72-jo (The Special Taxation of Corporate Tax on Cooperatives, etc.)

The corporate tax on the income of each business year of a corporation falling under any of the following subparagraphs shall be calculated by applying the tax rate of 100분의 9 [in cases where the amount exceeds 2 billion won (in the case of mergers between cooperative corporations before December 31, 2016, 4 billion won for the business year in which the merger registration date of the newly established or surviving cooperative corporation falls and the following business year) for the excess portion, 100분의 15] to the sum of the net profit for the current period (meaning net profit for the current period before deducting corporate tax, etc.) in the financial statements of the corporation, the non-deductible amount of donations (limited to those related to the corporation's revenue-generating business) pursuant to Article 24 of the Corporate Tax Act, and the non-deductible amount of business promotion expenses for enterprises (limited to those related to the corporation's revenue-generating business) pursuant to Article 25 of the same Act, and other expenses designated by Presidential Decree, notwithstanding Articles 13 and 55 of the Corporate Tax Act, until the end of the business year ending on December 31, 2028 (hereinafter referred to as "taxation on net profit for the current period" in this Article). However, if the corporation waives taxation on net profit for the current period according to the method prescribed by Presidential Decree, taxation on net profit for the current period shall not be applied to subsequent business years. <Amended on Dec. 28, 1999, Oct. 21, 2000, Dec. 29, 2000, Dec. 29, 2001, Dec. 30, 2003, Dec. 31, 2004, Dec. 31, 2005, Dec. 30, 2006, Dec. 26, 2008, Jan. 1, 2010, Jan. 1, 2013, Jan. 1, 2014, Dec. 23, 2014, Dec. 15, 2015, Dec. 20, 2016, Dec. 19, 2017, Dec. 29, 2020, Dec. 31, 2022, Dec. 23, 2025> 1. Credit unions established under the Credit Union Act and Saemaul Undong Credit Unions established under the Saemaul Undong Credit Union Act. 2. Cooperatives and cooperative joint business corporations established under the Agricultural Cooperatives Act. 3. Deleted <Dec. 28, 1999> 4. Cooperatives (including fishing villages) and cooperative joint business corporations established under the Fisheries Cooperatives Act. 5. Cooperatives, business cooperatives, and cooperative federations established under the Small and Medium Enterprise Cooperatives Act. 6. Forestry cooperatives (including forestry communities) and cooperative joint business corporations established under the Forestry Cooperatives Act. 7. Tobacco Leaf Production Cooperatives established under the Tobacco Leaf Production Cooperatives Act. 8. Consumer cooperatives established under the Consumer Cooperatives Act.

Deleted <Jan. 1, 2013>

When applying Paragraph (1), in the case where acquiring cooperatives and acquiring credit unions (hereinafter referred to as "acquiring cooperatives, etc." in this Article) among credit unions and Saemaul Undong Credit Unions under subparagraph 1 of the same paragraph have received financial support for the performance of contract transfer (meaning support through interest-free loans from the depositor protection fund and depositor protection reserve fund under each Act, deposited with the National Federation of Credit Unions or the National Federation of Saemaul Undong Credit Unions, and repaid after receiving regular interest) by December 31, 2015, pursuant to Article 86-4 (3) of the Credit Union Act and Article 80-2 (3) of the Saemaul Undong Credit Union Act, and if such funds are managed separately in the manner prescribed by the Minister of Economy and Finance, the interest generated from depositing such funds may not be recognized as revenue when calculating the net profit for the current period. In this case, if the acquiring cooperatives, etc. have paid such interest and booked it as an expense (in the case of expenditure for acquiring assets, it means booking it as depreciation or the book value at the time of disposal), such interest shall not be recognized as an expense. <Newly inserted on Jan. 1, 2013, Oct. 1, 2025>