1. On April 5, 2017, the Defendant rendered a disposition of rejecting an application for rectification of KRW 1,536,030,000 for corporate tax for the business year 2012 against the Plaintiff.

1. Details of the disposition;

A. The Plaintiff is a limited company of the United States of America, and is engaged in the business of developing and securing patents related to electronic manufacturing business and lending them.

On March 29, 2012, the Plaintiff granted B Co., Ltd. (hereinafter referred to as “B”) the right to use the patent in return for receiving US$9,000,000 ($). Of the patents granting the right to use, there was no patent registered or pending in the Republic of Korea among the patents granting the right to use.

B. B paid the said money in accordance with Article 14 of the Convention between the Republic of Korea and the United States of America for the Avoidance of Double Taxation and the Prevention of Evasion of Law and the Encouragement of International Trade and Investment (hereinafter “Korea-U.S. Tax Convention”) and Article 93 Subparag. 8 of the former Corporate Tax Act (amended by Act No. 16008, Dec. 24, 2018; hereinafter the same shall apply), deeming the said money as domestic source income and paid the amount of KRW 1,536,030,000 to the Defendant as corporate tax for the business year 2012.

(hereinafter referred to as “instant payment” and “the amount of the corporate tax withheld by B” and “the amount of the corporate tax withheld by B” shall be deemed to be “the instant withholding tax.”

The Plaintiff filed a claim for correction to the effect that the patent fee paid by B on December 6, 2016 was refunded on the ground that the patent was not a domestic unregistered patent, and thus, was not a domestic source income. However, the Defendant rejected the claim on April 5, 2017 on the ground that “if the patent right was registered overseas pursuant to Article 93 subparag. 8 of the Corporate Tax Act and was used for manufacturing, selling, etc. in Korea, it shall be deemed to be used in Korea regardless of domestic registration.”

(hereinafter referred to as "the refusal of this case") d.

The Plaintiff filed an appeal with the Tax Tribunal on the instant refusal disposition, but the Tax Tribunal dismissed the appeal on April 18, 2018, and the Plaintiff rendered the decision on April 23, 2018.