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11. Withholding Tax

A person paying the following income to a domestic corporation is required to withhold

corporation tax on the income at the prescribed tax rates at the time of such payment,

and pay it to the government by the 10th of the following month.

(1) Interest income

(a) Interest prescribed by the Income Tax Law: 14%

(b) Interest from a non-commercial loan: 25%

(2) Distribution of profit from securities investment trusts: 14%

* If a trust fund receives interest income and a discounted amount on debentures or

securities, it should be treated as a corporation with respect to tax withholding.