Article 144 (Carryover of Tax Credits)

The amount corresponding to the tax credit that could not be received due to having no tax payable in the relevant taxable year or falling short of the minimum corporate tax and minimum income tax pursuant to Article 132, among the tax credits to be deducted under Articles 7-2, 7-4, 8-3, 10, Article 12(2), Articles 12-3, 12-4, 13-2, 13-3, Article 19(1), Article 24, Articles 25-6 through 25-8, Article 26, Articles 29-2 through 29-5, Articles 29-7, 29-8, 30-3, 30-4, 96-3, 99-12, 104-5, 104-8, 104-14, 104-15, 104-22, 104-25, 104-30, 104-32, 104-35, Article 122-4(1), Articles 126-6, Article 126-7(8), and Article 12(2) of the Addenda to the Act on the Amendment of the Tax Reduction and Exemption Control Act (Act No. 5584) (limited to the revised provisions of former Article 37), shall be carried over to each taxable year ending within 10 years from the commencement of the following taxable year and deducted from the income tax (limited to income tax on business income, including income from real estate rental business under Article 45(2) of the 「Income Tax Act」 when applying Articles 96-3 and 126-6) or corporate tax of each such carried-over taxable year. <Amended by Act No. 12403, Mar. 12, 2010; Act No. 12844, Dec. 27, 2010; Act No. 13557, Dec. 31, 2011; Act No. 14080, Jan. 1, 2013; Act No. 14530, Jan. 1, 2014; Act No. 15004, Dec. 23, 2014; Act No. 15784, Dec. 15, 2015; Act No. 16095, Dec. 20, 2016; Act No. 17005, Dec. 19, 2017; Act No. 17150, Dec. 24, 2018; Act No. 17171, Dec. 31, 2019; Act No. 17190, Mar. 23, 2020; Act No. 17227, May 19, 2020; Act No. 17842, Dec. 29, 2020; Act No. 18468, Aug. 10, 2021; Act No. 18653, Dec. 31, 2021; Act No. 19011, Dec. 31, 2022; Act No. 19157, Dec. 31, 2023; Act No. 20200, Mar. 14, 2025; Act No. 20420, Dec. 23, 2025> 1. Omitted <Dec. 29, 2020> 2. Omitted <Dec. 29, 2020> 3. Omitted <Dec. 29, 2020>

Notwithstanding paragraph ①, the amount that could not be credited in the taxable year in which the investment was made, pursuant to the main clause excluding the sub-paragraphs of Article 26(1)2, and the amount paid as income tax or corporate tax pursuant to Article 26(6), shall be carried over to each taxable year ending within 5 years from the commencement of the taxable year following the year in which the investment was made, and deducted from the income tax (limited to income tax on business income) or corporate tax of each such carried-over taxable year, up to the sum calculated in the order of the following subparagraphs. In this case, the number of regular employees in the taxable year to which the carryover credit is applied shall exceed the larger of the numbers of regular employees under the sub-paragraphs of subparagraph 3. <Newly Inserted by Act No. 13557, Dec. 31, 2011; Act No. 14530, Jan. 1, 2014; Act No. 16095, Dec. 20, 2016> 1. Number of graduates from high schools specialized in industrial demand, etc., among regular employees with whom the employment contract was initially concluded in the taxable year to which the credit is carried over × 20 million won (25 million won for small and medium-sized enterprises) 2. Number of young workers, disabled workers, and workers aged 60 or older, excluding those in subparagraph 1, among regular employees with whom the employment contract was initially concluded in the taxable year to which the credit is carried over × 15 million won (20 million won for small and medium-sized enterprises) 3. (Number of regular employees in the taxable year to which the credit is carried over - Number of graduates under subparagraph 1 - Number of young workers, disabled workers, and workers aged 60 or older under subparagraph 2 - the larger of the numbers under the following sub-paragraphs) × 10 million won (15 million won for small and medium-sized enterprises) a. Number of regular employees in the taxable year immediately preceding the taxable year to which the credit is carried over b. Number of regular employees in the taxable year immediately preceding the taxable year in which the investment for which the credit is carried over was made c. Number of regular employees in the taxable year in which the number of regular employees decreased due to Article 26(6) and income tax or corporate tax was paid (in case of a decrease in the number of regular employees for two consecutive taxable years, the second taxable year)