외국납부세액공제 제도의 제 문제

This article deals with a few issues over foreign tax credit (FTC) under Koreandomestic law as well as tax treaties, including inter alia credibility of a foreign tax,limitation on the credit and indirect or deemed-paid credit. Chapter II addresses the eligibility for crediting foreign tax. It focuses on the requirementof being income tax, which should be judged based in the comparabilityof the foreign tax to Korean Income Tax or Corporate Tax. Another requirement isthat the tax be paid by the taxpayer. These questions inevitably lead to complicatedissues like definition of ‘income’ or income tax and the relation between corporatetax and shareholders. Chapter III is about the limitation on creditable foreign tax, and analyzes the comparisonand policy choice between per country and overall limitation. In Chapter IV, the main issue is deemed-paid credit, i.e. crediting the foreign subsidiarylevel tax that is deemed to have been paid by the parent. In particular, thechapter analyzes the calculation and gross-up of foreign taxes that dividends bear. The last two, supplementary Chapters V and VI address foreign tax credit forKorean domestic permanent establishment of foreign corporations and foreign taxcredit in case overlapping resident jurisdictions result in dual residents potentiallysubject to international double taxation.