National Tax Service

The
National Tax Service held a meeting with people from foreign companies in charge
of tax matters at the National Tax General Consulting Center on Thursday, February
28, 2008.

Approximately
190 people attended the meeting, and were offered the 2008 corporate tax return
guide.

With
English interpretation provided throughout the session for foreign participants,
the NTS offered the revisions to tax laws companies are required to follow in
2008 tax filing, and checklist for corporate tax return, and also held a Q&A
session to answer questions from attendants.

Answers
to Questions Received During the Meeting

Q1.
My company applied for APA with the NTS. Is there any possibility that my company
will be charged with additional taxes on the APA approved transaction during
the future tax audit?

A1.
No. Once the proposed APA is approved, the APA transaction will not be subjected
to a tax audit.

Q2.
How can a company seek relief if obvious errors/mistakes in assessment are found
after the reassessment claim period expires?

A2.
Once the reassessment period expires, taxpayers cannot ask for correction of
errors/mistakes in the assessment by legal means. However, taxpayers may request
for correction through the Taxpayer Advocate Service of the NTS. (By reviewing
all the facts and circumstances, the NTS may correct the assessment at issue.)

Q3.
Does the NTS allow relief for expenses omitted in book-keeping if the omission
is found during a tax audit?

A3.
The NTS would deduct expenses if it is proven by objective evidence that the
expenses were actually incurred.

Q4.

①
A foreign company, which just entered the domestic market, is likely to record
a lower operating margin compared to that of subsidiaries in foreign countries
or domestic companies in the same industry with similar sales volume, because
the company is at the initial stage of the domestic market penetration.

In
this case, does the NTS take issue with the lower OM of the foreign company?

②
In calculating transfer pricing, are companies allowed to change their transfer
pricing methodology if the company find it reasonable to do so? For example,
can a company choose to use CUP instead of RP it has used, if the new method
is more appropriate?

A4.

①
The NTS calculates transfer pricing not simply based on the comparison of operating
margin between companies, but based on the overall facts of the international
transaction the company is engaged in. For example, when determining the TP,
the NTS will compare the OM with comparable companies, not simply looking at
the low OM of the company. Therefore, the NTS will not take an issue with the
low operating margin simply because it is lower than that of other companies
in the same industry.

②
In determining the transfer pricing method, a company may choose to change their
TPM if the new one is deemed more appropriate and reasonable.

Q5.
Does the NTS offer taxpayers audit-related advice about what they might expect
during a tax audit?

A5.
Yes. Taxpayers may seek advice on tax audit from the Taxpayer Advocate Bureau
at the regional tax offices, or the Taxpayer Advocate Division of district tax
offices.

Q6.
If a company has a lot of losses carried forward, is the company excluded from
the audit selection pool?

A6.
The NTS selects companies for audit by using various criteria including compliance
verification. Even a company with a lot of deficits carried forward can be subjected
to a tax audit, if the company falls under the audit selection criteria.

0?U庾뒌椎*\'들?*^듭m?f빯Z?춟??\'들?때깠?w(v)????w쳆?5ŀ0??5葉⊥뎔?(4(踪븙먾4(鑄Ρ콛?싥훯惑替싼Ρ콛?(宙뺁꼤퉭탷?쓹퉽?耆?걤슝?밀?槨是귴_姪??焰?毒으으콧덙4(凋죻뀗?(4(?퐨?돑띂굵흼됞‥?늸?邵?돮뀓쵆겚Ⅹ?뎶균뵂곘괘묵?죵콛늸뀻Ⅹ?됇븧덙4(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚Q죺�4)9끧?퉭컖Q끶갡빲明뜑걾빋릟꼤탹뺁Ⅹ쐛復?겵빟졈봺쇛슈걲심븼씤걤슉햬묑빸겈툈뜞끟쓷�4)퐯곎끶겣끧?걛?朞봺9끧?퉭컖Q끶?빘빲뀺?슝鼓귐Ⅹ쐛 빘??슛갦≡몗娥?븠끟?4(휸?횬잚모퐰슝崎凋쟨4(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚좋醒탢?긴�4(콴픸햼슷콛걛金빘몧릟朞봺탹뺁Ⅹ쑑걛퉸곜빲봺퐰솗?릟朞?횬잚걤심좃??곎끶곃뺁狼?4)앑쪗뵺凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚]Ρ?4)튉괘?겈밂빲좼뺁끧?툈좼쌕쪗븧곎℃쌌씉쌌?朞봺?袴?툈쇋?쇋?쪤툈햬쪓Α끃緊?4)朞봺9QL겱솛빲븧곎죺곃뺊Ν?미곎펯??콉汾걤슉햬묑빸걛?곃빬樂?릟羈걲쉽굵?Ⅸ�4(횬잚곎끶걲ⅡⅩ쑑걛퉸걤죻뜭괘辜걲싫걤심좃??곎끶곃뺁狼린걛퉸걛귀펯죻콖걚갆솀돛?�4)?袴?툈羈걛믹??텄빹棄슝?쇛슈걛金빘몗밂見凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚믹?�4)羈갋?錮?미갏븤븼?릟狼Ⅹ쐛朞봺5븬棄튇凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚D캡�4)5?띂돝끃?끑졈쪜릟쇋?A곜Ρ쟻朞봺9QL툈%?朞빲봺끃?좃袴쪏ⅡΡ?朞끦겣?띂돝끃?4)復굅걠봺뜞끟쓹릟復?걛몣Ρ?퉭컖???슛곎죺?A걛좋?릟騏끃?띛?툈뫵튇�4)朞봺쇪奈?곎끶걛?Π賄퐰슝崎凋쟨4(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚캡�4)9섯?퉵봺朞봺좼슷싶븧?A겈?끑좼쌕븧컖朞봺A곎?믹뀓棄슛곜Ⅱ컖뭣?돁곉?찕띛븧�4)羈걚곎끶걛?Π?凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚D회�4)!쌤걤끂걚걤슉햬밥곉븬촿?괘븯겈쁺퐠明쌌?빲슉Ν?춹?Ⅸ걛袴빹孤빘?끟봺쇋嵐?4)뀢??朞봺?끣?袴탹밀걤콉Ⅴ겵빲?릟뺗젖?戒凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚회�4)=퉵봺朞봺?끣?袴탹밀겵빲?릟뺗젖?隔곎끷햬?걤끃뭣?끣촿쇋?띂븤棄슛겱?4)빲슉Ν?춹?Ⅸ곎죺걛袴빹孤빘?됦겚븴뀺겣븙미툈!쌥뺊빯컖?甦끻빲?탢??텄빹?4)쇋?띂븤棄슛곎℃쌌씈곎죺갦끷햬??뫹퐤끧봺M빲明뜑겱쁺朞봺9QL????明뺓Ⅹ?4)뀻컖朞봺솀띛?끃릟뜢?蘭錮끃뜒隔곎죺?QL겣끺걤심?띚곎죺걛袴빹孤빘?끦겈袴?륵凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚D見�4)퐬?朞봺9QL걛굇쌤곃빋쪜쁺쇋?뺗햼믹빸겱데金븧겈툈돺쉬뎅븬젖튇겈쁺朞봺슉Ν磎슛�4)Μ걲쌌퉸걨狼Ⅹ쐛꼤??끫뫁技凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚見�4)Q죺?QL곜쌌콖걨븨??뺗햼믹빸겈쁺Π겈?좼쌕빖걠?퐠찕띛?봺뺊쪗빘뜑곎죪?朞?4)뺗햼믹빸곜빲봺뀓奈뀻긴겈퉵狼?맱�凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚D龜�4(凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덝짒�4)걲심븼씤걤슉햬밥컖孚쪓쟻⒤辜걬밂빲븧곎죺걨슉빹棄똻탢빿컖Μ겚?빋?羈곃븤심?4)꼤굵??슷빲끧Ⅹ쐛탢?Ⅸ걤슉햬?릟羈곎죪?퐯곉?磎뫁끟쪜?Ⅸ걲심븼씤걤쌌밂빸�4)싫걨슉빹棄똻띂돝끃쪜?Ⅸ곎죺곉뀿봺Ⅹ뫵錮곜Ρ쟻磎데콉??콝?母균탷컖돂뛿郞?4)朞봺띂돝끃?Μ걛?朞봺ⅩΡ쪋컖錮뀦봺퐯곎죺걨슉빹棄똻탢빿겵빘뺁?棄슛?凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚%?4)朞Μ걤끣뵲걨퐬?朞봺9QL곎뀷봺Ν鼓봺復?곎죺겚쌥빯?4겱쁺朞봺쇋?쪤툈띂돝끃縊凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덝짛�4)%툈뛿콑欄끧Ⅹ쐛騏끃?빯겵뜢튇컖끟봺띂돝끃쪜?뀻굵?릟羈걤죪튉봺朞븼?騏끃?빯�4)좼쪓Ⅹ쐛탹朞퐨쉽퐴?쪟곎죺걤슉햬밥걲Ⅹ릟Π곃븙枯퉭돮봺羈걨펯暠?싫걬?돝콛?4)뛿툈꼤띂돝끃?뜞슬?곎펯郞봺 U@겈믹?뀗겱쁺I@겈?죪?郞븧컖쪟곎죺겧뺒겣뺁】?4)Μ겣심봺끑좼슷끧뷏凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚龜凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덝짒�4)Q죺?QL걤뀻띟콉??騏끃?빯겵뜢튇겧싻곉Ⅵ졈?뎲?릟슛곎죺걤슉햬枯툈퐯겱햼?棄튇�4)탢?Ⅸ걠뺁?빖걤슉햬묑빸컖됔?뎲?릟슛곎죺겱??굅걲뀓緊겱쁺朞봺Ⅹ?끧?퉭?4)騏끃?띛?툈朞봺띂돝끃?Μ걬튉뀦븧겈만?싫걬?돝콛컖孚빖걨뺁빲데묑튇곎죺갦@?4)朞봺9QL곜Ⅱ컖띂돝끟봺朞봺=4곜Ρ쟻띂돝끟뀎콛걤슉햬묑빸컖뭣?磎돝긴겚슬?튇걛?4)朞봺굵?=4겱쁺朞봺띂돝끃訝갦죻?쇋?컖朞봺9QL곜Ⅱ컖뭣??춸걛툈Ν鼓봺復?곎죺�4)굵?슷빲끧Ⅹ쐛탢?Ⅸ곉Ⅵ졈?돂뛿郞봺Π겈?굵??朞끂곎죪?퐯겱朞빯걤슉햬묑빸�4)Ⅸ곎죺곉뀿봺Ⅹ뫵錮?쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덝짛�4)%툈몧?ⅩⅩ쐛朞봺騏끃?빯겵뜢튇겣뺁】맧걚걤슉햬밥겣끺걤】싶봺羈걤죪튉봺朞븼?4)QA4겈쁺朞봺퉽?슝봺Μ걨븬탹릟돕?걛좋좼쪋?걛퉸곃븙枯퉭돮뵺�凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚D毒�4)퐬?朞봺9QL겱솛빯곎끷햬?걛?Π될빋끧븧걛뫹쪓봺뀎쌌?孚끦곎죻?데씉?뺗햼띚�4)뫵튇걚곎끶걛?Π賄퐰슝崎凋쟨4(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚毒�4)e빸툈Q끷햬?겣끺곉븬촿뀘明뜑겱툈??끫뫁?쇛슈곎죺갦끷햬??뫹퐤끧봺 狼븙?4)끦곎죺곃븴?퉭컖??퐰솯뜒隔겱?朞봺Q끷햬??뫹퐤끧봺?Ν?툈퐯걨Ν騏쪓???4)퐰솯뜒見凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚D挽�4)%쁺꼤띂돝끃?죪?꼤굵?퐯겚싶??뛿쪜릟쇋끟맧겈?朞봺띂돝끃?뺗뜳?븧걲?4)朞봺끫뫁??콝띛?툈좃쉼賄퐰슝崎凋쟨4(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덚挽�4)Q죺?QL곉빋븤緊걤슉햬묑빸걲싫걛?Π걠?郞Ⅹ쐛?쌌?띑Ρ빲쪊겈퉵균뫁튇걤슉졈쪋퉵?4)?솯뛿棄슛툈?툈꼤띂돝끃?復?걚겚싻겱쁺몧솯뜢緊걤끟븧걲심??걤끂걠봺鼓돥븤??4)羈걚곎끶걛?Π컖쪟곎죺걤슉햬밥걲뀻궷곒퉹빯곎죺걛?Π곉빋븤棄슛걤?꽭�쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷곉珞콛?괘퉼덧븼씉矜횬핓?탢?Ⅸ둘습窩?탢?Ⅸ탧싼耆닺잽덙?슝?磎???걲뀓뷇?뀺덙쇆됋잽凋쇋밀輻습?(炷?퉱痼鎰습?(凋돺묇?(4(凋⊥뎔