(1) Where a foreign corporation who is a real beneficiary of the domestic source income referred to in Article 93 (excluding the domestic source business income in subparagraph 5 of the same Article) intends to have such income untaxed or exempted from taxes in accordance with the applicable tax treaty, it shall present an application for non-taxation or tax exemption and a document proving to be a real beneficiary of the domestic source income (hereafter in this Article referred to as "application, etc.") to the person who pays the domestic source income (hereafter in this Article, referred to as "income payer"), and the income payer shall file the application, etc. with the head of the tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree. In such cases, where a foreign investment scheme deemed a real beneficiary of the domestic source income as it falls under Article 93-2 (1) 1, it shall submit a report on the foreign investment scheme, including the status of investors by country which have invested in the foreign investment scheme. <Amended on Dec. 24, 2018; Dec. 31, 2022; Dec. 31, 2024>
(2) Where the domestic source income is paid through a foreign investment scheme for purposes of paragraph (1), the foreign investment scheme shall receive an application, etc. from the real beneficiary and present to the income payer the report prepared by the foreign investment scheme, including a statement thereof, and the application, etc., and income payer shall file the report and application, etc. with the head of the tax office having jurisdiction over the place of tax payment, as prescribed by Presidential Decree. <Amended on Dec. 24, 2018; Dec. 31, 2022>
(3) An income payer who has received an application, etc. from a real beneficiary or foreign investment scheme pursuant to paragraph (1) or (2) may request supplementation if there are omissions or deficiencies in the submitted application, etc.; if the income payer fails to receive an application, etc. from a real beneficiary or foreign investment scheme or a report on a foreign investment scheme or is unable to identify a real beneficiary with the documents received, or where an income payer has any other ground specified by Presidential Decree, the income payer shall withhold the amount specified in any subparagraph of Article 98 (1) without applying for non-taxation or tax exemption. <Amended on Dec. 31, 2022>
(4) The head of the tax office having jurisdiction over the place of tax payment in receipt of an application, etc. pursuant to paragraph (1) or (2) shall examine whether the requirements for non- taxation or tax exemption are met, and as a result of such examination, if it is found that the requirements for non-taxation or tax exemption are not satisfied or details of the application are different from the facts, he or she shall collect the amount of tax according to the same paragraph from the person paying the income pursuant to Article 98 (4). In such cases, where it is not possible to determine whether the requirements for non-taxation or tax exemption are met based solely on the contents stated on the application, etc., the income payer may be requested to supplement the relevant documents within a reasonable time limit. <Added on Dec. 31, 2022>
(5) Where a real beneficiary to whom non-taxation or tax exemption has not been applied under paragraph (3) intends to be eligible for non-taxation or tax exemption, the real beneficiary or income payer may request the head of the tax office having jurisdiction over the place of tax payment of the income payer to make a correction within five years from the 11th of the month immediately following the month during which the tax is withheld under paragraph (3); provided, if any ground falling under any subparagraph of Article 45-2 (2) of the Framework Act on National Taxes arises, a request for rectification may be filed within three months from the date on which the relevant ground occurs, notwithstanding the main clause. <Amended on Dec. 20, 2016; Dec. 31, 2019; Dec. 31, 2022; Dec. 31, 2023>
(6) Upon receipt of an application for correction under paragraph (5), the head of a tax office shall correct the tax base and the tax amount or shall notify the applicant that no ground exists for such correction, within six months from the filing date of the application. <Amended on Dec. 31, 2022>
(7) Except as otherwise provided in paragraphs (1) through (6), the methods and procedures for the submission of relevant documents, such as an application, etc. and a report by a foreign investment scheme, the duty to preserve the documents presented, the methods and procedures for filing a request for correction, and other matters necessary for non-taxation or tax exemption shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2022>[This Article Wholly Amended on Jan. 1, 2014]