Tax rate on the income of container rents of foreign corporations;

Lease fees paid in return for the lease of containers used for loading and transporting foreign cargo or goods from a foreign corporation which does not have a place of business in the Republic of Korea is a domestic source income under Article 55 (1) 9 (c) of the Corporate Tax Act of the said foreign corporation, so corporate tax shall be withheld at the rate of 25/100.

Articles 55(1)9(c) and 59(1)3 of the Corporate Tax Act; Article 122(3) of the Enforcement Decree of the Corporate Tax Act

Attorney Park Young-chul et al., Counsel for defendant-appellee

Litigation Performers Kim Jong-soo of the Director of the District Public Administration

Seoul High Court Decision 79Gu501 delivered on March 18, 1980

The appeal is dismissed.

The costs of appeal shall be borne by the plaintiff.

The grounds of appeal by the Plaintiff’s attorney are examined.

According to the reasoning of the judgment below, since Article 5 (1) 9 (c) and Article 59 (1) of the Corporate Tax Act and Article 122 (3) 6 of the Enforcement Decree of the same Act provide that "No. 5 percent of the rental fees paid to the company for the use of containers or leased goods shall be deemed as the domestic source income of the non-party C. E.I., a foreign corporation with no domestic place of business, and the plaintiff's use of the rental fees for the use of containers or leased goods by the non-party 5 (1) 9 (c) and Article 59 (1) of the Corporate Tax Act and Article 122 (3) of the Enforcement Decree of the Enforcement Decree of the same Act, the court below held that the above disposal rate of the rental fees for the non-party corporation's use of the rental fees for the use of the containers or leased goods shall not be applied to the non-party corporation's income under Article 55 (1) 9 (c) of the same Act and Article 122 (3) of the same Enforcement Decree, and the above disposal rate shall be justified.

Therefore, the plaintiff's appeal is dismissed. The costs of appeal are assessed against the losing party. It is so decided as per Disposition by the assent of all participating Justices on the bench.

Justices Kang Young-young (Presiding Justice)