(1) Where a business entity is deemed to have difficulty in paying taxes, due to asset loss, by a natural disaster or any other accident (hereinafter referred to as "disasters"), equivalent to 20/100 or more of the amount of total assets (hereafter referred to as "amount of total assets" in this paragraph) prescribed by Presidential Decree in the relevant taxable period, the amount calculated (within the limit of the value of assets lost) by multiplying the amount of income tax (referring to the amount of income tax on business income; hereafter the same shall apply in this Article) under the following subparagraphs in proportion (hereafter referred to as "asset loss ratio" in this Article) to the value of such loss to the total assets before the loss shall be deducted from such tax amount. In such cases, the value of land shall not be included in the value of assets: <Amended on Dec. 29, 2020>
1. Income tax not levied as at the date of occurrence of a disaster and income tax levied yet unpaid;
2. Income tax on income in the taxable period to which the date of occurrence of a disaster belongs.
(2) In cases under paragraph (1), when any tax is to be deducted pursuant to Articles 56, 56-2, 57 and 57-2, paragraph (1) shall apply to income tax after deduction of such tax amount. <Amended on Dec. 31, 2022>
(3) Deduction made under paragraph (1) shall be referred to as "tax credit for casualty loss".
(4) Any person who intends to take a tax credit for casualty loss may file an application with the head of the competent tax office, as prescribed by Presidential Decree.
(5) When the head of the competent tax office has received an application under paragraph (4), he/she shall determine the amount of tax to be deducted, and notify it to the applicant.
(6) Paragraph (1) shall be applicable even when no application is made under paragraph (4).
(7) Where disasters occur collectively, paragraph (1) shall apply according to the asset loss ratio investigated and determined by the head of the competent tax office, as prescribed by Presidential Decree.
(8) Matters necessary for taking a tax credit for casualty loss shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009][Enforcement Date: Jan. 1, 2025] Article 58 (2)