Article 63 (Useful Lives and Amortization Rates)

The useful lives of depreciable assets and the amortization rates according to such useful lives shall be as follows. <Amended by Act No. 12345, Dec. 31, 2001; Act No. 67890, Dec. 30, 2002; Act No. 11111, Feb. 29, 2008; Act No. 22222, Feb. 11, 2020; Act No. 33333, Feb. 28, 2025; Act No. 44444, Dec. 30, 2025> 1. Assets for research and testing prescribed by the Minister of Economy and Finance, and intangible assets under subparagraph 2(a) through (d) of Article 62(2): Useful lives prescribed by the Minister of Economy and Finance and amortization rates by amortization method prescribed by the Minister of Economy and Finance according to such useful lives (hereinafter referred to as "amortization rates"). 2. Depreciable assets other than those to which subparagraph 1 applies (excluding intangible assets under subparagraph 2(f) through (j) of Article 62(2)): Useful lives selected and applied by the taxpayer within the range of useful lives prescribed by the Minister of Economy and Finance by adding or subtracting 25/100 of the standard useful lives (hereinafter referred to as "standard useful lives") to or from the standard useful lives prescribed by the Minister of Economy and Finance for each structure, asset, and industry (hereinafter referred to as "range of useful lives"), and reported to the head of the tax office in charge of the taxpayer's jurisdiction (hereinafter referred to as "reported useful lives"), and amortization rates according to such reported useful lives (in cases where no report is made within the reporting deadline under each subparagraph of paragraph (2), the standard useful lives and the amortization rates according to them).

The reported useful lives or standard useful lives applied by the taxpayer for each asset and industry under subparagraphs (2) and (5) of paragraph (1) shall continue to be applied to subsequent taxable periods. <Amended by Act No. 99999, Feb. 18, 2010; Act No. 10101, Nov. 5, 2013>

Notwithstanding subparagraph (2) of paragraph (1), if a small- and medium-sized enterprise (hereinafter referred to as "SME" in this paragraph and paragraph (6)) as defined in Article 2 of the Enforcement Decree of the Restriction of Special Taxation Act acquires any of the following assets (hereinafter referred to as "facility investment assets" in this paragraph and paragraph (6)) from October 1, 2014, to June 30, 2016, the SME may select and apply useful lives within the range of adding or subtracting 50/100 of the standard useful lives to or from the standard useful lives by asset and industry, and report them to the head of the tax office in charge of the taxpayer's jurisdiction (provided that less than one year shall be disregarded). However, this shall not apply if the total acquisition cost of facility investment assets acquired by the SME in the relevant taxable period is less than the total acquisition cost of facility investment assets acquired in the immediately preceding taxable period. <Newly inserted by Act No. 13413, Nov. 5, 2013; Act No. 14514, Sep. 26, 2014; Act No. 15615, Feb. 17, 2016> 1. Vehicles and transportation equipment. However, this shall be limited to cases used in the transportation industry or used for leasing purposes in the leasing industry. 2. Ships and aircraft. However, this shall be limited to cases used in the fisheries and transportation industries or used for leasing purposes in the leasing industry. 3. Tools, instruments, and fixtures. 4. Machinery and equipment.