Corporate Tax and 397 ( November 14, 2008)

A corporation

Where the depreciation lifespan of specific assets is erroneously applied, the depreciation costs of the relevant fixed assets shall be appropriated by applying the lifespan under the tax-related Acts, which is found from the business year that starts.

Where the depreciation service life of specific assets is erroneously applied at the time of filing a corporate tax base return, the depreciation costs of such fixed assets shall be appropriated by applying the service life under the tax-related Acts from the business year that discovers such fact, and where the depreciation costs are appropriated as deductible expenses in excess of the depreciation cost limit in the previous business year, a revised return pursuant

Article 23 of the Corporate Tax Act

[Documents Attached to Relevant Documents]

1. A summary of the contents of inquiry;

(a) A summary of the inquiry;

- The method of applying the useful life and the method of filing a return for correction in the event that the useful life of the machinery has been ten years for food manufacturing business, and it has been depreciated by applying the wrong application of five years thereafter.

(a) Established related to rules (established rules, interpretation cases, review, and adjudication);

○○ 46012-11393, 203.07.23

- Where a corporation fails to report the depreciation lifespan within the period under each subparagraph of Article 28(3) of the Enforcement Decree of the Corporate Tax Act, it is intended that the replacement of depreciation cost is made by repreparation the specification on the adjustment of depreciation cost in accordance with the normal depreciation lifespan in case where the depreciation lifespan is erroneously applied when the corporate tax base

○ document 2 teams-1432, 2005.06

- Where the depreciation lifespan has been erroneously applied at the time of filing a corporate tax base return, the depreciation cost ceiling should be calculated by applying the normal depreciation lifespan from the year when the specification on the adjustment of depreciation cost is confirmed as having been repreparationd to the depreciation cost, so that the depreciation cost ceiling should be calculated by applying the normal depreciation lifespan.

Provided, That where depreciation costs are counted under consideration, it is not subject to request for correction, or where depreciation is done in excess of the normal depreciation limit due to erroneous application of depreciation lifespan in the past, a revised return is required for the excess depreciation amount.

○ Corporation 22601-1524, 1991.31

-If any error is found in the service life continuously applicable to a certain asset, the depreciation costs of fixed assets will be calculated by applying the number of years from the date the error is found to be included in the tax laws.

○ Corporation 46012-198, 201.26

- In case where a corporation applying "the lifespan by type of business" in the Enforcement Rule of Corporate Tax Act [Attachment 6] erroneously applies the lifespan by type of business of the corporation concerned, the depreciation costs of the business year passed shall be included in the calculation of losses within the scope provided for in Article 26 of the Enforcement Decree of Corporate Tax Act only when the corporation's book is counted as losses in the settlement of accounts for the business year concerned.

○○ Corporation 46012-198, 201.26

- In the case of your inquiry, in case where a corporation applying the “the lifespan by type of business” of the Enforcement Rule of the Corporate Tax Act [Attachment 6] erroneously applies the lifespan by type of business of the corporation concerned, the corporation shall be amended and applied as the “the standard lifespan by type of business” of the legitimate type of business. In this case, the depreciation costs of the business year which has passed shall be included in the calculation of losses within the scope under Article 26 of the Enforcement Decree of the Corporate Tax