Form descriptions – Relief at source – South Korea debt securities and equities
Information is provided here about the forms and their use in relation to the procedure for relief at source of withholding tax on income from South Korea securities, as follows:
- Application for Entitlement to Reduced Tax Rate on Domestic Source Income for Foreign Corporation (Form No. 72-2);
- Application for Entitlement to Reduced Tax Rate on Domestic Source Income (for Non-resident Individual) (Form No. 29-12);
- Application for Non-Taxation-Tax exemption for Corporations on Korean Source Income under the Tax Treaty (Form No. 29-2(1));
- Application for tax exemption on interest income from investment in Government Bonds and Monetary Stabilisation Bonds (for foreign corporations) Form 72-6;
- Application for tax exemption on interest income from investment in Government Bonds and Monetary Stabilisation Bonds (for non-residents) Form 19-13(1);
- Declaration of overseas investment vehicle, Treated as the Beneficial Owner of Korean Source Income (Form No. 72-5);
- One-Time Certificate for South Korea Treasury Bonds (KTB) and Monetary Stabilisation Bonds (MSB);
- Per-payment breakdown;
- Report of Overseas Investment Vehicle (OIV) (Form No. 29-13);
- Schedule of Beneficial Owners (Annex to Form No. 29-13);
- Certificate of Residence (CoR); and
- Certificate of Tax Residence.
The guide to complete the forms is available in the section Guidance for the use and completion of tax forms – South Korea.
Other documentation may be required for specific types of beneficial owner (as described in the Documentation requirements section of the Debt securities and equities – rates, eligibility, availability of relief etc. – South Korea, Korean Treasury Bonds (KTB) and Monetary Stabilisation Bonds (MSB) – rates, eligibility, availability of relief etc. – South Korea).
Application for Entitlement to Reduced Tax Rate on Domestic Source Income for Foreign Corporation (Form No. 72-2)
The Application for Entitlement to Reduced Tax Rate on Domestic Source Income for Foreign Corporation contains the beneficial owner's information.
The Application should be submitted by a foreign corporation who wishes to apply for a reduced tax rate under the relevant tax treaty applicable to its Korean source income.
The Application should be submitted by a foreign corporation who receives Korean source income indirectly through an OIV or directly through Clearstream Banking. In the case of indirect investment through an OIV, the Application should be submitted to the OIV and not to Clearstream Banking.
The Application should be submitted by OIVs and OPCIVs that are treated as beneficial owner in accordance with the Corporate Tax Act
The applicant in the form should always be the ultimate beneficial owner of the securities.
How many are provided? | One per beneficial owner. |
Who completes it? | The beneficial owner. |
How often is it provided? | Valid for three years as from the date of submission (“filing date”) to our local depository. Unless there is a change in the beneficial owner’s details. |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |
Application for Entitlement to Reduced Tax Rate on Domestic Source Income (for Non-resident Individual) (Form No. 29-12)
The Application for Entitlement to Reduced Tax Rate on Domestic Source Income (for Non-resident Individual) contains the beneficial owner's information. The Application should be submitted by an individual who receives Korean source income indirectly through an OIV and who wishes to apply for a reduced tax rate under the relevant tax treaty applicable to its Korean source income. The individual should submit this application form to the OIV and not to Clearstream Banking.
In Clearstream Banking, IRC or LEI cardholders are non-individuals for domestic South Korean securities.
The applicant in the form should always be the ultimate beneficial owner of the securities.
How many are provided? | One per beneficial owner. |
Who completes it? | The beneficial owner. |
How often is it provided? | N/A. (The application form should be submitted to the OIV and not to Clearstream Banking.) |
When is it provided? | N/A. (The application form should be submitted to the OIV and not to Clearstream Banking.) |
Copy or original? | N/A. (The application form should be submitted to the OIV and not to Clearstream Banking.) |
Application for Non-Taxation Tax exemption for Corporation on Korean Source Income under the Tax Treaty (Form No. 29-2(1))
The Application for Non-Taxation Tax exemption for Corporation on Korean Source Income under the Tax Treaty contains the beneficial owner's information.
The Application for Non-Taxation-Tax exemption for Corporations on Korean Source Income under the Tax Treaty (Form No. 29-2(1)) is filled in by our depository on behalf of the final beneficial owner and submitted to the local district tax office on a per payment basis.
How many are provided? | One per beneficial owner and per payment. |
Who completes it? | The depository. |
How often is it provided? | Per payment. |
Application for tax exemption on interest income from investment in Government Bonds and Monetary Stabilisation Bonds (for foreign corporations) Form 72-6
The Application for tax exemption on interest income from investment in Government Bonds and Monetary Stabilisation Bonds (for foreign corporations) Form 72-6) contains the beneficial owner's information. The Application should be submitted by an Overseas Investment Vehicle (public or private) that is a “foreign corporation”, central or local government or public institution, pension fund, financial institution, or any other corporate entity.
How many are provided? | One per beneficial owner. |
Who completes it? | The beneficial owner. |
How often is it provided? | Valid until revoked (unless there is change in the beneficial owner’s details) |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |
Application for tax exemption on interest income from investment in Government Bonds and Monetary Stabilisation Bonds (for non-residents) Form 19-13(1)
The Application for tax exemption on interest income from investment in Government Bonds and Monetary Stabilisation Bonds (for non-residents) Form 19-13(1) contains the beneficial owner's information. The Application should be submitted by an Overseas Investment Vehicle (public or private) that is not a “foreign corporation”.
How many are provided? | One per beneficial owner. |
Who completes it? | The beneficial owner. |
How often is it provided? | Valid until revoked (unless there is a change in the beneficial owner’s details). |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |
Declaration of overseas investment vehicle – Treated as the Beneficial Owner of Korean Source Income (Form No. 72-5)
The declaration of overseas investment vehicle – Treated as the Beneficial Owner of Korean Source Income should be submitted by OIVs and OPCIVs that are treated as beneficial owner in accordance with the Corporate Tax Act.
How many are provided? | One per OIV/OPCIV. |
Who completes it? | The OIV/OPCIV. |
How often is it provided? | Valid for three years as from the date of submission (“filing date”) to our local depository, unless there is a change in the beneficial owner’s details. |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |
One-Time Certificate for South Korea Treasury Bonds (KTB) and Monetary Stabilisation Bonds (MSB)
The one-time certificate for South Korea Treasury Bonds (KTB) and Monetary Stabilisation Bonds (MSB) must be completed and signed by the Clearstream Banking client.
How many are provided? | One per Clearstream client. |
Who completes it? | Clearstream's client. |
How often is it provided? | Valid until revoked (unless there is a change in the client’s details). |
When is it provided? |
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Copy or original? | Original required. |
Per-payment breakdown
The per-payment breakdown must be provided by the Clearstream Banking client, when applicable, via Swift (formatted MT565) or Xact Web Portal message, using the following template:
- Clearstream client’s account number;
- ISIN;
- Payment date;
- Corp. event ID;
- Total holding for the event;
- The breakdown of holding per beneficial owner(s) with the respective tax rate to be applied;
- IRC or LEI number;
- Full name of the beneficial owner(s) as per IRC or LEI;
- Full address of the beneficial owner(s) (complete street address including postal code, city, country) as per IRC or LEI.
How many are provided? | One per Clearstream Banking account. |
Who completes it? | Clearstream's client. |
How often is it provided? | Per income payment. |
When is it provided? | At the latest, three business days before each income payment by 10:00 CET. |
Copy or original? | Original. |
Report of Overseas Investment Vehicle (OIV) (Form No. 29-13)
The Report of Overseas Investment Vehicle contains the OIV, OPCIV and the final beneficial owner's information (under the “Schedule of Beneficial Owners” (Annex to Form No. 29-13) for the OIV and under section “1-2. Status of Total Investment Amount, etc. By Country” for the OPCIV). The Report should be submitted by an overseas investment vehicle if a Korean source income is paid through such overseas investment vehicle.
How many are provided? | One per OIV/OPCIV. |
Who completes it? | The OIV/OPCIV. |
How often is it provided? | On a half-yearly basis. Unless there is a change in the OIV/OPCIV’s details. |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |
Note:
- Part 1 should be completed in the case of OPCIVs with beneficial owners residents in DTT countries.
- Part 2 should be completed in the case of OIVs with beneficial owners residents in DTT countries.
- Part 2 should be completed in the case of OIVs with tax exempt beneficial owners.
Schedule of Beneficial Owners (Annex to Form No. 29-13)
The Schedule of Beneficial Owners, Annex to Form No. 29-13 contains beneficial owners’ information.
How many are provided? | One per OIV. |
Who completes it? | The OIV. |
How often is it provided? | On a half-yearly basis. Unless there is a change in the beneficial owner’s details. |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |
Certificate of Residence (COR)
A certificate proving the residency of the beneficial owner, issued by the beneficial owner’s local tax authorities.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner’s local tax authorities. |
How often is it provided? | Debt securities (excluding KTBs/MSBs purchased on or before 12 November 2010) and Equities - Tax exempt under the DTT: Valid for one fiscal year as from the date of submission (filing date) to our local depository. Unless there is a change in the beneficial owner’s details. KTBs/MSBs purchased on or before 12 November 2010 - All foreign investors: Valid for three years as from the date of issuance by the local tax authorities. Unless there is a change in the beneficial owner’s details. KTBs/MSBs purchased on or after 1 January 2023: Valid until revoked (unless there is a change in the beneficial owner’s details); issued in the year of the income payment. |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 am CET. |
Copy or original? | Original required. |
Certificate of Tax Residence
A certificate proving the tax residency of the beneficial owner, issued by the beneficial owner’s local tax authorities.
How many are provided? | One per beneficial owner. |
Who completes it? | Beneficial owner’s local tax authorities. |
How often is it provided? | Valid for three year as from the date of issuance by the local tax authorities. |
When is it provided? | At the latest ten business days before the relevant income payment, by 10:00 CET. |
Copy or original? | Original required. |