Chapter 1 General Tax Law

Chapter 2 National Tax Basic Act

Section 1 General Provisions
Section 2 Principles of Taxation and Application of Tax Law
Section 3 Establishment, confirmation, and extinction of tax obligations
Section 4 Expansion of Tax Obligations
Section 5 Relationship between national taxes and general bonds
Section 6 Taxation and Refunds
Section 7 Tax Disputes
Section 8 Taxpayer Rights and Supplementary Provisions

Chapter 3 Corporate Tax Law

Section 1 General Provisions
Section 2 Calculation Structure of Corporate Tax
Section 3 Profit
Section 4 Hand Gold
Section 5. Fiscal Year to Which Profits and Losses Are Attributable and Valuation of Assets and Liabilities
Section 6 Depreciation of Assets
Section 7 Reserves and reserves
Section 8 Special provisions for mergers, divisions, etc.
Section 9 Denial of Unfair Act Calculation
Section 10 Calculation of tax base and tax amount
Section 11 Corporate Tax Payment Procedures
Section 12 Other corporate taxes

Chapter 4 Act on International Tax Adjustment

Section 1 General Provisions
Section 2 Coordination of Taxes on International Transactions
Section 3 Tax Administration Cooperation Between Countries
Section 4 Reporting and submission of data on overseas assets

Chapter 5 National Tax Collection Act

Section 1 General Provisions
Section 2: Optional Collection Procedures
Section 3 Compulsory Collection Procedure (Compulsory Collection)
Section 4 Supplementary Provisions (Indirect Payment Enforcement System)

Chapter 6 Tax Evasion Punishment Act

Appendix 'List of Tax Law Amendments for 2025 [Introduction to Tax Law]'

preface

Last year and early this year, several revisions were made to 'Introduction to Tax Law ①', the main contents of which are as follows.

The National Tax Basic Act stipulates that in cases where an heir receives insurance money due to the death of the deceased, even if the heir has not waived the inheritance, the whole or part of the insurance money received is considered inherited property for which the tax obligation is transferred.
In addition, in cases where a tax credit is carried forward and deducted in a taxable period after the expiration of the statutory statute of limitations, a special provision has been made to set the statutory ...
Meanwhile, in order to strengthen taxpayer rights, some shortcomings in the operation of the previous system were improved and supplemented, such as allowing taxpayers to request corrections on their tax deductions and changing the advance notice from 15 days prior to the start of a tax investigation to 20 days prior to the start of a tax investigation.

In the corporate tax system, the corporate tax base brackets for corporations whose main business is real estate leasing were integrated into the “KRW 200 million or less” and “over KRW 200 million and up to KRW 20 billion” brackets into the “KRW 20 billion or less” bracket, and a 19% tax rate was applied to that bracket.
In addition, domestic corporations belonging to the public disclosure target corporate group are required to calculate the interim prepayment tax based on the corporate tax amount for the interim prepayment period, while corporations that have issued a total of KRW 300 million or more in donation receipts for donations received in the previous fiscal year are required to issue electronic donation receipts for donations received in the fiscal year in question by January 10 of the year following the year in which the donations were received.
In addition, in cases where small and medium-sized enterprises no longer qualify as small and medium-sized enterprises due to increased sales, etc., revisions were made to expand tax deductions for research and human resources development expenses and investment tax deductions to the tax year ending within three years from the start date of the tax year in which they ceased to qualify.

Among other tax laws, the "Act on International Tax Adjustment" included revisions to improve the correction claim system based on arm's length price adjustments, establish a basis for implementing an automatic information exchange system for cryptocurrency transactions, and expand exemptions from reporting overseas financial accounts.
Meanwhile, the National Tax Collection Act has been improved and supplemented to allow for extension of payment deadlines, postponement of payment notices, and postponement of seizure or sale even in cases where a business establishment is located outside of a special disaster area but has suffered bodily damage due to a disaster in that area, clarifying the valuation base date for tax collateral such as land and buildings, and rationalizing the criteria for requesting a ban on leaving the country for those in arrears of national taxes of 50 million won or more to prevent large-scale arrears.

In this edition, we have carefully analyzed the contents of the revised tax law and provided easy-to-understand explanations using diagrams.
And, by reinforcing example problems and multiple-choice questions, we have improved the understanding of tax law, and have changed words and phrases to simpler expressions and streamlined sentences to make them easier to read.
In particular, key concepts and terms for understanding tax laws are highlighted in blue, and related content is linked to pages for integrated learning across tax laws. In addition, a list of revised tax laws is provided as an appendix to the book to help readers quickly grasp the revised contents.

Finally, I would like to express my deepest gratitude to President Kim Hee-cheol of Sanggyeongsa, who has always given me unstinting consideration so that I can write a good book, and to Managers Seong Jin-woo, Kim Byeong-hun, and Bae Jeong-yeong, who have worked hard to polish the editing of this book from its first edition to its 31st edition this year.
I would also like to express my gratitude to tax accountants Ha Young-seong and Lim Jae-hyeon for their advice on writing, and to tax accountants Son Jae-ho and Ko Gyeong-tae for their help in organizing and proofreading the manuscript.

We promise to continue to meet you with better books in the future, and we wish you all the best.


2025.
3. 1.
Lim Sang-yeop and Jeong Jeong-un