제목 없음March 16, 2006.
Answers to FAQs on the special withholding procedure
applicable to foreign companies or funds
The document attached below is prepared in order to help rectify some incorrect
reports from overseas with regard to the special withholding procedure for foreign
companies or funds which will take effect on July 1, 2006.
* For full text,
please click here.
*
Please be noted that answer 7 was revised (March 16, 2006).
*
Source : Ministry of Finance and Economy
FAQs
1. What is the
special withholding procedure for foreign investors?
2. What is the
purpose of the introduction of the special withholding procedure?
3. Some argue that
the proposed regime is in conflict with double tax conventions.
4. Will the special
withholding procedure be applied in a retroactive manner?
5. Which areas
or countries are likely to be designated and when will the designation be
completed?
6. Should every
foreign fund based in the designated areas go through the special
withholding
procedure and the subsequent refund (if eligible for the refund) in relation to
their income derived in Korea without an exception?
7. When it comes
to gains from the alienation of shares, is a foreign company which owns
less
than 25% of the total shares in a domestic company also subject to special
withholding
procedure?
8. Recently some
foreign newspaper reported that the introduction of the special withholding
procedure could stifle foreign investment in Korea or serve as hindrance to
Korea\'s
efforts to become a financial-hub in Northeast Asia. Any reaction to these
reports?
