Article 126-7 (Tax Special Treatment for Gold Bullion Traded on the Gold Spot Market)

In cases where a gold bullion supplier supplies gold bullion under subparagraph 1 of paragraph ①, the input tax of value-added tax that the gold bullion supplier has borne on such gold bullion shall be deemed as deductible input tax under Article 38 of the 「Value-Added Tax Act」, notwithstanding Article 39 of the same Act. In this case, as prescribed by Presidential Decree, a special tax treatment for the deduction or refund of the input tax of value-added tax may be applied by using a gold transaction account under Article 106-4.

When gold bullion deposited in a warehousing institution is supplied through trading on the gold spot market and then withdrawn from the warehousing institution, the withdrawal of such gold bullion shall be deemed as the supply of goods under Article 9 of the 「Value-Added Tax Act」. In this case, the warehousing institution shall collect and pay the value-added tax calculated by applying the tax rate under Article 30 of the 「Value-Added Tax Act」 to the supply value specified by Presidential Decree (hereinafter referred to as "value-added tax amount" in this Article) from the person withdrawing the gold bullion.

For the application of paragraphs ① and ④, a warehousing institution shall be considered a business operator under the 「Value-Added Tax Act」 and shall be deemed a gold business operator under Article 106-4 (1) within the scope prescribed by Presidential Decree.

For gold bullion supplied by a gold bullion supplier through trading on the gold spot market by December 31, 2019, or for gold bullion purchased by a business operator on the gold spot market (hereinafter referred to as "gold bullion purchasing business operator" in this paragraph) and withdrawn from a warehousing institution by December 31, 2019, the amount equivalent to the supply value or purchase price (hereinafter referred to as "gold spot market usage amount" in this paragraph, excluding amounts where the gold bullion supplier and the gold bullion purchasing business operator have a special relationship as prescribed by Presidential Decree) shall be deducted from income tax (only income tax on business income. The same applies hereinafter in this paragraph) or corporate tax for the tax period to which the supply date or purchase date (meaning the time of supply of goods under Article 15 of the 「Value-Added Tax Act」) belongs, from among the following options. However, if the gold spot market usage amount for the immediately preceding tax period is less than the usage amount for the period before the preceding tax period, the amount calculated by applying subparagraph 2 shall be deducted from the income tax or corporate tax for the current tax period. <Amended by 2015.12.15, 2017.12.19> 1. The amount calculated by multiplying the comprehensive income tax base amount or the corporate tax base amount by the ratio of the excess amount of the gold spot market usage amount over the gold spot market usage amount of the immediately preceding tax period (hereinafter referred to as "excess usage amount" in this subparagraph) to the sales amount for the current tax period. However, if there was no gold spot market usage amount for the immediately preceding tax period and the gold spot market is used for the first time, the gold spot market usage amount for the current tax period shall be deemed as the excess usage amount. 2. The amount calculated by multiplying the comprehensive income tax base amount or the corporate tax base amount by the ratio of the amount equivalent to 5/100 of the gold spot market usage amount for the current tax period to the sales amount for the current tax period.

A person who has been granted exemption from customs duties under paragraph ⑨ shall deposit such gold bullion in a warehousing institution and trade it on the gold spot market, as prescribed by Presidential Decree.

The Korea Exchange, warehousing institutions, and other entities designated by Presidential Decree shall maintain and keep records of gold bullion deposit, trading, warehousing, withdrawal, etc. (hereinafter referred to as "transaction records, etc." in this Article) as prescribed by Presidential Decree, and shall submit them if the Commissioner of the National Tax Service or the Commissioner of Customs (including the relevant tax office director and customs office director) requests the submission of data necessary for taxation. In this case, the gold bullion transaction records, etc. shall be deemed as supporting documents under Article 160-2 (2) of the 「Income Tax Act」 or Article 116 (2) of the 「Corporate Tax Act」.