ARTICLE 63 (USEFUL LIFE AND DEPRECIATION RATE)

The useful life of depreciable assets and the depreciation rate according to the relevant useful life shall be determined as follows: <Amended by Dec. 31, 2001, Dec. 30, 2002, Feb. 29, 2008, Feb. 11, 2020, Feb. 28, 2025, Dec. 30, 2025> 1. Assets for research and development prescribed by the Presidential Decree of the Ministry of Economy and Finance, and intangible assets under subparagraphs 2 (a) through (d) of Article 62 (2): The useful life and the depreciation rate by depreciation method prescribed by the Presidential Decree of the Ministry of Economy and Finance (hereinafter referred to as "depreciation rate"). 2. Depreciable assets other than those falling under subparagraph 1 (excluding intangible assets under subparagraphs 2 (f) through (j) of Article 62 (2)): The useful life chosen and reported to the head of the tax office having jurisdiction over the place of tax payment by the business operator within the range of useful life prescribed by the Presidential Decree of the Ministry of Economy and Finance, which is obtained by adding or subtracting 25/100 of the standard useful life prescribed by the Presidential Decree of the Ministry of Economy and Finance according to the structure, asset type, or business type (hereinafter referred to as "range of useful life"), and the depreciation rate corresponding thereto (in cases where no report is filed within the reporting deadline under subparagraphs of Article 5 (2), the standard useful life and the depreciation rate corresponding thereto). (Hereinafter referred to as "reported useful life").

The reported useful life or standard useful life applied by the business operator according to asset type and business type under subparagraphs (1) 2 and (5) shall continue to be applied to subsequent taxable periods. <Amended by Feb. 18, 2010, Nov. 5, 2013>

Notwithstanding subparagraph (1) 2, where 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, it may choose and apply a useful life within the range obtained by adding or subtracting 50/100 of the standard useful life to the standard useful life by asset type and business type (provided that any period less than one year shall be disregarded), and report it to the head of the tax office having jurisdiction over the place of tax payment. 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 Nov. 5, 2013, Sep. 26, 2014, Feb. 17, 2016> 1. Vehicles and conveyances; provided, that this shall be limited to cases used in transportation business or used for rental purposes in leasing business. 2. Ships and aircraft; provided, that this shall be limited to cases used in fishery and transportation business or used for rental purposes in leasing business. 3. Tools, implements, and fixtures. 4. Machinery and equipment.