Western 46014-10054 ( August 31, 2001)

Transfer

In applying the transfer income tax rate on stocks of an unlisted corporation under Article 104 (1) 4 of the Income Tax Act, the determination of small and medium enterprises shall be made according to the current status as of the closing date of the immediately preceding business year of the relevant corporation in accordance with Article

In the application of the transfer income tax rate to the stocks of an unlisted corporation under Article 104 (1) 4 of the Income Tax Act, the determination of small and medium enterprises shall be based on the current status as of the end of the fiscal year immediately preceding the fiscal year of the relevant corporation under Article 2 of the Framework Act on Small and Medium Enterprises, and the question of whether you correspond to this issue is the head of the relevant district tax office.(B) The question of the timing of the transfer of assets and the transfer value of assets is the date of reference of the existing established rules (Article 46014-232, December 1, 1998) (Article 104 (3) of the Income Tax Act) (Article 46014-410, April 3, 2000), with reference to the contents of the existing established rules (Article 46014-410, April 410, 200) (Article 97 (1) of the Income Tax Act).

Article 104 of the Income Tax Act 【Rate of Transfer Income Tax】

1. A summary of the contents of inquiry;

○ The corporation is a non-listed corporation that receives a certain percentage of fees from the purchaser and the domestic manufacturer when it is in contact with the domestic manufacturer and continuously conducts management and inspection from the manufacturing process to the final shipment of the goods at the request of the foreign manufacturer(s) to the domestic manufacturer(s). A single shareholder of the corporation is scheduled to transfer all the stocks of the corporation in question, which have been held for not less than one year by the purchaser and the domestic manufacturer(s) to the foreign corporation;

In the transfer of such shares, the ownership of the shares is transferred in full after receiving only a part of the price (the base amount for the U.S. dollars) and the remaining amount shall be received every five years from the corporation concerned for the next five years. In the transfer of this shares, the amount guaranteed by the lower limit (minimum guarantee amount) and the upper limit of the amount to be received in the future shall be determined.

1. Whether the relevant corporation may have 10% or more of the capital gains tax rates for stock transfer because it falls under a small or medium enterprise;

2. Time of transfer and transfer value of stocks;

3. Where the transfer date is the transfer date and the minimum amount of guarantee is the transfer value, whether the additional tax shall be borne when a revised return is filed due to the occurrence of a value exceeding the minimum guarantee amount later.

4. The base date converted into won currency, where payments for transfer are received in foreign currency after transferring the ownership.

2. Materials on the contents of questioning;

(a) relevant tax laws and regulations (law, enforcement decree, enforcement rule, basic rules);

○ Article 104 of the Income Tax Act 【Rate of Transfer Income Tax】

(1) The amount (hereinafter referred to as "calculated amount of transfer income tax") calculated by applying the following tax rates to the tax base of transfer income for the corresponding year as the amount of transfer income tax:

4. Assets prescribed in Article 94 (1) 3:

(a) The outline of birth;

(b) Stocks of small and medium enterprises;

10/100 of the tax base of transfer income;

(c) Stocks, etc. other than items (a) and (b);

20/100 of the tax base of transfer income;

○ Article 167-2 of the Income Tax Act 【Scope of Small and Medium Enterprise】

(1) The term "small and medium enterprises prescribed by Presidential Decree" in Article 104 (1) 4 (a) of the Act means enterprises falling under any of the following subparagraphs as of the end of the business year immediately preceding the business year in which the transfer date of stocks

1. Enterprises under Article 2 of the Framework Act on Small and Medium Enterprises; and

Article 162 of the Enforcement Decree of the Income Tax Act 【Transfer or Acquisition Date】

(1) The time of acquisition and transfer under Article 98 of the Act shall be the date of liquidation of the price of relevant assets (if the transferee agrees to bear the capital gains tax and additional tax of capital gains tax on the transfer of relevant assets, excluding such capital gains tax and additional tax of capital gains tax) except in the following cases:

2. Where registration of transfer of ownership (including registration and statements of change of name) has been made before the price is settled, the date of receipt of the registration entered in the register, register, list, etc.;

【Transfer Price】

(1) omitted.

(2) The transfer value referred to in Article 94 (1) 3 and 4 shall be based on the actual transaction value at the time of transfer of the assets concerned.

【Additional Tax on Transfer Income Tax】

(1) Where a resident fails to file a final return or files a return of any amount short of the income amount to be returned, an amount equivalent to 10/100 of the amount calculated by multiplying the calculated tax amount by the ratio of the relevant income amount not returned or the relevant income amount short of the amount to be returned to the transfer income amount (hereinafter referred to as "amount of additional tax on negligent tax returns") to the calculated tax amount shall be added to the calculated tax amount.

(2) If a resident fails to pay the transfer income tax amount under Article 111 or pays it below the payable tax amount, the amount calculated by applying the rate prescribed by the Presidential Decree in consideration of the interest rate on loans in arrears by financial institutions to the unpaid tax amount (hereinafter referred to as "additional payment penalty") shall be added to the calculated tax

Article 97 of the Enforcement Decree of the Income Tax Act 【Evaluation of Foreign Assets and Liabilities】

(1) In applying Article 39 of the Act, the won currency account amount of foreign currency assets and liabilities as determined by the Ordinance of the Ministry of Finance and Economy (hereafter referred to as "foreign currency assets and liabilities" in this Article) and the profits or losses in the won currency amount assessed by the exchange rate (referring to the base exchange rate or arbitrated exchange rate under the Foreign Exchange Transactions Act) as of the end of the relevant business

Article 2 of the Enforcement Decree of the Securities Transaction Tax Act 【Time of Transfer】

The time for confirmation of transaction of stock certificates, etc. under Article 5 (2) of the Act shall be as follows:

3. In cases other than those under subparagraphs 1 and 2, when the relevant stock certificates, etc. are delivered or paid in full: Provided, That in cases where the right is transferred before the stock certificates, etc. are delivered or paid in full, the time such right is transferred.

【Tax Base” under Article 7 of the Securities Transaction Tax Act

(1) The tax base of securities transaction tax shall be as follows:

1. Where stock certificates are transferred pursuant to any item of subparagraph 1 of Article 3, the transfer value of such stock certificates;

2. Where share certificates, etc. are transferred other than those under subparagraph 1, the value by the following classifications:

(a) Where the transfer value of share certificates, etc. is known: The transfer value of the relevant share certificates, etc.: Provided, That where it is deemed that the share certificates, etc. have been transferred at a price lower than the market value under Article 101 of the Income Tax Act, Article 52 of the Corporate Tax Act, or Article 35

Article 14 of the Securities Transaction Tax Act

If a taxpayer fails to pay the securities transaction tax under Article 10 (2), or the paid tax amount is short of the payable tax amount, the amount equivalent to 10/100 of the unpaid or insufficient tax amount shall be collected by adding the unpaid or insufficient tax amount to the unpaid or paid tax amount.

(b) Similar cases (judicial precedents, judicial precedents, review precedents, and established rules);

○ Property 46014 - 810 ( July 5, 200)

In applying the unlisted stock tax rate under Article 104 (1) 4 of the Income Tax Act, the determination of the “small and Medium Enterprises as prescribed by the Presidential Decree” shall be based on the current status of the closing date of the immediately preceding business year of the relevant corporation under Article 2 of the Framework Act on Small

○ Japan 46014 - 2332 ( December 1, 1998)

1. The time of acquisition and transfer of assets shall, in principle, be the date of liquidation of the transfer proceeds of relevant assets, and in the case of a long-term installment plan under Article 78 (3) of the Enforcement Decree of the Income Tax Act, the date of the first return payment: Provided, That in case of transfer registration of ownership (including the first return payment under long-term installment plan, in the case of the first return payment under long-term installment plan), the date of receipt of registration entered in the register, registry, list, etc. is the time of such acquisition

2. In principle, the transfer value of assets under subparagraph 4 of Article 94 of the Income Tax Act shall be based on the actual transaction value at the time of transfer under subparagraph 2 of Article 96 of the same Act.

3. In the case of the above 2, the term “actual transaction price at the time of transfer” means the amount traded by the transferor and the purchaser with the transfer price in direct connection with the transfer of assets at the time of transfer. Thus, the amount to be traded at the time of transfer (in the case of a question of return, corresponding to the base price in the case of a question of return; hereinafter the same shall apply) shall be determined at the time of transfer, and where a certain amount is increased or decreased according to the results of the net profit accrued after the transfer date (in the case of the above 1, the time of transfer; hereinafter the same shall apply) at the time of transfer, the transfer amount at the time

4. In case of assessing foreign currency assets and liabilities in Korean currency pursuant to Article 97 (3) of the Enforcement Decree of the Income Tax Act, the base exchange rate or arbitrated exchange rate pursuant to the Foreign Exchange Control Act.

○ Property 46014 - 410 ( April 3, 200)

1. In the calculation of gains on transfer of unlisted stocks, the acquisition and transfer date shall become the date of the liquidation of the price of relevant assets, but in case where a name is opened prior to the settlement of the price, the opening date of the name entered in the register shall be the date of acquisition and transfer;

2. In calculating gains on transfer of unlisted stocks, where the transfer value is not determined by the time of transfer, the transfer value at the time of reporting on the gains on transfer of stocks shall be the transfer value as of the date of transfer, and with respect to a certain amount that is to be increased or decreased after the date of transfer, the transfer value shall be changed and reported accordingly. In such cases, the additional tax