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Issues of Income Tax on the Compensation for Employee Invention of the University
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 Title & Authors
Issues of Income Tax on the Compensation for Employee Invention of the University
CHEE, Seonkoo;
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 Abstract
There has been some controversy about imposing income tax on the compensation for university employees` inventions. In this research, various issues of taxation related to such compensation are examined, with Supreme Court Judgement 2014Du15559 as a means of understanding the confusion associated with this taxation. An amendment of the Income Tax Law is proposed based on the examination results, in order to promote research in the university field, which is able to make various types of compensation for employee inventions fall into the category of tax exemptions. It is concluded that if the Income Tax Law is amended to refer to the definition of technology in the Technology Transfer and Commercialization Promotion Act, instead of that of the Invention Promotion Act, the compensation resulting from newly emerging IPRs and technical know-how, which are currently taxed, can become tax exempt.
 Keywords
Amendment;Compensation;Employee Invention;Income Tax;University;
 Language
Korean
 Cited by
 References
1.
Dong-Kyu Na, "Suggestions for the Non-Taxation Scheme on the Compensation for Employee Invention of the University", Journal of the Korea Academia-Industrial Cooperation Society, Vol. 14, No. 11, pp. 5594-5600, 2013. DOI: http://dx.doi.org/10.5762/KAIS.2013.14.11.5594 crossref(new window)

2.
Daejeon High Court Judgement 2014Nu29, 20 November, 2014.

3.
National Tax Service, Authoritative Interpretation, Individual Income Tax Division-011, 5 January, 2012.

4.
National Tax Service, Authoritative Interpretation, Individual Income Tax Division-62, 19 January, 2012.

5.
Tax Tribunal, "Conforming whether the Compensation of Employee Invention Paid to Faculty by University-Industry Foundation is a Miscellaneous Income or not", JoSim2012Jeon2623 (Judgement Case), 25 April, 2013.

6.
Supreme Court Judgement 2014Du15559, 23 April, 2015.

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Byeung-Woung Lim, Insight Patent Law, Vol. 14, pp. 303-304, Hanbit Intellectual Property Center, 2015.

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Korea Intellectual Property Office, Authoritative Interpretation, Intellectual Property Promotion Division-3013, 23 August, 2013.

9.
Tax Tribunal, "Conforming whether the Compensation Paid to Employees by the Employer is a Compensation for Employee Invention on the Income Tax Law or not", JoSim2012Jeon1728 (Judgement Case), 22 June, 2012.

10.
Supreme Court Judgement 2000Du5203, 24 April, 2001.

11.
Supreme Court Judgement 2014Du15542, 9 April, 2015.

12.
Ministry of Strategy and Finance, Authoritative Interpretation, Individual Income Tax Division 46073-181, 30 December, 2002.