In this paper, the author examines the characteristic of paid compensations under the foreign arbitral award in terms of Income Tax, and it is argued that those compensations should be taken into account as a deductible expense for the tax return regardless of exequatur. Furthermore, the author addresses the advance rulings on this matter and criticises the administrative approach since it is not entirely compatible with a therorical basis of exequatur, rules of civil procedure as well. According to the argument, such an advance likely will be a result of full remedy action since the taxpayers have to pay unnecessary law-cost.