The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

1. Prior to the amendment by Act No. 8831 of Dec. 31, 2007 of the former Corporate Tax Act

(a) The same shall apply;

Article 57(1)1 (hereinafter “instant provision”)

(2) If a domestic corporation’s tax base for each business year includes any income generated from overseas sources, the amount of foreign corporate tax paid or payable on such income generated from overseas sources (hereinafter “foreign corporate tax”).

(1) Article 57(4) of the former Corporate Tax Act provides that a domestic corporation’s income for each business year includes profits, dividends, or distribution of surplus funds, which are received from a foreign subsidiary meeting the requirements of paragraph (5), shall be deemed the foreign corporate tax amount of a domestic corporation, and the foreign corporate tax amount imposed on the income of the foreign subsidiary shall be deemed the foreign corporate tax amount, and the foreign corporate tax amount imposed on the income of the foreign subsidiary shall be deemed the foreign corporate tax amount. Therefore, the foreign corporate tax amount imposed on the income of the foreign corporation, which is a foreign corporation, shall not be subject to the foreign corporate tax deduction under the provisions of this case, unless special circumstances exist, and the foreign corporate tax amount imposed on the income of the foreign corporation shall not be subject to the foreign corporate tax amount deduction only when the requirements of Article 57(4) of the former Corporate Tax Act are met. Determination of whether the foreign corporation’s income constitutes a foreign corporation under the specific requirements of the former Corporate Tax Act shall be made based on whether the foreign corporation can be deemed a separate subject of rights and duties, independent from its members in light of the laws and regulations of the country established.