Remitting Dividends from Korea
When a foreign-invested company in Korea distributes profits to its overseas parent company, withholding tax must be deducted and foreign exchange procedures must be followed.
Dividend Withholding Tax
- Standard rate for foreign corporations: 20%
- Reduced rates under tax treaties (e.g., Korea-US, Korea-Japan): 5–15%
Remittance Process
- Shareholder resolution approving dividend
- Withholding tax filing and payment (by the 10th of the month after payment)
- Remittance request through authorized foreign exchange bank
- Required documents: shareholder resolution minutes, withholding tax receipt, foreign exchange declaration form
Foreign Exchange Reporting
Overseas remittances exceeding USD 50,000 per year require reporting to an authorized FX bank. Under USD 50,000 per transaction: simplified reporting.
Vision Administrative Office: dividend remittance and tax filing services for FDI companies. 02-363-2251