Income46011-192 (2002.09)

Income;

Where an entrepreneur shares or shares assets or operates a business jointly, he/she shall calculate the amount of income for each resident according to the income amount distributed or to be distributed in proportion to his/her share or distribution of profits and losses and shall be liable to pay tax.

Where an entrepreneur shares or combines assets or operates a business jointly, the amount of income shall be calculated by each resident according to the income amount distributed or to be distributed in proportion to his share or distribution of profits and losses pursuant to Article 43 (2) of the Income Tax Act, and in this case, the entrepreneur shall be liable to pay tax.

Article 43 of the Income Tax Act 【Distribution of Income in Case of Joint Ownership】

1. Contents of questioning;

In the case of a reconstruction association member, whether the final tax return on global income is made by each individual or only the representative of joint business operators.

2. Materials on the contents of questioning;

(a) Related statutes;

○ Distribution of income in the case of joint ownership of Article 43 of the Income Tax Act

(1) In the calculation of the income amount for a joint business place as prescribed in Article 87, the joint business place concerned shall be considered as one resident.

(2) Where an entrepreneur owns or combines assets or jointly operates a business, the entrepreneur shall calculate the amount of income for each resident according to the amount of income distributed or to be distributed in proportion to his/her share or distribution of profits and losses.

(3) Where any resident and a person in a special relationship with him/her prescribed by Presidential Decree jointly runs a business generating real estate rental income, business income, or forestry income (hereinafter referred to as "joint business operator"), are included in the business operator who jointly runs a business generating real estate rental income, business income, or forestry income, the income amount of the person with a special relationship shall be deemed the income amount of joint business operators with the larger share

Article 87 of the Income Tax Act (Special Cases concerning Calculation of Income Amount for Joint Business Place)

(1) With respect to any place in which a joint business with the following incomes (hereinafter referred to as "joint business place") is operated, the amount of income shall be calculated by the joint business place in which the income is earned:

1. Real estate rental income;

2. Business income:

3. Forest income.

(2) Additional taxes provided for in Articles 81 (5) and (7) through (10) and 158, which are related to a joint business place, shall be allocated in proportion to the shares of each resident operating the joint business or to the ratio of sharing of profits and losses.

(3) The provisions of Articles 160 (1) and 168 shall apply to a joint business place by deeming it as one businessman.

(4) When a person who runs a joint business files for business registration under Article 168 (1) and (2) concerning the relevant joint business place, he/she shall report to the head of the competent tax office having jurisdiction over the place of business where the joint business place, his/her share or ratio of sharing of profits and losses, representative, and other necessary matters are located, as prescribed by Presidential Decree

(5) Matters necessary for return, determination, correction, investigation, etc. of the amount of income of a joint business place, shall be prescribed by Presidential Decree.

Article 150 of the Enforcement Decree of the Income Tax Act (Special Cases concerning Calculation of Income Amount for Joint Business Place)

(1) The head of the competent tax office having jurisdiction over the domicile of a business operator (where there is any person with the same share or ratio of distribution of profits and losses, he/she shall be the person appointed by the joint business operator from among him/her; hereinafter referred to as the "representative representative of the joint business") shall determine or correct the income amount generated from the joint business pursuant to Article 87 of the Act: Provided, That where the Commissioner of the National Tax Service deems it particularly important, he/she shall establish the competent district tax office having jurisdiction over the domicile of the

(2) The registration of the business of a joint business place under Article 87 (4) of the Act shall be made by the representative of a joint business, on the basis of a report of the joint business place operated by the representative of a joint business place as prescribed by the Ordinance of the Ministry of Finance

(3) In applying Articles 64 and 94, the head of the competent tax office having jurisdiction over the place of joint business shall be the head of the competent tax office having jurisdiction over the domicile of the representative joint business operator.

(4) In filing a final return on tax base, any joint business proprietor shall submit an account statement separating the income accruing from the relevant joint business place and income other than that along with the final return on tax base. In this case, the representative of a joint business shall submit the specification of distribution by joint business place of the income accruing from the relevant joint business place, penalty tax and the amount of tax withheld.

(b) Relevant established rules;

○ Income 4601-2679, 97 October 17, 199

In the event that the apartment reconstruction housing association newly constructs apartment and commercial buildings and publicly sells apartment and commercial buildings except for the cooperative members' households, the association is appointed by the representative of the association concerned and the method of distributing profits or the distribution ratio of profits is determined, the association concerned shall be liable to pay global income tax for each resident according to the income amount distributed or to be distributed pursuant to Articles 2 and 43 of the Income Tax Act with respect to the apartment and commercial building sales income of the association concerned. In calculating the income amount of the reconstruction housing association, the total income amount shall be the sum of the apartment and commercial buildings of the remaining households of the general apartment and the apartment that acquired apartment from the association members who acquired apartment in excess of their own shares and the amount of the purchase price separately received in accordance with the association regulations, etc., and the necessary expenses shall be the sum of the expenses corresponding to the total income amount, and the