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Taxation
If a foreign investor is classified as a ‘resident’ according to national tax law, the Korean tax system is applied, while ‘non-resident’ for foreigners pay withholding tax subject to applicable tax treaties, or a flat rate if there is no tax treaty.resident : who has ‘permanent establishment’ in Korea for a minimum of one year
Stock Transaction Tax (Sell Only)
| KOSPI | 0.23% (stock transaction tax 0.08% + special tax 0.15%) |
|---|---|
| KOSDAQ | 0.23% (stock transaction tax 0.23%) |
| KONEX | 0.1% (stock transaction tax 0.1%) |
| OTC market | 0.23% (stock transaction tax 0.23%) |
Capital Gains (Sell Only), Interest & Dividends Tax
- Tax Treaty : Reduced rate or 25% ~ 27.5% , which is smaller
- Non-Tax Treaty : 27.5%
In order to receive a reduced tax, please apply for: “Application for Entitlement to reduced tax rate on Domestic Source Income”. Korea has entered into tax treaties to avoid double taxation. Please refer to the following table.
| TAX | ||
|---|---|---|
| Category | Dividends | Interest |
| Australia | 15% | 15% |
| Canada | 15% | 15% |
| China | 5% or 10% | 10% |
| Denmark | 15% | 15% |
| France | 10% or 15% | 10% |
| Germany | 10% or 15% | 10% or 15% |
| India | 15% or 20% | 10% or 15% |
| Ireland | 10% or 15% | 0% |
| Malaysia | 10% or 15% | 10% |
| Netherlands | 10% or 15% | 10% or 15% |
| Philippines | 10% or 25% | 10% or 25% |
| Russia | 5% or 10% | 0% |
| Singapore | 10% or 15% | 10% |
| Switzerland | 10% or 15% | 10% |
| Thailand | 15% or 20% or 25% | 10% |
| UK | 5% or 15% | 10% |
| USA | 10% or 15% | 12% |
Hong Kong, Virgin Islands, Cayman Islands are not in Tax Treaties.Depending on tax treaties, the amount of stake and securities, applicable taxation is various.
For more details, please contact our International Sales Team : +82.2.3779.8900 / krx@ebestsec.co.krPlease note that the above information is note legally bounded. The purpose of this information isto provide guidelines of account opening.
