Corporate Tax and 360 ( May 23, 2011)
The game development company set off the first stop to be paid by the game distribution company according to the sales amount of the game distribution company, but even if the bargaining royalty falls short of the first stop, if the game development company fails to return the insufficient amount separately, it recognizes the profits and losses for the business year in which the date of settlement of the bargaining royalty for the sales amount of the game distribution company belongs.
In the case of the business tax and the-725 ( February 20, 2009), the corrective meeting correction of the time to vest the profit or loss of the Minim Gare is set off by the game distribution company in preference to the business year to which the date of settlement of the mining royalty for the sales of the game distribution company belongs when the game distribution company entered into a sales license agreement with the game distribution company for a certain period of time and the pre-paid stop stop is to be paid according to the sales of the game distribution company. However, if the mining royalty falls short of the stop, even if it fails to return the shortage separately, the pre-paid stop that the game development company received is to be included in the gross income in the business year to which the date of settlement of the mining royalty for the sales of the game distribution company belongs.
Article 40 of the Corporate Tax Act 【Business Year to which profit and loss accrue】
1. A summary of the contents of inquiry;
A. Factual relations
The game industry is that the game development company develops the game and the game distribution company (Publisher and iono) sells the game by online to users.
The process of ○ Game Development and Sales is classified into the
The game development company needs to secure funds because it requires considerable time and funds until the commercialization stage, and the game selling company will enter into a license agreement with each other in order to secure sales rights at the commercialization stage.
If ○ Game Development Company has negotiating power (in the event of the development of excellent games), the Game Distribution Company will be given a social feet (infe) and a stop (Minimun Guante) through a license agreement.
(1) Social e: An amount received in return for the grant of a license when concluding a contract to provide a license.
(2) Unexplun Guant: Settlement shall be made from such mining royalty at the time when earnings accrue as a result of a game sales after commercialization as an advance for such mining royalty in the nature of minimum guarantee amount of such mining royalty.
(3) Syalty: If a certain percentage, etc. of the sales amount arising after concluding a contract exists as it pays, it shall be offset against and paid by the amount of a syalty player.
The corporation of 00 quality entered into a contract for the provision of game tickets with the Chinese game distribution company as follows, and the contract period is three years from the commercialization of game.
(1) The social fee shall be paid when a contract is concluded, and the amount shall be 1 million won.
2. The stop shall pay 1 millions at the beginning of the test and one millions at the beginning of commercialization. If the company’s operating royalty income does not reach 2 millions until the end of two years from the commencement of commercialization, there is no additional obligation to return it.
(3) From the commercialization to the end of 2 years after the commercialization, the amount of the mining royalty shall not be less than 2 million (it shall be guaranteed that at least 2 million mining royalty is guaranteed until 2 years after the commercialization).
(b) A summary of the inquiry;
○ The time when losses from social e and domination are attributed to ○ Social e and Minimun Gare
(A) Profits and losses for the business year to which the date of receipt belongs.
(B) Recognition of profits and losses upon the expiration of the contract period
2. Materials on the contents of questioning;
A. Relevant tax statutes (law, Enforcement Decree, Enforcement Rule, etc.);
Article 40 of the Corporate Tax Act 【Business Year to which profit or loss belongs】
(1) The business year in which the earnings and losses of a domestic corporation accrue in each business year shall be the business year in which the date when the earnings and losses are finalized.
(2) Necessary matters concerning the scope of the business year in which the earnings and losses accrue under the provisions of paragraph (1) shall be prescribed by Presidential Decree.
Article 71 of the Enforcement Decree of the Corporate Tax Act (Business Year in which Rent or other profit or loss is attributed)
(4) In the application of the provisions of Article 40 (1) and (2) of the Act, the business year of accrual of earnings and losses other than those provided for in the Act (excluding Article 43), the Restriction of Special Taxation Act, and this Decree shall be prescribed by Ordinance of the Ministry of Strategy and Finance (the alteration of the organization on February 29, 2008; the Ministry of Strategy and Finance
Article 43 of the Corporate Tax Act 【Application of Corporate Accounting Standards and Practices】
Where the concerned corporation applies corporate accounting standards which are generally deemed fair and reasonable in the calculation of the income amount for each business year of a domestic corporation in the calculation of the income amount for each business year and the acquisition and evaluation of assets and liabilities, or continues to apply practices, such corporate accounting standards and practices shall be excluded as otherwise provided for in this Act and the Restriction of Special Taxation Act, and such corporate accounting standards and practices shall be followed (amended on December 30, 2006).
Article 36 of the Enforcement Rule of the Corporate Tax Act 【Business Year to which other profits and losses accrue】
In the application of the provisions of paragraph (4) of Article 71 of the Decree, the business year of accrual of earnings and losses other than those otherwise provided for in these Rules shall be the business year which includes the date on which the relevant earnings and losses are determined (the date of March 30, 2002).
Terms and Conditions Corporate Accounting Standards (Profit-making Form) No. 4
20.Revenue from the provision of services shall be recognized in accordance with the progress guidelines when it can be inferred in a reliable manner the performance of transactions for the provision of services. If the following conditions are satisfied, it shall be deemed that the performance of transactions for the provision of services can be presumed in a reliable manner (remony27):
(A) can measure the total revenue of the transaction in a reliable manner.
(B) The possibility of inflow of economic benefits is very high.
(c)The rate of progress may be measured in a reliable manner.
(d) measure in a reliable manner the cost to be invested to complete already generated costs and transactions.
32.The royalty proceeds generally accrue according to the method stipulated in the contract, so that the terms and conditions of the contract can be reflected in accordance with the standards for occurrence. However, if it can set a more systematic and reasonable standard than the method stipulated in the contract in light of the economic substance of the contract, the standards shall apply.
(b) Similar cases (judicial precedents, judicial precedents, review precedents, and established rules);
○ Corporate Tax and 242 ( October 30, 201)
In the event that a sound source distribution company obtains a right to reproduce and distribute sound sources from a sound source production company and thereby pays the user fee to the sound source production company at a certain ratio of monthly sales of the sound source distribution company:
The usage fee of a certain amount which the sound source distribution company has made a prior payment at the time of the contract (hereinafter referred to as the “pre-payment”) shall be set off in the order of the monthly usage fee to be paid, but the agreement not to refund the difference even if the total amount of the usage fee falls short of the stop.
Tyrance which offsets monthly user fees shall be added to the business year to which the end of each month belongs, but the balance after deducting the total amount of user fees from the stop at the end of each month shall be added to the business year to which the contract termination belongs.
○ Corporate Tax and 1207 ( December 30, 2010)
In addition to the royalties imported each quarter by a corporation under a license agreement with its customer, the royalties that the corporation has entered into a license agreement with its customer for the cost of use, such as character, and received additional payments under the terms and conditions of the agreement shall be the gross income for the business year in which the date
○ Corporate Tax and 402 (No. 23, 2010)
Where a corporation has received royalties in the ratio agreed upon in advance to the sales of a certain period from another corporation, it shall be included in the gross income in the business year in which the occurrence period of sales, which is the basis for calculating royalties of the counterpart corporation, ends.
○○ Corporation 46012-812 (O. 29, 2000)
Where a corporation provides another corporation with a right to use software and receives an amount calculated by applying a certain rate to the sales profits of the products using such software from the corporation granted such right as usage fees, a specific amount shall be offset from the usage fees determined by the amount to be paid in advance upon the receipt of the advance payment and the occurrence of future sales profits, the time when sales profits accrue from the usage fees paid in advance shall be the business year in which the date on which the amount to be paid is fixed as the occurrence