[Tax Daily] [Tax Case Analysis] Consideration for Domestic Services of a Foreign Corporation as 'Personal Service Income' Under Corporate Income Tax Act, Regardless of Tax Treaty - Jaekyoung Han, Lee & Ko

On May 28, 2024, an article by Foreign Attorney Jaekyoung Han of Lee & Ko was published in the Tax Daily discussing a ruling by the Seoul Administrative Court on November 25, 2022 (2021Guhap68780). Ms. Han highlighted the significance of the judgment, stating, “This ruling reaffirms the principle that when there is a discrepancy between income classification under a tax treaty and domestic tax law, the tax treaty prevails in recognizing the right to taxation. However, the method of taxing such income must align with domestic tax law, unless the domestic law explicitly restricts this right, even when distinguishing between business income and personal services income.”