Korean-source income paid to a non-resident is withheld at fixed statutory rates by income type: interest 20%, dividends 20%, royalties 20%, personal services 20%, gains on real estate transfer at the lesser-favorable of 10% of the sale price or 20% of the gain, and securities transfer gains at the same 10%-of-price / 20%-of-gain rule. Where a tax treaty sets a lower rate, the treaty rate takes precedence over the domestic statutory rate.
For non-residents from countries with no tax treaty, the domestic statutory rate applies as-is.
Statutory withholding rates for non-residents
If a treaty exists, this table is only the ceiling
The rates above are the default under domestic law absent a tax treaty. For treaty countries, a reduced rate — often in the 10–15% range — usually applies instead, so submitting the treaty rate application before payment can lower the actual withholding.
Frequently Asked Questions
Related Topics
Applying and Calculating the Tax-Treaty Limited Rate
Why the treaty rate wins when lower than the domestic rate, and how to apply for it before income is paid.
Withholding on Interest, Dividends, and Transfer Fees
How withholding applies to a non-resident's bank interest, stock dividends, and (for pro athletes) transfer fees, and how treaties reduce it.