How is interest and dividend income received by foreigners (non-residents) taxed?

According to the National Tax Service, domestic-source interest and dividend income of non-residents without a domestic place of business is in principle taxed separately through withholding at 20% (14% for bond interest).

Under the Income Tax Act, if the withholding rate is higher than the limited rate under a tax treaty, the treaty's limited rate applies. Because this depends on the country of residence and the terms of the treaty, check with the National Tax Service.