South Korea – Philippines Tax Treaty
The South Korea-Philippines tax treaty caps withholding on dividends at 25% for portfolio investors and 10% for qualifying direct investment, and interest at 10%. Royalty rates vary by category, from 10% on copyright to 15% on film and television. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 48 active treaties in South Korea's network and one of 28 in Philippines's. The general dividend rate of 25% is above the median in both countries' networks (South Korea: 15%, Philippines: 15%).
Verified data
BIR Tax Treaty Network (bir.gov.ph) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Philippines Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Philippines) |
|---|---|---|
| Dividends (general) Portfolio investors | 25% | 25% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 10%saves 15% | 25% |
| Interest Bank interest, bonds, loans | 10%saves 10% | 20% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 11.3% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Philippines)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 25% applies to portfolio investors. A reduced rate of 10% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 25%.
Source: Philippines Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 20% statutory rate. This represents a 10% reduction from the statutory rate.
Source: Philippines Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 10% to 15%.
Source: Philippines Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Philippines Treaty Reference
Comparative Context
🇰🇷South Korea's Network
Among South Korea's 48 active treaty partners, the 25% general dividend rate ranks 48th (median: 15%).
| Partner | Rate |
|---|---|
| Turkey | 15% |
| United States | 15% |
| South Africa | 15% |
| Philippines (this treaty) | 25% |
🇵🇭Philippines's Network
Among Philippines's 28 active treaty partners, the 25% general dividend rate ranks 25th (median: 15%).
| Partner | Rate |
|---|---|
| Australia | 25% |
| Brazil | 25% |
| United Kingdom | 25% |
| South Korea (this treaty) | 25% |
| Malaysia | 25% |
| Singapore | 25% |
| United States | 25% |