(1) The tax base for the domestic source income (excluding domestic source earned income under subparagraph 7 of Article 119 and domestic source pension income under subparagraph 8-2 of Article 119) of a nonresident under Article 121 (3) and (4) shall be calculated based on the amount of each corresponding domestic source income received by the nonresident: Provided, That the tax base on the following income may be calculated based on the amount obtained by deducting necessary expenses, etc. from the amount of such income, as prescribed in the same subparagraphs: <Amended by Act No. 11611, Jan. 1, 2013; Act No. 16104, Dec. 31, 2018; Dec. 29, 2020>
1. As for domestic source capital gains on securities under subparagraph 11 of Article 119, the amount calculated by deducting the acquisition value and transfer expenses of the relevant securities verified as prescribed by Presidential Decree, from the amount of such income;
2. As for prize money, supplementary prize, etc. prescribed by Presidential Decree among domestic source other income under subparagraph 12 of Article 119, the amount calculated by deducting the amount prescribed by Presidential Decree from the amount of such income;
3. As for virtual asset income under subparagraph 12 (l) of Article 119, the amount calculated by deducting the necessary expenses prescribed by Presidential Decree from the amount of income (in the case of a nonresident withdrawing virtual assets custodied and managed by a virtual asset business entity, etc., this refers to the amount prescribed by Presidential Decree that corresponds to the market value of the virtual assets at the time of withdrawal).
(2) The amount of tax on any domestic source income under paragraph (1) shall be the amount calculated by multiplying the tax base prescribed in the same paragraph by the tax rate under the subparagraphs of Article 156 (1).
(3) Where a nonresident subject to the application of Article 121 (3) or (4) has any income provided for in each subparagraph of Article 59-5 (1), the income tax on the said income shall be deducted or exempted even where a request for deduction or exemption is not made. <Amended by Act No. 11611, Jan. 1, 2013; Act No. 12169, Jan. 1, 2014>
(4) With respect to withholding taxes under Articles 156 and 156-3 through 156-6, Article 85 (3) and subparagraph 1 of Article 86 shall apply mutatis mutandis. <Newly Inserted by Act No. 11611, Jan. 1, 2013>
(5) With respect to the calculation, report, payment, determination, correction, collection, and refund of the tax base and tax amount on domestic source earned income under subparagraph 7 of Article 119 and domestic source pension income under subparagraph 8-2 of Article 119, among the domestic source income of a nonresident subject to the application of Article 121 (3) or (4), the provisions concerning the calculation, etc. of the tax base and tax amount on the income tax of a resident under this Act shall apply mutatis mutandis thereto: Provided, That the deduction for any person other than the nonresident him/herself, among the personal deductions under Article 51 (3), the special income deduction under Article 52, the tax credit for children under Article 59-2, and the special tax credit under Article 59-4 shall not be permitted, and Article 73 (1) shall apply mutatis mutandis to a nonresident who paid income tax by deducting the withholding tax under Article 156-5. <Newly Inserted by Act No. 11611, Jan. 1, 2013; Act No. 12169, Jan. 1, 2014; Act No. 16104, Dec. 31, 2018>
(6) Notwithstanding paragraph (1), where domestic source capital gains on securities under subparagraph 11 of Article 119 of a nonresident with no domestic place of business meets all the following requirements, the arm's length price prescribed by Presidential Decree (hereafter referred to as "arm's length price" in this paragraph) shall be the amount of such income: <Newly Inserted by Act No. 11611, Jan. 1, 2013; Act No. 16104, Dec. 31, 2018>
1. The relevant transaction shall be made between a nonresident with no domestic place of business and a related nonresident (including a foreign corporation) prescribed by Presidential Decree;
2. The price of the relevant transaction under subparagraph 1 shall be less than the arm's length price, which is prescribed by Presidential Decree.[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009][Title Amended on Dex. 31, 2009][Enforcement Date: Jan. 1, 2025] Article 126 (1) 3