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| TITLE | 【Syllabus of Latest Opinion】 Supreme Court Decision 2021Du35643 Decided February 12, 2026 【Revocation of Disposition Collecting Corporate (Withholding) Tax】 [full Text] |
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| Summary | |
| 【Main Issues and Holdings】 [1] Methods or principles for interpreting tax-related statutes, and especially the interpretation method of clear preferential provisions among the provisions on tax reduction or exemption requirements A case where teleological interpretation is exceptionally permitted [2] Meaning of the intent of the term “mutatis mutandis” when a certain provision of a statute stipulates that another provision concerning a specific matter shall apply mutatis mutandis [3] Whether the reduction or exemption of corporate tax, etc., for foreign investors or foreign-capital invested companies under Article 121-2(2) and (3) of the former Act on Restriction on Special Cases Concerning Taxation applies only when the relevant foreign investor is recognized as a subject for reduction or exemption according to a tax reduction or exemption decision (affirmative) In a case where a foreign-capital invested company, which conducts a business subject to reduction or exemption, pays dividends using the income generated through this as a resource, whether the “tax reduction or exemption for that capital increase” under Article 121-4(1) of the former Act on Restriction on Special Cases Concerning Taxation should be limited to the portion of dividends received based on the shares acquired by the relevant foreign investor through foreign investment regarding the capital increase business for which a tax reduction or exemption decision was obtained (affirmative) | |
