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| TITLE | 【Syllabus of Latest Opinion】 Supreme Court Decision 2022Du31112 Decided January 8, 2026 【Revocation of Disposition Collecting Corporate (Withholding) Tax】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 [1] Legislative purport of Article 121-2(2) and (3) of the former Act on Restriction on Special Cases Concerning Taxation Whether tax reduction or exemption under Article 121-2(2) and (3) of the former Act on Restriction on Special Cases Concerning Taxation is applicable in a case where a foreign investor acquires existing shares issued against domestic investment that were not included in the scope of the original tax reduction decision (negative in principle) [2] In a case where the method of calculating the withholding tax amount to be paid by Company A, a limited liability company, on dividends distributed to a foreign investor eligible for restrictive tax rates under the Convention between the Republic of Korea and the Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income comes into question, the case upholding the judgment of the lower court, which determined that the withholding tax amount should be calculated as the lesser of “the amount calculated by applying the domestic tax rate to the portion of dividends remaining taxable after tax reduction or exemption pursuant to Article 121-2(3) of the former Act on Restriction on Special Cases Concerning Taxation” and “the amount calculated by applying the limited tax rate under the above Convention to the total amount of dividends” | |
