ARTICLE 127 (EXCLUSION OF DUPLICATE SUPPORT)

Where a national receives investment or acquires shares through contributions under this Act and is subject to Articles 8-3 (3), 24, 26, and 104-15 (1), the following amounts shall be deducted from the investment amount, contribution amount, or acquisition amount: <Newly enacted on Dec. 31, 2023, Dec. 29, 2021, Dec. 29, 2020, Dec. 24, 2018, Dec. 20, 2016, Jan. 1, 2014> 1. Where a national, for the purpose of investing in assets or acquiring shares through contributions, receives assets such as contributions from any of the following governments or entities (hereinafter referred to as "governments and others" in this Article) and expends them for investment or contributions: An amount equivalent to the amount expended for investment or contributions of the received assets such as contributions. a. National government b. Local governments c. Public institutions under the 「Act on the Management of Public Institutions」 d. Local public enterprises under the 「Local Public Enterprise Act」 2. Where a national, for the purpose of investing in assets or acquiring shares through contributions, receives a loan from any of the financial companies, etc. falling under any subparagraph of Article 2 (1) (1) of the 「Act on the Real Name Financial Transactions and Confidentiality」 (hereinafter referred to as "financial companies, etc." in this Article), expends it for investment or contributions, and governments and others pay all or part of the interest expenses payable to the financial companies, etc. on behalf of the national: An amount equivalent to the interest expenses paid by governments and others, calculated as prescribed by Presidential Decree. 3. Where a national, for the purpose of investing in assets or acquiring shares through contributions, receives a loan from governments and others and expends it for investment or contributions: An amount equivalent to the interest support provided by governments and others, calculated as prescribed by Presidential Decree. 4. Where a national, for the purpose of investing in assets required for businesses falling under any subparagraph of Article 37 (1) of the 「Corporate Tax Act」, receives a construction cost contribution under the same paragraph from the demanders or beneficiaries of the said assets and expends it for investment: An amount equivalent to the amount of the construction cost contribution expended for investment.

When applying Articles 8-3 (3), 24, 26, 29-5, 29-7, 29-8 (1), 30-4, 104-14, and 104-15 to a national 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 amount of tax to be deducted according to the relevant provisions by the ratio of the national investor's owned shares or equity to the total shares or equity of the relevant company shall be deducted. <Amended on Dec. 31, 2022, Dec. 29, 2020, Dec. 19, 2017, Dec. 20, 2016, Mar. 12, 2010, Jan. 1, 2010>

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 Articles 121-2 or 121-4 can be applied to the same business site of a national in the same tax year, only one of them may be selected and applied. <Amended on Dec. 28, 2021, Mar. 23, 2020, Dec. 29, 2020, Dec. 31, 2011, Dec. 27, 2010, Jan. 1, 2010>

Where a resident simultaneously receives two or more reduction provisions for capital gains tax upon transferring land, etc., only one reduction provision chosen 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 on Jan. 1, 2010>

Where Article 98-2 and Article 98-3 are simultaneously applied upon a resident's transfer of a house, only one of them may be selected and applied. <Amended on Jan. 1, 2010>

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