외국본점의 일괄공급계약에 의한 국내 지점 제공 용역의 자가공급 해당 여부에 대한 분석

[Purpose]Recent tax laws ruling issued by the government, which means that the qualified service provided by a domestic branch of a foreign company for another foreign company is neither exempt from value added tax nor subject to zero tax rate, is mistaken due to the following reasons. Consequently, future tax laws should be revised to reflect those findings. [Methodology]This study mainly adopts the literature review on tax laws and rulings. [Findings]First, as the internal transaction is to be exempt from value added tax (“VAT” hereafter), the seemingly complicated transaction in the ruling should also not be liable for VAT taxation. Next, the VAT nontaxation for the self－rendering of service should not be confined to domestic transactions, and the provision of service in the ruling itself can be regarded as a domestic transaction. Moreover, a domestic branch in the ruling hardly corresponds to the permanent establishment to back up VAT taxation, and the nondiscrimination principle of tax treaties is not to support such taxation. [Implications]This study is expected to provide policy implications to contribute to further revisions of tax laws.