(1) The final tax amount on global income of a resident who has house rental income subject to separate taxation shall be chosen from the following tax amounts:
1. The final tax amount on global income before applying Article 14 (3) 7;
2. The sum of the following tax amounts:(a) The amount of business income from housing rental income subject to separate taxation: Provided, That where a resident falling under Article 96 (1) of the Restriction of Special Taxation Act rents out a rental houses under Article 96 (1), the aforesaid business income amount shall be replaced by the amount calculated by subtracting the tax amount reduced or exempted pursuant to Article 96 (1) from the amount obtained by multiplying by 14/100 the amount of business income belonging to the housing rental income subject to separate taxation that is generated from the relevant rental business.(b) The final tax amount on global income exclusive of the amount in item (a) above.
(2) The amount of business income belonging to housing rental income subject to separate taxation under paragraph (1) 2 (a) shall be the amount calculated by subtracting necessary expenses (referring to 50/100 of the amount of total income) from the amount of total income, but where the amount of global income excluding housing rental income subject to separate taxation for the relevant taxable period is 20 million won less, the amount of business income shall be that calculated by additionally subtracting 2 million won: Provided, That in case of renting out a rental house prescribed by Presidential Decree (hereinafter referred to as “rental house” in this Article), the amount of business income generated form the relevant rental business shall be the amount calculated by subtracting the necessary expenses (referring to 60/100 of the amount of total income) from the amount of total income, but where the amount of global income excluding housing rental income subject to separate taxation for the relevant taxable period is 20 million won less, the amount of business income shall be that calculated by additionally subtracting 4 million won.
(3) In cases falling under any of the following subparagraphs, the amount as classified therein shall be paid when filing a return on the tax base for the taxable period to which the day on which the relevant cause specified therein occurs belongs: Provided, That this shall not apply in cases prescribed by Presidential Decree, such as when the registration is canceled under Article 6 (1) 11 of the Special Act on Private Rental Housing: <Amended on Dec. 29, 2020>
1. Where a business entity whose tax amount is reduced or exempted pursuant to the proviso to paragraph (1) 2 (a) has not rent out the relevant rental house for at least four years (eight years in case of a public-supported private rental house under subparagraph 4 of Article 2 of the Special Act on Private Rental Housing or a long-term general private rental house under subparagraph 5 of Article 2 of that Act): The tax amount reduced or exempted pursuant to the proviso to paragraph (1) 2 (a);
2. Where a business entity whose tax amount is calculated by applying the proviso to paragraph (2) has not rent out the relevant rental house for at least four years: the difference between the tax amount calculated by not applying the proviso to paragraph (2) and the tax amount at the time a return is initially filed.
(4) In case of paying income tax amount pursuant to any subparagraph of paragraph (3), provisions concerning the additional amount equivalent to the interest under Article 33-2 (4) of the Restriction of Special Taxation Act shall apply mutatis mutandis: Provided, That the foregoing provisions shall not apply in inevitable circumstances prescribed by Presidential Decree.
(5) Matters necessary for methods for calculating the final amount on global income tax on housing rental income subject to separate taxation, and for calculating the amount of business income by type of a rental house, shall be prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 16104, Dec. 31, 2018]