The appeal is dismissed.

The costs of appeal are assessed against the Plaintiff.

The grounds of appeal are examined.

1. Article 10(2)1 of the former Value-Added Tax Act (amended by Act No. 9915, Jan. 1, 2010) provides that “a place where services are provided or goods, facilities, or rights are used” shall be determined on the basis of the place where the services are provided. Thus, if the important and essential parts of the services provided by a foreign corporation are domestically performed, the place where the services are supplied shall be deemed to be domestically.

(1) Article 2(1)2, Article 3(3), and Article 97(1) of the former Corporate Tax Act (amended by Act No. 7838, Dec. 31, 2005) provides that a foreign corporation is liable to pay corporate tax in cases where there is a domestic source income prescribed in Article 93 with respect to the foreign corporation. If the essential and essential parts of services provided to the domestic corporation by a foreign corporation with a domestic place of business have been carried out at the domestic place of business, the income accrued from such services shall be deemed to belong to the domestic place of business. Even if a part of such services was carried out overseas, the income accrued from such services shall be deemed to belong to the domestic place of business.

(See Supreme Court Decision 91Nu852 delivered on June 23, 1992). 2. The lower court: (a) concluded a concession agreement with the Government of the Republic of Korea with the Government of the Republic of Korea that G Co., Ltd. (hereinafter “G”) is designated as the executor of the F Construction Project; and (b) on June 13, 2003, the Plaintiff, an English corporation, as a English corporation, concluded a concession agreement with G, with the Government of the Republic of Korea; (c) consulting services, project development and management services, technology management services, project plans and schedule services, construction forecast services, project financing services, project financing services, legal management services, contact and cooperation services, and projects.