Take over the platform and do an Internet broadcast...Court "No tax reduction for start-ups"

A court ruled that if you take over other Internet broadcasting platforms and do new Internet broadcasting, you are not eligible for corporate tax reduction because you are not a start-up.

The Seoul Administrative Court recently ruled that Company A, which operates an online broadcasting platform, lost the plaintiff in a lawsuit against the head of the Gangnam Tax Office to cancel the corporate tax imposition.

The court judged that Company A's Internet broadcasting platform does not correspond to a start-up, saying that the current tax exemption law only grants tax reduction or exemption when it has a primitive business creation effect by launching a new business for the first time.

Company A opened an Internet broadcasting platform site in 2019 and launched an Internet broadcasting service, and signed a contract with Company B and Company C, which operated other Internet broadcasting platform sites, to rent member information and authoring videos for 10 years.

Since then, Company A has reported corporate tax by applying tax reduction regulations, saying it is a start-up venture small and medium-sized company under the Restriction of Special Taxation Act, but the tax authorities imposed corporate tax, saying that Company A received the platform from Company B and started the service, and was not subject to tax reduction.