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 Tax
Treaty |
Tax on non-residents may be reduced or exempted
by applicable tax treaties, conventions or
agreements between Korea and the domiciliary
countries. |
|
Rates of taxation on interest, dividends, and
capital gains will vary according to the
relevant tax treaties. |
|
If the tax treaties are in conflict with the
domestic tax laws of the concerned country
(as given below), the tax treaties take precedence
over the latter. |
<Income
Tax Withholding Rates for Countries With Tax
Treaties>
 |
|
| Country
|
Dividends
|
Interest
|
Capital
Gainsd |
| Australia
|
5
or 15c |
15 |
0 |
| Austria |
10
or 15c |
10
|
0 |
| Bangladesh
|
10
or 15c |
10
|
0 |
| Belasus |
5
or 15c |
10 |
0 |
| Belgium |
15 |
10 |
0 |
| Brazil |
15
|
10
or 15b |
0 |
| Bulgaria |
5
or 10c |
10 |
0 |
| Canada |
15a |
15a |
0 |
| Chile |
5
or 10c |
10
or 15b |
0 |
| China |
5
or 10c |
10
|
0 |
| Czech
Republic |
5
or 10c |
10
|
0 |
| Denmark |
15 |
15
|
0 |
| Egypt |
10
or 15c |
15
|
0 |
| Fiji |
10
or 15c |
10
|
0 |
| Finland |
10
or 15c |
10
|
0 |
| France |
10
or 15c |
10 |
0 |
| Germany |
5
or 15c |
10 |
0 |
| Greece |
5
or 15c |
8
|
0 |
| Hungary |
5
or 10c |
0 |
0 |
| India |
15
or 20c |
10
or 15b |
0 |
| Indonesia |
10
or 15c |
10
|
0 |
| Ireland |
10
or 15c |
0
|
0 |
| Israel |
5
or 15c |
7.5
or 10 |
0 |
| Italy |
10
or 15c |
10 |
0 |
| Japan |
10
or 15c |
10
|
0 |
| Kazakhstan |
5
or 15c |
10
|
0 |
| Kuwait |
10 |
10
|
0 |
| Luxemburg |
10
or 15c |
10
|
0 |
| Malaysia |
10
or 15c |
15 |
0 |
| Malta |
5
or 15c |
10
|
0 |
| Mexico |
0
or 15c |
10
or 15b |
0 |
| Myanmar |
10 |
10 |
0 |
| Mongolia |
5 |
5
|
0 |
| Morocco |
5
or 10c |
10
|
0 |
| Nepal |
5
or 10c or 15c |
10 |
0 |
| Netherlands |
10c
or 15c |
15 |
0 |
| New
Zealand |
15 |
10 |
0 |
| Norway |
15 |
15
|
0 |
|
Pakistan |
10-12.5c |
12.5
|
0 |
| Papua
New Guinea |
15 |
10
|
0 |
| Philippines
|
10
or 15 |
10
or 15 |
0 |
| Poland |
5
or 10c |
10
|
0 |
| Portugal |
10
or 15c |
15
|
0 |
| Rumania
|
7
or 10c |
10
|
0 |
| Russia |
5
or 10c |
0
|
0 |
| South
Africa, Rep. |
5
or 15 |
10
|
0 |
| Singapore |
10
or 15c |
10 |
0 |
| Slovakia |
5
or 10c |
10
|
0 |
| Spain
|
10
or 15c |
10
|
0 |
| Sri
Lanka |
10
or 15c |
10
|
0 |
| Sweden |
10
or 15c |
15
|
0 |
| Switzerland
|
10
or 15c |
10 |
0 |
| Thailand
|
15
or 20c |
10
|
0 |
| Tunisia
|
15 |
12
|
0 |
| Turkey |
15
or 20c |
10
or 15b |
0 |
| Ukraine |
5
or 15c |
5 |
0 |
| United
Kingdom |
5
or 15c |
10
|
0 |
| United
States |
10
or 15 |
12
|
0 |
| Uzbekistan
|
5
or 15 |
5
|
0 |
| Vietnam |
10 |
10
|
0 |
* Notes : Includes the exemption based on
the reciprocity without the tax treaties
a) Tax treaty does not exempt resident tax
and thus the above tax rate has been increased.
b) Rates vary depending on the term of the
loan or debenture.
c) Rates vary depending on whether the dividend
paying company is owned over a particular
percentage by it.
d) Korea does not levy capital gains tax against
tax treaty nations except in some special
cases.
* For more details, please refer to the original
tax traeties.
* Source: National Tax Service (as of
Jan 2004)
|
[Capital
Gains Tax for Countries With Tax Treaties]
|
|
|
Types
|
Nations |
| ¡Ý
Cases where capital gains tax can be
levied only in the domiciliary country |
| Levied
only in the domiciliary country on the
tax treaty |
Belarus,
Belgium, Bulgaria, Czech Republic, Denmark,
Egypt, Fiji, Greece, Hungary, Indonesia,
Kuwait, Malaysia, Papua New Guinea,
Poland, Portugal, Rumania, Russia, Slovakia,
South Africa, Sri Lanka, Switzerland,
Tunisia, Uzbekistan, United States |
Levied
only in the domiciliary country on tax
treaty but Korea can withhold capital
gains tax if the investment includes
a high proportion of real estate
|
Bangladesh,
Canada, China, Finland, France, India,
Ireland, Israel, Japan, Malta, Mexico,
Myanmar, Mongolia, Morocco, Nepal, New
Zealand, Norway, Pakistan, Philippines,
Spain, Sweden, United Kingdom, Vietnam |
Levied
only in the domiciliary country on tax
treaty, but Korea can withhold capital
gains tax on a holding which has been
more than 25 percent of an issued stock
for a specified period of time
|
Austria, Canada,
France, Israel, Italy, Japan, Mexico,
Pakistan, Spain |
| Levied
only in the domiciliary country on tax
treaty, but Korea can withhold capital
gains tax on a holding which has been
more than 20 percent of an issued stock
for a specified period of time |
Chile |
| Levied
only in the domiciliary country on tax
treaty, but Korea can withhold capital
gains tax on a holding which has been
more than 35 percent of an issued stock |
Myanmar |
| Levied
only in the domiciliary country on tax
treaty, but Korea can withhold capital
gains tax on stock possessed for less
than one year |
Turkey |
| Levied
only in the domiciliary country on tax
treaty, but Korea can withhold capital
gains tax if the transfer has ever resided
for five years preceding the stock
transfer |
Norway |
| Levied
only in the domiciliary country on tax
treaty, but Korea can withhold capital
gains tax in case transferor as an individual
has been a resident at any time in the
five years preceding the stock transfer |
Finland,
France, Netherlands, United Kingdom |
| ¡Ý
Cases where capital gains tax can be
levied both in Korea and treaty nations |
Korea
can withhold capital gains tax because
the tax treaty does not cover capital
gains tax
|
Luxembourg,
Thailand |
Korea can withhold capital gains tax
under the terms of the tax treaty
|
Brazil,
Germany, Ukraine (except listed stock),
Kazakhstan (except listed stock), Singapore,
Australia |
* Note: Although in some cases
Korea can withhold capital gains tax from
some of the treaty nations mentioned above,
capital gains tax is not applied if the transferring
investors holds less than 25 percent of the
stock of a listed (or registered) company.
* Source: National Tax Service (as of January
2004)
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