(1) Notwithstanding Article 3 (2), no income tax shall be imposed on the following incomes falling within the category of non-resident income subject to withholding under Article 156 (1):
1. Income derived from State bonds issued under Article 5 (1) of the State Bond Act, monetary stabilization bonds as defined in the Bank of Korea Monetary Stabilization Bond Act, and bonds prescribed by Presidential Decree (hereafter referred to as "State bonds, etc." in this Article) that falls within the category of domestic source interest income as described in subparagraph 1 of Article 119;
2. Income derived from the transfer of State bonds, etc., that falls within the category of domestic source capital gains on securities as described in subparagraph 11 of Article 119.
(2) State bonds, etc. not subject to income tax under paragraph (1) shall encompass State bonds, etc. acquired, held, or transferred through foreign financial companies, etc. (hereinafter referred to as "qualified foreign financial companies, etc.") meeting the requirements set forth in Presidential Decree, and approved by the Commissioner of the National Tax Service. In such cases, necessary matters regarding the compliance of qualified foreign financial companies, etc., as well as standards, procedures, etc. for the approval and revocation thereof shall be prescribed by Presidential Decree.
(3) A nonresident or qualified foreign financial company, etc. that wishes to apply for non-taxation under paragraph (1) shall apply for non-taxation to the head of the tax office having jurisdiction over the place for tax payment,?as prescribed by Presidential Decree.
(4) If a resident is among the investors who have invested in a foreign investment vehicle falling within any of the following subparagraphs, Article 127 shall not apply to the incomes of that resident described in the subparagraphs of paragraph (1); instead, the resident shall directly declare and pay tax as prescribed by Presidential Decree:
1. A foreign investment vehicle resembling a collective investment scheme as defined in the Financial Investment Services and Capital Markets Act and acknowledged as a publicly offered investment scheme under the statutes or regulations of the country of its establishment;
2. A foreign investment vehicle similar to that specified in subparagraph 1, meeting the requirements prescribed by Presidential Decree.[This Article Newly Inserted on Dec. 31, 2022]