(1) With respect to any sole proprietor, the sum of whose proceeds from supply in the immediately preceding calendar year falls short of the amount prescribed by Presidential Decree within the limit of at least 80 million won and not more than an amount equal to 130 percent of that amount, this Chapter shall apply, notwithstanding the provisions of Chapters IV through VI, except as otherwise provided in this Act: Provided, That none of the following entrepreneurs shall be deemed a simplified taxable person: <Amended on Dec. 22, 2020>
1. An entrepreneur who has another place of business not subject to the application of simplified taxation;
2. An entrepreneur who is prescribed by Presidential Decree in consideration of the business type, business size, district, etc.
3. An entrepreneur who operates a taxable entertainment place defined in Article 1 (4) of the Individual Consumption Tax Act (hereinafter referred to as "taxable entertainment place"), whose aggregate amount of proceeds from supply in the immediately preceding year of the relevant type of business is at least 48 million won;
4. An entrepreneur who has at least two places of business and whose aggregate amount of proceeds from supply of those two or more places of business in the immediately preceding year is at least the amount referred to in the main clause, with the exception of the subparagraphs, of paragraph (1): Provided, That in cases of an entrepreneur running two or more places of business constituting real estate lease business or taxable entertainment place, an entrepreneur whose aggregate amount of proceeds from supply for the two or more places of business (referring to the proceeds from supply of the real estate lease business or taxable entertainment place in cases of an entrepreneur who concurrently runs at least two business at a single place of business) is at least 48 million won.
(2) With respect to any sole proprietor starting a new business during the immediately preceding taxable period, paragraph (1) shall apply based on the annualized total amount of the proceeds from supply from the start date of the business to the end date of the taxable period. In such cases, a period of less than a month shall be deemed a month.
(3) Where a sole proprietor starting a new business expects that the aggregate amount of his or her proceeds from supply in a calendar year in which he or she starts his or her business will be short of the amount under paragraphs (1) and (2), he or she shall declare whether to apply simplified taxation to the head of the tax office having jurisdiction over his or her place of tax payment, as prescribed by Presidential Decree, at the time of filing an application for registration under Article 8 (1) or (3).
(4) Any sole proprietor who makes a declaration under paragraph (3) shall be deemed a simplified taxable person for the first taxable period: Provided, That this shall not apply to any entrepreneur who falls under the proviso of paragraph (1). <Amended on Jan. 1, 2014>
(5) Any sole proprietor who fails to register under Article 8 (1) or (3) shall be deemed a simplified taxable person for the first taxable period if the aggregate amount of his or her proceeds from supply in a calendar year in which he or she starts his or her business falls short of the amount under paragraphs (1) and (2): Provided, That this shall not apply to any entrepreneur who falls under the proviso of paragraph (1).
(6) Any sole proprietor, the aggregate amount of whose proceeds from supply, which is decided or rectified under Article 68 (1), equals or exceeds the amount under paragraphs (1) and (2) shall be deemed a simplified taxable person until the taxable period that includes the date of such decision or rectification.