Daejeon District Court-2015-Gu Partnership-105260 ( March 26, 2016)

Scope of personnel expenses eligible for tax credit for research and human resources development expenses

Retirement pension contributions shall not be excluded from personnel expenses subject to the deduction of research and human resources development expenses;

Article 10 of the Restriction of Special Taxation Act

2016Nu11467 Revocation of Disposition of Imposing corporate tax, etc.

Aaa

Daejeon Head of the District Tax Office

Daejeon District Court 2015Guhap105260 ( October 26, 2016)

October 20, 2016

November 17, 2016

1. Revocation of a judgment of the first instance;

2. The Defendant’s disposition of imposing corporate tax of KRW 46,688,290 for the Plaintiff on November 26, 2013 (including additional taxes), KRW 102,95,420 for the business year belonging to 2009, KRW 243,227,510 for the business year belonging to 2010 (including additional taxes), and the disposition of imposing corporate tax of KRW 392,91,220 for the Plaintiff is revoked.

3. All costs of the lawsuit shall be borne by the defendant.

The same shall apply to the order.

1. Details of the disposition;

A. The Plaintiff (hereinafter “Plaintiff”) was incorporated on January 26, 2015 from a corporation AaB Holdings, which was divided into:

A golf product manufacturing, sale and service business, golf service business, regardless of whether it is before or after the division establishment.

The purpose of a practice hall, golf course project, screen golf project, etc. is a screen golf project, etc.

The Department of Research and Development, which is exclusively in charge of manufacture, such as an order, shall be operated and operated on March 28, 2007, an incorporated association.

In the case of this case, "the head of the National Industrial Technology Association"(hereinafter referred to as a "affiliated research institute") shall be the head of the National Industrial Technology Association

It was recognized as a business-affiliated research institute as prescribed by the Technology Development Promotion Ordinance.

B. The plaintiff is employed by the staff of the research institute of this case until the business year 2007 to 2010.

The retirement pension premium paid KRW 88,145,00 for the business year 2007, KRW 44,431,867 for the business year 2008, KRW 203,089, KRW 626 for the business year 2009, KRW 484,802,063 for the business year 2010, KRW 820,468,556 for the business year 2010.

(hereinafter referred to as "retirement pension premium of this case").

C. On December 9, 2011, the Plaintiff filed a corporate tax return with the head of Seo-gu Daejeon District Tax Office for the business year from 2004 to 2006.

The term "research and human resources development expenses" and "retirement pension contributions in this case" are reflected in the research and human resources development expenses subject to the tax credit (hereinafter referred to as "tax credit under the Restriction of Special Taxation Act") under Article 10 (1) of the former Restriction of Special Taxation Act (amended by Act No. 9272, Dec. 26, 2008; Act No. 9921, Jan. 1, 2010; Act No. 10406, Dec. 27, 2010; Act No. 11133, Dec. 31, 2011; hereinafter referred to as "the former Restriction of Special Taxation Act") in the corporate tax for the business year 319,261,426, corporate tax for the business year 207; corporate tax for the business year 356,797, corporate tax for the business year 209; corporate tax for the business year 747,717,747,767

2,190,671,673 Won filed an application for corporate tax refund.

On December 16, 2011, the director of the Seo-gu Daejeon District Tax Office shall Xxx, an incorporated association, on March 28, 2007, by the plaintiff on December 16, 201.

It was recognized as a business-affiliated research institute by the Technology Promotion Association and subject to the deduction of research and human resources development expenses.

A total of the corporate tax of 2007 to 2010 and 2,190,671,673 won was refunded on the ground that the education expenses (2004 to 2006) for the employees of the research institute and the expenditure for the retirement pension of this case were confirmed.

(d) The Gwangju Regional Tax Office shall audit the Seo-gu Daejeon District Tax Office from August 26, 2013 to September 12, 2013.

(1) A tax credit under the Restriction of Special Taxation Act shall be calculated for the Director of the Daejeon District Tax Office following the

(2) including the ordinary research expenses on the statement of the production cost in the business year from 2003 to 2006, which were not deducted as the expenses for the non-requirements

(2) Retirement pension contributions in this case shall be paid in accordance with the standard of increase in research and human resources development expenses.

notice of the audit results that it is not eligible for tax credit under the Restriction of Special Taxation Act;

had been.

E. Accordingly, on November 26, 2013, the head of Seo-gu District Tax Office: (a) corporate tax for the business year 2008 for the Plaintiff.

296,358,700 won, 296,338,690 won of corporate tax for the business year 2009, and 352,403,840 won of corporate tax for the business year 2010, and 945,101,230 won of corporate tax for the business year 2010 (hereinafter referred to as "disposition imposed as of November 26, 2013").

F. The Plaintiff is dissatisfied with the disposition of imposition issued on November 26, 2013, and on February 24, 2014, to the head of Seo-gu Daejeon District Tax Office.

On March 27, 2014, the request for review was submitted to the Board of Audit and Inspection.

(g) On August 13, 2015, the Board of Audit and Inspection shall grant the Plaintiff tax credit under the Restriction of Special Taxation Act.

in the statement of the manufacturing cost for the business year from 2003 to 2006, which has not been deducted without the requirement

It is reasonable to exclude ordinary research expenses from ordinary research expenses, including those imposed on November 26, 2013.

The calculated tax amount should be corrected as it does not include the error, and ii)

The retirement pension premium in this case is not eligible for tax credit under the Restriction of Special Taxation Act.

The decision was made to the effect that the remainder of the intentional claims is dismissed.

H. Accordingly, the director of the Daejeon District Office shall reduce corporate tax for the plaintiff according to the review and decision of the Board of Audit and Inspection.

Around September 24, 2015, the Plaintiff refunded KRW 552,190,00,000, totaling KRW 249,670,410, corporate tax for the business year 2008, KRW 193,343,270, corporate tax for the business year 2009, KRW 109,176,330, corporate tax for the business year 2010. As a result, the remaining portion of the disposition imposed on November 26, 2013 is as follows (hereinafter referred to as “instant disposition”).

I. After that, the North Daejeon Tax Office was separated and newly established from the Seo Daejeon Tax Office.

1) Amount of the instant disposition tax

Facts that have no ground for recognition, Gap's 1 through 5, Eul's 1 through 3

each entry, the purport of the whole pleading, including the number of each

2. Whether the instant disposition is lawful

A. The plaintiff's assertion

(1) The Ordinance on the Restriction of Special Taxation shall be the scope of "labor cost subject to tax credit under the Restriction of Special Taxation Act".

The retirement pension premium is not excluded from the retirement pension premium, and the above "labor cost" is a worker regardless of its name.

(2) Retirement pension contributions, respectively, shall mean all expenses paid in return for work.

Expenses actually paid and recognized as losses in the business year are equivalent to personnel expenses;

(3) In full view of the fact that retirement pension contributions, which is a defined contribution retirement pension plan, are different in the nature of both parties because actual expenses are actually paid, accumulation and accounting at the time of payment of allowances for retirement benefits, and the fact that the expenditure of the fourth insurance premium in accordance with the established rules of the tax authority is recognized as personnel expenses eligible for the tax credit under the Restriction of Special Taxation Act, the retirement pension contributions in this case constitute a person eligible for the tax credit under the Restriction of Special Taxation Act as personnel expenses for the employees of the research institute in this case. Nevertheless, the instant disposition that did not recognize the retirement pension in this case

B. Relevant statutes

It is as shown in the attached Form.

C. Determination

The above facts and evidence Nos. 6 and 7 of the evidence and the purport of the whole pleadings

Further, in light of the following circumstances, the retirement pension premium of this case

section 10(1) of the former Restriction of Special Taxation Act shall be eligible for a tax credit for research and human resources development expenses

It is reasonable to deem that the instant disposition constitutes a secret, and ultimately, the instant disposition is unlawful on a different premise.

(1) Article 10 (1) of the Restriction of Special Taxation Act shall apply to research and human resources development for each taxable year by a national

Where any expenses prescribed by Presidential Decree are incurred in relation to such expenses, the amount prescribed in each subparagraph thereof.

As a result, the old tax system should be deducted from income tax or corporate tax in the taxable year.

Article 9(2) and attached Table 6 of the Enforcement Decree of the former Enforcement Decree of the Act on Special Cases Concerning the Restriction of Taxes (amended by Presidential Decree No. 21307, Feb. 4, 2009); Article 8(1) and attached Table 6 of the former Enforcement Decree of the Act on Special Cases Concerning the Restriction of Taxes (amended by Presidential Decree No. 23590, Feb. 2, 2012) stipulate that personnel expenses of persons prescribed by Ordinance of the Ministry of Strategy and Finance as employees working at a dedicated department prescribed by Ordinance of the Ministry of Strategy and Finance among the expenses for research and human resources development shall be covered by the tax credit. Article 7(1) of the former Enforcement Decree of the Act on Special Cases Concerning the Restriction of Taxes (amended by Ordinance of the Ministry of Strategy and Finance No. 21307, Apr. 7, 2009; Article 7(1) of the former Enforcement Decree of the Act on Special Cases Concerning the Restriction of Research and Development (amended by Ordinance of the Ministry of Strategy and Finance No. 3201.

The retirement pension premium of this case is a research institute affiliated with a company as prescribed by the Technology Development Promotion Decree.

It is paid to the employees working in the exclusive department provided by Ordinance of the Ministry of Strategy and Finance.

(b) Expenses paid to persons prescribed by Ordinance of the Ministry of Strategy and Finance as employees.

(2) "Labor cost" means a fee paid to an employee for an employee in return for his/her labor regardless of its title.

The retirement pension premium of this case refers to all expenses paid. The retirement pension of this case shall work at the research institute of this case.

as it is paid to the employees for the work, it constitutes a "labor cost", and Article

Tax-related Special Acts and subordinate statutes are entitled to tax credit for research and human resources development expenses in the "labor cost" report.

There is no provision to exclude examination fees.

(3) The allowance for severance benefits shall be paid within a specific limit estimated for the calculation of profit or loss for a justifiable period of time.

Although the money is to be accumulated in the debt account as ‘the allowance for severance and retirement benefits' and to reflect the same amount in the expense account as ‘retirement benefits', no cash is paid until it actually pays the retirement benefits. On the other hand, the retirement pension in this case is actually disbursed to a retirement pension trustee other than the company in each business year in accordance with the fixed retirement pension plan 2) and the amount equivalent to the portion of the money is accounted for at the company's expense at each time, and the amount is specified for each taxable year and each employee subject to the payment.

(4) In cases of allowances for severance benefits, an employee is merely counted only for the injury.

It shall be the cost of the company only when the retirement and the payment is actually made.

on the other hand, retirement pension contributions are paid by a company to a retirement pension trustee other than the company.

At the same time, the retirement pension is to be paid to the employee, because the money is finally reverted to the employee.

It can be seen that it is directly corresponding expenses to research and human resources development in the taxable year in which insurance premiums are paid.

(5) As can be seen, allowances for severance benefits and retirement pension contributions significantly different in their substance.

In addition, allowances for severance benefits under the retirement allowance system that sets aside retirement benefits only in the company;

Inasmuch as problems arise in securing a stable fund for old age, a retirement pension trustee other than the company may receive retirement pension.

tax, there is a need to induce the business entity to choose a retirement pension insurance system accumulated therein;

As the Enforcement Decree of the Special Act on the Restriction was amended by Presidential Decree No. 23590 on February 2, 2012, the proviso of Article 33 of the Corporate Tax Act excludes the “retirement pension premium under Article 33 of the Corporate Tax Act from the personnel expenses subject to the tax credit for research and human resources development expenses” in attached Table 6, but does not stipulate that the “retirement pension premium” is excluded from such personnel expenses, there is sufficient room to view that there was a legislative intent to include the “retirement pension premium” in the “labor expenses” in the “labor expenses.

Retirement pension contributions shall be included in personnel expenses eligible for tax credits, unlike allowances for retirement and retirement benefits.

The principle of tax equality cannot be deemed to be contrary to the principle of tax equality.

6. Where the National Pension Service, health insurance premiums, etc. are subject to tax credit under the Restriction of Special Taxation Act

Even though it is included in the visa, there seems to be no special reason to exclude only retirement pension contributions which are similar to this from the target.

3. Conclusion

Then, the plaintiff's claim shall be quoted for the reasons, and the judgment of the court of first instance shall conclude this conclusion.

Since it is unfair to cancel the disposition of this case, the disposition of this case shall be cancelled, and it is so ordered as per Disposition.

partnership.

Relevant statutes

○ former Restriction of Special Taxation Act (amended by Act No. 9272 of Dec. 26, 2008)

Article 10 (Tax Credit for Research and Manpower Development Expenses)

(1) A national (hereinafter referred to as "consumption cost") in a consumptive service business prescribed by Presidential Decree, such as gambling place, dance hall, entertainment tavern business.

A taxation year ending on or before December 31, 2009

Until each taxable year, the expenses prescribed by Presidential Decree among the expenses for research and human resources development (hereinafter referred to as "research and human resources development expenses").

Where expenses for human resources development are incurred, any of the following amounts shall be the income tax (project) for the relevant taxable year:

Only income tax on income shall be deducted from the corporate tax or corporate tax.

2. Nationals other than subparagraph 1: Total sum of the amounts falling under items (a) and (b): Provided, That the relevant taxable year.

Revenue amount (referring to sales amount calculated in accordance with corporate accounting standards under Article 43 of the Corporate Tax Act; hereafter in this Article,

The same shall apply to the section) The ratio of research and human resources development expenses to the revenue amount for the immediately preceding taxable year.

When higher or equal to the ratio of the cost of power development to the ratio of the cost of power development, the sum of the amounts under items (a) and (b)

shall be the amount selected from among the amounts falling under item (c).

(a) A research or a person prescribed by Presidential Decree entrusted to a university or a small or medium enterprise, etc.;

Expenses for research and human resources development (hereinafter referred to as "research and human resources development expenses entrusted to small and medium enterprises, etc.") shall begin on the date the relevant taxable year begins

the annual average of the expenses incurred for research and human resources development entrusted to small and medium enterprises, etc. incurred for four years retroactively;

amount equivalent to 50/100 of the excess amount;

(b) Entrustment research and human resources development expenses incurred for the relevant taxable year to small and medium enterprises, etc.;

A small and medium enterprise, etc. whose research and human resources development expenses are incurred for four years retroactively from the commencing date of the relevant taxable year;

Where the annual average of research and human resources development expenses, other than research and human resources development expenses, the amount in excess;

equivalent to 40/100 of the amount;

(c) The ratio (6/100) calculated by the following formula to research and human resources development expenses incurred for the relevant taxable year:

an amount calculated by multiplying the amount by

3/100 + Ratio of research and human resources development expenses to the revenue amount for the relevant taxable year ¡¿

1/2

(2) An annual average amount of expenses incurred for research and human resources development for four years pursuant to paragraph (1) 1 and 2.

Sector and calculation and other necessary matters shall be prescribed by Presidential Decree.

(3) A national who intends to benefit from paragraph (1) shall apply for tax credit under the conditions as prescribed by the Presidential Decree.

section 23.

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○ former Restriction of Special Taxation Act (Amended by Act No. 9921, Jan. 1, 2010)

Article 10 (Tax Credit for Research and Human Resources Development Expenses)

(1) A national (hereinafter referred to as "consumption cost") in a consumptive service business prescribed by Presidential Decree, such as gambling place, dance hall, entertainment tavern business.

any national who is engaged in a host business (excluding any national who is engaged in a host business) has any research and human resources development expenses in each taxable year;

w. Any of the following amounts shall be income tax (limited to income tax on business income) for the relevant taxable year:

Deduction from corporate tax or corporate tax.

2. Nationals other than subparagraph 1: Total sum of the amounts falling under items (a) and (b): Provided, That the relevant taxable year.

Revenue amount (referring to sales amount calculated in accordance with corporate accounting standards under Article 43 of the Corporate Tax Act; hereafter in this Article,

The same shall apply to the section) The ratio of research and human resources development expenses to the revenue amount for the immediately preceding taxable year.

In the event that the ratio of the cost of power development is higher or equal, or that the cost of research and human resources development in the relevant taxable year is immediately preceding.

When higher or equal to the year, the total amount equivalent to items (a) and (b) and the amount falling under item (c).

shall be the amount selected from among amounts.

(a) A research or a person prescribed by Presidential Decree entrusted to a university or a small or medium enterprise, etc.;

Expenses for research and human resources development (hereinafter referred to as "research and human resources development expenses entrusted to small and medium enterprises, etc.") shall begin on the date the relevant taxable year begins

the annual average of the expenses incurred for research and human resources development entrusted to small and medium enterprises, etc. incurred for four years retroactively;

amount equivalent to 50/100 of the excess amount;

(b) Entrustment research and human resources development expenses incurred for the relevant taxable year to small and medium enterprises, etc.;

A small and medium enterprise, etc. whose research and human resources development expenses are incurred for four years retroactively from the commencing date of the relevant taxable year;

Where the annual average of research and human resources development expenses, other than research and human resources development expenses, the amount in excess;

equivalent to 40/100 of the amount;

(c) The ratio (6/100) calculated by the following formula to research and human resources development expenses incurred for the relevant taxable year:

an amount calculated by multiplying the amount by

3/100 + Ratio of research and human resources development expenses to the revenue amount for the relevant taxable year ¡¿

1/2

(2) An annual average amount of expenses incurred for research and human resources development for four years pursuant to paragraph (1) 1 and 2.

Sector and calculation and other necessary matters shall be prescribed by Presidential Decree.

(3) A national who intends to benefit from paragraph (1) shall apply for tax credit under the conditions as prescribed by the Presidential Decree.

section 23.

○ former Restriction of Special Taxation Act (amended by Act No. 10406, Dec. 27, 2010)

Article 10 (Tax Credit for Research and Human Resources Development Expenses)

(1) Where a national has a research and human resources development expenses for each taxable year, the total of the following amounts:

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the income tax (limited to the income tax on business income) or corporate tax for the pertinent taxable year.

In such cases, subparagraphs 1 and 2 shall apply only to the relevant research and human resources development expenses incurred by December 31, 2012.

shall be used.

3. A year of a national who does not fall under subparagraphs 1 and 2, or who does not select subparagraphs 1 and 2, respectively.

In the case of the Gu and human resources development expenses (hereafter referred to as "general research and human resources development expenses" in this Article), among the following items:

Any of the amounts selected;

(a) General research and human resources development expenses incurred in the relevant taxable year retroactive from the commencing date of the relevant taxable year;

Where the annual average amount of general research and human resources development expenses incurred for 4 years exceeds 100

Amount equivalent to 40/100 (50/100 in the case of a small or medium enterprise).

(b) The ratio (6/100) calculated by the following formula to the general research and human resources development expenses incurred in the relevant taxable year:

(25) In the case of a small or medium enterprise, the amount calculated by multiplying the amount by 25/100.

3/100 + Ratio of research and human resources development expenses to the revenue amount for the relevant taxable year ¡¿ 1/2

(2) The classification and calculation of annual average of research and human resources development expenses incurred for four years pursuant to paragraph (1) 3 and such expenses.

Other necessary matters shall be prescribed by Presidential Decree.

(3) A national who intends to have paragraph (1) applied shall apply for tax credit, as prescribed by Presidential Decree.

(4) A national who intends to be governed by paragraph (1) 1 and 2 shall be general research and human resources development expenses and research dogs for new growth engines.

The cost of birth and the cost of research and development of original technology shall be kept separately as prescribed by Presidential Decree.

○ former Restriction of Special Taxation Act (Amended by Act No. 11133, Dec. 31, 2011)

Article 10 (Tax Credit for Research and Human Resources Development Expenses)

(1) Where a national has a research and human resources development expenses for each taxable year, the total of the following amounts:

the income tax (limited to the income tax on business income) or corporate tax for the pertinent taxable year.

In such cases, subparagraphs 1 and 2 shall apply only to the relevant research and human resources development expenses incurred by December 31, 2012.

shall be used.

3. A year of a national who does not fall under subparagraphs 1 and 2, or who does not select subparagraphs 1 and 2, respectively.

In the case of the Gu and human resources development expenses (hereafter referred to as "general research and human resources development expenses" in this Article), among the following items:

Any of the amounts selected;

(a) General research and human resources development expenses incurred in the relevant taxable year retroactive from the commencing date of the relevant taxable year;

Where the annual average amount of general research and human resources development expenses incurred for 4 years exceeds 100

Amount equivalent to 40/100 (50/100 in the case of a small or medium enterprise).

(b) The amount calculated by multiplying the general research and human resources development expenses incurred for the relevant taxable year by the ratio classified as follows:

an amount calculated in the amount

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[Attachment Table 6]

Expenses subject to tax credit for research and human resources development expenses (related to Article 9(2))

For the Gu decentralization

1. Technology development;

(a) Self-technology development;

(1) The Ordinance of the Ministry of Strategy and Finance shall develop technology or promote cultural industries.

employee belonging to the exclusive department (hereinafter referred to as the "exclusive department")

Personnel expenses for persons determined by Ordinance of the Ministry of Strategy and Finance

[Attachment Table 6]

(a) In cases of small and medium enterprises: 25/100;

2) No small or medium enterprise shall be the first small or medium enterprise as prescribed by Presidential Decree.

(A) in the first taxable year that no longer falls under a small or medium enterprise:

Until the taxable year ending within three years from the date of commencement: Within two years from the end of 15/100 (b)

Until the taxable year ending: 10/100

3) Where a person does not fall under either (i) or (ii): The ratio (10/100) calculated by the following formula:

to the extent of 6)

3/100 + Ratio of research and human resources development expenses to the revenue amount for the relevant taxable year ¡¿ 1/2

(2) The classification and calculation of annual average of research and human resources development expenses incurred for four years pursuant to paragraph (1) 3 and out of such expenses.

Matters necessary for such matters shall be prescribed by Presidential Decree.

(3) A national who intends to have paragraph (1) applied shall apply for tax credit, as prescribed by Presidential Decree.

○ former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 21307 of Feb. 4, 2009)

Article 9 (Tax Credit for Research and Manpower Development Expenses)

(2) "Expenses prescribed by Presidential Decree" in the main sentence of Article 10 (1) of the Act means research and seal for each taxable year.

Expenses referred to in attached Table 6 among the expenses for power development.

○ former Enforcement Decree of the Restriction of Special Taxation Act (amended by Presidential Decree No. 23590, Feb. 2, 2012)

Article 8 (Scope, etc. of Reserves for Research and Human Resources Development)

(1) "Expenses prescribed by Presidential Decree" in Article 9(3)1 of the Act means research under Article 9(5) of the Act.

Expenses for development activities and human resources development activities means expenses under attached Table 6.

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Expenses to which a tax credit for research and human resources development expenses is applied (related to Article 8 (1))

For the Gu decentralization

1. Research and development;

(a) Self-research and development;

(1) The Ordinance of the Ministry of Strategy and Finance for research and development or cultural industries

employees working in the exclusive department (hereinafter referred to as the "exclusive department")

personnel expenses for persons prescribed by Ordinance of the Ministry of Strategy and Finance;

○ Enforcement Rule of the Restriction of Special Taxation Act (amended by Ordinance of the Ministry of Strategy and Finance No. 70 on April 7, 2009)

Article 7 (Scope of Research and Manpower Development Expenses)

(1) "Exclusive department under subparagraph 1 (a) of attached Table 6 of the Decree pursuant to Article 9 (2) of the Decree" means the Technology Development Promotion Act.

Corporate-affiliated research institutes recognized pursuant to Article 7 of the Enforcement Rule and the head of Education, Science and Technology pursuant to Article 8 of the same Rule.

A department exclusively dedicated to research and development (hereinafter referred to as the "dedicated department") reported to the public.

○ Enforcement Rule of the Restriction of Special Taxation Act (amended by Ordinance of the Ministry of Strategy and Finance No. 151 on April 20, 2010)

Article 7 (Scope of Research and Manpower Development Expenses)

(1) The section exclusively dedicated to subparagraph 1 (a) of attached Table 6 of the Decree under Article 8 (1) of the Decree shall be as follows:

Research institutes and dedicated departments (hereinafter referred to as "dedicated departments") falling under the jurisdiction of the research institutes and exclusive departments.

1. Article 8 of the Enforcement Rule of the Technology Development Promotion Act and the same Rule;

section 40,00,000

○ Enforcement Rule of the Restriction of Special Taxation Act (amended by Ordinance of the Ministry of Strategy and Finance No. 204 on April 7, 2011)

Article 7 (Scope of Research and Human Resources Development Expenses)

(1) The section exclusively dedicated to subparagraph 1 (a) of attached Table 6 of the Decree under Article 8 (1) of the Decree shall be as follows:

Research institutes and dedicated departments (hereinafter referred to as "dedicated departments for the development of general human resources for research") falling under the subparagraph.

1. Article 8 of the Enforcement Rule of the Technology Development Promotion Act and the same Rule;

(1) The research and development division within the enterprise reported to the Minister of Education, Science and Technology.

3) Deductible expenses pursuant to Article 9(2)1 of the former Act on Special Cases concerning Tax Restrictions (amended by Act No. 11133, Dec. 31, 201) (amended by Act No. 11133), pursuant to paragraph (1) of the same Article

The taxable year to which the date on which three years have passed after the end of the taxable year in which reserves for research and human resources development included in the deductible expenses are included belongs.

Research and development to develop costs necessary for research and human resources development (research and development to develop a new service and service delivery system until the end of the period;

(1) In cases of expenses prescribed by Presidential Decree (only applicable to expenses incurred in self-research and development) among expenses incurred in research and development projects;

(c) refers to ‘A';