○ Unlike the Value Added Tax Act, the Income Tax Act does not distinguish between delayed issuance and non-issuance, and only states that a penalty tax of two percent of the supply price is imposed “where an invoice is not issued (Article 81 (3) 4 (a) of the Income Tax Act)".
* The precondition for imposition of penalty tax for delayed issuance of electronic invoice is that an invoice has been issued. Therefore, such penalty tax shall not apply to unissued invoices.
- “Where an invoice is not issued" includes cases where invoice issuance is delayed and issued after the issuance period.

○ Therefore, where an invoice issuance is delayed and not issued during the issuance period, penalty tax of two percent of the supply price shall be imposed.


   Source: National Tax Service (Sep. 29, 2017)

○ A foreign employee with business income other than wage & salary income did not apply the flat tax rate pursuant to the special taxation for foreign employees as prescribed by Article 18-2 (2) of the Restriction of Special Taxation Act and instead filed global income tax. After global income tax was filed, the company disposed of its income as constructive bonus pursuant to Article 67 of the Corporate Tax Act and the foreigner had to file an additional return and make payment pursuant to Article 134 (1) of the Enforcement Decree of the Income Tax Act. In this case, the foreigner can apply for application of flat tax rate as prescribed by Article 18-2 (2) of the Restriction of Special Taxation Act for both the amount disposed of as constructive bonus and the wage & salary income filed as global income.
   If the foreign employee applied for application of special taxation pursuant to the abovementioned Article, the withholding agent can withhold tax from the amount disposed as constructive bonus by applying the flat tax rate for foreign employees.

   Source: National Tax Service (Sep. 6, 2017)

   "Income generated from the rental of industrial, commercial, or scientific machinery, facilities, equipment, etc. provided in subparagraph 4 of Article 93 of the Corporate Tax Act" as prescribed by Article 29 (1) of the Adjustment of International Taxes Act means income accrued from the rental of industrial, commercial or scientific machinery, facilities and equipment as prescribed by Subparagraph 4 of Article 93 of the Income Tax Act and income accrued from the rental of delivery equipment, tools, furnitures and fixtures as prescribed by Article 132 (1) of the Enforcement Decree of the Corporate Tax Act. Therefore, even if the income accrued from leasing vessels and aircraft under a tax treaty is classified as rental fee income, corporate tax is withheld at the source by a tax rate of two percent as prescribed by Article 98 (1) 1 of the Corporate Tax Act.


   Source: Ministry of Strategy and Finance (Nov. 13, 2017)