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| TITLE | Seoul High Court 2023Nu30910 Decided May 16, 2023: Appeal 【Cancellation of Disposition to Refuse Correction of Global Income Tax】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 In the case where: Party A reported and paid global income tax by including in income the profits obtained by exercising the stock option under the Commercial Act that Party A received from the corporation to which Party A belongs and which is the subject of regulation under the Act on Special Measures for the Promotion of Venture Businesses, and thereafter, filed a request for correction against the head of the competent tax office seeking a refund of the global income tax previously reported and paid on the total amount of profits obtained by the exercise of the stock option, claiming that “the sum of the paid exercise price and the total amount of profits from the exercise of the stock option” falls under “amount invested in a venture business, etc.” prescribed in the main sentence of Article 16(1) and Article 16(1)(iv) of the former Act on Restriction of Special Taxation, which are a special provision for taxation, and thus, is subject to tax exemption for global income, but the head of the competent tax office accepted only a part of Party A’s request for correction and rejected the remainder on the ground that although the full amount of the paid exercise price will be deducted from global income, the profits from the exercise of the stock option cannot be deducted from global income, it is held that it is natural to interpret the term “amount invested” in the above special provision for taxation as referring to the paid exercise price directly by exercising the stock option. | |
