Calculation of Acquisition Value of Special Surtax

The interest on the loan acquired prior to the full amendment of the Corporate Tax Act shall be included in the acquisition value in the calculation basis of the special surtax.

Article 88 (Definition of Transfer) of Income Tax Act

Article 157 of the Enforcement Decree of the Income Tax Act

1. Revocation of the disposition of imposition of corporate tax of KRW 1,381,858,536 against the Plaintiff on December 1, 2004 by the Defendant

2. The costs of the lawsuit are assessed against the defendant.

The same shall apply to the order.

1. Details of the disposition;

A. The Plaintiff is a company with the purpose of construction business, housing construction business, etc. using ○○○○-dong ○○○○○○-dong ○○○○○○○○○○○○, and ○○○○○○○○○○○○○○○, from around 1994 to June 27, 1998, acquired land of 81,534 square meters (hereinafter “instant land”) for 15,840,920,268 won for the purpose of using it as a site for housing construction from around 1994 to June 27, 198, and subsequently sold the instant land to ○○○○○○, through consultation on the acquisition of the instant land, to KRW 28,274,972,370, and the amount of tax calculated by deducting the amount of acquisition from the above transfer value and the interest paid on loans used by the Plaintiff to acquire the instant land from KRW 4,925,059,250 (hereinafter “special surtax 275,707”).

B. After investigating the special surtax reported and paid by the Plaintiff, the head of ○○○○○ National Tax Service notified the Defendant to correct the special surtax on the ground that the land in this case constitutes a sale inventory asset for housing construction, not a fixed asset for business, and that the interest rate under Articles 140(2), 72(2)2, and 52(2) of the Enforcement Decree of the Corporate Tax Act and Article 2 of the Addenda of the Enforcement Decree of the Corporate Tax Act was not included in the acquisition value. The Defendant, on December 1, 2004, excluded the interest interest rate in this case from the acquisition value, calculated again the tax base and the amount of the special surtax (1,865,107,815 won) by excluding the interest rate in this case from the acquisition value, and added the amount of the special surtax to 147,752,850 won, the additional tax for under-reported return additional tax plus the amount of 1,126,341,432 won already reported and paid by the Plaintiff.

C. On February 18, 2005, the plaintiff filed a request with the National Tax Tribunal for a trial seeking the revocation of the disposition of this case, but the National Tax Tribunal dismissed the plaintiff's request on September 18, 2006.

(In fact that there is no dispute, Gap evidence 1 (including paper numbers), Eul evidence 1 (including paper numbers), Eul evidence 1 and 2, the purport of the whole pleadings.

2. Whether the instant disposition is lawful

A. The parties' assertion

(1) The plaintiff's assertion

① 법인세법시행령(1998. 12. 31. 대통령령 제15970호로 전문개정 되고, 2000. 12. 29. 대통령령 17033호로 개정되기 전의 것, 이하 1998. 12. 28. 법률 제5581호로 전문개정 되기 전의 법인세법과 1998. 12. 31. 대통령령 제15970호로 전문개정되기 전의 법인세법 시행령을 각 '구법, 구법시행령'이라 하고, 1998. 12. 28. 법률 제5581호로 전문개정 되고, 2000. 12. 29. 법률 제6293호로 개정되기 전의 법인세법과 1998. 12. 31. 대통령령 제15970호로 전문개정 되고, 2000. 12. 29. 대통령령 17033호로 개정되기 전의 법인세법시행령을 각 '신법, 신법시행령'이라 한다) 제140조 제2항의 규정에 의하여 준용되는 신법시행령 제72조는 특별부가세 과세표준 산정에서 취득가액 계산의 핵심이 되는 규정이라고 할 것인데, 신법시행령 부칙 제2조는 신법의 특별부가세 규정의 적용시기에 대한 일반규정에 해당하고, 신법시행령 부칙 제8조는 특별규정에 해당하므로 특별규정 우선 원칙에 의하여 신법시행령 부칙 제8조가 부칙 제2조에 우선하여 적용된다고 보아야 하고, ② 구법과 구법시행령에서는 이미 '법인세'의 과세표준 계산에서 사업용 고정자산에 대하여만 건설자금 이자를 취득가액에 산입한다고 규정하고 있었고, 신법시행령 제72조 제2항 제2호의 규정도 같은 내용이므로 신법시행령 제8조 제3항이 "제72조의 개정규정은 이 영 시행 후 최초로 취득하는 분부터 적용한다"고 규정하여 그 적용대상을 한정할 실익이 없는 점에 비추어 보면, 신법시행령 제8조 제3항은 '법인세'에 한정하여 적용하기 위한 규정이라고 볼 수 없고, 구법과 구법시행령에서 '특별부가세' 산정에 있어 취득가액에 포함되는 것으로 해석되던 재고자산에 대한 건설이자가 신법시행령에서는 제외됨으로 인하여 발생하는 부진정소급입법으로 인한 혼란과 다툼을 방지하기 위하여 그 적용대상을 한정한 것으로 해석하는 것이 타당하며, ③ 이와 반대로 해석할 경우, 신법의 개정 취지가 특별부가세의 부담을 경감하기 위한 것임에도 오히려 신법시행령은 재고자산에 대한 건설이자를 취득가액에서 제외하여 특별부가세의 부담을 강화함으로써 위 개정취지에 반하고, ④ 구법과 구법시행령에서는 재고자산에 대한 건설이자를 특별부가세의 과세표준 산정에 있어 취득가액에 포함하여 왔음에도 합리적 이유나 필요 없이유예기간도 주지 않고 재고자산에 대한 건설이자를 취득가액에서 제외하는 것은 매우 부당하며, ⑤ 특별부가세와 관련하여, 법 개정의 핵심은 그 세율의 인하에 있었고, 신법 부칙 제2조는 그 인하된 세율을 신법 시행 후 양도분 부터 즉시 적용하기 위하여 마련된 규정이며, 신법시행령 부칙 제2조는 신법 부칙 제2조와 같은 내용에 불과하여, 신법시행령 부칙 제2조는 이를 재차 확인한 것에 불과하고, 신법시행령 부칙 제8조 제3항이 특별규정으로서 재고자산의 특별부가세 취득가액 산정과 관련된 개정규정의 적용 법위를 규정하고 있는 입법적 배려로 보아야 하며, ⑥ 신법시행령 제140조 제2항 제2호, 제3호의 규정은, IMF 이후 기업의 재무구조를 개선하고, 주택건설업체의 분양난을 해소하고자 ○○○○공사와 ○○○○공사로 하여금 기업 보유 부동산과 미분양 주택을 취득하게 하고, 이들에게 보유 부동산과 미분양 주택을 매각하는 기업에 대하여는 이러한 부동산 매각분에 대하여 조세감면규제법으로 특별부가세를 면제하여 주는 등의 방법으로 기업의 재무구조 개선을 지원할 목적으로 "○○○○공사와 ○○○○공사가 기업의 재무구조 개선 목적으로 1999. 12. 31. 이전까지 부동산과 미분양 주택을 취득하기 위하여 발행하는 토지개발채권, 주택채권의 이자를 취득가액에 포함"하고 있는데, 위와 같은 채권의 이자도 성질상 재고자산의 건설자금 이자에 해당하고, 위 규정은 신법시행령 부칙 제8조 제3항에 의하여 1999. 1. 1. 이후에 ○○○○공사나 ○○○○공사 외의 다른 기업이 취득하는 재고자산의 건설이자가 취득가액에서 제외되는 것을 전제로 하여, ○○○○공사와 ○○○○공사에 대하여는 1년을 더 연장하여 특별부가세 경감의 혜택을 주기 위한 규정이라고 할 것이고, 따라서 위 신법시행령 제140조 제2항 제2호, 제3호의 규정은 신법시행령 부칙 제8조 제3항이 특별부가세와 관련하여 적용되는 것을 전제로 한 것이므로 원고에 대한 특별부가세를 산정함에 있어서는 부칙 제8조 제3항이 적용되어 구법시행령 제124조의2 제2항을 적용하여 특별부가세의 취득가액에 이 사건 건설이자를 포함하는 것이 타당하다 할 것임에도, 이 사건 건설이자를 취득가액에서 제외한 이 사건 처분은 위법하다.

Even if the construction of this case is excluded from the acquisition value in calculating the tax base of special surtax, the special surtax system was abolished on December 31, 2001 due to its unconstitutionality, effectiveness, etc., and the disposition of this case was unlawful since 3 years have passed since it was abolished.

(2) The defendant's assertion

(1) The special surtax cannot be applied as it forms a separate taxation unit for corporate tax on the corporation's income for each business year. ② Article 140 (2) 1 of the new Enforcement Decree of the Act applies mutatis mutandis to the calculation of transfer margin of special surtax. ③ Article 2 of the Addenda of the new Act only provides for the applicable period of special surtax, and Article 140 (2) does not provide for the separate applicable period of special surtax. ④ Article 8 (3) of the new Act provides for the confirmation term related to the enforcement of each provision in the Addenda of the new Act. Since Article 17 of the new Enforcement Decree of the new Act provides that the previous provision shall apply to special surtax, Article 72 (2) 1 of the new Enforcement Decree of the new Act shall not apply to the acquisition date of new special surtax, and Article 8 (2) of the new Enforcement Decree of the new Act shall not apply to the new provision for the acquisition date of the special surtax until 00,000 won, and Article 8 (2) of the new Act shall not apply to the new provision for the acquisition date of the special surtax.

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

(1) The special surtax is a type of corporate tax for which the tax requirement is established by the transfer of assets, and the transfer of assets is subject to taxation, and thus, whether the transferred assets meet the taxation requirement and the tax exemption requirement should be determined on the basis of the time of transfer (see, e.g., Supreme Court Decision 9Du8268, Jul. 27, 2001). Therefore, the inventory assets are acquired under the former Act and the former Enforcement Decree, and the new Act and the new Enforcement Decree shall be applied to the instant case transferred under the new Act and the former Enforcement Decree.

(2) However, Article 140 (2) 1 of the Enforcement Decree of the new Act provides that "the total amount of interest and capital expenses appropriated for construction funds" shall be deleted in relation to the tax base and special surtax, and Article 72 (1) through (3) and (4) 2 of the new Enforcement Decree shall apply mutatis mutandis (Provided, That Article 72 (2) 1 of the new Act excludes inclusion in the gross income, and Article 72 (3) of the new Act provides that "the present value discount rate of subparagraph 1 of the new Act shall not be included in the acquisition value of assets." Article 72 of the new Act provides that "the new Act shall be included in the calculation of special surtax." Article 8 of the new Act provides that "the new Act shall be applied from the first acquisition of the new Act after the enforcement of the new Act." Article 8 of the new Act provides that "The new Act shall be excluded from the new Act's application of Article 82 of the new Act without any specific provision of the new Act, and it shall be excluded from the new Act's application of Article 82 of the new Act.

Ultimately, in relation to special surtax, Article 72 of the Enforcement Decree of the new Act shall be applied from the transfer to the first acquisition after the enforcement of the new Act.

(3) Meanwhile, the provisions applicable to calculating the tax base of special surtax in the new Enforcement Decree are Article 140 of the new Enforcement Decree. However, Article 2 of the new Enforcement Decree does not apply to the assets acquired before the new Enforcement Decree enters into force, and Article 140 (2) 1 of the new Enforcement Decree does not apply to the assets transferred after the new Enforcement Decree enters into force. However, in calculating the tax base of special surtax on assets transferred after the new Enforcement Decree enters into force, Article 140 of the new Enforcement Decree shall apply regardless of the time of their acquisition. However, Article 8 of the new Enforcement Decree provides that Article 72 of the new Enforcement Decree shall apply to the assets acquired after the new Enforcement Decree enters into force, and Article 140 (2) 1 of the new Enforcement Decree shall apply to the assets transferred after the new Enforcement Decree enters into force. However, Article 72 of the new Enforcement Decree shall not apply to the calculation of the acquisition value of transferred assets.

(4) Therefore, in calculating gains from transfer which serves as the tax base of special surtax, “interest on the amount appropriated for construction funds” included in the acquisition value is not specially limited to “interest on the amount appropriated for construction funds for corporation’s fixed assets for business purposes.” Although Article 16 subparag. 11 of the former Act and Article 33(1) and (2) of the former Enforcement Decree of the same Act deny that the amount of interest on loans used for corporation’s fixed assets construction funds is included in the total amount as losses for the pertinent business year and include it as capital expenses in the calculation of losses, the interest on loans appropriated for the construction funds should be included in the calculation of acquisition cost in the calculation of corporate tax base. However, in light of the characteristics imposed separately on the gains from transfer of assets such as land, the above provisions cannot be applied to the principle of general regulation of corporate tax excluding the acquisition value of the special surtax excluding the total amount appropriated for the calculation of the tax base of special surtax 20,000,0000 won, the remaining amount appropriated for the calculation of the acquisition value of the fixed assets under Article 2(3) subparag.2) of the former Enforcement Decree.

3. Conclusion

Therefore, the plaintiff's claim of this case is reasonable, and it is decided as per Disposition by the assent of all participating Justices.

public official law, order of law,

(1) The former Corporate Tax Act (amended by Act No. 5581 of Dec. 28, 1998)

Article 16 (Non-deductible Expenses) Losses enumerated in the following subparagraphs shall not be included in deductible expenses of a domestic corporation for each business year in calculating its income amount:

11. Interest on loans falling under any of the following items:

(a) Interest on loans appropriated for construction capital as prescribed by the Presidential Decree;

Article 17 (Timing for Belonging of Profit and Loss and Calculation of Acquisition Value)

(1) The fiscal year of accrual of earnings and losses of a domestic corporation shall be the fiscal year which includes the date on which the concerned earnings and losses are settled.

(2) The acquisition value of assets acquired by a domestic corporation through purchase, manufacture, etc. shall be the amount calculated by adding the purchase value of the relevant assets or incidental expenses to the manufacturing cost.

(3) Where a domestic corporation applies corporate accounting standards which are generally deemed fair and reasonable with respect to the business year of accrual of earnings and losses and the acquisition and evaluation of assets and liabilities, or continuously applies practices, notwithstanding the provisions of paragraphs (1) and (2), the relevant corporate accounting standards or practices shall govern: Provided, That this shall not apply to cases prescribed by Presidential Decree

(4) Matters necessary for the business year of accrual of profits and losses under paragraph (1), calculation of acquisition value under paragraph (2), and evaluation of assets and liabilities, etc. shall be prescribed by Presidential Decree.

Article 59-2 (Tax Base)

(1) The tax base of special surtax shall be gains on transfer accruing from the transfer of land, buildings, rights to real estate, stocks or investment shares (hereinafter referred to as “land, etc.”) as prescribed by the Presidential Decree.

(3) The transfer margin referred to in paragraph (1) shall be the amount obtained by deducting the book value falling under each of the following subparagraphs from the transfer value: Provided, That where the transfer value and the book value are unclear, the standard market price at the time of transfer and the standard market price at the time

1. Acquisition value:

2. Expenses incurred directly in order to transfer land, etc.

(1) The former Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 15970, Dec. 31, 1998)

Article 33 (Interest, etc. on Loans Not Included in Deductible Expenses)

(1) The term "interest on loans appropriated for construction capital as prescribed by the Presidential Decree" in subparagraph 11 (a) of Article 16 of the Act means interest paid on loans used for the purchase, manufacturing or construction (hereafter referred to as "construction" in this Article) of fixed assets used for the relevant business (excluding loans the use of which for the construction of fixed assets is unclear) or other similar expenses, notwithstanding any other titles or titles.

(2) Interest paid or expenses under paragraph (1) shall be capital expenses included in the original capital until the date of the completion of the construction (in cases of land purchase, it shall be the date of the full payment of the price, but in cases where the relevant land is offered to a business before the full payment of the price is made, it shall be the date of providing the business): Provided, That interest income arising from the temporary deposit of loans under paragraph (1) shall be subtracted from the capital expenses amount added

(3) Where part of the borrowed construction capital is diverted to operational capital, an appropriate amount of interest paid for that portion shall be deemed losses.

(4) Where the interest on borrowed construction capital in arrears is added to the original capital, the added amount shall be deemed capital expenses of the relevant business year, and the interest paid on the added amount shall be deemed losses.

(5) The interest on the loan borrowed as construction fund and remaining after the completion of the construction shall be included in the loss of each business year. In such cases, the date of completion of the construction shall be the date the object of the construction is completed in whole.

Article 37 (Acquisition Value of Assets, etc.)

(1) The acquisition value of assets under the provisions of Article 17 (2) and (4) of the Act shall be as follows:

1. The amount obtained by adding the acquisition tax, registration tax, and other incidental expenses to the purchase price (not including the discounted debt estimated by the present value appropriated under the provisions of paragraph (2));

2. The total amount of assets acquired through his/her manufacture, production, construction, etc.: Raw material expenses, labor expenses, freight, loading and unloading expenses, insurance premiums, fees, public charges (including acquisition tax and registration tax), installation expenses, and other incidental expenses;

3. The normal price as at the time of acquisition, in cases of assets other than subparagraphs 1 and 2.

(2) In the application of the main sentence of Article 17 (3) of the Act, the provisions of Articles 18-3, 39, 59 and 63 of the Act shall not apply to the amount appropriated as interest paid separately from the acquisition value under paragraph (1) in the case of the depreciation of the discounted value of the debts incurred when a domestic corporation acquires assets due to long-term installment conditions, etc. under the provisions of Article 36 (1) 5 and the annual payment income as prescribed by the Ordinance of the Ministry of Finance and Economy.

(3) In the application of the provisions of paragraph (1), the acquisition value shall include the amount considered as profits under the provisions of Article 12 (1) 10, and the amount which is not deemed as profits under the provisions of Article 12 (1) 5 and the amount in excess of the market price under the provisions of Article 46 (2) 4 shall not be included in the calculation marginal profits

Article 124-2 (Calculation of Tax Base for Special Surtax)

(1) Where a corporation transfers two or more assets in each business year, the tax base of special surtax under Article 59-2 (1) of the Act shall be the amount calculated by adding gains on transfer calculated under Article 59-2 (3) of the Act to the total amount of gains on transfer of the assets transferred in each business year. In this case, where the total amount under Article 59-2 (3) 1 and 2 of the Act exceeds the transfer value of the transferred assets, the tax base

(2) The term “acquisition value” in Article 59-2 (3) of the Act means the sum of the acquisition value (including the discounted debt estimated by the present value appropriated under Article 37 (2) by applying mutatis mutandis the provisions of Article 37 (1) and excluding the amount exceeding the market price due to the wrongful act and calculation), the interest and capital expenditure of the amount appropriated for construction

(c) New Corporate Tax Act (amended by Act No. 5581 of Dec. 28, 1998, and amended by Act No. 6293 of Dec. 29, 2000)

Article 19 (Legal Liability for Losses)

(1) Deductible expenses shall be the amount of losses incurred by transactions which reduce the net assets of a corporation, excluding return of capital or financing, disposition of surplus funds, and what is provided for in this Act.

(2) The losses under the provisions of paragraph (1) shall be losses or expenses generated or spent in connection with the business of a corporation which are generally accepted as normal or directly related to profit, except as otherwise prescribed by this Act and other Acts and subordinate statutes.

(3) Matters necessary for the scope and types of losses under the provisions of paragraphs (1) and (2) shall be prescribed by Presidential Decree.

Article 28 (Non-Inclusion of Interest Paid in Calculation of Losses)

(1) The interest on loans falling under any of the following subparagraphs shall not be included in deductible expenses in calculating the income amount of a domestic corporation for each business year:

3. Interest on loans appropriated for construction capital as prescribed by the Presidential Decree; and

Article 41 (Acquisition Value of Assets)

(1) The acquisition value of assets acquired by a domestic corporation through purchase, production, exchange, gift, etc. shall be the amount falling under any of the following subparagraphs:

1. For assets purchased from a third person, the amount of the purchase price plus incidental expenses;

(2) Matters necessary for the calculation of the acquisition value of assets, such as the scope of purchase prices and incidental expenses under paragraph (1) shall be prescribed by Presidential Decree.

Article 99 (Tax Base)

(1) The tax base of special surtax shall be gains on transfer accruing from the transfer of land, buildings, rights to real estate, stocks or investment shares (hereinafter referred to as “land, etc.”) as prescribed by the Presidential Decree.

(2) "Transfer" in paragraph (1) means that the land, etc. is actually transferred for compensation due to sale, exchange, investment in kind in a corporation, etc., regardless of registration of the land, etc.

(3) The transfer margin as referred to in paragraph (1) shall be the amount obtained by deducting the amount falling under each of the following subparagraphs from the transfer value: Provided, That where the transfer value and the acquisition value are unclear, the standard market price and the standard market price at the

1. The acquisition value: Provided, That in case where a corporation, which received a contribution of the property not included in the taxable amount of inheritance taxes or the taxable amount of gift taxes under the Inheritance Tax and Gift Tax Act, transfers the land, etc. as prescribed by the Presidential Decree, the acquisition value of the contributor to the relevant land, etc. shall be the acquisition value of the relevant corporation, and in case of an organization deemed a corporation under Article 13 (2) of the Framework

2. Expenses incurred directly in order to transfer land, etc.

(1) Enforcement Decree of the Corporate Tax Act (amended by Presidential Decree No. 15970 of December 31, 1998, and amended by Presidential Decree No. 1703 of December 29, 2000)

Article 52 (Scope of Interest on Loans Appropriated for Construction Capital)

(1) The term "interest on loans appropriated for construction capital as prescribed by Presidential Decree" in Article 28 (1) 3 of the Act means interest paid on loans used for the purchase, production, or construction of fixed assets used for business (hereafter referred to as "construction" in this Article) (excluding loans the use of which for the construction of fixed assets is unclear) or other similar expenses, notwithstanding any other titles or titles.

(2) Interest paid or expenses under paragraph (1) shall be capital expenses included in the original capital until the date of the completion of the construction: Provided, That interest income arising from the temporary deposit of loans under paragraph (1) shall be subtracted from the capital expenses amount added to the original capital.

(3) Where part of the borrowed construction capital is diverted to operational capital, an appropriate amount of interest paid for that portion shall be deemed as losses.

(4) Where the interest on borrowed construction capital in arrears is added to the original capital, the added amount shall be deemed as capital expenses of the relevant business year, and the interest paid on the added amount shall be deemed as losses.

(5) The interest on loans borrowed as construction funds and remaining after the completion of the construction shall be included in the deductible expenses of each business year. In such cases, the completion date of the construction, etc. shall be the date of the completion of all the objects of the construction

Article 72 (Acquisition Value of Assets, etc.)

(1) The acquisition value of assets under Article 41 (1) and (2) of the Act shall be the amount under each of the following subparagraphs:

1. Assets purchased from a third person: An amount obtained by adding the acquisition tax, registration tax, and other incidental expenses to the purchase price;

(2) In applying the provisions of paragraph (1), the acquisition value shall be deemed to include the following amounts:

1. The amount included in gross income under Article 15 (2) 1 of the Act;

2. The interest on loans appropriated as construction capital under the provisions of Article 52;

(1) The tax base of special surtax under Article 99 (1) of the Act shall be the total sum of gains on transfer calculated under Article 99 (3) of the Act for each transferred asset in the business year. In this case, when the total sum of the assets under Article 99 (3) 1 and 2 of the Act exceeds the transfer value of the assets concerned, the tax base of special surtax shall be calculated by subtracting the excess amount from the total sum of the transfer value of the transferred assets.

(2) "Acquisition value" in Article 99 (3) of the Act means the sum of the following amounts:

1. The acquisition value calculated by applying mutatis mutandis the provisions of Article 72 (1) (the provisions of subparagraphs 3 and 4 of the same paragraph shall apply only to the case of investment in kind) through (3) and (4) 2: Provided, That the discounted debt estimated by present value under the provisions of paragraph (3) 1 of the same Article shall be included in the calculation of earnings under paragraph (2) 1 of the

2. Interest from land development bonds issued by the Korea Land Corporation under the Korea Land Corporation Act in order to acquire real estate (limited to that acquired before December 31, 1999 in order to support the improvement of financial structure of an enterprise);

3. Interest on housing bonds issued by the Korea National Housing Corporation under the Korea National Housing Corporation Act in order to acquire houses unsold in lots (limited to those acquired before December 31, 199) by the housing construction businessmen; and

Sub-laws

Article 1 (Effective Date) This Decree shall enter into force on January 1, 199: Provided, That the amended provisions of Articles 5, 9, 12 through 15, 72, 82 through 85, 88, 96, 97, 116, 120, 123, and 124 (limited to the part related to division), 36(2), 56(1), and 62(1)5 and 14, and Article 13(1) of the Addenda of this Decree shall enter into force on January 1, 200.

Article 2 (General Application) This Decree shall apply from the first beginning of the business year after this Decree enters into force: Provided, That the amended provisions concerning corporate tax on liquidation income shall apply from the first dissolution or merger after this Decree enters into force or from the division in the business year to which the enforcement date of this Decree belongs, and the amended provisions concerning special surtax shall apply from the first transfer after this Decree enters into force.

Article 8 (Application Examples to Business Year of Profit and Loss, etc.)

(3) The amended provisions of Article 72 shall begin to apply to the first acquisition after this Decree enters into force.

Article 15 (General Transitional Measures) The corporate tax to be taxed or to be taxed under the previous provisions before this Decree enters into force shall be governed by the previous provisions.

Article 17 (Transitional Measures concerning Business Year, etc. for Profit and Loss)

(1) The business year in which profits and losses accrue in relation to the commencement of sale, transfer, lease, provision of services, etc. of assets, etc. prior to the commencement of the first business year that commences after this Decree enters into force shall be governed by the previous Articles 36 and 37-2.

(2) The balance of the exchange rate adjustment account and the amount appropriated for offsetting the revaluation reserve under the former provisions of Article 38-2 (1) and (7) as at the time this Decree enters into force shall be governed by the previous provisions.

(3) The balance of the deferred assets under the previous provisions of Article 38 at the time this Decree enters into force shall be governed by the previous provisions.