| (1) | A withholding agent shall withhold income tax at any of the following tax rates (hereinafter referred to as "withholding tax rate") when it pays the income specified in any subparagraph of Article 127 (1): <Amended by Act No. 10408, Dec. 27, 2010; Act No. 11611, Jan. 1, 2013; Act No. 12169, Jan. 1, 2014; Act No. 12852, Dec. 23, 2014; Act No. 15225, Dec. 19, 2017; Act No. 16104, Dec. 31, 2018; Dec. 31, 2019; Dec. 29, 2020> |
| 1. | With regard to interest income, the tax rate prescribed as follows: |
| (a) | Deleted; <by Act No. 15225, Dec. 19, 2017> |
| (c) | The basic tax rate for excess refund from a workplace mutual-aid association under Article 16 (1) 10; |
| (d) | 14/100 of other interest income; |
| 2. | With regard to dividend income, the tax rate prescribed as follows: |
| (a) | 25/100 of dividend income of joint investment business entities under Article 17 (1) 8; |
| (b) | 14/100 of other dividend income; |
| 3. | 3/100 of any business income subject to withholding: Provided, That the withholding tax rate of 20/100 shall apply to the income received by a foreign professional sportsperson in compensation for providing services pursuant to a contract (limited to cases where the period of a contract is not more than three years) with a pro-sports team, among the sports club operation business under the Korean Standard Industrial Classification; |
| 4. | The basic tax rate for wage and salary income: Provided, That with regard to wage and salary income of a daily employed worker, 6/100; |
| 5. | The basic tax rate for the public pension income; |
| 5-2. | Any of the following tax rates for pension income received, in the form of pension, from the amount paid into a pension account or as an increase according to the outcome of operation under Article 20-3 (1) 2 (b) or (c). In such cases, the lowest tax rate shall apply where all the following requirements are met concurrently: |
| (a) | The following tax rates according to the age of pension income earners; |
| Age (As of the date of receiving pension) | Tax Rates | | Less than 70 years of age | 5/100 | | At least 70 years of age | Less than 80 years of age | 4/100 | | At least 80 years of age | | 3/100 |
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| (c) | With respect to the pension income to be received until death in the form of pension pursuant to the life-long pension agreement prescribed by Presidential Decree, 4/100; |
| 5-3. | With respect to the pension income to be received as retirement income under Article 20-3 (1) 2 (a), a tax rate based on the following classifications. In such cases, details of the withholding tax rates for the actual number of years of pension receipt and the withholding tax rate for receipt other than pension shall be prescribed by Presidential Decree: |
| (a) | If the actual number of years of pension receipt is 10 years or less: 70/100 of the withholding tax rate for receipt other than pension; |
| (b) | If the actual number of years of pension receipt exceeds 10 years: 60/100 of the withholding tax rate for receipt other than pension; |
| 6. | With regard to other income, the tax rate prescribed as follows: Provided, That this shall not apply to cases to which subparagraph 8 applies: |
| (a) | Where the amount of income under Article 14 (3) 8 (d) and (e) exceeds 300 million won, 30/100 of such excess; |
| (b) | With regard to other income under Article 21 (1) 18 or 21, 15/100; |
| (c) | Deleted; <by Act No. 12852, Dec. 23, 2014> |
| (d) | With regard to any income other than those specified above, 20/100; |
| 7. | With regard to retirement income, the basic tax rate; |
| 8. | With regard to service charges prescribed by Presidential Decree, 5/100; |
| 9. | With regard to financial investment income prescribed by Presidential Decree, 20/100. |
| (2) | Notwithstanding paragraph (1), with regard to the following interest income and dividend income, the following tax rates shall be the withholding tax rate: <Amended by Act No. 11611, Jan. 1, 2013; Act No. 15225, Dec. 19, 2017; Act No. 16104, Dec. 31, 2018; Dec. 31, 2022> |
| (3) | Notwithstanding paragraph (1) 4 and 5, where the withholding tax rate applies to monthly wage and salary income and the public pension income, the simplified tax withholding table for wage and salary income prescribed by Presidential Decree (hereinafter referred to as "simplified tax withholding table for wage and salary income") and the simplified tax amount table for pension income prescribed by Presidential Decree (hereinafter referred to as "simplified tax withholding table for pension income") shall apply. <Amended by Act No. 11611, Jan. 1, 2013> |
| (4) | When calculating the amount of taxes to be withheld pursuant to paragraph (1), where the amount of a foreign income tax prescribed by Presidential Decree is paid on income under Article 127 (1) 1, 2, or 9 in a foreign country, the amount calculated by deducting such amount of foreign income tax from the amount of withholding tax calculated pursuant to paragraph (1), shall be the amount of a withholding tax. In such cases, if the amount of a foreign income tax exceeds the amount of a withholding tax calculated pursuant to paragraph (1), such excess shall be deemed written off: <Amended on Dec. 8, 2021; Dec. 31, 2022> |
| 1. | Deleted; <Dec. 31, 2022> |
| 2. | Deleted; <Dec. 31, 2022> |
| 3. | Deleted. <Dec. 31, 2022> |
| (5) | For the purpose of calculating the amount of withholding tax under paragraph (1), for income under Article 127 (1) 2 or 9 that meets the requirements of the subparagraphs of Article 57-2 (1), the withholding tax shall be determined by subtracting the amount specified in subparagraph 2 from the amount specified in subparagraph 1: <Amended on Dec. 31, 2022> |
| 1. | The amount calculated by multiplying the income received from an indirect investment company, etc. (referring to the amount specified in Article 57-2 (2) 1; hereafter the same shall apply in this Article) by the tax rate specified in paragraph (1); |
| 2. | The amount calculated by taking into account the after-tax base price of the indirect investment foreign corporate tax, as prescribed by Presidential Decree. |
| (6) | For the purpose of applying paragraph (5), the amount specified in subparagraph 2 of the same paragraph shall be subject to limitations based on the following classifications (hereafter referred to as "maximum deductible amount" in this Article): <Newly Inserted on Dec. 31, 2022> |
| 1. | Dividend income mentioned in Article 127 (1) 2: The amount calculated by multiplying such income by the tax rate specified in paragraph (1) 2 (b); |
| 2. | Financial investment income mentioned in Article 127 (1) 9: The amount calculated according to the following formula: |
| Maximum deductible amount= A x | B | | C |
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A: Half-year financial investment income tax for the relevant taxable period as calculated under Article 148-2 (2);
B: Half-year sum of the income received from an indirect investment company, etc. (limited to cases where the indirect investment foreign corporate tax has been paid for the relevant income);
C: Amount of the half-year financial investment income for the relevant taxable period as calculated under Article 148-2 (1) |
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| (7) | For the purpose of applying paragraph (5), if the amount specified in subparagraph 2 of the same paragraph exceeds the maximum deductible amount, the excess may be deducted within the maximum deductible amount for income received from an indirect investment company, etc. during the period from the payment of the indirect investment foreign corporate tax to December 31 of the year ending on the 10th anniversary of the payment date, when the income is received from the relevant investment company, etc.: Provided, That if the amount specified in paragraph (5) 2 for income from the repurchase or transfer of all securities issued by the indirect investment company, etc. exceeds the maximum deductible amount, such excess shall not be deemed to accrue. <Newly Inserted on Dec. 31, 2022> |
| (8) | Necessary matters regarding withholding tax on income received from indirect investment companies, etc., other than those set forth in paragraphs (5) through (7), shall be prescribed by Presidential Decree. <Newly Inserted on Dec. 31, 2022> |
[This Article Wholly Amended by Act No. 9897, Dec. 31, 2009]
[Enforcement Date: Jan. 1, 2025] Articles 129 (1) 9, 129 (4), 129 (5), 129 (6), 129 (7), and 129 (8)