excess amount may be carried forward to the taxable period ending within 10 years from the starting date of the next taxable period of the relevant taxable period and deducted within the credit limit amount for the taxable period carried forward:Credit limit amount = A × B/CA: Amount of the calculated tax on global income for the relevant taxable period, which is calculated under Article 55;B: Total amount of income received from an indirect investment company, etc. (limited to cases where the amount of indirect investment foreign corporate tax has been paid on the relevant income);C: Amount of global tax income for the relevant taxable period.
(4) The calculation method of income received from an indirect investment company, etc. under paragraphs (1) through (3) and other matters necessary for the tax credit shall be prescribed by Presidential Decree.[This Article Newly Inserted on Dec. 31, 2022][Enforcement Date: Jan. 1, 2025] Article 57-2