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(영문) 국외특수관계자에게 제공한 지급보증용역에 대한 정상가격조정의 적정여부

조세심판원 조세심판 | 2014-02-04 | 조심2012중3118 | 법인

【Request Number】

[Request Number] Trial Decision 2012J 3118 ( February 4, 2014)

[Items]

[C] Correction of a corporation [Type of Decision]

[Summary of Decision]

[Determination] It is reasonable to re-examine whether all the letters of intent for the loan have been received from the relevant financial company, and whether the guarantee fee has been received in proportion to the difference in interest rates arising from the existence of payment guarantee stated in the letter of intent for the loan.

[Related Acts]

[Related Acts and subordinate statutes] Article 4 of the International Tax Act / Enforcement Decree of the International Tax Act

【Determination following Decision】

[Determination following] Trial Decision 2014bu4008/ Trial Decision 2014bu408/ Trial Decision 2014bu1283/ Trial Decision 2015bu196/ Trial Decision 2015bu1421/ Trial Decision 2018bu1951

【Disposition】

The disposition of imposition of corporate tax and value-added tax on the details stated in the attached Form shall be conducted on March 22, 2012 by the head of the OOO Tax Office to the applicant corporation. The applicant corporation shall re-examine whether the applicant has received the intent of loan at the time of entering into a payment guarantee contract with a foreign financial company in relation to the financial loans of 28 foreign subsidiaries, such as O*SAMCOL*OOOO*OOOOO, etc., on the basis of the difference in interest rates calculated by the relevant financial company in accordance with the intent of the loan, and the tax base and amount of corporate tax and value-added tax shall be corrected accordingly.

【Reasoning】

1. Summary of disposition;

A. In 2006 to 2010, the applicant firm provided a payment guarantee service with respect to financial loans of 28 overseas subsidiaries such as OO (hereinafter “overseas subsidiaries”) and received 0.15% of the guaranteed amount as a payment guarantee fee, and reported and paid corporate tax.

B. In December 201, the Seoul Regional Tax Office (hereinafter “Investigation Office”) deemed that the applicant corporation calculated the payment guarantee fees for overseas subsidiaries by applying the payment guarantee fee calculation model of the National Tax Service (hereinafter “National Tax Service model”) to receive less than the arm’s length price (the latter applied the payment guarantee fee rate of 0.15 to 2.27% for each overseas subsidiary) and notified the disposition agency of inclusion of the differenceO in the gross income and the imposition of corporate tax, including other details of the investigation. Accordingly, the disposition agency notified the applicant corporation of the inclusion in the calculation of the corporate tax and the amount of corporate tax for the 2006 through 2010 business year, the OO for the 2010 business year, and the OO for the 2007 period from 1 to 2010 for the 2010 taxable year, respectively.

C. The applicant filed an appeal on June 18, 2012.

2. Opinion of the requesting corporation and the disposition agency;

A. The claimant corporation's assertion

(1) While the payment guarantee fee rate of 0.15% calculated based on the expected benefits for the payment guarantee offered by the requesting corporation and the overseas financial company without a special relationship (the reduced interest rate for the overseas subsidiaries under the payment guarantee of the requesting corporation) can be seen as a reasonable price determined in the financial market, the National Tax Service model applied by the agency is different from the method used in the real financial market by measuring the credit rating only based on the simple summary financial data of each overseas subsidiary for the last two years. Based on this, the fee rate calculated by the agency cannot be deemed as an arm's length price applied to ordinary transactions between non-specially related persons, and thus, the tax disposition by the agency is unreasonable.

(2) In addition, in calculating the normal fee rate of the disposition agency, the disposition agency uses confidential data that the taxpayer cannot access and verify, and thus, it is in a situation in which objectivity and transparency in this taxation cannot be ensured, and this is not consistent with Article 5(1)2 of the Enforcement Decree of the Adjustment of International Taxes Act, which provides for “the securing of available data and the possibility of using them,” as the consideration in selecting the arm’s length price calculation method.

(b) Opinions of disposition agencies;

(1) The applicant corporation presented a financial institution’s opinion by asserting that the credit rating of the parent company would have a critical impact on the credit rating of the subsidiary company. However, it is merely an opinion presented by a domestic branch of a foreign bank, which was prepared prior to the loan of the foreign subsidiary, and it is not directly presented the actual credit rating and additional interest rate of the

Rather, the applicant corporation may preferentially apply additional interest rates by actual credit rating of the parent and subsidiary company, but even until now, the applicant corporation does not present such information. This is a proof that the arm's length price according to the National Tax Service model is not higher than the additional interest rates according to the actual credit rating of the parent and subsidiary company.

(2) Although the applicant asserts that the National Tax Service model violated the requirements of “to secure and use data to be used” under Article 5(1)2 of the Enforcement Decree of the Adjustment of International Taxes Act using non-disclosure data, the applicant may preferentially apply the difference in the actual credit rating of the parent and the subsidiary, since the parent and the subsidiary’s credit rating and the additional interest rate can be recognized at the time of a loan transaction by the subsidiary, in cases where the normal payment guarantee price for the subsidiary under the Act on Access to Benefit, which is generally recognized, is the difference in the additional interest rate depending on the difference in credit rating between the guaranteed company and the guaranteed company.

However, since the tax authority cannot secure credit rating of the mother and subsidiary company assessed by the lender as if the claimant is a claim corporation, it is necessary for the tax authority to develop an independent credit assessment model for reporting, verification, and tax source management, etc. As a result, the tax authority borrowed the credit assessment method of a financial institution to realize the most similar situation where the taxpayer does not report the arm's length price according to the actual credit rating if the taxpayer does not report the arm's length price according to the actual credit rating, and thus, it constitutes a "non-liable third party pricing method" under the Adjustment of International Taxes Act. Since information used in this process is based on the standard method based on the financial data submitted by the taxpayer, the argument of the claimant corporation that there is no "the availability and comparison of data" cannot be accepted.

Therefore, this case's disposition imposing tax on the claimant corporation on the difference between the normal rate of the payment guarantee fee by the National Tax Service model and the rate of the fee reported by the claimant corporation is legitimate.

3. Hearing and determination

A. Key issue

The propriety of the disposition of imposing corporate tax and value-added tax on a foreign local corporation which is a related party to the claim because the payment guarantee fee was insufficient.

(b) Related Acts and subordinate statutes: as shown in attached Form;

C. Facts and determination

(1) According to the review data presented by the Investigative Agency, the arm’s length price calculation model, development background, taxation circumstances, etc. are as follows.

(A) Since the overseas related companies of our company are difficult to borrow a single loan or high loan costs in local financing, it is guaranteed by the domestic parent company. On December 18, 2003, the Ministry of Strategy and Finance interpreted that the domestic corporation's payment guarantee in relation to financial loans from foreign related parties constitutes international transactions provided for in Article 2 (1) 1 of the Adjustment of International Taxes Act and is subject to the adjustment of arm's length price under Article 4 of the same Act (re-15). Accordingly, the National Tax Service has notified the foreign related parties of the obligation to report the payment guarantee service transaction with the overseas related parties and has continuously implemented the revised report guidance.

On the other hand, on April 23, 2010, the Ministry of Strategy and Finance interpreted that the provision of debt guarantee and performance guarantee for overseas subsidiaries and the provision of compensation from overseas subsidiaries through foreign exchange banks, the provision of guarantee to overseas local corporations to banks located overseas of the Value-Added Tax Act (amended by Act No. 11873, Jun. 7, 2013) constitutes "services provided overseas" under Article 11 (1) 2 of the Value-Added Tax Act (amended by Act No. 11873, Jun. 7, 2013).

(B) The OECD Transfer Price Taxation Guidelines (Chater V II 7.13) stipulates that payment guarantee with a foreign related party shall be imposed at the arm's length price by classifying it as a service transaction. Article 4 of the Adjustment of International Taxes Act and Article 6-2 of the Enforcement Decree of the same Act also provide the same content.

(C) The arm’s length price for a payment guarantee is, inter alia, the interest cost of a subsidiary that has been reduced by the payment guarantee of the parent company, namely, the additional interest rate (which is determined by summing up the base interest rate on loans, additional interest rate, and adjusted interest rate, and which is changed according to the borrower’s credit rating) depending on the difference in credit rates between the guaranteed and guaranteed companies. However, the National Tax Service did not have a position to calculate the arm’s length price due to insufficient financial information of overseas subsidiaries and the lack of direct use of the credit rating model of financial institutions. As a result, there were cases where the payment guarantee was not reported, and even in the case of reporting, under-reported reporting would be likely to disrupt the equity of taxation.

(D) Accordingly, the National Tax Service, in order to correct the taxation equity problem among companies and to prepare an objective means of verification of the payment guarantee price, developed the National Tax Service model on two occasions by conducting policy research services, transfer price experts, and meetings between major companies, etc., and notified the applicant corporation of the revised report from February 2006. It appears that there was no fact that the applicant corporation filed a revised report by the deadline or submitted the supporting documents for verification of the reported content.

(e) The National Tax Service model is the method of calculating the arm’s length price based on comparable third party pricing method under Article 5(1) of the Adjustment of International Taxes Act, which is a credit rating model based on the financial model generally used by a credit information company or a financial institution (i.e., a measurement model that calculates the financial ratio based on the financial statements and selects and utilizes the financial ratio suitable for computing the credit rating through statistical analysis). The difference in the additional interest in response to the standardized credit rating of the mother and subsidiary is the method of calculating the arm’s length price;

In order to supplement the gap between reality that may arise in the course of standardizing credit rating, ① the credit rating of the mother and subsidiary shall be adjusted by 1 grade in remuneration according to the result of the statistical result that the non-financial factor affects the 1st grade quota, ② the minimum grade shall be applied only to the 9th grade (the lowest level of loan available for a general bank), and the upper limit of normal commission shall be prepared (where the credit rating of a model is below 10 grade, at least 2.82% and the lowest rate of 15.16% shall take effect), ③ the average rate of normal commission shall be presented, ③ the taxpayer reports the difference between the credit rating verified by the borrowing bank and the interest rate corresponding thereto.

(2) In 2006 through 2010, the applicant corporation provided a payment guarantee service to 28 foreign subsidiaries, including the United States, and applied 0.15% of the guaranteed amount as the payment guarantee fee rate, and the disposition agency applied the National Tax Service model to determine the payment guarantee fee rate according to the credit rating difference between the applicant corporation and the overseas subsidiaries and calculated the arm's length price (see attached Form 1).

OO

(3) The Claimant submitted a copy of the letter of intent to loan 18 loans received from a domestic branch of an overseas financial company, etc. by asserting that the rate of the interest on the loan (0.05 to 0.20%) pursuant to the payment guarantee of the Claimant offered by the Claimant at the time of the Claimant’s borrowing of the Claimant’s financial resources (0.05 to 0.20%) is set at 0.15% of the actual amount of the loan and that the rate of the payment guarantee was received by the Claimant at 0.15% of the actual amount of the loan (see the following table 2).

OO

(4) The claimant corporation cannot be deemed to have applied the payment guarantee fee rate calculated by the agency based on the National Tax Service model to ordinary transactions between non-specially related parties. In determining the credit rating of a global company like the claimant corporation in the HSBC, BOA, and CiBk, it merely argues that it is determined at the credit rating level of the parent company considering the parent company’s business relationship with the parent company without considering only the financial situation of the subsidiary company. The above financial institution presented evidence of “documents such as the criteria for credit examination, etc.” submitted to the claimant corporation. This document contains the content as argued by the claimant corporation.

On the other hand, at the meeting of tax judges on December 17, 2013, the applicant corporation stated that the foreign subsidiary of the applicant corporation is not subject to credit rating different for each local subsidiary, but subject to the credit rating of the applicant corporation, which is the parent company, uniformly applied 0.15% of the payment guarantee fee rate of 28 overseas subsidiaries, which is the difference between the loan interest and the loan interest depending on the existence of the payment guarantee. The applicant corporation's intent of the loan presented by the applicant corporation is not granted at the local branch of the overseas financial company in which the actual financial loan occurred, not at the local branch of the foreign financial company in which the applicant corporation actually took out the loan, but it cannot be used as evidence to determine the arm's length price as the documents that the applicant corporation voluntarily received for

(5) As seen above, the Claimant considers that the Claimant received the payment guarantee fee for the overseas subsidiaries under the arm's length price based on the National Tax Service model and imposed the corporate tax and value-added tax. The Claimant asserts that the payment guarantee fee received is reasonable as it is based on the interest decrease rate based on the bank's loan intent and payment guarantee fee received prior to the loan of the overseas subsidiaries.

(A) The tax authority may determine or rectify the resident's tax base and tax amount based on the arm's length price if one of the parties to an international trade, which is a foreign related party, falls short of or exceeds the arm's length price. In the case of a transaction with a related party, the tax authority is obligated to faithfully submit the data and documentary evidence requested by the taxpayer to investigate the arm's length price, and the tax authority is not required to take into account the scope of the arm's length price. Thus, if the transfer price with a related party abroad shows a difference between the reasonable arm's length price and the arm's length price calculated based on the data secured by the tax authority, it is necessary to prove that the transaction price falls within the scope of the arm's length price and it cannot be deemed that the economic rationality is lacking (see Supreme Court Decision 9Du3423, Oct

(B) According to the review data of the investigating agency, the National Tax Service model granted the model score calculated by giving statistical weight to the financial data of the parent and subsidiary up to the 2-year financial year period before the parent and subsidiary compared to the 13-class model score, and calculated the additional interest rate based on the credit rating ratio of the parent and subsidiary computed through the National Tax Service credit rating model, and then granted some adjustment and exception in order to supplement the limit of the National Tax Service model in calculating the difference in the additional interest rate of the parent and subsidiary as the arm's length price for the payment guarantee service. In order to reflect the non-financial factors ( brand value, national risk, etc.) which cannot be measured, the credit rating of the parent and subsidiary was adjusted to the 1-class level in terms of remuneration, by applying the lowest grade to the 9-class minimum grade (the lowest level possible for loans from the general bank). Furthermore, when the taxpayer files a report on the difference between the actual credit rating rate verified by the principal bank and the credit bank, etc., it is recognized as the average fee level.

(C) Article 6-2(4)1 of the Enforcement Decree of the Adjustment of International Taxes Act newly established on February 15, 2013 provides that “The amount of fees calculated based on the difference in the interest rate calculated by the relevant financial company at the time of entering into a guarantee contract (limited to the amount confirmed by a statement on calculation of the difference in the interest rate prepared by the relevant financial company)” shall be deemed as the arm’s length price.

(D) The applicant corporation shall calculate the payment guarantee fee rate as 0.15% on the basis of the difference in interest rates depending on the existence or absence of payment guarantee as stated in the letter of intent for the loan, with the presentation of a letter of intent for the loan from an overseas financial company without a special relationship with the overseas financial company in the event of the loan of the overseas local company. If the loan was actually made in accordance with the letter of intent for the loan, the difference in interest rates depending on the existence or absence of payment guarantee (the decrease in interest rates of the overseas local company borrowed from the financial company) shall be deemed as expected benefits and it is reasonable to determine the payment guarantee fee rate based on the expected benefits, and it is reasonable to regard it as the arm's length price.

However, it is not confirmed that the applicant provided a payment guarantee service for 28 overseas subsidiaries with respect to financial loans from 2006 to 2010, but it has not been presented only 18 cases where the intent of the loan is presented, and whether the applicant has received all guarantee fees from the financial company at the time of the loan, and whether the applicant has received the guarantee fees in proportion to the difference in the interest rate stated in the letter of intent for the loan.

4. Conclusion

This case shall be decided as ordered in accordance with Articles 81 and 65 (1) 3 of the Framework Act on National Taxes as a result of the review.

The attached Form shall be attached thereto.

1. Details of imposition of corporate tax and value-added tax;

OO

3. Related Acts and subordinate statutes.

(1) Adjustment of International Taxes Act (amended by Act No. 10410, Dec. 27, 2010)

Article 2 (Definitions) (1) The definitions of terms used in this Act shall be as follows:

1. The term "international transaction" means a transaction in which either or both parties to a transaction are nonresidents or foreign corporations, including trading or leasing tangible or intangible assets, providing services, lending or borrowing money, and all other transactions related to profits or losses and assets of the parties involved;

Article 4 (Tax Adjustment by Arm's Length Price) (1) A tax authority may determine or rectify the tax base and amount of tax of a resident (including a domestic corporation and a domestic business place; hereafter the same shall apply in this Chapter) on the basis of the arm's length price, if one of the parties to a transaction is a foreign related party (excluding any transaction that generates a domestic source income under Article 119 of the Income Tax Act or Article 93 of the Corporate Tax Act, in which one of the said parties is a domestic business place; hereafter the same shall apply in this Chapter)

Article 5 (Calculation Method of Normal Price) (1) The arm's length price shall be the price calculated by the most reasonable method among the following methods: Provided, That subparagraph 4 shall apply only where the arm's length price cannot be computed by the methods under subparagraphs 1 through 3:

1. Comparable third party price method: The method of deeming the arm's length price, in an international trade between the resident and the foreign related party, a trade price between unrelated independent business operators under similar trades;

2. Resale price method: Where a resident and a foreign related party trades assets and then a purchaser of such assets, who is one party to the transaction, resells such assets to an unrelated party, a method of deeming the arm's length price as the arm's length price, deducting the amount considered as an ordinary profit of the purchaser from the resale

3. Cost plus method: A method that regards the cost incurred in the course of manufacturing and selling assets or providing services in an international trade between the resident and the foreign related party as the arm's length price plus an amount deemed an ordinary profit of the seller of assets or the service provider;

4. Other methods deemed reasonable as prescribed by Presidential Decree.

(2) Detailed matters concerning the arm's length price computation method under paragraph (1) shall be prescribed by Presidential Decree.

(2) Enforcement Decree of the Adjustment of International Taxes Act (amended by Presidential Decree No. 22394, Sept. 20, 2010)

Article 5 (Selection of Arm's Length Price Computation Method) (1) In computing the arm's length price under Article 5 (1) of the Act, the most reasonable method shall be chosen in consideration of the following criteria:

1. Possibility for comparison shall be high between the international trades among the related parties and the trades among the unrelated parties. In such cases, "high possibility for comparison" means the cases falling under any of the following items:

(a) Where a difference in the compared circumstances has no serious effect upon the compared price or net profit of the trade; and

(b) Where a rational adjustment, which is capable of removing a difference due to the same effect, is possible, even where a difference in the compared circumstances has a serious effect upon the compared price or net profit; and

2. It shall have high possibility of securing and using the data to be used;

3. The level of correspondence to the reality shall be high for an assumption on the economic conditions, business environment, etc. established in order to compare the international trades among the related parties with the trades among the unrelated parties;

4. The defects in the data to be used or in the established household shall have a small impact on the normal price.

(2) In assessing whether or not a high comparability exists pursuant to paragraph (1) 1, such constituents shall be analyzed as the function of business activities that may affect the price or profit, the contractual terms, the risks accompanying the trades, the kinds and features of the goods or services, the fluctuation in market conditions, and the economic situations, etc.

(4) In applying the arm's length price computation method under any subparagraph of Article 4, subparagraph 4 of the same Article shall apply only where the methods under subparagraphs 1 and 2 of the same Article are not applicable.

(5) Where a trade between unrelated parties shall not be treated as a normal trade because it is fabricated at will by the parties involved, the tax authorities may not select such trade as a comparable trade.

(1) Where the price for a transaction of services, such as business management, financial advice, payment guarantee, computer support, or technical support between a resident and a foreign related party, or other services deemed necessary for business (hereafter referred to as "services transaction" in this Article), is the price for a transaction of services that satisfies all of the following requirements, such price shall be deemed the arm's length price and recognized as losses:

1. The service provider shall make an agreement in advance and actually provide such a service in accordance with the agreement;

2. There shall exist an additional profit or a reduction in expenses, which the person who has the service provided may expect from the service;

3. The price for the service provided shall be computed in accordance with Article 5 of the Act and Articles 4 through 6 of this Decree. In such cases, it shall be computed in accordance with the following guidelines, when the cost plus method under Article 5 (1) 3 of the Act or the net trade profit ratio to sales cost and sales expenses under subparagraph 2 (c) of Article 4 of this Decree is applied:

(a) The cost incurred shall include all expenses incurred directly or indirectly for providing the service;

(b) Where the service provider requests another foreign related party other than the service provider or an unrelated third party to perform the service vicariously, in whole or in part, pays the price therefor in a lump sum, and then claims such expenses to the person to whom the service is provided, the service provider shall add an ordinary profit only to the cost incurred from the activities that the service provider performs on his/her own in connection with the service: Provided, That the foregoing shall not apply, if deemed reasonable in light of the substance of the service, status of the transaction, and customary practices

4. There shall be documents prepared and preserved for proving the facts referred to in subparagraphs 1 through 3.

(2) Notwithstanding paragraph (1), where a foreign related party performs the same services as those provided to a person who receives services on his/her own or where an unrelated party provides services for another foreign related party, such services shall not be deemed service transactions under paragraph (1): Provided, That this shall not apply where the services temporarily overlap due to reasonable grounds, such as business and organizational restructuring, restructuring, or reduction of errors in decision-making

(1) A resident shall select the most reasonable arm's length price computation method and submit the method and reason for such choice to the head of the tax office having jurisdiction over the place of tax payment at the time of filing a final return on tax base and tax amount pursuant to the criteria under Article 5: Provided, That the same shall not apply in any of the following cases out of

1. Where the total amount of transactions of goods does not exceed five billion won and the total amount of transactions of services does not exceed 500 million won;

2. Where total amount of transactions of goods by a foreign related party is not more than one billion won and the total amount of transactions of services is not more than 100 million won.

(2) If the actual market price is different from the arm's length price computation method, a resident may file a return or a request for rectification of the tax base and tax amount adjusted by deeming the arm's length price as the arm's length price price, along with a trade price adjustment report prescribed by Ordinance of the Ministry of Strategy and Finance, within the period prescribed in any of the following subparagraphs. In such cases, Articles 15, 15-

1. Time limit for filing a return under Articles 70 through 74 of the Income Tax Act, or Article 60 (1) of the Corporate Tax Act;

2. Deadline for filing a revised report under Article 45 of the Framework Act on National Taxes;

3. The deadline for filing a request for correction under Article 45-2 (1) of the Framework Act on National Taxes.

(3) Enforcement Decree of the Adjustment of International Taxes Act (amended by Presidential Decree No. 24365, Feb. 15, 2013)

(1) Where the price for a service transaction (referring to business management, financial advice, payment guarantee, computing support, or technical support and any other transaction for services deemed necessary for business; hereafter the same shall apply in this Article) between a resident and a foreign related party is the price for the service transaction satisfying all the following requirements, such a price shall be deemed the arm's length price and recognized as losses:

1. The service provider shall make an agreement in advance and actually provide such service in accordance with the agreement;

2. The person who has been provided with such service shall expect additional profits or a reduction in expenses;

3. The price for the service provided shall be computed in accordance with Article 5 of the Act and Articles 4 through 6 of this Decree. In such cases, it shall be computed in accordance with the following guidelines, when the cost plus method under Article 5 (1) 3 of the Act or the net trade profit ratio to sales cost and sales expenses under Article 4 (2) 1 (c) of this Decree is applied:

(a) The cost incurred shall include all expenses incurred directly or indirectly in providing the service;

(b) Where the service provider requests a third party to perform all or part of the service vicariously pays the price therefor in a lump sum, and then claims such expenses to the person to whom the service is provided, the service provider shall add an ordinary profit to the cost incurred from the activities that the service provider performs on his/her own in connection with the service: Provided, That the foregoing shall not apply, if deemed reasonable in light of the substance of the service, status of the transaction, and customary practices

4. There shall be documents prepared and preserved for proving the facts set forth in subparagraphs 1 through 3.

(2) Notwithstanding paragraph (1), where a person who receives services performs services such as those provided by another specially related person on his/her own or where an unrelated person provides services for another specially related person, such services shall not be deemed services transactions under paragraph (1): Provided, That where services temporarily overlap due to reasonable grounds, such as reorganization of business and structure, reduction of errors in the decision on business restructuring and management, etc., such services shall be deemed services transactions under paragraph

(3) The arm's length price computation method for a payment guarantee service transaction between a resident and a foreign related party shall be made by any of the following methods (Newly Inserted by Presidential Decree No. 24375, Feb. 1

1. Calculation of the arm's length price based on the expected risk and cost of the guarantor;

2. Calculating the arm's length price based on the expected benefits of the principal debtor;

3. Calculation of the arm's length price based on the expected risks and expenses of the guarantor and expected benefits of the guarantor;

(4) In applying paragraph (3), where a resident applies any of the following amounts at the price for a payment guarantee service transaction, such amount shall be deemed the arm's length price (Newly Inserted by Presidential Decree No. 24375, Feb. 15,

1. The amount of fees calculated on the basis of the difference in interest rates depending on the existence of a payment guarantee computed by the relevant financial company at the time of concluding the payment guarantee contract (limited to the amount verified by a statement on the difference in interest rates prepared by the relevant financial

2. The amount of fees calculated by the method under paragraph (3) 2 by the Commissioner of the National Tax Service;

(5) In applying paragraphs (3) and (4), detailed matters concerning the computation of expected risks and expenses and expected benefits, etc. shall be prescribed by Ordinance of the Ministry of Strategy and Finance.

(4) Value-Added Tax Act (Amended by Act No. 11873, Jun. 7, 2013)

Article 11 (Application of Zero Tax Rate) (1) The zero tax rate shall apply to the supply of goods or services falling under any of the following subparagraphs:

2. Services supplied overseas;