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http://dx.doi.org/10.5762/KAIS.2020.21.6.461

A Study on the Classification of Income on University's Industrial Consultations  

CHEE, Seonkoo (Department of IT Convergence, Kumoh National Institute of Technology)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.21, no.6, 2020 , pp. 461-467 More about this Journal
Abstract
Industrial consultation is a kind of personal service for companies. The Industry-Academic Cooperation Foundation sets up a consultation contract in which a professor performs the consultation as the person in charge. Recently, there is an issue regarding taxation of the consulting fee paid to the professor; in short, there is no standardized practice for the imposition of income tax. In this study, we examine the characteristics of industrial consultation and present an acceptable taxation rule based on related laws. First, it is not appropriate to regard consulting fees as wage income, considering that there is no employment relationship between the Industry-Academic Cooperation Foundation and the professor. Considering that the base consulting fee amount is the same as the invention compensation, according to accounting practices, and that an employee invention is apt to be derived in the consultation, it is reasonable that the consulting fee should be regarded as wage income similar to employee invention compensation. As treating the consulting fee as wage income could end up reducing industrial consultations, the government should amend the income tax law to include industrial consultation as a type of other income.
Keywords
Consulting Fee; Employee Invention; Income Tax; Industrial Consultation; Professor;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
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