If a case satisfies more than one of the requirements of for the above strategies, the following additional issues are often taken into consideration:
|ITA 25||Tax Treaties||Exemption for royalties|
|Benefit||Reduced 3% withholding rate||Reduced withholding rate or exempted||Exempted|
|Required time, cost, and effort||Low||High||High|
|Time to apply|
-Option 1. Pay regular 20% withholding tax first and apply for a reduced rate later. After obtaining the approval for the reduced rate, then proceed to apply for tax refund.
-Option 2. Apply in advance for the reduced rate and pay by the reduced rate directly.
|Both option 1 and 2 are available.||Usually only option 1 is available because the application requires the evidence of service provision and cannot be submitted beforehand.||Usually only option 1 is available because the application requires the evidence of service provision and cannot be submitted beforehand.|