제목 없음Guideline for a Revised
Withholding Tax on Capital Gains
for
a Non-resident or a Foreign Corporation without a Domestic Business
Place
The provision for Korean withholding tax on
capital gains (from real estate, etc.)
for a non-resident or a foreign corporation
without a domestic business place has been revised as follows:
Previous
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Revised
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Note
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○Withholding Tax Agent
- Buyer
(Individual or Corporation)
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○Withholding Tax Agent
- Buyer
(Corporation)
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If a buyer is an individual, he/she is exempt from tax withholding.
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☞
Date of Enforcement : The revised provision shall become effective with
its application to the transfer made since Jan 1, 2007.
Under the revised law, buyers
and sellers shall follow the following rules:
Buyer
An individual who buys real
estate, etc. from a non-resident or a foreign company without a domestic business
place, and pays for it shall no longer be responsible for tax withholding. Corporations,
however, shall continue to deduct the capital gains tax at source, report and
pay the withholding tax to a tax office.
Seller
A non-resident who transfers real estate, etc.
shall be responsible for filing the capital gains tax return and pay the tax
due within the filing period.
A foreign corporation which has no domestic
business place in Korea and transfers real estate, etc. shall be responsible
for filing a corporate income tax return and pay the tax due to a tax office.
The tax withheld at source in connection with the transfer of the real estate,
etc. is deducted from the capital gains tax or the corporate income tax.
※Scope of Real Estate, etc. subject to the Revised Provision
Land, building, rights to real estate, trade rights transferred along with fixed assets for business purposes, rights to facilities, shares or paid-in capital of corporation whose combined value of land, building, and rights to real estate is 50% or more of its total asset.
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