Article 62 (Reduction of Corporate Tax, etc. When Public Institutions Relocate to Innovation City, etc.)

For the capital gains arising from the transfer of real estate prescribed by Presidential Decree, which is the former real estate as defined in 「Act on the Creation and Development of Innovation Cities」 Article 2, Paragraph 6 (hereinafter referred to as "former real estate" in this Article), by a relocating public institution as defined in 「Act on the Creation and Development of Innovation Cities」 Article 2, Paragraph 2 (hereinafter referred to as "relocating public institution" in this Article) for the purpose of relocating its head office or principal office (hereinafter referred to as "headquarters" in this Article) to an innovation city as defined in 「Act on the Creation and Development of Innovation Cities」 Article 2, Paragraph 3 (hereinafter referred to as "innovation city" in this Article) or Sejong Special Self-Governing City as defined in 「Act on the Establishment of Sejong Special Self-Governing City, etc.」 (hereinafter referred to as "Sejong City" in this Article) by December 31, 2026, an amount calculated in accordance with Presidential Decree, within the scope of the amount remaining after deducting the net operating loss carried forward as defined in 「Corporate Tax Act」 Article 13, Paragraph 1, Subparagraph 1 as of the last day of the business year preceding the business year in which the transfer date falls, from the capital gains, may not be included in the income amount when calculating the income for the relevant business year. In this case, the amount not included in income shall be included in income in equal installments over five business years, starting from the business year that includes the date five years after the transfer date. <Amended by Act No. 13049, Jan. 1, 2013; Act No. 13721, Jan. 1, 2014; Act No. 13707, Dec. 15, 2015; Act No. 14524, Dec. 26, 2017; Act No. 15273, Dec. 24, 2018; Act No. 18616, Dec. 28, 2021; Act No. 19816, Dec. 31, 2023>

A domestic corporation intending to apply Paragraph ① shall submit a statement of capital gains from land, etc. to the head of the tax office having jurisdiction over the place of tax payment, in accordance with Presidential Decree.

When applying Paragraph ④, the number of employees working at the relocated headquarters refers to the average annual number of full-time employees engaged in headquarters duties at the relocated headquarters (calculated by summing the number of employees as of the end of each month and dividing by the number of months; it excludes employees who were engaged in headquarters duties outside the Seoul Metropolitan Area and have subsequently relocated to the relocated headquarters, calculated from the business year two years prior to the relocation date), minus the average annual number of full-time employees engaged in headquarters duties at the relocated headquarters in the business year three years prior to the relocation date. The total number of employees of the corporation refers to the average annual number of full-time employees of the corporation. <Amended by Act No. 14524, Dec. 23, 2014>

If a relocating public institution that has received corporate tax reduction under Paragraph ④ falls under any of the following subparagraphs, it shall pay the amount of corporate tax calculated in accordance with Presidential Decree at the time of filing the tax return for the business year in which the reason occurred. 1. If the business is closed or the corporation is dissolved within three years from the date of commencement of business after relocating its headquarters to an innovation city. 2. In cases prescribed by Presidential Decree, such as when business is not commenced after relocating its headquarters to an innovation city. 3. If an office meeting the standards prescribed by Presidential Decree is established in the Seoul Metropolitan Area. 4. If the ratio of the number of executives working at the relocated headquarters to the total number of executives working at the headquarters in the Seoul Metropolitan Area and the relocated headquarters falls below 50 percent.

The method of calculating periods, the scope of salaries, applications for tax reduction, and other necessary matters for applying Paragraphs ④ through ⑥ shall be prescribed by Presidential Decree.