Tax attorney, on what income is corporate tax levied?

Hello. This is a tax attorney at Daeryun Law LLC.

Corporate tax is levied on the income attributable to a corporation for each business year.

Corporate tax is imposed on the income of each business year, and even where a corporation is merged or divided, corporate tax on the income of each business year is levied on the merged corporation or the divided corporation.

However, where a domestic corporation is dissolved, or in the case of a merger or division made before June 30, 2010, corporate tax on liquidation income is imposed.

In addition, where a corporation transfers housing and its appurtenant land, rights to acquire housing, or non-business land as prescribed by statute, it must additionally pay corporate tax on the income from the transfer of land and the like.

A corporation (excluding small and medium enterprises) whose equity capital exceeds 50 billion won as of the end of each business year must, if there is income for that business year that has not been recirculated through investment, wages, mutual-cooperation contributions, and the like, additionally pay the tax amount calculated by multiplying that non-recirculated income by 20%.

Meanwhile, since some of a corporation's income is non-taxable or reduced for tax-policy or social-policy purposes, a corporation should thoroughly review the relevant provisions before filing its corporate tax return.

For details, we recommend confirming them through a consultation with a tax attorney or, if necessary, obtaining the advice of a tax attorney.