Enforcement Rules of the Income Tax Act Article 31-2

The interest income of short-term commercial papers that shall be included in the amount of income of the profit-seeking enterprise as stated under Paragraph 3, Article 24 of the Act refers to the amount calculated by multiplying the proportion of the profit-seeking enterprise’s holding period to the duration of the issuance of the short-term commercial papers with the interest income for the portion of the maturity payment amount of the short term commercial papers that exceeds the first sales price. The tax amount calculated in accordance with the withholding tax rate multiplied by the prescribed interest income is allowed as deduction against the amount of the profit-seeking income tax payable for the annual income tax return.The gains or losses derived from the property transaction whereby a profit-seeking enterprise sells short-term commercial papers as described in the preceding paragraph before the due date shall be the net amount of the sale price minus the purchase price and interest income calculated as described in the preceding paragraph.The tax amount calculated in accordance with the prescribed withholding rates stated in Paragraph 2, Article 24-1 of the Act refers to the tax amount calculated in accordance with par value, coupon rate and holding period of government bonds, corporate bonds, and financial bonds and in accordance with the prescribed withholding rates.