(1) When a person (hereafter in this Article, referred to as "person liable for withholding") who pays any of the following amounts to a domestic corporation (excluding income prescribed by Presidential Decree, such as a financial company prescribed by Presidential Decree), he or she 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 payable and shall pay it at 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; provided, the tax rate of 25/100 shall apply to the profits made from non-business loans referred to in Article 16 (1) 11 of the Income Tax Act; and the tax rate of 14/100 shall apply to the interest income paid through an online investment-linked financial business entity registered with the Financial Services Commission pursuant to the Act on Online Investment-Linked Financial Business and Protection of Users: <Amended on Dec. 24, 2018; Dec. 31, 2019; Dec. 21, 2021; Dec. 31, 2022>
1. The amount of interest income referred to in Article 16 (1) of the Income Tax Act (including revenues of a corporation that operates the financial insurance business);
2. The amount of investment trust proceeds (hereinafter referred to as "investment trust proceeds") of the Financial Investment Services and Capital Markets Act among the profits from collective investment schemes referred to in Article 17 (1) 5 of the Income Tax Act.
(2) For the purpose of paragraph (1), where a foreign corporate tax payable by an indirect investment company is paid on investment trust profits, the amount calculated by subtracting the amount prescribed in subparagraph 2 from the amount prescribed in subparagraph 1 shall be withheld to the extent of the amount prescribed in subparagraph 1: <Added on Dec. 31, 2022>
1. Withholding tax on profits of an investment trust (referring to the amount calculated on the basis of an after-tax base price);
2. An amount calculated as prescribed by Presidential Decree, taking into account the after-tax base price of the foreign corporate tax payable by an indirect investment company.
(3) For the purpose of paragraph (2), where an amount prescribed in paragraph (2) 2 exceeds an amount prescribed in subparagraph 1 of the same paragraph, a deduction may be allowed to the extent of the withholding tax on profits of an investment trust when the investment trust profits are received during the period from the date on which the relevant foreign corporate tax of the indirect investment company is paid to December 31 of the year in which the date that is ten years after such tax payment date falls. <Added on Dec. 31, 2022>
(4) Notwithstanding paragraph (1) or (2), corporate tax on the income prescribed by Presidential Decree, such as the income on which corporate tax is not imposed or exempt, shall not be withheld. <Added on Dec. 24, 2018; Dec. 31, 2022>
(5) The amount of income referred to in the subparagraphs of paragraph (1) shall not be withheld, deeming that the relevant amount of income is not paid at the time such amount of income reverts to any piece of investment trust property under the Financial Investment Services and Capital Markets Act in applying paragraph (1) or (2). <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>
(6) In applying paragraph (1) or (2), 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. <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>
(7) In applying paragraph (1) or (2), where a financial company, etc. prescribed by Presidential Decree assumes or trades bills or debt certificates issued by a domestic corporation (including a resident; hereafter in this paragraph, the same shall apply) or brokers or makes such transactions on behalf of the corporation pursuant to paragraph (1), the financial company, etc. shall be deemed to have the agency or commission relationship with the domestic corporation. <Amended on Dec. 30, 2010; Dec. 24, 2018; Dec. 31, 2022>
(8) In applying paragraph (1) or (2), where a foreign corporation pays a domestic corporation income specified in each subparagraph of paragraph (1) from bonds or securities issued by the foreign corporation, a person who acts as an agent of the foreign corporation for such payment or a person to whom the authority for such payment is delegated or entrusted in the Republic of Korea shall withhold the corporate tax on the income. <Added on Jan. 1, 2013; Dec. 24, 2018; Dec. 31, 2022>
(9) Any person liable for withholding prescribed by Presidential Decree, in consideration of the number of regular employees and categories of business, may pay the withheld corporate tax by the tenth day of the month following the last month of the semiannual period which includes the withholding date, as prescribed by Presidential Decree, notwithstanding paragraphs (1) and (2). <Amended on Dec. 30, 2010; Dec. 31, 2022>
(10) In applying paragraphs (1) through (9), the timing for payment of interest income, scope and calculation of the amount of income subject to withholding corporate tax, calculation and payment of withholding tax, scope of persons liable for withholding, etc. shall be prescribed by Presidential Decree. <Amended on Dec. 30, 2010; Jan. 1, 2013; Dec. 24, 2018; Dec. 31, 2022>[Title Amended on Dec. 24, 2018]