(1) If a nonresident who is the substantive owner of the domestic source income under Article 119 (excluding domestic source business income under subparagraph 5 of that Article and domestic source personal services income under subparagraph 6 of that Article) intends to be qualified for non-taxation or tax exemption under a tax treaty, the nonresident shall submit an application for non-taxation or tax exemption and a document evidencing that he or she is a substantive owner of the domestic source income (hereafter reffered to as “application, etc.” in this Article) to the person who pays the domestic source income (hereafter referred to as "payer of income" in this Article), as prescribed by Presidential Decree, and the payer of income shall submit the application, etc. to the head of the tax office having jurisdiction over his/her place for tax payment. <Amended by Act No. 16104, Dec. 31, 2018; Dec. 31, 2022>
(2) In applying paragraph (1), where the relevant domestic source income is paid through a foreign investment vehicle specified by Presidential Decree, the foreign investment vehicle shall require the substantive owner to submit an application, etc. as prescribed by Presidential Decree, and shall submit the application, etc. to the payer of income, accompanied with a report on the foeign investment vehicle, including the details thereof, and then the payer of income shall file the report and application with the head of the tax office having jurisdiction over the place for tax payment. <Amended by Act No. 16104, Dec. 31, 2018; Dec. 31, 2022>
(3) The payer of income who has received an application, etc. from the substantive owner or the foreign investment vehicle under paragraph (1) or (2) may request the application, etc. to be supplemented if it finds any omission or deficiency in the application, etc. submitted and shall withhold the amount specified in any subparagraph of Article 156 (1) without applying non-taxation or tax exemption if it fails to receive the application, etc. or the report on the foeign investment vehicle from the substantive owner or the foreign investment vehicle, or if it is impracticable to identify the substantive owner with the documents submitted, or if there is any other ground specified by Presidential Decree. <Amended on Dec. 31, 2022>
(4) If the head of the tax office having jurisdiction over the place for tax payment who has received an application, etc. under paragraph (1) or (2), finds that any requirement is not fulfilled or that any detail of the application, etc. is not true after examination, he or she shall collect the amount of tax under Article 85 (3), which is applicable mutatis mutandis pursuant to Article 126 (4), from the payer of income. In such cases, if it is not possible to determine whether the requirements for non-taxation or exemption are fulfilled based on the details of the application, etc., the head may require the payer of income to supplement the relevant documents within a reasonable time limit. <Newly Inserted on Dec. 31, 2022>
(5) If a substantive owner to whom non-taxation or tax exemption has not been granted under paragraph (3) intends to be eligible for non-taxation or tax exemption, the substantive owner or the payer of income may file an application for correction with the head of the tax office having jurisdiction over the place for tax payment of the payer of income within five years from the last day of the month in which the tax was withheld in accordance with paragraph (3), as prescribed by Presidential Decre: Provided, That notwithstanding the main clause, if any event described in the subparagraphs of Article 45-2 (2) of the Framework Act on National Taxes occurs, the substantive owner may file an application for correction within three months from the date of discovering such an event. <Amended by Act No. 14389, Dec. 20, 2016; Dec. 31, 2019; Dec. 31, 2022>
(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 provided for in paragraphs (1) through (6), matters necessary for applying non-taxation or tax exemption, including the method and procedure for submitting relevant documents, such as an application, etc. and a report on the foreign investment vehicle, the duty to keep submitted documents, and the method and procedure for filing an application for correction, shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2022>[This Article Wholly Amended by Act No. 12169, Jan. 1, 2014]