Tax Withholding on the Services Rendered by

Non-resident Entertainers

①   When the remuneration or consideration for the service rendered by Non-resident entertainer is to be paid to the Tax-exempt Foreign Corporation for an entertainer, etc., the Payer should withhold 20% of tax from the payment amount. 

* Tax-exempt Foreign Corporation for an entertainer, etc.:  A Foreign Corporation who is not taxed in Korea for reasons, such as it has no regular place of business or does not belong to a regular place of business, etc. as per a tax treaty.

②   The tax withheld by a Payer on the remuneration or consideration paid to the Tax-exempt Foreign Corporation for an entertainer, etc. should be filed and paid by Payer to the competent regional tax office by 10^th of the following month of the payment.

③   The Tax-exempt Foreign Corporation for an entertainer, etc. should withhold the 20% of the service income (including personal service income or wage/salary income or other income) when the Corporation pays to the Non-resident entertainer, etc. on his/her service rendered in Korea.

* Non-resident public entertainer, etc.:  Non-resident entertainer or sportsman

④   The tax withheld by the Tax-exempt Foreign Corporation for an entertainer, etc. on the remuneration or consideration paid to an entertainer, etc. should be filed by the Tax-exempt Foreign Corporation for an entertainer, etc. to the competent tax office by 10^th of the following month of the payment    

⑤   The Tax-exempt Foreign Corporation for an entertainer, etc. may apply for a refund of the difference to the competent tax office in case the withholding tax amount as per the process described in articles ① & ② above is larger than the one in ③ & ④.

⑥   The different tax amount, if any, with an additional amount on the tax refund is to be paid to the Tax-exempt Foreign Corporation for an entertainer, etc. by the competent tax office when it is verified.

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Please refer the enclosed for more information.


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