(1) Notwithstanding Article 3 (1) 2, no corporate tax shall be imposed on the income falling under any of the following, out of the income of a foreign corporation subject to withholding tax under Article 98 (1):
1. Income accruing from State bonds issued pursuant to Article 5 (1) of the State Bond Act, monetary stabilization bonds referred to in the Bank of Korea Monetary Stabilization Bond Act, or bonds prescribed by Presidential Decree (hereafter in this Article referred to as "State bonds, etc."), out of interest income accruing from domestic sources prescribed in subparagraph 1 of Article 93;
2. Income accruing from the transfer of State bonds, etc. out of capital gains from the transfer of domestic source securities referred to in subparagraphs 9 of Article 93.
(2) State bonds, etc. not subject to corporate tax under paragraph (1) include State bonds, etc. acquired, held, or transferred through a foreign financial company, etc. (hereinafter referred to as "qualified foreign financial company, etc.") approved by the Commissioner of the National Tax Service by meeting the requirements prescribed by Presidential Decree. In such cases, necessary matters for compliance matters applicable to qualified foreign financial companies, etc., and the standards, procedures, etc. for approval and revocation of approval shall be prescribed by Presidential Decree.
(3) Where a foreign corporation receives income under any subparagraph of paragraph (1) through an overseas investment scheme, the relevant overseas investment scheme shall be deemed to be the real beneficiary of the income referred to in each subparagraph of paragraph (1), notwithstanding Article 93-2 (1). <Added on Dec. 31, 2024>
(4) A foreign corporation (including a foreign investment scheme deemed a real beneficiary under paragraph (3); hereafter the same shall apply in this Article) or qualified foreign financial company, etc. that intend to be subject to non-taxation under paragraph (1) shall file an application for non-taxation with the head of the competent tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree. <Amended on Dec. 31, 2024>
(5) Articles 73 and 73-2 shall not apply to the income referred to in the subparagraphs of paragraph (1), which a domestic corporation receives through an overseas investment scheme, and the relevant domestic corporation shall report and pay the income directly, as prescribed by Presidential Decree: <Amended on Dec. 31, 2024>
1. Deleted; <Dec. 31, 2024>
2. Deleted. <Dec. 31, 2024>
(6) If a foreign corporation or a qualified foreign financial company, etc. which is not subject to non-taxation under paragraph (1) intends to be applied non-taxation, the foreign corporation, qualified foreign financial company, etc. or the person who pays income under the subparagraphs of paragraph (1) may file a request for rectification with the head of the competent tax office having jurisdiction over the place of tax payment. <Added on Dec. 31, 2024>
(7) Article 98-4 (5) through (7) shall apply mutatis mutandis to the deadline, methods, procedures, etc. of a request for rectification under paragraph (6). In such cases, in the main clause of Article 98-4 (5), "non-taxation or tax exemption has not been applied under paragraph (3)" shall be construed as "non-taxation has not been applied under Article 93-3 (1)"; "a real beneficiary ... intends to be eligible for non-taxation or tax exemption" as "a foreign corporation or qualified financial company, etc. ... intends to be eligible for non-taxation"; and "the real beneficiary or income payer ... under paragraph (3)" as "the foreign corporation, qualified foreign financial company, etc., or a person who pays income under each subparagraph of paragraph (1) ... under Article 98 (1)". <Added on Dec. 31, 2024>[This Article Added on Dec. 31, 2022]