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7. Withholding Tax
a.  Tax Withholding Obligation
		A person paying interest, dividends, business profits prescribed by the Presidential
		Decree, Class A wage and salary income, pension income, retirement income, or
		other income is required to withhold income tax due thereon at the time of such
		payment, and to pay it to the government by the tenth day of the following month.
		However, a businessman who has less than ten employees on average at the end of
		every month of the preceding year may pay taxes withheld to the government by the
		tenth day of the following month each half-year, after obtaining the approval of the
		head of the tax office concerned.
		Rates of Withholding
		(1)	Interest income
			(a)  Interest on a long-term saving with a redemption period of 5 years or longer
				and interest on a long-term bond with a redemption period of 10 years: 30%
			(b)  Interest from non-commercial loans :  25%
			(c)  Other interest: 14%
		(2) Dividend income :
						14%
		(3)	Business income from personal services and medical or health services which
			are exempt from VAT :  3% of total revenue
		(4)	Class A wage and salary
			(a) Tax rates: the basic tax rates applicable to global income
			(b) Simplified tax table:
				If wage or salary is paid monthly, the tax amount to be withheld is calculated
				by the "Simplified Tax Table" attached at the end of the Income Tax Law.
			(c) following year or at the time of the last payment of income in the year (i.e.,	Year-end adjustment:
				A person subject to tax withholding must calculate the total annual tax amount
				in January of the following year or at the time of the last payment of income in
				the year (i.e. when the income earner completes employment during the year)
				and collect or refund the difference between the tax amount payable. This
				amount is calculated by applying the basic tax rates and the tax amount
				withheld, which is explained in the "Simplified Tax Table."
			(d)	Application for personal exemption:
				Class A  wage and salary income earners who are entitled to personal
				exemptions must submit an application for personal exemptions, together with
				documentary evidence in support thereof, to the withholding agent before
				receiving wage and salary income for January of the following year.
			(e)	Daily wage:
				Tax is withheld from the wages of daily workers at a rate of 8 %.
		(5)  Pension income:
			i)	national pension, government employee pension:
						basic tax rates (identical to labor income tax)
			ii)	retirement pension, private pension: 5%
		(6) Class A retirement income:
					basic tax rates
		(7)	Other income is withheld at the rate of 20%.