Tax law specialist attorney, what types of income are subject to corporate tax?

Hello. I am a tax law specialist attorney at Daeryun Law Firm (LLC).

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

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

However, in the case of dissolution of a domestic corporation or mergers and divisions that occurred before June 30, 2010, corporate tax is imposed on liquidation income.

In addition, when transferring housing and its appurtenant land, housing acquisition rights, or non-business land prescribed by law, additional corporate tax must be paid on income from the transfer of land, etc.

Corporations whose equity capital exceeds 50 billion won as of the end of each business year (excluding small and medium-sized enterprises) must additionally pay tax calculated by multiplying the un-recirculated income by 20% if there is income that has not been recirculated as investment, wages, or mutual cooperation contributions, etc.

Meanwhile, among corporate income, there is also income that is non-taxable or reduced/exempted for tax policy or social policy purposes, so corporations should sufficiently review the relevant regulations before filing corporate tax returns.

For detailed matters, please confirm through consultation with a tax law specialist attorney, or we recommend obtaining advice from a tax law specialist attorney if necessary.