Income Tax Act — Article 81-5 (Penalty Tax for Failure in Record-Keeping or Incorrect Entries)

If a business entity (excluding a small-scale business entity prescribed by Presidential Decree) fails to keep or record books in accordance with Article 160 or 161, or if the amount of income according to the books kept and recorded falls short of the amount required to be recorded, the amount calculated according to the following formula shall be paid as a penalty tax, in addition to the final tax amount on global income for the relevant taxable period. In such cases, if the ratio of the amount of income not recorded or the amount that falls short of the amount required to be recorded to its global income is greater than 1, it is equal to 1; if it is less than 0, it is equal to 0:Penalty tax = A × B/C × 20/100A: Amount of calculated tax on global income;B: Amount of income not recorded or the amount that falls short of the amount required to be recorded;C: Amount of global income[This Article Newly Inserted on Dec. 31, 2019]