Suwon District Court-2015-Gu Partnership-63754 ( December 08, 2015)

Cho-2015 China-1372 (Law No. 15, 03.05)

foreign-invested enterprises not meeting the standards for tax reduction or exemption;

In order to meet the standards for reduction and exemption of corporate tax, a foreign-invested enterprise that has invested in the business of reduction and exemption shall operate the factory facilities to conduct the business of reduction and exemption at the time when the requirements for corporate tax reduction and exemption are established, and even if a foreign-invested enterprise installs the factory facilities, if it fails to operate the factory facilities due to such reasons as transfer of the

Article 121-2 (Abatement or Exemption of Corporate Tax, etc. for Foreign Investment)

2016-Nu-31960 Revocation of Disposition of Corporate Tax Imposition

AA

o Head of the tax office

2016.08.24

2016.21

1. The plaintiff's appeal is dismissed.

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

The judgment of the first instance shall be revoked. On December 3, 2014, the defendant revoked the imposition of the corporate tax on the plaintiff on December 3, 2014 by the OOO for the business year of 2010.

1. Quotation of judgment of the first instance;

The reasoning of this court's decision is as follows, except that part of the reasoning of the first instance court's decision is dismissed as follows:

Since the judgment of the court of first instance is the same as the judgment of the court of first instance, it shall be quoted in accordance with Article 8(2) of the Administrative Litigation Act and Article 420 of the

○ At the bottom of the 6th page, the following shall be added:

Article 121-5 (1) 2 of the former Restriction of Special Taxation Act provides that "where a foreign-capital invested company, etc. has reduced or exempted corporate tax pursuant to Article 121-2 (2) of the same Act, it fails to meet the standards for tax reduction or exemption under the main sentence of Article 121-2 (1)" due to the additional collection of the reduced or exempted tax amount. The standards for tax reduction or exemption under the main sentence of Article 121-2 (1) of the same Act provide that "where it installs or operates factory facilities to operate a business involving high technology pursuant to Article 116-2 (1) 2 of the former Enforcement Decree of the Restriction of Special Taxation Act." The transfer of a business does not fall

○ 7.7. 8 The following shall be added:

[The former Enforcement Decree of the Foreign Investment Promotion Act (amended by Presidential Decree No. 13845 of Feb. 20, 193) provides that "the exemption of income tax and corporate tax" under Article 13 (1) 1 shall be based on the standards of tax reduction and exemption shall be "the case of new construction or extension of factory facilities in an area other than the Seoul Metropolitan area" under Article 34 (1) 1 of the Enforcement Decree of the Act on the Regulation of Tax Reduction and Exemption, but the above exemption of income tax and corporate tax shall not be limited to "the case of new construction or operation of factory facilities" under Article 13 (1) 1 of the Enforcement Decree of the Act on the Regulation of Tax Reduction and Exemption and the Enforcement Decree of the Foreign Investment Promotion Act (amended by Presidential Decree No. 13845 of Nov. 14, 1998).

○ 9. 8. The following shall be added to each of the nine pages:

(5) Article 121-5(1) of the former Restriction of Special Taxation Act provides for the grounds for tax abatement or exemption under each subparagraph of Article 121-5(1) and provides for the cancellation of registration pursuant to the Foreign Investment Promotion Act (Article 121-5(1)); where a foreign investor transfers stocks, etc. owned under this Act to the citizens of the Republic of Korea (Article 121-2(1) (Article 121-2(2)); and where a foreign investor closes down his/her business (Article 121-10(2) of the former Enforcement Decree of the Restriction of Special Taxation Act (Article 116-10(2)1). As such, the transfer of business constitutes a transfer of business, and thus, it cannot be deemed that the provision of transfer of business by reason of tax abatement or exemption exceeds the scope of delegation

○ 9 9 pages “Plaintiff” shall be added to “after the lapse of two months from the date of transfer”.

"At least 00 pages 12 of the nine pages" shall be added, apart from the filing of a separate lawsuit against the return of the request by the Minister of Strategy and Finance.

○ 11 Added Parts of the relevant Acts and subordinate statutes shall be added to "Additional Parts of the relevant Acts and subordinate statutes".

2. Conclusion

The judgment of the first instance is justifiable. The plaintiff's appeal is dismissed.