이 누리집은 대한민국 공식 전자정부 누리집입니다.
Biz News Korea(Eng)
MS demands return of corporate tax imposed on patent use
- Collected
- 2016.08.29
- Distributed
- 2016.08.30
- Source
- Go Direct
The application comes after several cases where Korean courts ruled that taxation on patents unregistered locally is illegal. A local court recently ruled that Korea has no authority of taxation regarding corporate tax withheld on behalf of Microsoft’s American headquarters in the course of payment by Korean companies for patents owned by the American business.
The ruling is based on the territorial principle that patent rights are effective only within the jurisdiction of a nation where the rights are registered, therefore, the use of patent rights stipulated in the Corporate Tax Law is applied only when they are used in nations in the year where the rights are registered.
Under the Korea-US Tax Treaty, payments for the use of patents unregistered in Korea cannot be regarded as income from domestic sources.
There have been seven similar cases over the return of taxes on the use of patents since 2011. Local courts ruled in favor of plaintiffs such as American patent troll Saxon Innovation and South Korea’s Samsung Electronics in all seven cases. Of these, five cases were brought to the Supreme Court.
By Lee Sang-duk
[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]