An official public tax ruling from the South Korea Ministry of Strategy and Finance allows for a reduced rate of withholding tax on dividends distributed from South Korean real estate fund trusts.
The ruling provides companies that are residents in countries that have an income tax treaty with South Korea may benefit from a reduced rate of withholding tax—a 5% rate instead of 15%—on dividends distributed from South Korean real estate fund trusts, provided that certain conditions are satisfied.
The ruling may provide opportunities for refunds of withholding tax paid, for a three-year period (the statute of limitations). An application to the Korean tax authorities proving that the conditions listed above also will be required to maintain a refund claim.
Read a January 2016 report [PDF 178 KB] prepared by the KPMG member firm in Singapore: Withholding tax (WHT) rate applicable to dividends from South Korean real estate fund (REF) trusts
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