The Double Taxation Relief (Taxes on Income) (Republic of Korea) Order 1996

1. Introductory Text

2. 1. This Order may be cited as the Double Taxation Relief...

3. 2. It is hereby declared— (a) that the arrangements specified in...

4. Signature

5. 1. SCHEDULE

      1. PART I CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS

         1. The Government of the United Kingdom of Great Britain and...

         2. Desiring to conclude a new Convention for the avoidance of...

         3. Have agreed as follows:

         4. Article 1 Personal scope

            1. This Convention shall apply to persons who are residents of...

         5. Article 2 Taxes covered

            1. 1. This Convention shall apply to taxes on income and on...

            2. 2. There shall be regarded as taxes on income and on...

            3. 3. The existing taxes to which this Convention shall apply are...

            4. 4. The Convention shall apply also to any identical or substantially...

         6. Article 3 General definitions

            1. 1. For the purposes of this Convention, unless the context otherwise...

            2. 2. As regards the application of the Convention by a Contracting...

         7. Article 4 Resident

            1. 1. For the purposes of this Convention, the term “resident of...

            2. 2. Where by reason of the provisions of paragraph (1) of...

            3. 3. Where by reason of the provisions of paragraph (1) of...

         8. Article 5 Permanent establishment

            1. 1. For the purposes of this Convention, the term “permanent establishment”...

            2. 2. The term “permanent establishment” includes especially: (a) a place of...

            3. 3. A building site, a construction, assembly or installation project or...

            4. 4. Notwithstanding the preceding provisions of this Article, the term “permanent...

            5. 5. Notwithstanding the provisions of paragraphs (1) and (2) of this...

            6. 6. An enterprise shall not be deemed to have a permanent...

            7. 7. The fact that a company which is a resident of...

         9. Article 6 Income from immovable property

            1. 1. Income derived by a resident of a Contracting State from...

            2. 2. The term “immovable property” shall have the meaning which it...

            3. 3. The provisions of paragraph (1) of this Article shall apply...

            4. 4. The provisions of paragraphs (1) and (3) of this Article...

         10. Article 7 Business profits

             1. 1. The profits of an enterprise of a Contracting State shall...

             2. 2. Subject to the provisions of paragraph (3) of this Article,...

             3. 3. In determining the profits of a permanent establishment, there shall...

             4. 4. In so far as it has been customary in a...

             5. 5. No profits shall be attributed to a permanent establishment by...

             6. 6. For the purposes of the preceding paragraphs of this Article,...

             7. 7. Where profits include items of income or capital gains which...

         11. Article 8 Shipping and air transport

             1. 1. Profits of an enterprise of a Contracting State from the...

             2. 2. For the purposes of this Article, profits from the operation...

             3. 3. The provisions of paragraphs (1) and (2) of this Article...

         12. Article 9 Associated enterprises

             1. 1. Where: (a) an enterprise of a Contracting State participates directly...

             2. 2. Where a Contracting State includes in the profits of an...

         13. Article 10 Dividends

             1. (1) Dividends paid by a company which is a resident...

             2. For the purpose of this paragraph an enterprise of a...

         14. Article 11 Interest

             1. 1. Interest arising in a Contracting State and paid to a...

             2. 2. However, such interest may also be taxed in the Contracting...

             3. 3. Notwithstanding the provisions of Article 7 of this Convention, interest...

             4. 4. Notwithstanding the provisions of paragraph (2) of this Article, interest...

             5. 5. The term “interest” as used in this Article means income...

             6. 6. The provisions of paragraphs (1) and (2) of this Article...

             7. 7. Interest shall be deemed to arise in a Contracting State...

             8. 8. Where, by reason of a special relationship between the payer...

             9. 9. The relief from tax provided for in paragraph (2) of...

             10. 10. The provisions of this Article shall not apply if it...

             11. 11. In the event that a resident of a Contracting State...

         15. Article 12 Royalties

             1. 1. Royalties arising in a Contracting State and paid to a...

             2. 2. However, such royalties may also be taxed in the Contracting...

             3. 3. The term “royalties” as used in this Article means payments...

             4. 4. The provisions of paragraphs (1) and (2) of this Article...

             5. 5. Royalties shall be deemed to arise in a Contracting State...

             6. 6. Where, by reason of a special relationship between the payer...

             7. 7. The provisions of this Article shall not apply if it...

             8. 8. In the event that a resident of a Contracting State...

         16. Article 13 Capital gains

             1. 1. Gains derived by a resident of a Contracting State from...

             2. 2. Gains derived by a resident of a Contracting State from...

             3. 3. Gains from the alienation of movable property forming part of...

             4. 4. Gains derived by a resident of a Contracting State from...

             5. 5. Gains from the alienation of any property other than that...

             6. 6. The provisions of paragraph (5) of this Article shall not...

         17. Article 14 Independent personal services

             1. (1). Income derived by a resident of a Contracting State in...

         18. Article 15 Dependent personal services

             1. 1. Subject to the provisions of Articles 16, 18, 19, 20...

             2. 2. Notwithstanding the provisions of paragraph (1) of this Article, remuneration...

             3. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in...

         19. Article 16 Directors' fees

             1. Directors' fees and other similar payments derived by a resident...

         20. Article 17 Artistes and sportsmen

             1. 1. Notwithstanding the provisions of Articles 14 and 15 of this...

             2. 2. Where income in respect of personal activities exercised by an...

             3. 3. Notwithstanding the provisions of paragraphs (1) and (2) of this...

         21. Article 18 Pensions

             1. 1. Subject to the provisions of paragraph (2) of Article 19...

             2. 2. The term “annuity” means a stated sum payable to an...

         22. Article 19 Government service

             1. 1. (a) Salaries, wages and other similar remuneration, other than a...

             2. 2. (a) Any pension paid by, or out of funds created...

             3. 3. The provisions of Articles 15, 16 and 18 of this...

             4. 4. The provisions of paragraphs (1), (2) and (3) of this...

         23. Article 20 Teachers

             1. (1). Subject to paragraph (2) of this Article, an individual who...

         24. Article 21 Students and apprentices

             1. 1. Payments which a student or business apprentice who is or...

             2. 2. In respect of grants, scholarships and remuneration from employment not...

         25. Article 22 Other income

             1. 1. Items of income beneficially owned by a resident of a...

             2. 2. The provisions of paragraph (1) of this Article shall not...

             3. 3. Where, by reason of a special relationship between the resident...

             4. 4. The provisions of this Article shall not apply if it...

             5. 5. In the event that a resident of a Contracting State...

         26. Article 23 Elimination of double taxation

             1. 1. Subject to the provisions of Korean tax law regarding the...

             2. 2. Subject to the provisions of the law of the United...

             3. 3. For the purposes of paragraphs (1) and (2) of this...

             4. 4. Subject to the provisions of paragraph (5) of this Article,...

             5. 5. Relief from United Kingdom tax by virtue of paragraph (4)...

         27. Article 24 Limitation of relief

             1. 1. Where under any provision of this Convention any income is...

             2. 2. Where under Article 13 of this Convention gains may only...

         28. Article 25 Non-discrimination

             1. 1. Nationals of a Contracting State shall not be subjected in...

             2. 2. The taxation on a permanent establishment which an enterprise of...

             3. 3. Except where the provisions of paragraph (1) of Article 9,...

             4. 4. Enterprises of a Contracting State, the capital of which is...

             5. 5. Nothing contained in this Article shall be construed as obliging...

             6. 6. The provisions of this Article shall apply to the taxes...

         29. Article 26 Mutual agreement procedure

             1. 1. Where a resident of a Contracting State considers that the...

             2. 2. The competent authority shall endeavour, if the objection appears to...

             3. 3. The competent authorities of the Contracting States shall endeavour to...

             4. 4. The competent authorities of the Contracting States may communicate with...

         30. Article 27 Exchange of information

             1. 1. The competent authorities of the Contracting States shall exchange such...

             2. 2. In no case shall the provisions of paragraph (1) of...

         31. Article 28 Members of diplomatic or permanent missions and consular posts

             1. Nothing in this Convention shall affect the fiscal privileges of...

         32. Article 29 Entry into force

             1. 1. This Convention shall be ratified and the instruments of ratification...

             2. 2. This Convention shall enter into force after the expiration of...

             3. 3. Subject to the provisions of paragraph (4) of this Article,...

             4. 4. Where any provision of the 1977 Convention would have afforded...

         33. Article 30 Termination

             1. This Convention shall remain in force until terminated by one...

             2. In witness whereof the undersigned, duly authorised thereto by their...

             3. Done in duplicate at Seoul this 25th day of October...

      2. PART II EXCHANGE OF NOTES

         1. Your Excellency

         2. 25th October 1996

         3. I have the honour to refer to the Convention between...

         4. If the foregoing proposals are acceptable to the Government of...

         5. I avail myself of this opportunity to extend to Your...

         6. Thomas George Harris

         7. Ambassador Extraordinary and Plenipotentiary of the United Kingdom of Great...

         8. Your Excellency

         9. 25th October 1996

         10. I have the honour to acknowledge receipt of Your Excellency’s...

         11. The foregoing proposals being acceptable to the Government of the...

         12. I take this opportunity to renew to Your Excellency the...

         13. Lee Ki-choo

         14. Acting Minister of Foreign Affairs of the Republic of Korea...

6. Explanatory Note