(1) Interest, dividend, or royalty income from domestic sources of a nonresident under the provisions of a tax treaty shall be taxed at the lower of the reduced tax rate and the rate specified as below:
1. The rate specified in Article 156 (1) 1, 2, or 6 if the taxes subject to the tax treaty does not include local income tax;
2. If the taxes subject to the tax treaty includes local income tax, the rate specified in Article 156 (1) 1, 2, or 6 plus 10/100 of the income tax withheld under Article 103-18 (1) of the Local Tax Act.
(2) Notwithstanding paragraph (1), if Article 156-4 (1) applies, withholding shall be made in accordance with Article 156-4 (1). In such cases, when correcting the tax base and the tax amount under Article 156-4 (3), the lower of the reduced tax rate and the tax rate specified in either of the subparagraphs of paragraph (1) shall be applied.[This Article Newly Inserted on Dec. 29, 2020]