2. The costs of appeal shall be borne by the Defendant.

A. As of December 31, 2003, the Plaintiff applied the minimum tax as of December 31, 2003, the amount of the tax credit for research and human resources development expenses carried over (hereinafter referred to as "tax credit for research expenses") is KRW 161,783,644 (hereinafter referred to as "the amount of the carried-over deduction"), and the amount of the tax credit for research expenses incurred in the business year 2004 is KRW 13,463,457.

B. On March 31, 2005, the Plaintiff applied the minimum tax when filing a corporate tax return for the business year 2004, and paid 64,187,882 won for the business year 2004, including 13,463,457 won and 25,790,463 won out of the deductible amount carried forward in the business year 2004 and 39,253,920 won for research expenses.

C. On May 18, 2005, the Plaintiff deemed that all of the amounts of the carried-over deduction in this case can be deducted without applying the minimum tax, and upon receiving a correction claim to reduce the corporate tax of 64,187,882 won in the business year 2004.

D. Accordingly, on July 7, 2005, the defendant deemed that the minimum amount of the carried-over deduction of this case is applicable, and issued a disposition rejecting the above request for correction (hereinafter referred to as "the disposition in this case").

[Ground of recognition] The fact that there is no dispute, Gap's evidence No. 2, the purport of the whole pleading

2. Whether the instant disposition is lawful

A. The parties' assertion

The plaintiff asserts that the disposition of this case is unlawful since the amount of the carried-over deduction is not applied to the minimum tax, and the defendant asserts that the disposition of this case is legitimate since it is reasonable to view that the tax credit amount of research expenses incurred after January 1, 2004 to be implemented from January 1, 2004 as amended by the Restriction of Special Taxation Act (the "Act") and the tax credit amount under Article 144 (1) of the former Restriction of Special Taxation Act (the "former Restriction of Special Taxation Act") at the time of the enforcement of the Act in Article 42 of the Addenda, notwithstanding the amended provisions of the same Act, the previous provisions shall apply to the tax credit amount under Article 144 (1) of the former Act, and the minimum tax amount shall not be applied to the tax credit amount of research expenses incurred after January 1, 2004.

B. Relevant statutes

The entries in the attached Table-related statutes are as follows.

C. Determination

Article 10 of the former Act provides that a certain amount of the research and human resources development expenses shall be allowed to be deducted from the research and human resources development expenses of small and medium enterprises to the extent exceeding the minimum tax in order to prevent the excessive reduction of the tax burden due to the combined application of various reduction regulations, the occurrence of the minimum tax in Article 132 of the former Act shall be allowed only to the extent exceeding the minimum tax. However, in order to relieve a taxpayer who is not entitled to the tax credit due to the application of the minimum tax in Article 144 of the former Act, even if the amount of the research expense is not deducted from the minimum tax, it shall be carried forward to each taxable year ending within seven years and deducted from the corporate tax carried forward. Article 132 of the Act and Article 1 of the Addenda of the former Act, which are the provisions on the basis of the minimum tax, provide that the amount of the tax credit for small and medium enterprises shall be excluded from the minimum tax in cases of the small and medium enterprises, separately from the amount of the research expense credit generated in the relevant year, Article 141 of the latter Act does not apply.

Therefore, the plaintiff's assertion is justified.

4. Conclusion

Therefore, the plaintiff's claim of this case is justified, and the judgment of the court of first instance is just, and the defendant's appeal is dismissed as it is without merit. It is so decided as per Disposition.

public official law, order of law,

/ The Restriction of Special Taxation Act (amended by Act No. 7003, Dec. 30, 2003)

(a) Tax credit for research and human resources development expenses under Article 10;

(1) Where a national (excluding a national operating consumptive service business under the provisions of Article 136 (1)) has such expenses as prescribed by the Presidential Decree among the expenses for research and human resources development (hereinafter referred to as "research and human resources development expenses") in each taxable year not later than the taxable year ending on or before December 31, 2006, he/she may select one of the following methods and obtain a tax credit: Provided, That only the provisions of subparagraph 1 shall apply to a person who is not a small or medium enterprise:

1. Where research and manpower development expenses incurred for a taxable year concerned exceed the annual average of such expenses paid during 4 years retroactively from the commencing date of the relevant taxable year, the method of deducting an amount equivalent to 40/100 (50/100 in the case of a small or medium enterprise) of such excessive amount from income tax (limited to income tax on business income) or corporate tax in the relevant taxable year (amended on December 11, 202); and

2. The method of deducting an amount computed by multiplying research and manpower development expenses incurred for a taxable year concerned by 15/100 from income tax (limited to income tax on business income) or corporate tax for the taxable year concerned (amended on December 11, 202).

(b) Minimum tax under Article 132;

(1) In calculating the corporate tax (excluding the corporate tax and the additional tax prescribed by Presidential Decree on capital gains from the transfer of land, etc. provided for in Article 5-2 of the Corporate Tax Act, and referring to the corporate tax that does not have the tax credits prescribed by Presidential Decree) on the income for each business year of a domestic corporation (excluding the partnership corporations, etc. subject to Article 72 (1)) and the domestic source income for each business year of a foreign corporation subject to Article 91 (1) of the Corporate Tax Act, where the tax amount after having the tax reduction, exemption, etc. provided for in any of the following subparagraphs applied fails to include in deductible expenses and income deduction, etc. provided for in subparagraphs 1 and 2, falls short of the tax amount calculated by multiplying the tax base (including the amount included in the reserve provided for in subparagraph 1 in gross income under the related provisions) by 15/100 (10/100 in the case of a small or medium enterprise), the reduction, exemption, etc. on the amount

1. Special depreciation expenses and reserves to be included in the deductible expenses in calculating the income amount for each business year pursuant to Articles 4, 8-2, 9, 17, 28, 30, 5, 55-2 (1), 75, 104-3 of this Act, Article 11 of the Addenda of the amended Act among the Regulation of Tax Reduction and Exemption Act (Act No. 4806), Article 14 of the Addenda of the amended Act of the Regulation of Tax Reduction and Exemption Act (Act No. 4666), Article 22 of the Addenda of the amended Act among the Regulation of Tax Reduction and Exemption Act (Act No. 4285) and Article 14 of Addenda of the amended Act (Act No. 3865);

3. Amount of tax credit pursuant to Articles 5, 7-2, 10 (limited to the amount calculated by subtracting from the amount of tax credit of a person other than a small or medium enterprise for the relevant taxable year the amount of which is obtained by multiplying the amount of tax credit for the relevant taxable year by the ratio occupied by the labor cost of the persons with doctor's and master's degrees, which is prescribed by the Presidential Decree, among such amount; hereafter the same shall apply in this Article), 10-2, 11, 12 (2), 24 through 26, 31 (6), 32 (4), 94 of this Act, Article 14 of the Addenda of the amended Regulation of Tax Reduction and Exemption Act (Act No. 4666), Article 14 of the Addenda of the amended Regulation of Tax Reduction and Exemption Act (Act No. 3865) and Article 12 (2) of the Addenda of the amended Regulation of Tax Reduction and Exemption Act (Act No. 5584). 30 December 2003).

(2) In calculating the business income (including any real estate rental income in the case where the provisions of Article 122 are applied; hereafter the same shall apply in this paragraph) of a resident and the income tax (referring to the income tax that is not subject to the tax credit as prescribed by the Presidential Decree, excluding the additional tax and the additional tax as determined by the Presidential Decree on business incomes) accruing from the domestic business place of a nonresident, in case where the tax amount after the reduction or exemption, etc. falling under any of the following subparagraphs is applied is short of the tax amount calculated by multiplying the calculated tax amount on the business income (including the amount included in the reserves under subparagraph 1) in the calculation of deductible expenses and income deduction, etc. under subparagraphs 1 and 2, by 40/100 of the calculated tax amount on such business income (including the amount included in the calculation of earnings under the related

1. Special depreciation expenses and reserve funds included in deductible expenses in calculating the income amount in each taxable period pursuant to Articles 4, 9, 28, and 30 of this Act, Article 11 of the Addenda of the amended Act among the Regulation of Tax Reduction and Exemption Act (Act No. 4806), Article 14 of the Addenda of the amended Act (Act No. 4666), Article 22 of the Addenda of the amended Act among the Regulation of Tax Reduction and Exemption Act (Act No. 4285) and Article 14 of the Addenda of the amended Act (Act No. 3865) of the Regulation of Tax Reduction and Exemption Act (Act No. 3865);

(3) Matters necessary for applying the minimum tax under paragraphs (1) and (2) shall be prescribed by the Presidential Decree. < Amended by Act No. 5580, Dec. 28, 1998>

(c) A carried-over deduction of 144 tax credit;

(1) The amount equivalent to the portion of the tax amount to be deducted under Articles 5, 7-2, 10 through 11, 12 (2), 24 through 26, 94, 104-8 and Article 12 (2) (limited to the amended provisions of previous Article 37) of the Addenda of the Act on the Regulation of Tax Reduction and Exemption (Act No. 584) from among the tax amount to be deducted under Articles 5, 7-2, 10 through 11, 12 (2), 24 through 26, 94, 104-8 and Article 12 (2) of the Addenda of the Act on the Regulation of Tax Reduction and Exemption (limited to the amended provisions of previous Article 37) which has no tax amount to be paid in the corresponding taxable year or has not been deducted from the minimum tax amount under

(2) Where the amount to be deducted from the income or corporate tax for each taxable year under Articles 5, 7-2, 10 through 11, 12 (2), 24 through 26, 94, 104-8 and Article 12 (2) (limited to the previous provisions of Article 37) of the Addenda of the Act on the Regulation of Tax Reduction and Exemption, Act No. 584, and the non-deductible amount carried over under paragraph (1) overlap, the non-deductible amount carried over under paragraph (1) shall be deducted first, and where any overlap between the non-deductible amount carried over, the non-deductible amount carried over under paragraph (1) shall be deducted in the order of their first occurrence (amended by December 30, 2003).

director of the Restriction of Special Taxation Act (amended by Act No. 18176, Dec. 30, 2003)

§ 126. Minimum tax

(1) For the purpose of the main sentence of Article 132 (1) and (2) of the Act, the term “tax amount collected additionally as prescribed by the Presidential Decree” means the following:

1. An additional amount (including the case of voluntary payment or imposition in addition to the income tax or corporate tax) equivalent to the additional amount (amended on December 30, 2002), where various reserves, etc. are included in the gross income under the Act and where the tax amount is additionally collected

2. In case where a tax amount reduced or exempted for income tax or corporate tax is additionally collected under the Act or the Corporate Tax Act, the tax amount paid or collected in addition to the income tax or corporate tax for the business year concerned (amended on May 24, 199

(3) For the purpose of Article 132 (1) 3 of the Act, the term “amount calculated by multiplying the amount to be paid as personnel expenses for a master or doctor’s degree as determined by the Presidential Decree” means the amount calculated by multiplying the amount to be paid by the ratio of tax amount to the amount to be paid for the relevant taxable year by the ratio of the amount of gross income under Article 20 (2) of the Income Tax Act of the master or doctor’s degree among the research and manpower development expenses for the relevant taxable year (Newly Inserted

(5) In case where the income tax or corporate tax falls short of the tax amount calculated under Article 132 of the Act, the income tax or corporate tax of which the person liable for tax payment has reported (including a request for a revised return and correction, etc. under the Framework Act on National Taxes) shall be calculated by excluding the reduction or exemption falling under any of the following subparagraphs according to the order of the following subparagraphs (in the same subparagraph, according to the order of the provisions enumerated in Article 132 (1) and (2) of the Act):

3. Tax credit under Article 132 (1) 3 and (2) 3 of the Act. In this case, where there exists a carried-over tax credit amount among the abated or exempted tax amounts under the same Article, the exclusion from such application shall begin with those accrued later (amended by December 31, 1998);

【The Addenda to the Restriction of Special Taxation Act (amended by Act No. 7003, Dec. 30, 2003)

Article 1 Enforcement Date

This Act shall enter into force on January 1, 2004.

Article II General Application Cases

(1) The amended provisions concerning income tax and corporate tax in this Act shall apply from the taxable year that commences after this Act enters into force.

The amended provisions of Article 132 (1) 1 and (2) 1 of the same Act concerning the minimum tax of Article 3 shall apply from the portion of a tax base return (excluding a return after the time limit under Article 45-3 of the Framework Act on National Taxes) after this Act enters into force.

* Article 132(1)1 and (2)2 does not stipulate Article 132(1)3 that is subject to the provisions of carry-over deduction of Article 14, as an item which cannot be carried-over.

The previous provisions of Article 144 (1) shall apply to the tax amount to be deducted under the former provisions of Article 144 (1) at the time this Act enters into force, notwithstanding the amended provisions of the same paragraph, to the transitional measures concerning carry forward deduction amount