(1) Where a nonresident who is the substantive owner of domestic source under Article 119 intends to apply for a reduced tax rate under the applicable tax treaty, the nonresident shall submit an application for the reduced tax rate as well as 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), as prescribed by Presidential Decree, to the withholding agent under Article 156 (1) (hereafter referred to as “withholding agent” in this Article). <Amended by Act No. 16104, Dec. 31, 2018; Dec. 29, 2020; Dec. 31, 2022>
(2) For the purpose of applying paragraph (1), where the relevant domestic source income is paid through a foreign investment vehicle, the relevant foreign investment vehicle shall, as prescribed by Presidential Decree, receive an application, etc. from the substantive owner and submit it to the withholding agent with a report on the foreign investment vehicle including details of the application for reduced tax rate. <Amended by Act No. 16104, Dec. 31, 2018; Dec. 31, 2022>
(3) A withholding agent 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 the reduced tax rate 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) Where any error is found in the reduced tax rate applied under paragraph (1) or (2), or a substantive owner not eligible for the reduced tax rate under paragraph (3) wants to be eligible for the reduced tax rate, the substantive owner or the withholding agent may file an application for correction with the head of the tax office having jurisdiction over the place for tax payment of the withholding agent, as prescribed by Presidential Decree, within five years from the last day of the month in which the tax was withheld under paragraph (3): 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 or the withholding agent may file an application for correction within three months from the date of discovering such an event. <Amended by Act No. 12169, Jan. 1, 2014; Act No. 14389, Dec. 20, 2016; Dec. 31, 2019>
(5) The head of a tax office requested to make a correction pursuant to paragraph (4) shall, within six months from the date he/she has received such request, correct the tax base and tax amount or notify the person who has made such request of the purport that there is no reason for making a correction.
(6) In addition to matters prescribed in paragraphs (1) through (5), other matters necessary for applying reduced tax rates, such as methods and procedures for submitting the application, etc., the report on foreign investment vehicle, or other related documents, duty of keeping submitted documents, and methods and procedures for requesting correction, shall be prescribed by Presidential Decree. <Amended on Dec. 31, 2022>[This Article Newly Inserted by Act No. 11146, Jan. 1, 2012]