(1) In applying Articles 21 through 24, if an entrepreneur is a nonresident or a foreign corporation, the zero tax rate shall only apply where the relevant country grants the identical tax exemption to residents in the Republic of Korea (referring to those defined in Article 1-2 (1) 1 of the Income Tax Act; hereinafter the same shall apply) or to domestic corporations (referring to those defined in subparagraph 1 of Article 2 of the Corporate Tax Act). <Amended on Dec. 24, 2018>
(2) Where an entrepreneur supplies goods or services pursuant to Article 24 (1) 2, the zero tax rate shall only apply where the relevant foreign country grants the identical tax exemption with respect to any goods or services supplied to the staff of the diplomatic offices, consular agencies, etc. of the Republic of Korea.
(3) "Identical tax exemption" in paragraphs (1) and (2) means that the relevant foreign country grants exemption from taxes equivalent to the value-added tax or other similar taxes of the Republic of Korea or that the relevant foreign country has no provisions governing taxes equivalent to the value-added tax or other similar taxes of the Republic of Korea.