Article 127 (Exclusion of Double Support)

Where a domestic resident, with respect to assets invested or shares acquired through investment under this Act, is subject to Articles 8-3 (3), 24, 26, and 104-15 (1), the amounts in the following items shall be deducted from the investment amount, contribution amount, or acquisition amount. <Newly enacted Apr. 1, 2014, Dec. 20, 2016, Dec. 24, 2018, Dec. 29, 2020, Dec. 28, 2021, Dec. 31, 2023> 1. Where a domestic resident, for the purpose of investing in assets or acquiring shares, receives assets such as contributions from a country, etc. (hereinafter referred to as "country, etc." in this Article) falling under any of the following subparagraphs and expends them for investment or contribution: The amount equivalent to the amount of assets such as contributions expended for investment or contribution. a. A country b. A local government c. A public institution under the 「Act on the Management of Public Institutions」 d. A local public enterprise under the 「Local Public Enterprises Act」 2. Where a domestic resident, for the purpose of investing in assets or acquiring shares, receives a loan from a financial company, etc. (hereinafter referred to as "financial company, etc." in this Article) falling under any of the subparagraphs of Article 2 (1) of the 「Act on Real Name Financial Transactions and Confidentiality」, expends it for investment or contribution, and a country, etc. pays all or part of the interest expenses payable to the financial company, etc. on behalf of the domestic resident: The amount equivalent to the interest expenses paid by the country, etc., calculated as prescribed by Presidential Decree. 3. Where a domestic resident, for the purpose of investing in assets or acquiring shares, receives a loan from a country, etc. and expends it for investment or contribution: The amount equivalent to the interest support provided by the country, etc., calculated as prescribed by Presidential Decree. 4. Where a domestic resident, for the purpose of investing in assets necessary for businesses falling under any of the subparagraphs of Article 37 (1) of the 「Corporate Tax Act」, receives a construction cost contribution under the same paragraph from a demandor or beneficiary of the relevant assets and expends it for investment: The amount equivalent to the amount of the construction cost contribution expended for investment.

When Articles 8-3 (3), 24, 26, 29-5, 29-7, 29-8 (1), 30-4, 104-14, and 104-15 are applied to a domestic resident in the same tax year, if income tax or corporate tax is reduced pursuant to Article 121-2 or 121-4, the amount calculated by multiplying the tax amount to be deducted according to the relevant provisions by the ratio of shares or equity held by domestic investors to the total shares or equity of the relevant company shall be deducted. <Amended Apr. 1, 2010, Mar. 12, 2010, Dec. 15, 2015, Dec. 20, 2016, Dec. 19, 2017, Dec. 24, 2018, Dec. 29, 2020, Dec. 31, 2022>

Where two or more reduction provisions for income tax or corporate tax under Articles 6, 7, 12-2, 31 (4) and (5), 32 (4), 62 (4), 63 (1), 63-2 (1), 64, 85-6 (1) and (2), 99-9 (2), 99-11 (1), 104-24 (1), 121-8, 121-9 (2), 121-17 (2), 121-20 (2), 121-21 (2), 121-22 (2), 121-33 (2), and Article 121-2 or 121-4 can be applied to the same business site of a domestic resident in the same tax year, only one of them may be selected and applied. <Amended Apr. 1, 2010, Dec. 27, 2010, Dec. 31, 2011, Mar. 23, 2020, Dec. 29, 2020, Dec. 28, 2021, Dec. 31, 2023>

Where a resident is subject to simultaneous application of two or more capital gains tax reduction provisions for the transfer of land, etc., only one reduction provision selected by the resident shall be applied. However, if a specific reduction provision is applied to a part of the land, etc., another reduction provision may be applied to the remaining part. <Amended Apr. 1, 2010>

Where Articles 98-2 and 98-3 are simultaneously applied to a resident for the transfer of a house, only one of them may be selected and applied. <Amended Apr. 1, 2010>

Article 29-8 (1) shall apply only when a deduction under Article 29-7 or 30-4 is not received. <Newly enacted Dec. 31, 2022>