Applicable Acts and subordinate statutes on the initial date of taxation where a foreign-invested enterprise is subject to the reduction or exemption of corporate tax under Article 15 (1) 1 of the Foreign Capital Inducement Act.

Article 15 (1) 1 of the Foreign Capital Inducement Act provides that the first date of the business year of the new corporation shall be the date when the establishment is registered at the head office or principal office, and the first date of the business year of the new corporation shall not be interpreted as the date when the establishment is registered at the head office or principal office. The first date of the business year after November 28, 1968, which first commences after the date when the foreign-capital invested company was registered as the foreign-capital invested company, is the date when the first taxable year begins.

Article 15 of the Foreign Capital Inducement Act, Article 5 of the Corporate Tax Act, Article 5 of the Enforcement Decree of the Corporate Tax Act

[Defendant-Appellee] Plaintiff 1 and 3 others (Attorney Kim Jong-hoon, Counsel for defendant-appellee)

The number of performers and the highest authority of the mid-term director of the tax office;

Seoul High Court Decision 73Gu432 delivered on July 24, 1974

The appeal is dismissed.

The costs of appeal are assessed against the defendant.

The defendant litigant's grounds of appeal are examined.

The court below held that the corporate tax shall be exempted until December 31, 1973, after January 1, 1969, pursuant to Article 15(1)1 of the Foreign Capital Inducement Act, when the plaintiff company registered the company as a foreign-capital invested company to the Economic Planning Board on November 28, 1968. The first business year starting date of the plaintiff company is the first starting date after the above registration date, and that the corporate tax shall be exempted until December 31, 1973 pursuant to Article 15(1)1 of the Foreign Capital Inducement Inducement Act. Such decision of the court below is just, and there is no unlawful ground for legal interpretation. Even though the issue is "the starting date of the first business year of the new corporation shall be the date on which the establishment is registered at the head office or principal office of the new corporation", the first business year of the new corporation shall also be the date on which the judgment of the foreign-capital invested company is registered, and the appeal shall not be dismissed and its appeal shall be dismissed as against the first foreign-capital invested company.

Justices Yang Byung-ho (Presiding Justice)