'The amount of treasury stocks acquired by a listed stock corporation during the relevant business year as prescribed by Ordinance of the Ministry of Strategy and Finance and retired within one month' (Article 93 (10) 3 of the Enforcement Decree of the Corporate Tax Act) is deducted when calculating corporate tax on unappropriated corporate earnings. Such an amount shall be the amount of all treasury stocks acquired in accordance with the methods and procedures prescribed by Article 341 of the Commercial Act retired within one month of the date of final acquisition.

   Source: Ministry of Strategy and Finance (Nov. 1, 2016)

   A domestic company divided its manufacturing business division and lease business division and established a separate company consisting of the divisions. In this case, if the newly created company comprehensively succeeds the two business divisions and their assets and liabilities, and the new company can be operated independently with the main physical and human resources remaining identical to before the division, it shall be deemed that the requirement in Article 46 (2) 1 (a) of the Corporate Tax Act is met, and therefore the transfer value of the net assets received by the divided company shall be the book value of net assets (refer to the formula below).

* Transfer value of net assets of a divided company = Transfer value received by a divided company, etc. from a company established through division – Book value of net assets at the registration date of division of a divided company, etc.

   Source: National Tax Service (Nov. 2, 2016)

   In the case that a vessel acquired through a bare boat charter hire purchase contract (hereafter “vessel in question”) is transferred to a new company created through an unqualified spin-off, the tax base for value added tax for the vessel in question shall be decided based on Article 29 of the Value Added Tax Act.

   * Article 29 (1) & (3) of the Value Added Tax Act Article 29 (1) The tax base for value-added tax on the supply of goods or services shall be the total value of all supplies of goods or services provided during the relevant taxable period.

   Article 29 (3)
   The value of supply under paragraph (1) means each of the following. In such cases, it shall include payments, rates, fees, or all other things of value, whatever their names are, which are provided by recipients of goods or services, but exclude value-added taxes:

1. Where payments are given in money: The payments: Provided, that when payments are given in any foreign currency or other foreign exchange, they mean the value converted in the manner prescribed by Presidential Decree
2. Where payments other than money are given: The market price of goods or services supplied by the supplier himself/herself
3. Where a business is closed: The market price of goods in stock at the time of closing the business
4. Where deemed that goods or services are supplied under Articles 10 (1), (2), (4) and (5) and 12 (1): The market price of goods or services supplied by the supplier himself/ herself
5. Where deemed that goods are supplied under Article 10 (3): The value prescribed by Presidential Decree based on the acquisition value, etc. of the relevant goods
6. Where goods or services are supplied through credit sales, installment sales, etc.: The value prescribed by Presidential Decree in consideration of the types, etc. of supply

Source: National Tax Service (Oct. 7, 2016)

GDP

Type		Deductibility		Note
		Resident	Non-resident
Total wage & salary income		Including foreignsource income	Domesticsource income	Foreign residents under Article 3 of the Income Tax Act, liable to pay tax on foreign-source income when it is paid in or remitted to Korea
Deductions for wage and salary income		○	○
Personal deductions	Basic deductions (Self, spouse, dependent family)	○	Self only
	Additional deductions (The aged, the disabled, qualified female taxpayer, etc.)	○	Self only
Pension contribution deduction		○	○	Deductible for participants of a pension plan
Special deductions	National health Employment Insurance	○	X
	Housing fund	X	X	A foreigner is not deemed a householder
Other income deductions	Pension savings etc.	○	X
	Contribution paid to small-sized company, & self-employed mutual aid association	○	X
	Home purchase savings	X	X	A foreigner is not deemed a householder
	Investment association	○	X
	Credit card usage	○	X
	Interest Payment for Housing Rental Loan without a Lump-sum Payment	○	X
	Workers in S/M enterprises which maintain the same employment level	○	X
	Long-term Collective Investment Securities Savings	○	X
	Employee stock ownership association contribution	○	○	Deductible for members of an association
Tax credits	Tax credit for wage & salary income	○	○
	Child Tax Credit	○	X
	Retirement account tax credits	○	X
	Special tax credit (insurance·medical, educational, donation)	○	X
	Tax credit for monthly Rent	X	X	A foreigner is not deemed a householder
	Taxpayer association credit	○	○	For tax withheld by an association for its members
	Foreign tax credit	○	X
	Standard tax credit	○	X