(a) Introduction of technical services from a foreign corporation and personal services under Article 55 (1) 6 of the Corporate Tax Act; and

(b) holding that technical services provided by a foreign corporation falls under Article 55 (1) 6 of the Corporate Tax Act, but is exempt from taxation pursuant to the Convention between the Republic of Korea and the United States of America for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and the Encouragement of International Trade and Investment, and thus, there

(a) Where the introduction of technical services from a foreign corporation does not transfer technical information (KNW-HW) that has not been disclosed to the public, it constitutes a simple personal service as provided in Article 55(1)6 of the Corporate Tax Act, in cases where the same kind of service provider performs the business with professional knowledge or special skills ordinarily owned, taking into account the parties to the service contract, the purpose of the contract, the content and nature of the contract, and the quid pro quo relationship;

B. If the National Land Development Institute, a government-funded foundation, entrusted the services of Jeju-do comprehensive development plan from the Jeju branch to the Jeju branch in accordance with the government's decision, entered into a service contract with the Vietnamet company located in the United States with respect to the portion of "the basic plan for the development of Jungmun Complex" among the research services, and paid the price for the services to the above beet company, the above beet company was selected as the service company in light of the reasons and purpose of selecting the above beet company as the service company, and the content of the service contract, and the service provided by the above beet company was not the usage fee income under Article 5 (1) 6 of the Corporate Tax Act, and the above beet company did not have a permanent establishment in the Republic of Korea. Accordingly, the above beet company was exempt from the duty to withhold taxes on income between the Republic of Korea and the United States of America pursuant to the Convention for the Avoidanceet Development and the Prevention of Fiscal Evasion with Respect to Taxes on Income and the Encouragement of International Trade and Investment.

Article 55(1)6 and 9 of the Corporate Tax Act

[Defendant-Appellant] Korea National Land Development Institute, Inc. and one other, Counsel for defendant-appellant-appellant-appellant

The Director of Gangnam District Office

Seoul High Court Decision 85Gu401 delivered on February 19, 1986

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The grounds of appeal are examined.

According to the reasoning of the judgment below, the court below held that the above technological information (KNW) was not transferred to the public by a foreign corporation for the purpose of providing services, unless it is a party to the contract for providing services, the purpose of the contract, the content and nature of the contract, and the related cost, etc., and held that if it is performed with professional knowledge or special functions ordinarily owned by the service executor, it shall constitute a simple personal service under Article 55 (1) 6 of the Corporate Tax Act. Under the premise that the plaintiff, a government-invested research institution, established for the purpose of comprehensively researching and developing policies on the efficient utilization, development, and preservation of national land resources and thereby contributing to the establishment of national land plans, the plaintiff, who is not a government-invested research institution, was entrusted by the Governor of Jeju-do with the above research service to the plaintiff for the purpose of contributing to the establishment of national land plans. Thus, the court below's determination that the above 5th anniversary of the above technological information's "the basic plan for the development of a specific regional complex" in the above research service, is justified, and 0000 U.

Therefore, the appeal shall be dismissed, and all costs of appeal shall be assessed against the losing party. It is so decided as per Disposition by the assent of all participating judges.

Justices Yoon Yoon-tae (Presiding Justice)