(1) The head of a tax office having jurisdiction over the place for tax payment shall determine the amount (hereinafter referred to as "amount of interim tax prepayment"; and the fractional figure less than 1,000 won shall be ignored) equivalent to 1/2 of the amount of tax paid or payable as income tax on global income derived in the preceding taxable period (hereinafter referred to as "interim prepayment threshold") for a resident with global income (excluding a person who has income prescribed by Presidential Decree only and a person who starts a business during the taxable period and is not a business entity as at the commencement date of the relevant taxable period; hereafter the same shall apply in this Article) as tax payable for a taxable period for interim prepayment from January 1 to June 30 and collect such tax payable by November 30. In such cases, the head of a tax office having jurisdiction over the place for tax payment shall issue a payment notice of the amount of tax for interim prepayment during the period from November 1 to November 15 to the residents liable to pay the tax for interim tax prepayment. <Amended by Act No. 11611, Jan. 1, 2013; Dec. 29, 2020>
(2) Where a resident liable to pay the tax for interim prepayment notified pursuant to paragraph (1) fails to pay all or part of such tax by November 30, it shall be deemed that no payment notice has been issued for the tax unpaid which may be paid in installment pursuant to Article 77, and the head of a tax office having jurisdiction over the place for tax payment shall issue a payment notice on the tax allowed to be paid in installment between January 1 and 15 of the following year after the tax period concerned. <Amended by Act No. 11146, Jan. 1, 2012; Dec. 29, 2020>
(3) Where the income tax on the global income of a resident with global income as of the end of the interim prepayment period (hereinafter referred to as "estimated amount for interim prepayment") is less than 30/100 of the interim prepayment threshold, he/she may file a return with the head of a tax office having jurisdiction over the place for tax payment, referring the estimated amount of interim prepayment as the amount of interim tax prepayment, during the period from November 1 to 30, as prescribed by Presidential Decree.
(4) Where a resident with global income files a return pursuant to paragraph (3), a decision on the tax amount of interim prepayment pursuant to paragraph (1) shall not be deemed to have been made.
(5) Where a person subject to double-entry bookkeeping under Article 160 (3) among the residents who do not have the interim prepayment threshold has business income during the interim prepayment period of the relevant taxable period, he/she shall file a return with the head of a tax office having jurisdiction over the place for tax payment, referring the estimated amount for interim prepayment as the tax amount for interim prepayment, during the period from November 1 to 30, as prescribed by Presidential Decree. <Amended by Act No. 16104, Dec. 31, 2018>
(6) Any resident who files a return pursuant to paragraph (3) or (5) shall pay the amount for interim tax prepayment along with the return to the head of a tax office having jurisdiction over the place for tax payment, the Bank of Korea (including its branches; hereinafter the same shall apply) or a postal service office by November 30.
(7) The interim prepayment threshold under paragraph (1) shall be the amount calculated by deducting the tax refund pursuant to Article 85 (where a decision is made upon request for reassessment pursuant to Article 45-2 of the Framework Act on National Taxes, including the amount reflecting the details thereof) from the total amount of the following taxes:
1. The amount for interim tax prepayment in the preceding taxable period;
2. Tax paid by a final return pursuant to Article 76;
3. The amount of tax additionally paid under Article 85 (including the penalty tax);
4. The amount of tax paid according to a return filed after deadline (including penalty tax) pursuant to Article 45-3 of the Framework Act on National Taxes and the additional tax amount paid voluntarily (including the additional tax amount) pursuant to Article 46 of the same Act.
(8) The estimated amount for interim prepayment under paragraph (3) shall be computed according to order given in the following formulas:
1. Tax base of global income = (the amount of global income for the interim prepayment period × 2) - loss carried forward - global income deduction);
2. Calculated tax on global income = Tax base of global income × basic tax rate;
3. Estimated amount for interim prepayment =(Calculated tax on global income / 2) - (The amount of tax reduction or exemption, or tax credit on global income, the amount of tax calculated from a preliminary return on profit margins from sale of land, etc., the amount of tax imposed occasionally, and the amount of tax withheld, by the end of the interim prepayment period)(9) Where any omission or error is found in a tax return filed pursuant to paragraph (3) or (5) or a person liable to file a return pursuant to paragraph (5) fails to file a return, the head of a tax office having jurisdiction over the place for tax payment may correct or determine the amount of tax for interim prepayment. In such cases, the amount of tax to be corrected or determined shall be the amount computed by applying the method used for computing the estimated amount for interim prepayment under paragraph (8) mutatis mutandis.
(10) Where a real estate broker under Article 69 files a preliminary return on profit margins from sale of land, etc. on land or buildings sold during the interim prepayment period and pays tax on such profit margins, the amount of tax for interim prepayment shall be calculated by subtracting such amount reported and paid from the amount equivalent to 1/2 of the interim prepayment threshold under paragraph (1). In such cases, where the tax amount on such profit margins from sale of land, etc. reported and paid exceeds the amount equivalent to 1/2 of the interim prepayment threshold, the amount of tax for interim prepayment shall be deemed written off.
(11) Notwithstanding paragraphs (1) through (5), the head of a tax office having jurisdiction over the place for tax payment may determine the amount of tax for interim prepayment in the relevant taxable period within the extent not exceeding the following amounts, as prescribed by Presidential Decree, where the Commissioner of National Tax Service deems that there is urgent financial demand due to circumstances, such as troubles both in Korea and abroad, etc.:
1. Where interim prepayment is made pursuant to paragraph (1), the interim prepayment threshold;
2. Where interim prepayment is made pursuant to paragraphs (3) and (5), the amount which is double the estimated amount for interim prepayment under paragraph (8).[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]