Guide on completing the Application for Entitlement to Reduced Tax Rate on Domestic Source Income (for Non-resident Individual) [Form No.29-12]
Applicant
The beneficial owner who is individual and receives Korean source income indirectly through an Overseas Investment Vehicle (OIV) should submit this application form to the OIV.
Determination of Non-resident Individual
The determination of non-resident status is based on the criteria set out in Form for Individual No.3 Determination of Non-resident Individual, item 3, and mainly based on a staying period in Korea of less than 365 days, habitual home place on Korea or other.
If the Applicant answers “Yes” to any one of those criteria, for example, the Items (a) through (g) on Form for Individual No.3 Determination of Non-resident Individual, item 3, the Applicant shall be treated as a Korean resident subject to maximum default tax rate unless there is a special reason to be treated as otherwise. Whether or not the applicant is a foreign national or permanent resident of a foreign country shall not be considered in determining the individual’s resident or non-resident status.
However, a foreign diplomat in Korea along with his/her family (excluding Korean nationals) residing in Korea and a US military member or civilian worker in the military under Article 1 of the Status of Forces Agreement between the U.S. and Korea and his/her family shall be treated as a non-resident individual regardless of whether the above criteria of determination of a non-resident individual are satisfied.