Article 144 (Calculation of Revenue Amount upon Estimation and Correction)

Where the revenue amount of a business operator cannot be calculated based on ledgers or other supporting documents, the revenue amount shall be calculated by one of the following methods: <Amended by Dec. 31, 1997, Dec. 31, 1998, Feb. 11, 2020, Jan. 5, 2021> 1. Method of calculation by referring to the revenue amount of other business operators in the same business type determined based on investigations into ledgers recognized as valid. 2. Method of calculation by applying the operating efficiency determined by the Commissioner of the National Tax Service, considering the type of business, region, etc., which establishes the relationship between the quantity or value of human and physical facilities (employees, guest rooms, business premises, vehicles, water supply, electricity, etc.) related to the business and the sales amount. 3. Method of calculation by applying the market price of the quantity sold during the relevant tax period to the production quantity calculated by applying the production yield investigated by the Commissioner of the National Tax Service for raw materials input by industry type. 4. Method of calculation based on one of the following criteria determined by the Commissioner of the National Tax Service by business type and region: a. Input unit of raw and subsidiary materials: The quantity of some or all of the raw and subsidiary materials input into production, establishing the relationship with the production output. b. Cost-sales ratio: The ratio of some or all of the costs including labor costs, rental fees, material costs, water and energy costs, and other operating expenses to the sales amount. c. Inventory turnover ratio: The ratio of average inventory value during a certain period to sales amount or cost of goods sold. d. Gross profit margin ratio: The ratio of sales amount to gross profit during a certain period. e. Value-added ratio: The ratio of sales amount to value added during a certain period. 5. Method of calculation by applying the ratios specified in subparagraphs 2 through 4, where such ratios can be calculated for business operators subject to estimation and correction. 6. Method of calculation by the investigation standards for attendance determined by the Commissioner of the National Tax Service for industries that primarily deal with final consumers.

The revenue amount under paragraph ① shall be the sum of the following amounts: <Newly enacted by Dec. 30, 2002, Feb. 19, 2005, June 28, 2013, Feb. 13, 2018, Feb. 11, 2020> 1. Subsidies or incentives received from the State or local governments in connection with the business. 2. Subsidies or incentives received from co-operative organizations or business partners in connection with the business. 3. Value-added tax amount deducted for issuing a credit card sales slip according to Article 46 (1) of the Value-added Tax Act. 4. Transfer price of business tangible assets of a mandatory double-entry bookkeeping.