(1) Where a domestic corporation sells (including brokering, arranging, or other cases prescribed by Presidential Decree, but excluding trading of repurchase bonds, etc. or other cases prescribed by Presidential Decree; hereafter in this Article and Articles 74 and 75-18, the same shall apply) bonds, etc. under Article 46 (1) of the Income Tax Act or beneficiary certificates of an investment trust (hereinafter referred to as "bonds, etc. subject to withholding tax") to a third party, the domestic corporation shall withhold corporate tax (only applicable to the amount exceeding 1,000 won) equivalent to the amount calculated by applying the tax rate of 14/100 to the amount of interest and discounts accrued or generated from such bonds, etc. and the investment trust proceeds (hereafter in this Article and Article 98-3, referred to as "interest, etc.") accruing during the period holding the bonds, etc. subject to withholding tax, as prescribed by Presidential Decree, and shall pay it to the tax office having jurisdiction over the place of tax payment, etc. by no later than the tenth day of the month following the month in which the date of collection falls. In such cases, this Act shall apply to such domestic corporation, deeming it a person liable for withholding. <Amended on Dec 22, 2020; Dec. 21, 2021>
(2) Notwithstanding paragraph (1), corporate tax shall not be collected from the income prescribed by Presidential Decree, such as the income on which corporate tax is not imposed or exempt.
(3) In applying paragraph (1), where a domestic corporation sells bonds, etc. subject to withholding tax to any of the following corporations, any acts done by a person representing, or commissioned by, a person liable for withholding shall be deemed the acts done by the principal or a commissioning person within the scope of the delegation or commission, where there is an agreement between the relevant parties:
1. Financial companies, etc. prescribed by Presidential Decree;
2. Collective investment business entities under the Financial Investment Services and Capital Markets Act.
(4) In applying paragraph (1), where a domestic corporation sells bonds, etc. subject to withholding tax belonging to the investment trust property under the Financial Investment Services and Capital Markets Act, it shall be deemed to have the agency or commission relationship between a trust company under the same Act and a person according to the following classification: <Amended on Dec. 22, 2020>
1. Trust property referred to in Article 5 (1): Beneficiary of the relevant trust property;
2. Trust property referred to in Article 5 (3): Trustor of the relevant trust property.
(5) Article 73 (4) through (7) shall apply mutatis mutandis to commission, representation, and payment of obligation of withholding.
(6) In applying paragraphs (1) through (4), matters necessary for calculating the period holding bonds, etc., subject to withholding tax shall be prescribed by Presidential Decree.[This Article Added on Dec. 24, 2018]