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(영문) 공장 및 본사의 지방이전에 따른 감면대상 소득 계산 방법
조세심판원 질의회신 | 2017-09-18 | 서면-2017-법인-0669 | 기타
Document Number

Document-2017- Juristic Person-069 (Law No. 18, 2017.09)

Items of Taxation

special provisions

Taxpayer Serial Number

-2517

요 지

In applying tax reduction or exemption to the relocation of the head office to a local area, "income generated from the factory" in Article 63-2 (2) 1 of the Restriction of Special Taxation Act shall not include income generated from the factory before and after the relocation, and separate accounting shall be conducted for income before and after the relocation of the relocated factory under Article 143 of the same Act.

Contents of Answer

In the application of Article 63-2 of the Restriction of Special Taxation Act, in case where a corporation operating a business with factory facilities for more than three consecutive years in the overconcentration control region in the Seoul Metropolitan area or having its head office for more than three consecutive years starts its business by relocating its factory facilities to an outside of the Seoul Metropolitan area pursuant to Article 60-2 of the Enforcement Decree of the same Act, the term "income accruing from the factory" in Article 63-2 (2) 1 of the Restriction of Special Taxation Act shall not include the income accruing from the factory before the relocation, and the income prior to and after the relocation of the relocated factory shall be kept by separate

Related statutes

Article 63-2 of the Restriction of Special Taxation Act

Main text

1. Factual basis

○ Question Corporation shall move its head office and factory outside the Seoul Metropolitan City in 2017 to an enterprise engaged in manufacturing, wholesale, etc. located in Seoul.

- to this question, what meaning corporate tax reduction or exemption income from the relocation of the factory and head office;

2. Contents of questioning;

○ In applying Article 63-2 of the Restriction of Special Taxation Act, whether the “income generated from the relocated factory” is the income from the beginning date of the taxable year to the ending date of the taxable year to which the date of the transfer belongs, and whether it is the income from the date

3. Related Acts and subordinate statutes.

○ Corporate tax, etc. for relocation of factories and head offices of the Special Taxation Corporation to outside the Seoul Metropolitan Area under Article 63-2 of the Restriction of Special Taxation Act

(1) A corporation meeting the requirements in the following subparagraphs (hereafter referred to as "resident corporation to a local area" in this Article) may be exempted from corporate tax under paragraphs (2) through (4): Provided, That the same shall not apply to a corporation that runs a real estate business, construction business, consumptive service business, nonstore sales business or marine transport brokerage business prescribed by Presidential Decree:

1. It shall be a corporation that has operated its business with factory facilities in the overconcentration control zone of the Seoul Metropolitan Area for not less than three consecutive years, or has its head office or principal office (hereafter referred to as the "head office" in this Article) for not less

2. It shall relocate its entire factory facilities or head office to an area outside the Seoul Metropolitan area and start business therein no later than December 31, 2017, as prescribed by Presidential Decree (in cases of the relocation of such factory facilities to another Metropolitan City, limited to an industrial complex under the Industrial Sites and Development Act; hereafter the same shall apply in this Article) or build a new factory or head office in an area outside the Seoul Metropolitan area and start business no later than December 31, 2020 (limited to cases where it acquires a site for its factory or head office no later than December 31, 2017 and submits a relocation plan when filing a tax base return for the taxable year whereto belongs December 31, 2017).

(2) With respect to the income under subparagraphs 1 through 3, a corporation relocating to a local area shall reduce or exempt the full amount of corporate tax for the taxable year in which the first income has been generated from a corporation relocating to a local area after the date of relocation (if no income has been generated by the taxable year whereto belongs the date on which five years have passed from the date of relocation, the taxable year whereto belongs the date on which five years have passed from the date of such transfer) and for the taxable year ending within six years (four years in cases of relocation to a Metropolitan City located in an area other than the Seoul Metropolitan area and to an area prescribed by Presidential Decree) from the commencing date of the following taxable year, and for the

1. Income generated from a factory, in case where the factory is relocated;

2. In cases of relocated head office, income equivalent to the amount computed by multiplying the amount under item (a) for each taxable year by the smaller ratio among items (b) or (c) and ratio

(a) Gains on transfer of land, buildings and rights to acquire real estate from the tax base for the relevant taxable year, and an amount obtained by subtracting income prescribed by Presidential Decree;

(b) The ratio occupied by the total amount of salaries paid by the employees of the headquarters relocated to outside the Seoul Metropolitan area for the relevant taxable year (hereafter referred to as the "resident" in this Article) due to the provision of labor after relocation to the total amount of annual salaries paid by the entire employees of the corporation for providing labor;

(c) The percentage occupied by the employees working at the relocated head office for the relevant taxable year to the entire employees;

(d) The ratio occupied by the amount obtained by subtracting the sales generated from consignment processing trade prescribed by Presidential Decree from the total sales in the relevant taxable year to the total sales in the relevant taxable year;

3. Where a factory and head office are moved together, the income equivalent to the amount computed by adding up the income under subparagraphs 1 and 2: Provided, That it shall be limited to the income amount in the relevant taxable year.

(3) (hereinafter referred to as "Omission")

○ Corporate tax, etc. for relocation of factories and head offices of the Special Taxation Corporation to outside of the Seoul Metropolitan Area under Article 60-2 of the Enforcement Decree of the Restriction of

(Omission)

(2) In applying Article 63-2 (1) 1 of the Act, the period shall be calculated in accordance with any of the following subparagraphs:

1. Where a factory is relocated, the operation (the period during which operation is suspended by an order to improve or relocate emission facilities or to suspend operation under the Clean Air Conservation Act, the Water Quality and Aquatic Ecosystem Conservation Act or the Noise and Vibration Control Act shall be deemed to have been operated) continuously for not less than three years retroactively from the date of suspending operation in order to relocate the factory facilities to an area outside the Seoul Metropolitan area under Article 2 (1) 9 of the Act (hereinafter referred to as "Seoul Metropolitan area");

2. In cases where the head office or principal office (hereafter referred to as "head office" in this Article) is relocated, it shall have a record of continuously operating the business with the head office in the overconcentration control region in the Seoul Metropolitan area for three or more years retroactively from the

○ Article 143 of the Restriction of Special Taxation Act

(1) Where a national concurrently operates a business subject to tax reduction or exemption under this Act (where at least two reduction rates exist, referring to each business; hereafter referred to as "business subject to tax reduction or exemption" in this Article) and other business, he/she shall keep separate accounts, as prescribed by Presidential Decree

(2) A national who conducts consumptive service business and other business together shall keep a separate account of assets, liabilities, profits and losses for each business, as prescribed by Presidential Decree.

(3) In calculating the income amount of the business subject to reduction or exemption, where any deficit occurs among the business classified and accounted pursuant to paragraphs (1) and (2), it shall be the total amount of the relevant deficit minus the amount calculated in proportion to the income amount of the business accrued.

○ Standard for the Enforcement of the Restriction of Special Taxation Act (No. 30 November 30, 2014)

(2) Corporate tax on the income under paragraph (1) of a corporation relocating outside the Seoul Metropolitan area shall be reduced or exempted as follows:

Where a taxable year to which the date of the transfer of the tax amount of the face value of the reduction of the face value of the reduction of the Myeon, or the taxable year that ends within six years from the commencing date of the next taxable year, is relocated to an area adjacent to the Seoul Metropolitan Area, etc., 100% of the corporate tax (Income Tax) for the taxable year that ends within four years, is relocated to an area adjacent to the Seoul Metropolitan Area, etc., within three years following the end

○ Standard for the Enforcement of the Restriction of Special Taxation Act (amended by February 21, 2017), Article 63-2-60-4

(2) Corporate tax on the income under paragraph (1) of a corporation relocating outside the Seoul Metropolitan area shall be reduced or exempted as follows:

In cases where the taxable year in which the first income is generated in a corporation relocating to a local area after the date of relocation of the tax reduction between the reduction of the Myeon and the taxable year in which the first income is transferred to an area adjacent to the Seoul Metropolitan area, etc. within six years from the commencing date of the following taxable year, the taxable year that ends within two years, in cases where the relocation is made to an area adjacent to the Seoul Metropolitan area within 50% of the corporate tax (income tax) for the taxable year ending within four years

4. Related cases.

○ special characteristics, written-2015- corporation-22652 (corporate tax and corporate tax-2130), and September 24, 2015.

Where a small or medium enterprise operating a business with factory facilities for at least two consecutive years in the overconcentration control region in the Seoul Metropolitan Area relocates the entire factory facilities to the growth control zone in the Seoul Metropolitan Area, it may be eligible for tax reduction or exemption pursuant to Article 63 of the Restriction of Special Taxation Act, and it shall be the income subject to tax reduction or exemption from income accrued from the factory after relocation, and

○ Special characteristics, corporate tax, -70, October 18, 201

Where a corporation relocates its factory and head office outside the Seoul Metropolitan area pursuant to Article 63-2 (1) of the Restriction of Special Taxation Act;

The income of a factory transferred pursuant to Article 143 of the same Act and other income shall be kept separately, and the amount of tax reduced or exempted shall be calculated by applying Article 63-2 (2) of the same Act to each income arising from the separate accounting.

○ Specialized Treatment, Corporate Tax, 2681, September 29, 2008

Where the business commences after the head office is first relocated to an area outside the Seoul Metropolitan area and the factory is relocated to an area outside the Seoul Metropolitan area, the tax reduction or exemption may apply to the income accrued from the factory after the relocation from the business year belonging to

○ Specialized, written Internet Visit Counseling 2 Team-1906, October 19, 2007

In applying the provisions of Article 63-2 of the Restriction of Special Taxation Act, the tax reduction or exemption under the same Act may apply to a case where a corporation operating a business with factory facilities continuously for three years or more at a factory leased within the Seoul Metropolitan Area under the control zone of overpopulation starts its business by relocating its entire factory facilities to an area outside the Seoul Metropolitan Area pursuant to the provisions of Article 60

In such cases, the income of the factory located outside the existing Seoul Metropolitan area and the income accrued before and after the transfer thereof shall be kept separately under Article 143 of the same Act.

○ Corporation, written Internet Visit Counseling 2 Team-2613, December 13, 2004

Where a corporation relocates its factory to an area outside the Seoul Metropolitan area, the "income accrued from the factory concerned" in Article 63-2 (2) 1 of the Restriction of Special Taxation Act shall not be included in the income accrued from the factory before the relocation, and the "members working at the relocated headquarters" in Article 63-2 (2) 2 (b) of the same Act shall be excluded from the production workers directly engaged in the production work at the factory site, and the "total annual benefits paid to the whole number of the corporations" in the same item shall include the benefits prior to the relocation of the headquarters, but refer to

○ Do 46012-10411, April 3, 2001

Interest profits (including interest profits on loans of officers) and profits on disposal of fixed assets shall not be included in the reduced or exempted income under the provisions of Article 63 of the Restriction of Special Taxation Act, which is the income subject to the reduction or exemption of the income accruing from the factory after the relocation to the area relocated to the Seoul Metropolitan area.

○○ Corporation 46012-1979, September 25, 200

In applying the provisions of Article 63-2 (2) of the Restriction of Special Taxation Act, the date of the relocation of a factory means the date on which the manufacture of the factory commences after the relocation by relocating the entire factory facilities, and the scope of income generated from the factory after the relocation does not include the income generated in connection with the products manufactured at the factory before the relocation.

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