(For the year of ) Final Return of Tax Base and Computation of Global Income Tax, Special Tax for Rural Development and Local Income Tax to be paid

Transcription

1 [Form 40 (1)] Amended on 3. 16, 2016 (Page 1 of 33 Pages) (For the year of ) Final Return of Tax Base and Computation of Global Income Tax, Special Tax for Rural Development and Local Income Tax to be paid When a business owner who has either real estate rental business income* or other business income** and who are subject to the simplified expense rate does not keep books, but files estimated-return with simplified expense rate, he/she shall use the Form 40(4). Business income derived from real estate rental business (hereinafter "Real estate rental business income") Other business income made from other businesses (hereinafter "Other business income") When a taxpayer subject to Simplified Bookkeeping (excluding new business starters and business owners with revenue of the previous taxable period less than 48 million won) does not file his/her return by bookkeeping, he/she is liable to pay the 20% of calculated tax amount additionally as the penalty for non-bookkeeping. When a taxpayer, who is liable for Double Entry Bookkeeping does not file his/her return by the double entry bookkeeping method, he/she is obliged to pay the greater amount additionally, either the 20% of calculated tax amount or 0.07% of Gross Revenue as the penalty for failure to file returns. 1. Fill out the block ❶ Basic Information. Instructions 2. Fill out the block ❸ Tax Attorney, when you have a tax attorney keeping booking, making adjustment, or preparing this form. 3. Prepare each income statement (❺ ~ ❽) (only when needed). 4. Prepare ❾ Details of Global Income, Deficit and Deficit Carried Over Deduction and Statement of Deficit Carried Over ( Statement of Deficit Carried Over is prepared when Deficit Carried Over exists). 5. Fill out the block Details of Exemptions and Deductions. 6. Fill out the statements Details of Tax Exemptions, Details of Tax Credits and Details of Reserves (Only a necessary statement is to be made). 7. Fill out the block Details of Penalty Taxes. 8. Fill out the block Details of Tax Prepaid. 9. Fill out the block ❹ Computation of Income Tax (If you have financial income, you should first fill in the form Calculation of Global Tax on Financial Income on page 23. If you prepare a statement of estimated income amount according to Standard Expense Rate, you should first fill out the form Statement of Estimated Income Amount [only for taxpayers subject to Standard Expense Rate] on page 25. As a real estate dealer, if you have Global Income Amount and gains from transactions by owning non-business purpose land, you should first fill in the form Global Income Tax Calculation (for real estate dealers) on page 27. If you have both financial incomes included in total income and gains from transactions by owning non-business purpose land, you should fill in the form Calculation of Global Tax on Financial Income first [for taxpayers having both financial income and gains from transactions of houses] on page 29). 10. Fill out the block ❷ Bank Account for Tax Refund. 11. If all lines of each statement is fully filled, use accompanying paper(s). 12. Taxpayer's name shall be recorded with his/her signature or seal. 13. Do not fill out the shaded boxes. Receipt (For the year of Name Final Return of Tax Base for Global Income Tax) Address Attachments 1. Financial Statement ( ) 2. Profit & Loss Statement including Accompanying Documents ( ) 3. Trial & Balance Sheet ( ) 4. Statement of Income Adjustment ( ) 5. Statement of Income Allowances ( ) 6. Refund Application for Deficit Retroactive Deduction ( ) 7. Tax Deduction and Exemption Application pursuant to Tax Incentive and Limitation Law ( ) 8. Simple Bookeeping Income Amount Calculation ( ) 9. Other Documents attesting the contents of the return ( ) Receiver Date of Receipt

2 (Page 2 of 33 Pages) Instructions 1. Indicate the attributable year for your tax filing and status of your residency Alien Reg. No.: A foreigner shall enter his/her alien registration number. If you do not have the number, passport number can be entered instead Type of Return: Please put a [ ] mark. The type of return filing is classified according to the attachment documents such as a statement of tax adjustment or a calculation sheet of income account, etc. If you are subject to two cases or more, select one in the order of,,,,,,. 4. ❷ Bank Account for Tax Refund: If you are qualified for refund, write down your bank account number where you want to get your refund. If an amount of tax refunded is 20 million won or more, file a tax return with an application of bank account opening/changing(attached form 22 of the Enforcement Rules of Framework Act of the National Taxes) to which a copy of bankbook is attached. 5. ❸ Tax Attorney: Select the type of assignment and mark [ ]. Select one from,, or when you have a tax attorney keeping booking, making adjustment, or preparing this form. 6. Amount of Global Income: Enter figures shown in line 5 (Total Global Income) of the block ❾ Details of Global Income, Deficit and Deficit Carried Over Deduction. 7. Total Income Allowances: Enter figures under following calculation ( Sum of Exemptions and Deductions - Excess of Global Limit of Income Deduction on Details of Exemptions and Deductions) 8. Tax Rate & Tax Calculated: An amount of tax calculated comes with following sequences: multiply tax base by tax rate in the table of basic tax rates and subtract progressive deductions from the amount. If there are interest ㆍ dividend income subject to global taxation, use Calculation of Global Tax on Financial Income to calculate and. If a taxpayer is a real estate dealer affected by Article 64 of the Income Tax Act, use Global Income Tax Calculation Form (for real estate dealers). If a taxpayer is a real estate dealer who has financial income, use Calculation of Global Tax on Financial Income (for taxpayers having both financial income and gains from transactions of houses). 9. Total Tax Exemption & Total Tax Credit: Enter figures shown in line 5Total of Tax Exemptions of the block Details of Tax Exemptions or in line 5 Total of Tax Credits of the Details of Tax Credits. 10. & Penalty Taxes: Enter penalties pursuant to Article 81, of the Income Tax Act and Article 47-2 to 47-5 of the Framework Act on National Taxes respectively. Fill in with figures shown in line 16 Total of Details of Penalty Taxes. 11. & Recapture: Prepare the Form 51 for the Recapture, and then fill the line with figures in line 4 of Form 51. And fill the line with STRD (Special Tax for Rural Development) refunded. 12. & Tax Prepaid: Enter figures from lines 11 of the block Details of Tax Prepaid. 13. Tax Refundable / Tax Due: Subtract Tax Prepaid from Total. If the amount is less than "0," it is refundable, so fill in ❷ Bank Account for Tax Refund 14. & Tax Amount for Special Case on Tax Payment : Where an executive official of a venture company applies the special case on tax payment for gains of stock option exercise to a withholding agent, the 2/3 of income tax relevant to gains of stock option exercise can be paid in installment. In this case, 1/2 of tax amount for special case on tax payment shall be paid at the final return/payment on global income tax base in the next two years respectively. For the payment in installment, fill tax amount for special case on tax payment in and for the payment for the next two years fill tax amount for special case on tax payment in. Tax Payable in Installments: The amount of tax payable, which is over 10 million won, could be paid in installments (if the tax amount payable is 20 million won or less, the amount in excess of 10 million won can be paid in installments, and if the amount payable is over 20 million won, the half or less than half of the tax amount can be paid in installments within 2 months of the due date for payment). For installments, fill out this line with the amount of installments. 14. Local income tax: Fill in with the tax base for global income tax ( ). In Tax Rate ( ), fill in the local income tax rate in the table of basic tax rates, and in Tax Calculated ( ), fill in the amount calculated by multiplying the tax base by the tax rate and then subtracting the progressive deductions from the amount. In Total Tax Exemption ( ) and Total Tax Credit ( ), enter 1/10 of the amount in ( ) and ( ), respectively, in accordance with Article of the Restriction of Special Local Taxation Act. In Penalty Taxes ( ), enter 1/10 of the amount in in accordance with Article 99 of the Local Tax Act and Articles 53-2 through 53-4 of the Framework Act on Local Taxes. (For return after due date, apply penalty tax reduction as stated in Article 54 of the Framework Act on Local Taxes.) In Tax Prepaid ( ), enter the amount calculated by: subtracting the interim payment amount (1 of the Details of Tax Prepaid) from Prepaid Income Tax ( ) and multiplying 1/ Special Tax for Rural Development: The Tax Base ( ) is carried over from the line of Form 68 (The Table on Total Exempted Tax for the Special Tax for Rural Development) and the amount of tax ( ) is calculated by applying the tax rate (20% or 10%) under Article 5 of the Special Tax for Rural Development Law. Fill in the line with the figures ( + - ). Special Tax for Rural Development can be partially paid in installments when the tax amount is more than 5 million won or the Global Income Tax is paid in installments. Tax Base Attributable Year From 2012 to 2013 Tax Rate Progressive Deductions Tax Base Table of Tax Rate Attributable Year Tax Rate Income tax From 2014 to 2015 Progressive Deductions Not more than 1,200 6% Not more than 1,200 6% 0.6% (Unit: 10,000 won) Local Income tax Tax Rate Progressive Deductions Over 1,200 Not more than 4,600 15% 108 Over 1,200 Not more than 4,600 15% % 10.8 Over Not more than 8,800 24% 522 Over Not more than 8,800 24% % 52.2 Over 8,800 Not more than 30,000 35% 1,490 Over 8,800 Not more than 15,000 35% 1, % 149 Over 30,000 38% 2,390 Over 15,000 38% 1, % 194

3 Ref. No. - (For the year of )Final Return of Tax Base and Computation of Global Income Tax, Special Tax for Rural Development and Local Income Tax to be paid (Page 3 of 33 Pages) Residency Resident 1 / Non-resident 2 Nationality Citizen 1/ Foreigner 9 Flat tax rate for Foreign Employee Yes 1 / No 2 State of Residency ❶ Basic Information 1 Name 2 Alien Reg. No. - 3 Address 4 Home Phone No. 5 Business Phone No. 6 Mobile Phone No. 7 Address Self-adjustment External adjustment Confirmation of compliant return 8 Type of Return Simplified bookkeeping Estimate - Standard rate Estimate - Simplified rate Non-business 9 Type of bookkeeping Double entry bookkeeping Simplified bookkeeping Non-business 10 Return Classification Regular A mended declaration Claim for correction Return after due date Additional return (recognizing bonus) ❷ Bank Account for Tax Refund (less than 20 million won) ❸ Tax Attorney 13 Name Type of Assignment ❹ Computation of Income Tax 14 Tax Reg. No. 11 Name of Bank / Post Office Bookkeeping and return Adjustment for taxable income Preparing return Confirmation - - Ref. No. Classification Global Income Tax Local Income Tax Amount of Global Income - 12 Account No. 15 Phone No. Designated No. State Code - Special Tax for Rural Development Total Income Allowances Tax Base ( - ) Tax Rate Tax Calculated Total Tax Exemption Total Tax Credit Tax Determined ( - - ) Penalty Taxes Recapture(Refunded tax amount for Special Tax for Rural Development) Total ( + + ) Tax Prepaid Tax Refundable/Tax Due ( - ) tax amount for special case on tax payment Tax Payable in Installments subtract add within 2 months Tax Payable within due date ( ) I declare that I have examined this form and to the best of my knowledge and belief, it is true, complete, and is accordance with Art. 70 of the Income Tax Act, Art. 7 of the Special Tax for Rural Development Act, Art. 93 of the Local Tax Law and Art of the Framework Act on National Taxes.... Taxpayer Name (Signature / Seal) I, as a licensee of tax professional, filled out above tax return fairly and honestly. Date of Receipt Tax Attorney (Signature / Seal) To Head of District Tax Office Computerized Attachments (refer to instructions of page 1): (Seal) Entry Required

4 (Page 4 of 33 Pages) Instructions for Preparing ❺ Details of Interest Income 1. Filers are not obliged to fill out this form if their interest income subject to non-taxation or separate taxation under the Income Tax Law and the Restriction of Special Taxation Act. Filers shall fill out this form if their financial income (total of interest income and dividend income) exceeds 20 million won with interest income included. Even though filers' financial income does not exceed 20 million won, they shall fill out this form if their interest income (ex. overseas financial income) is not withheld domestically. * Standard amount for global taxation of financial income : 20 million won 2. 1 Income Classification Code: Enter appropriate income classification codes mentioned below (11 ~ 17) in numerical order. (1) 11: "Interest from non-commercial loans withheld" as stipulated in Article 16 1 (11) of the Income Tax Law. (2) 12: "Interest income not withheld" as stipulated in Article 127 of the Income Tax Law Note: Enter Code 17 on "interest from non-commercial loans free from withholding." (3) 13: Other interest income withheld (4) 15: Interest income paid outside Korea and not subject to domestic withholding tax. (5) 16: Interest income derived from partnership under Article of the Restriction of Special Taxation Act. (6) 17: "Interest from non-commercial loans not withheld" as stipulated in Article 127 of the Income Tax Law Serial No.: Write down serial no. on each taxable interest income by the income classification code. If the number of each code is more than two, write down the sum of income by classification code in the last line Company Name (Name) & 4 Tax Registration No. (Resident Registration No.): Write down the name and tax registration no. (resident registration no.) for the company (person) paying interest Taxable Interest Income: Write down the sum of annual interest paid by each interest payer. Write down the amount of total interest before withholding Income Tax Withheld: Write down the amount of tax withheld. Do not enter local income tax here (Local tax is calculated on page 3).

5 (Page 5 of 33 Pages) ❺ Details of Interest Income 1 Income Classification Code 2 Serial No. Interest Payer 3 Company Name (Name) 4 Tax Reg. No. (Resident Reg. No.) 5 Taxable Interest Income 6 Income Tax Withheld

6 (Page 6 of 33 Pages) Instructions for Preparing ❻ Details of Dividend Income 1. Filers are not obliged to fill out this form if their dividend income is subject to non-taxation or separate taxation under the Income Tax Law and the Restriction of Special Taxation Act. Filers shall fill out this form if their financial income exceeds 20 million won with dividend income included. Even though filers' financial income does not exceed 20 million won, they shall fill out this form if their interest income (ex. overseas financial income) is not withheld domestically. * Standard amount for global taxation of financial income : 20 million won (40 million won by 2012) 2. 1 Income Classification Code: Write down appropriate code mentioned below (21~29) in numerical order. (1) Dividend income subject to Gross-up : 21. (2) Dividend income not subject to Gross-up : 22. Dividend income subject to Code 23 to 29 is classified by appropriate codes. Each total dividend income of gains from collective investment vehicles, transfer to capital caused by gains on retirement of treasury stocks and investment shares and deemed dividend according to transfer to capital on net revaluation amount of land (subject to 1% of revaluation tax rate) is classified as Code 22. In case that corporations make capital reserves and revaluation reserves transfer to capital, having treasury stocks and investment shares, the total dividend income of the amount of stock prices equivalent to increased equity ratio of shareholders except for competent corporations is also classified as Code 22 as well. In dividend income subject to Code 21, the amount of dividend from corporations subject to income deductions (including non-taxation/tax exemption/tax reduction or income deduction under Korean Acts other than the Restriction of Special Taxation Act ), or from companies designated by the Presidential Decree among companies subject to non-taxation/exemption/reduction of corporate tax that are not included in the minimum tax by the Article 132 of the Restriction of Special Taxation Act is classified in this code by multiplying this amount by reduction rate. (3) Dividend income which is not withheld by Article 127 of the Income Tax Act : 23 (4) Dividend income paid outside Korea and not subject to domestic withholding tax : 26 (5) Dividend income of a co-investor as stipulated in 17(1)5 of the Income Tax Act : 28 (6) Dividend income derived from partnership under the Article of the Restriction of Special Taxation Act: Serial No.: Write down serial no. on each dividend income by the income classification code. If the number of each code is more than two, write down the sum of income by the classification code in the last line Company Name ㆍ 4Tax Registration No.: Write down the name and tax registration no. for the company paying dividend Dividend Income: Write down the annual dividend income before tax withholding by each dividend paying company Dividend Income for Gross-up: Write the amount exceeding 40 million won if the total amount of dividend income in Code 21 and other interests and dividend income (not subject to gross-up) exceeds 20 million won. (ex) Interest income: 10 million won, Dividend income: 20 million won (subject to Gross-up), box 5: 20 million won, box 6: 10 million won 7. 7 Gross-up Amount: Dividend Income for Gross-up (6) x Gross-up rate (12% for dividend income during Jan. 1st 2009 ~ Dec. 31st 2010 and 11% for dividend income on and after Jan. 1st 2011) 8. 8 Taxable Income: Dividend Income (5) + Gross-up Amount (7) 9. 9 Income Tax Withheld: Enter the amount of tax withheld. Do not write down local income tax here (Local tax is calculated in page 3).

7 (Page 7 of 33 Pages) ❻ Details of Dividend Income 1 Income Classification Code 2 Serial No. Payer 3 Company Name 4 Tax Registration No. 5 Dividend Income 6 Dividend Income for Gross-up Gross-Up 7 Gross-up Amount (6 15/100) 8 Taxable Income (5+7) 9 Income Tax withheld

8 (Page 8 of 33 Pages) Instructions for Preparing ❼ Details of Business Income 1. 1 Income Classification Code: Choose appropriate code ( ) mentioned below in numerical order. (1) Real Estate Rental(Excluding Housing Rent Serrvice) Business Income: 30 (2) Real Estate Rental Business Income derived from partnership under the Article of the Restriction of Special Taxation Act: 31 (3) Income from Housing Rent Service : 32(701101, , , ) (4) Other Business Income: 40 (5) Other Business Income derived from partnership under the Article of the Restriction of Special Taxation Act: Serial No.: Write down serial no. by the income classification code. If the number of each code is more than two, write down the sum of income by the classification code in the last line If the business place is in Korea, enter "1," otherwise enter "9." Enter country code of business place as designated by the International Organization for Standardization ( ISO country code: NTS English website Resources Additional Info.) e.g.) Korea: KR, the United States: US 4. 6 Type of Bookkeeping: select one among Double entry bookkeeping, Simplified bookkeeping by business places 5. 7 Code for Type of Return: Write down the code number below according to the writers of statement of adjustment attached to the financial tax return or the type of income statement. Under the provision of the Article of the Restriction on Special Taxation Act, for business income derived from partnership, the code is 11 or 12 according to adjustment type of income calculation for partnership and distribution. (1) Self-adjustment (writing a statement of adjustment for yourself): 11 (2) External-adjustment (writing a statement of adjustment by a tax attorney): 12 (3) Confirmation of compliant return: 14 (4) Calculation of Income Amount by Simple Bookkeeping Income Amount Calculation: 20 (5) Calculation of Income Amount by Standard Expense Rate: 31 (6) Calculation of Income Amount by Simplified Expense Rate: Main Business Code: If the number of code falling under related type and items of business is more than two, write down the code of the business from which revenue is the greatest Gross Income Amount & Income : A taxpayer with by-job income of farmhouse (non-taxable business income) should enter the income in the box of of Tax Form 37-3 after filling out this form. Under the provision of the Article of the Restriction on Special Taxation Act, write down business income derived from partnership in the box of Gross Income Amount and enter losses derived from partnership in the box of Necessary Expenses. 8. Necessary Expenses: When you file a return using Standard Expense Rate, enter the figure of 16 Total of Necessary Expenses in The Statement of Etimated Income Amount. However, when Income Amount is 20 Alternative Income Amount in The Statement of Estimated Income Amount, enter 9 Gross Revenue - Income Amount. 9. Income: Enter 9 Gross Revenue - Necessary Expenses (a taxpayer subject to Standard Expense Rate shall enter Income Amount of The Statement of Estimated Income Amount above). 10. Beginning Date of Taxable Period & Closing Date of Taxable Period: Those keeping their business going shall write Jan. 1st of the current year as beginning date of taxation period, and Dec. 31st of the current year as closing date of taxation period. As for new business starters and closed businesses, enter a beginning date or a shutdown date of business. As for co-owners, enter the business commencement and withdrawal date of a member for that year. 11. Representative Co-owner: For joint business, write down the name and identification number of representative co-owner. 12. Related Party: In case that partners have special relationship each other(relatives living together), for the aggregate income return for the related party, write down the name and identification number of the related party under Article of the Presidential Decree of the Personal Income Tax Law. 13. Serial No.: Set a serial no. for withholding agent (company) and tax association. 14. Company Name(Name) & Tax Registration No. (Resident Registration No.): Write down the company name (name) and tax registration no. (resident registration no.) of withholding agent or taxpayer association. 15. Income Tax & Special Tax for Rural Development: Write down the annual amount of tax collected by withholding agent and taxpayer association or the special tax for rural development. Do not write down the local income tax here (Local tax is calculated in page 3).

9 (Page 9 of 33 Pages) ❼ Details of Business Income 1 Income Classification Code 2 Serial No. 3 Place of Business Location Domestic 1 Overseas 9 State Code 4 Company Name 5 Tax Registration No. 6 Type of bookkeeping 7 Code for Type of Return 8 Main Business Code 9 Gross Income Amount 10 Necessary Expenses 11 Income (9- ) 12 Beginning Date of Taxable Period Closing Date of Taxable Period Representative Co-owner Related Party Name Alien (Resident) Registration No. Name Alien (Resident) Registration No. Name Alien (Resident) Registration No. Name Alien (Resident) Registration No. Tax withheld and tax collected by taxpayer association for business income Serial No. Withholding Agent or Taxpayer Association Company Name (Name) Tax Registration No. (Resident Reg. No.) Tax withheld or tax collected by taxpayer association Income Tax Special Tax for Rural Development

10 (Page 10 of 33 Pages) Instructions for Preparing ❽ Details of Wage & Salary Income, Pension Income and Other Income 1. Exclude non-taxable income and income subject to separate taxation Income Classification Code: Choose appropriate codes mentioned below and enter the code in numerical order. The classification code of wage and salary income (1) Wage and salary income subject to withholding tax according to the Art. 127 of the Income Tax Act (excluding wages and salaries received from the U.S. Armed Forces in Korea): 51 This includes wage and salary income received for providing services in Korea. (2) Wages and salaries received from the U.S. Armed Forces in Korea: 52 (3) Wage and salary income received for providing services abroad: 53 (4) Wage and salary income of the member who joins a taxpayer association: 55 (5) Wage and salary income incurred from the exercise of stock option granted by foreign companies: 56 (6) Wage and salary income not subject to withholding tax according to the Art. 127 of the Income Tax Act: 57 This includes wage and salary income received from foreign organizations, the U.N. Forces (except U.S. army), foreigners or foreign corporations outside Korea (excluding wage and salary received from foreign corporation's domestic branches and domestic business office/place.) Pension Income: 66 Other Income (1) Other income which is not under code 61: 60 (2) Other income derived from partnership under the Article of the Restriction of Special Taxation Act: Serial No.: Set a serial no. by each code. If the number of code is more than two, write down the sum of income by classification code in the last line. 4. Write down 3 Company Name (Name) and 4 Tax Registration No.(Resident Reg. No.) of those who are paying wage and salary income, pension income and other income. But the worker who has wage and salary income incurred from the exercise of stock option granted by foreign companies shall write down the name or tax registration no. of foreign head quarters which have the stock option concerned, domestic branch, liaison office or the foreign invested company. 5. Write down an annual 5 Gross Receipt by each income payer. For wage and salary income, put the total amount of gross pay (excluding non-taxable income) and for pension income, put the total amount of pension received (excluding non-taxable income) Necessary Expenses: For wages and salaries, write down the amount of earned income deduction, which is deducted from the wages and salaries income accrued in main working place if working place is more than two. But in case where the amount of wages and salaries is less than earned income deduction, the excess amount can be carried over to be deducted from the secondary working place. In case of pension income, write down the amount of pension income deduction. Income Deduction for Wage/Salary Income Deduction for Pension(ceiling 9M won) Total Wage/Salary Deduction Amount Total Pension Deduction Amount ~5M won 70% ~3.5M won Total pension amount 5M won 15M won 3.5M won + 40% of excess 3.5M won + 40% of excess 3.5M won 7M won amount of 5M won amount of 3.5M won 15M won 45M won 7.5M won + 15% of excess 4.9M won + 20% of excess 7M won 14M won amount of 15M won amount of 7M won 45M won 100M 12M won + 5% of excess 6.3M won + 10% of excess 14M won~ won amount of 45M won amount of 14M won 100M won~ 14.75M won + 2% of excess amount of 100M won 7. 7 Taxable Income: 5 Gross Receipt - 6 Necessary Expenses 8. 8 Income Tax & 9 Special Tax for Rural Development: Write down the tax withheld and the tax collected by taxpayer association. Do not write down the local income tax here (Local tax is calculated in page 3).

11 ❽ Details of Wage & Salary Income, Pension Income and Other Income (Page 11 of 33 Pages) 1 Income Classification Code 2 Serial No. Payer (Domestic working place) 3 Company Name (Name) 4 Tax Reg. No. (Resident Reg. No.) 5 Gross Receipt (Total amount of wage&salary and pension) 6 Necessary Expenses (Income deduction of wage&salary and pension) 7 Taxable Income (5-6) Tax withheld or tax collected by taxpayer association 8 Income Tax 9 Special Tax for Rural Development

12 (Page 12 of 33 Pages) Instructions for Preparing ❾ Details of Global Income, Deficit and Deficit Carried Over Deduction 1. 1 Amount of Income by Income Classification (1) Interest Income: Gross amount of 5 Interest Income in the ❺ Details of Interest Income (2) Dividend Income: Gross amount of 8 Dividend Income in the ❻ Details of Dividend Income excluding the dividend income paid to a co-investor under of the Income Tax Act (3) Dividend income paid to a co-investor: A co-investor's total dividend income under of the Income Tax Act. (4) Real Estate Rental Business(excluding Housing Rental Service) Income: Sum of Income of which classification code is either 30 or 31 in the ❼ Details of Business Income. If the amount is (-), write down "0," and enter the loss in the 2 of the Statement of Deficit Carried Over. (5) Other Business Income: Sum of Income of which classification code is either 32, 40 or 41 in the ❼ Details of Business Income (6) Wage & Salary Income, Pension Income and Other Income: Sum of 7 Taxable Income of each income type in the ❽ Details of Wage & Salary Income, Pension Income and Other Income Deficit Deduction for Other Business Income: The amount of deficit for other business income is deducted from each income in following sequence; real estate rental business income(excluding Housing Rental Service), wage & salary income, pension income, other income, and interest income and dividend income subject to global income tax (not deductible for interest income and dividend income subject to withholding tax rate). Taxpayers decide both the amount of deficit to be deducted and whether the deficit or the deficit carried over is deducted from interest income or dividend income as stipulated in Article 45 5 of the Personal Income Tax Law Deficit Carried Over Deduction for Other Business Income: The amount of deficit carried over for other business income is deducted from each income in following sequence; Other business income, real estate rental business income(excluding Housing Rental Service), wage & salary income, other income, and dividend income and interest income subject to global income tax (not deductible for interest income and dividend income subject to withholding tax rate) Deficit Carried Over Deduction for Real Estate Rental Business Income(excluding Housing Rental Service): Write down the deficit carried over which is deducted from real estate rental business income(excluding Housing Rental Service) Income after Deficit / Deficit Carried Over: In case where the other business income is under zero (when the amount of deficit for other business income still remains, after deducted from other incomes just like 2 above), write down "0" and the amount left after deduction is written down in the line 2 in the Statement of Deficit Carried Over. Instructions for Preparing Statement of Deficit Carried Over 1. 1 Taxation Period Accrued & 2 Amount Accrued: The deficit carried over, which was incurred in previous 10 taxation periods (for the deficit carried-forwarded in the taxation period before 2008, previous 5 taxation periods) and the current taxation period, shall be written down in sequence of each taxation period. 2. Write down the 3 Amount Deducted by previous taxation period. 3. Write down the 4 Current Deduction in the line. Deduct the first incurred deficit carried over in sequence. (The total amount of the current deduction is the sum of 4 or 3 in the ❾ Details of Global Income, Deficit and Deficit Carried Over Deduction.) 4. Write down the 5 Retroactive Deduction (or the deficit carried over in line 12 of [Form (40-4)]) in case where small and medium sized business by Article 2 of the Restriction of Special Taxation Act applies retroactive deduction to the deficit which is incurred in current taxation period under Article 85-2 of the Income Tax Law Other Deduction: Write the amount in case that the deficit carried over is appropriated as gain from assets contributed or gain from discharge of indebtedness Balance: Write down the amount of accrued deficit carried over which is left after deduction ( )

13 ❾ Details of Global Income, Deficit and Deficit Carried Over Deduction (Page 13 of 33 Pages) Classification 1 Amount of Income by Income Classification 2 Deficit Deduction for Other Business Income excluding real estate leasing business (excluding housing rental service) Deficit Carried Over Deduction Amount 3 Deficit Carried Over Deduction for Other Business Income 4 Deficit Carried Over Deduction for Real Estate Rental Business Income excluding housing rental service 5 Income after Deficit / Deficit Carried Over Interest Income Dividend Income Dividend Income paid to a co-investor Real Estate Rental Business Income (excluding housing rental service) Other Business Income Wage & Salary Income Pension Income Other Income Total Global Income Statement of Deficit Carried Over Classification Deficit carried over 1 Taxation Period Accrued 2 Amount Accrued 3 Amount Deducted by Pre-taxation Period 4 Current Deduction Current Deduction 5 Retroactive Deduction 6 Other Deduction 7 Balance Real Estate Rental Business Income (excluding housing rental service) Other Business Income

14 (Page 14 of 33 Pages) Instructions for Preparing Details of Exemption and Deductions Personal deductions and special deductions should be entered based on the following [Form 37], and exemptions and deductions under the Restriction of Special Taxation Act should also be based on the related form. 1. Personal Deductions (1 ~ 7) (1) Basic Deduction: 1.5 million won per capita is deductible (number of persons x 1.5 million won) for yourself, spouse and family with annual income(including retirement income/capital gains) not more than 1 million won. Dependent family members subject to deduction should be not less than 60 or not more than 20 (No age restriction on the disabled and those under the National Basic Livelihood Security System add foster child aged less than 18). (2) Additional Deduction: 1 million won is additionally deductible for an eligible person for basic deduction aged 70 or older(4) and 2 million won is additionally deductible for a disabled person (5). 500,000 won is additionally deductible for a woman(whose global income is less than 30M won) who is a householder having dependents or who has a spouse (6). 1 million won is additionally deductible for single-parent who has no spouse having descendants/adoptees eligible for basic income tax deduction (7). In case of duplication with 6, apply Pension Premium Deduction (9~ ): The amount of contribution (excluding employer liability) shall be deducted if a resident pays national pension premium according to the National Pension Act (9). The amount of contribution(sum of public official pension, military pension, special post office pension, Korea Teacher's pension) shall be deducted if a resident pays employee contribution according to the other pension acts or the Special Post Office Act. 3. Deduction for Reverse Mortgage Interest: If you are a resident who has a retirement income and receives reverse mortgage, you are entitled to take the deduction for interest accruing for the year on the mortgage with a limit of 2 million won within the range of mortgage income. 4. Special Deductions ( ~ ) (1) Insurance Premium Deduction : Deduction is taken from the amount of labor income only (excluding the wages of day workers). - Deduction item : Health Insurance (including Long-term Care Insurance for the Aged), Employment Insurance (2) 13 Housing Fund Allowances :Deduction is taken from the amount of labor income only (excluding the wages of day workers). ᄀ Repayment of principal for house rent deposit Repayment of principal for a rent deposit from a financial institute to rent a housing (a size of national housing including residential officetel) by a worker who is a householder of non-homeowner family (available for a family mamner, where the head of a household did not receive deduction relevant to housing). ᄂ Deduction for the interest repayment of long-term house mortgage loans An interest repayment of long-term house mortgage loans from a financial institute in order to acquire a housing (as of the time of acquirement, the housing cost shall be 400M or less) by a householder who does not own a house or owns one house (available for a family member, where the head of a household did not receive deduction relevant to housing). (3) Deduction for Donations(carries over) : Donations carried over that was not deducted by the end of 2013 shall be subject to income deduction as before. 5. Dependants for Deduction: List names and required information of the filer and his/her dependants eligible for basic income tax deduction. In box Citizen/Foreigner, a resident shall enter "1" and a foreigner "9". In box Resident (Alien) Reg. No., a foreigner shall enter alien registration number. 6. Exemptions and Deductions under the Restriction of Special Taxation Act ( ~ ): The column is for the related Article of the Restriction of Special Taxation Act and the column is for the deduction amount. And the column is for taxpayer's tax registration number if the deduction is for business income. Code: Leave it blank. 7. Excess of Global Limit of Income Deduction for 9 shall be put into the excess of global limit of income deduction for of details of Global Limit of Income Deduction in -1.

15 (Page 15 of 33 Pages) Details of Exemptions and Deductions Exemptions and Deductions under the Income Tax Law Classification Amount Classification Amount Personal Deduction Basic Additional 1 Taxpayer Him/Herself 2 Spouse 3 Dependants( ) 4 the elderly( ) 5 Disabled Person( ) 6 Female Worker 7 Single-parent family 8 Total of Personal Deduction (Sum of 1~7) List of Eligible Dependants for Deduction Pension Premium Deduction 9 National Pension public official/military/special post office/korea Teacher's pension Deduction for Reverse Mortgage Interest Special Deduction insurance premium Housing Fund Allowances Deduction for Donations(carried over) t o t a l Individual having wage or special salary( ~ ) t a x Individual not having wage cre dit or salary( ) Relation -ship Code Name Citizen/ Foreigner Resident (Alien) Reg. No. Relations hip Code Name Citizen/ Foreigner Resident (Alien) Reg. No Relationship Code: Yourself=0, Linear ascendant of yourself=1, Linear ascendant of spouse=2, Spouse=3, Children or the adopted=4, Other linear descendants (if the linear descendant and his/her spouse are both disabled, the spouse is also included)=5, Brother and sister=6, Taxpayers subject to the Basic Livelihood Security System=7 Foster child=8(relationship code 4~6 includes relationship of the taxpayer himself/herself and that of his/her spouse) Exemptions and Deductions under the Restriction of Special Taxation Act Article of the Restriction of Special Taxation Act Code Amount Tax Reg. No. Sum of Exemptions and Deductions under the Restriction of Special Taxation Act Sum of Exemptions and Deductions (8 ~ + + ) Excess of Global Limit of Income Deduction

16 (Page 16 of 33 Pages) Instruction for Preparing -1 Details of Global Limit of Income Deduction Details of Exemptions and Deductions should be filled out after this form. 1. Global Limit of Income Deduction [Restriction of Special Taxation Act 132-2] Where a sum of deduction amount, which falls under following lists, excesses 25 million won in a resident's income tax calculation, the excess amount shall not be counted, (1) Housing Fund Allowances of the Special deduction under Article 52 of the Restriction of Special Taxation Act (2) Income deductions for Investment in Small and Medium Enterprise Establishment Investment Association, etc. (Restriction of Special Taxation Act 161)(excluding investments under the Restriction of Special Taxation Act or 161-4) (3) Income deductions for Mutual aid fund for small enterprises and small enterprisers (Restriction of Special Taxation Act 86-3) (4) Income deductions for subscription deposits housing subscription synthetic deposits (Restriction of Special Taxation Act 872) (5) Income deductions for investment in Employee Stockholders Association (Restriction of Special Taxation Act ) (6) Income deduction for long-term collective investment security savings (Restriction of Special Taxation Act 91 16) (7) Income deductions for credit card, etc. (Restriction of Special Taxation Act ) 2. Summary of Global Limit of Income Deduction Item Classification Deduction Ceiling Availibility of Global Limit Personal Deduction Basic Deduction(taxpayer, spouse, dependant) Additional Deduction 1.5M won per person 1M won per one elderly person, 2M won per one disabled person, 500,000 won for females, 1M one for single-parent Insurance Premium Public Pension Premium whole amount Deduction for Reverse Mortgage Interest 2M won per year Health Insurance Premium, Employment Insurance Premium, Long-term care Insurance Premium whole amount Special Income Deduction Housing Fund repayment of principal for house rent deposit ( ᄀ ) Deduction for the interest repayment of long-term house mortgage loans( ᄂ ) ( ᄀ + ᄃ ) 3M won per year ( ᄀ + ᄂ + ᄃ ) 5M won per year(15m won) Personal Pension Savings 620,000 won per year Investment in Small and Medium Enterprise Establishment Investment Association Mutual aid fund for small enterprises and small enterprisers 50% of global income 3M won per year 2013 and 2014 payments excluding investments for Private Investment Association and venture company in 2014 Other Income Deduction House-purchasing savings( ᄃ ) (subscription deposit, housing subsciption synthetic deposit) Investment(contribution) in Employee Stockholders Association long-term collective investment security savings ( ᄀ + ᄃ ) 3M won per year 4M won per year 2.4M won per year Amount used by credit card, etc. Min 3M won, 20% of total salary + 1M won(traditional market) + 1M won(public transportation) Employyes of SMEs that maintains Employment 10M won per year Repayment of interest for jeon-se that doesn't require lump-sum savings 3M won per year 210 mm 297 mm [ 백상지 80g/ m2 ( 재활용품 )]

17 (Page 17 of 33 Pages) -1 Details of Global Limit of Income Deduction Special Deductions under the Income Tax Act Classification Amount Target 1 housing funds worker Exemptions and Deductions under the Restriction of Special Taxation Act Classification Amount Target 2 Investment in Small and Medium Enterprise Establishment Investment Association 3 Mutual aid fund for small enterprises and small enterprisers 4 House-purchasing savings (subscription deposit, housing subsciption synthetic deposit) 5 Investment(contribution) in Employee Stockholders Association resident resident worker worker 6 long-term collective investment security savings worker 7 Amount used by credit card, etc. worker 8 Total income deduction applicable to global limit (1~7) 9 Excessive amount of income deduction applicable to global limit (income deduction applicable to global limit - 25 million won)

18 (Page 18 of 33 Pages) Instructions for Preparing Details of Tax Exemptions and Details of Tax Credits 1. Application order of reductions or exemptions of income tax or tax credits: If both the provisions concerning the reductions or exemptions of the income tax and those concerning the tax credits are applied, the order of application shall be as follow: (1) Reductions or exemptions of the income tax in the taxable period concerned (2) Tax credits for which the reductions carried forward is not recognized. (3) Tax credits for which the reductions carried forward is recognized. In this case, if there is a tax credit amount accruing during the tax period concerned and the amount not deducted and carried forward shall be deducted preferentially. If the sum of the amount of reduction, exemption and tax credit exceeds the tax amount payable, the amount in excess shall be considered not to exist. If the tax amount payable is less than the minimum tax amount stipulated in Article 132 of the Restriction of Special Taxation Act, the short amount shall not be deducted. However in the case of the tax credit for which the reduction carried forward is recognized, the tax credit amount can be carried forward to the next taxable period and deducted from income tax for business income Article (title) of the Related Tax Law: Fill in the column with Article (title) of the Restriction of Special Taxation Act. (1) The tax credit for dividend ( 56 of Income Tax Act) is put in of Tax Credit for Dividend in Calculation of Global Tax on Financial Income. For a taxpayer having global income under the provision of 64 of Income Tax Act and profit margin on purchase and sale of houses, land, etc. the amount of tax credit is same as of Tax Credit for Dividend in Calculation of Global Tax on Financial Income (Taxpayer having both Financial Income and Gains from Transaction of House). A resident having profit margin on purchase and sale of house or land specified in to , or of the Income Tax Act. (2) Child Tax Credit ㅇ Where a dependant child is subject to a resident who has global income (including the adopted or foster child) - 2 or less children: 150,000 won per child (1 child: 150,000 won, 2 children: 300,000 won) ㅇ over two children : 300,000 won + 300,000 won each from the third child ㅇ Where a resident subject to basic deduction has more than two dependant children under age 6 : 2 children (150,000 won), over 2 children (150,000 won + 150,000 won each from the third child) ㅇ Tax credit for new born or newly adopted child : 300,000 won for each (3) tax credit for pension savings : payment of pension savings(4m won limit) 12%(15% for an employee whose total wage is less than 55 million won while he/she has wage & salary income alone or his/her global income is 40 million won or less ) (4) Special Tax Credit ㅇ Insurance premium, Medical expense, Educational expense ㅇ Donation: Fill in this section after completing donation payment receipt(attached form 45). Donations subject to deduction shall be amounts in the following deduction limit range by donation codes among donations that are not included in the necessary expense of business income. Code 10, 40 and 41 of the donation payment receipt shall be filled in this section. Code 20 of the donation payment receipt shall be filled in the tax credit section of the Restriction of Special Taxation Act. The figures of following calculation shall be deducted from the calculated global income for tax credit amount. Total donations - donations that are added in necessary expense where business income is calculated x 15% (where donation amount excesses 30M won, 25% shall be applied to the exceeded amount) Provided, that calculated amount on interest/dividend income that are applied by withholding rate under business income or Article 62 shall be excluded. Donation as political fund not more than 100,000 won is credited up to 100/110 under Article 76 of the Restriction of Special Taxation Act. As for donation more than 100,000 won, 15% of the exceeded amount is credited (25% for over 30M won) [Deduction for donation] ᄀ donation under code 10 and 20 of donation payment receipt : global income amount ᄂ donation under code 31: (global income amount-donation deduction of ᄀ ) 50% ᄃ donation under code 42: (global income amount-donation deduction of ᄀ ᄂ ) 30% ᄅ donation under code 40 and 41 [where donation for religious group(code 41)is existed]: (global income amount-donation deduction of ᄀ ᄃ ) 10% + [smaller amount between (global income amount-donation deduction of ᄀ ᄃ ) 20% and donation under code 40] ᄆ donation under code 40, 41[where donation for religious group(code 40) is not existed]: (global income amount-donation deduction of ᄀ ᄃ ) 30% ㅇ standard tax credit: a resident with salary/wage income who has not applied for special income deduction, special tax credit and donation deduction under the Restriction of Special Taxation Act, and compliant business operator under the Income Tax Act (120,000 won), and a resident with no salary/wage income who has global income (70,000 won) 3. The amount of reductions or exemptions of tax or tax credits from partnership can be deducted or exempted respectively under the provision of of the Restriction of Special Taxation Act Code: Leave it blank 5. 3 Tax exemptions or Tax Credits: Enter the amount of reduction, exemption of tax or tax credit. In the case of tax credit for which the deduction carried forward is recognized, include the amount not deducted and carried over from previous taxable period. And in the case of the tax credit which was not deducted in the current taxable period and then carried forward, do not include the tax credit amount Tax Registration No.: Enter the tax registration number of the business place where the exemption or reduction of tax or tax credit accrued. Instructions for Preparing Details of Reserved Funds 1. 1 Article (title) of the Restriction of Special Taxation Act: Put Article (title) of the Restriction of Special Taxation Act which prescribes the allowance of the reserved resources Code: Leave it blank 3. 3 Year & 4 Amount: Enter the year and amount of the reserved funds Amount returned in the current year: Enter the amount which is returned this year and added into the taxable amount. 6 Accumulated amount returned: Put the accumulated amount up to this year Tax Registration No.: Enter the tax registration number of the business place where the reserved funds accrued.

19 (Page 19 of 33 Pages) Details of Tax Exemptions 1 Title (Article of the Related Tax Law) 2 Code 3 Tax Exemption 4 Tax Registration No. 5 Total of Tax Exemptions Details of Tax Credits 1 Tax Credits under the Income Tax Act 2 Code Dividend Tax Credit Bookeeping Tax Credit Foreign Tax Credit Casualty Loss Tax Credit Wage and Salary Income Tax Credit Child Tax Credit Pension Savings Tax C re dit Special Tax Credit Prem ium Child for basic deduction ( ) Child under age 6 ( ) New born/adopted child ( ) Amount for deduction ( ᄀ ) Applied Rate ( ᄂ ) K o r e a S c i e n t i s t s a n d E n g i n e e r s D eduction 12% Retiremen t (15%) P e n s i o n P e n s i o n S a v in g s Guaranteed 12% guaranteed for the disabled 15% Medical Expense 15% Educational Expense 15% Donation Statutory 15% Designated Standard Tax Credit Tax credit for payment of tax by taxpayer association 5 legal provisions of tax credit under the Restirction of Special Taxation Act Political Fund Donation 1000,000 won or less over 100,000 w on (25%) 3Tax Credit ( ᄀ ᄂ ) 4Tax Reg. Number 6 Total of Tax Credits(1Income Tax Act+2Restriction of Special Taxation Act) Details of Reserved Funds 1 Article (title) of the Restriction of Special Taxation Act 2 Code Amount Deducted from the Taxable Income 3 Year 4 Amount Amount Added Back to the Taxable Income 5 This Year 6 Accumulated Amount 7 Tax Registration No.