The Seoul Administrative Court recently ruled that Company A, which operates an online broadcasting platform, lost the plaintiff in a lawsuit against the head of the Gangnam Tax Office to cancel the corporate tax imposition.
The court judged that Company A's Internet broadcasting platform does not correspond to a start-up, saying that the current tax exemption law only grants tax reduction or exemption when it has a primitive business creation effect by launching a new business for the first time.
Company A opened an Internet broadcasting platform site in 2019 and launched an Internet broadcasting service, and signed a contract with Company B and Company C, which operated other Internet broadcasting platform sites, to rent member information and authoring videos for 10 years.
Since then, Company A has reported corporate tax by applying tax reduction regulations, saying it is a start-up venture small and medium-sized company under the Restriction of Special Taxation Act, but the tax authorities imposed corporate tax, saying that Company A received the platform from Company B and started the service, and was not subject to tax reduction.
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