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rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile Statutory InstrumentsIonstraimí Reachtúla 1991 S.I. No. 290/1991 - Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of Korea)
der, 1991. S.I. No. 290/1991 - Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of Korea)
der,
DER, 1991. WHEREAS it is enacted by section 361
der declare that arrangements specified in the
der have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, corporation tax
capital gains tax and any taxes of a similar character, imposed by the laws of the State
by the laws of that territory, and that it is expedient that those arrangements should have the force of law, the arrangements shall, notwithstanding anything in any enactment other than section 47 of the Finance Act, 1983 , have the force of law: AND WHEREAS it is further enacted by section 361
der is proposed to be made, a draft thereof shall be laid before Dáil Éireann and the
der shall not be made until a resolution approving of the draft has been passed by Dáil Éireann: NOW, the Government, in exercise of the powers conferred on them in section 361 of the Income Tax Act, 1967 (No. 6 of 1967), as amended by section 38
der as follows: 1. This
der may be cited as the Double Taxation Relief (Taxes on Income and Capital Gains) (Republic of Korea)
der,
der have been made with the Government of the Republic of Korea in relation to affording relief from double taxation in respect of income tax, corporation tax
capital gains tax and any taxes of a similar character, imposed by the laws of the State
by the laws of the Republic of Korea, and (b) that it is expedient that those arrangements should have the force of law. SCHEDULE CONVENTION BETWEEN IRELAND AND 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 The Government of the Republic of Korea and the Government of Ireland, Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, Have agreed as follows: ARTICLE 1 Personal Scope This Convention shall apply to persons who are residents of one
both of the Contracting States. ARTICLE 2 Taxes Covered 1. The taxes which are the subject of this Convention are: ( a ) in the case of Korea: (
substantially similar taxes which are imposed by a Contracting State after the date of signature of the Convention in addition to,
in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws. ARTICLE 3 General Definitions 1. For the purposes of this Convention, unless the context otherwise requires: ( a ) the term "Korea" means the territory of the Republic of Korea including any area adjacent to the territorial sea of the Republic of Korea which, in accordance with international law, has been
may hereafter be designated under the laws of the Republic of Korea as an area within which the sovereign rights of the Republic of Korea with respect to the seabed and subsoil and their natural resources may be exercised; ( b ) the term "Ireland" includes any area outside the territorial waters of Ireland, which in accordance with international law has been
may hereafter be designated under the laws of Ireland concerning the Continental Shelf as an area within which the rights of Ireland with respect to the seabed and subsoil and their natural resources may be exercised; ( c ) the terms "Contracting State", "one of the Contracting States" and "the other Contracting State" mean Korea
Ireland as the context requires; and the term "Contracting States" means Korea and Ireland; ( d ) the term "tax" means Korean tax
Irish tax, as the context requires; ( e ) the term "person" includes an individual, a company and any other body of persons; ( f ) the term "company" means any body corporate
any entity which is treated as a body corporate for tax purposes; ( g ) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean an enterprise carried on by a resident of Ireland
an enterprise carried on by a resident of Korea, as the context requires; ( h ) the term "a national" means: (
other entity deriving its status as such from the laws in force in Ireland; ( i ) the term "international traffic" with reference to a resident of a Contracting State means any voyage of a ship
aircraft to transport passengers
property (whether
not operated
used by that resident) except where the principal purpose of the voyage is to transport passengers
property between places within the other Contracting State; ( j ) the term "competent authority" means: (i) in the case of Korea, the Minister of Finance
his authorised representative; (ii) in the case of Ireland, the Revenue Commissioners
their authorised representative. 2. In this Convention the terms "Irish tax" and "Korean tax" do not include any penalty
interest imposed under the laws of either Contracting State relating to the taxes which are the subject of this Convention by virtue of Article 2 (Taxes Covered).
main office, place of management
any other criterion of a similar nature; ( b ) the term "resident of a Contracting State" does not include any person who is liable to tax in that Contracting State in respect only of income from sources in that State; and ( c ) the terms "resident of Ireland" and "resident of Korea" shall be construed accordingly. 2. Where by reason of the provisions of paragraph 1 of this Article an individual is a resident of both Contracting States, then his status shall be determined as follows: ( a ) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests); ( b ) if the Contracting State in which he has his centre of vital interests cannot be determined,
if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; ( c ) if he has an habitual abode in both Contracting States,
in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; ( d ) if he is a national of both Contracting States
of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
partly carried on. 2. The term "permanent establishment" includes especially: ( a ) a place of management; ( b ) a branch; ( c ) an office; ( d ) a factory; ( e ) a workshop; ( f ) a mine, an oil
gas well, a quarry
any other place of extraction of natural resources; ( g ) an installation
structure used for the exploration
exploitation of natural resources. 3. A building site
construction
installation
assembly project constitutes a permanent establishment only if it lasts more than 12 months. 4. An enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if it carries on supervisory activities in that State for more than 12 months in connection with a building site,
a construction, installation
assembly project which is being undertaken in that State. 5. A person carrying on activities in connection with the exploration
exploitation of the sea bed and subsoil and their natural resources situated in a Contracting State shall be deemed to be carrying on a trade through a permanent establishment in that Contracting State if these activities are carried on in that Contracting State for a period
periods exceeding in the aggregate 183 days in the fiscal year concerned. 6. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include: ( a ) the use of facilities solely for the purpose of storage, display
delivery of goods
merchandise belonging to the enterprise; ( b ) the maintenance of a stock of goods
merchandise belonging to the enterprise solely for the purpose of storage, display
delivery; ( c ) the maintenance of a stock of goods
merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; ( d ) the maintenance of a fixed place of business solely for the purpose of purchasing goods
merchandise
of collecting information, for the enterprise; ( e ) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory
auxiliary character; ( f ) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (
auxiliary character.
any other agent of an independent status, provided that such persons are acting in the
dinary course of their business. 9. The fact that a company which is a resident of a Contracting State controls
is controlled by a company which is a resident of the other Contracting State,
which carries on business in that other State (whether through a permanent establishment
otherwise), shall not of itself constitute either company a permanent establishment of the other. ARTICLE 6 Income from Immovable Property 1. Income from immovable property, including income from agriculture
forestry, may be taxed in the Contracting State in which such property is situated. 2. The term "immovable property" shall be defined in accordance with the laws of the Contracting State in which the property is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property, and rights to variable
fixed payments as consideration for the working of,
the right to work, mineral deposits, sources, oil
gas wells, quarries and other natural resources; ships, boats and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting
use in any other form of immovable property. 4. A lease of land, any other interest in
over land and any right referred to in paragraph 2 of this Article shall be regarded as situated where the land, mineral deposits, sources, oil
gas wells, quarries and other natural resources, as the case may be, are situated.
similar activities under the same
similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment. 3. In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment (including a reasonable allocation of executive and general administrative expenses so incurred) and which would be deductible if the permanent establishment were an independent entity which paid those expenses whether incurred in the Contracting State in which the permanent establishment is situated
elsewhere. 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods
merchandise for the enterprise.
aircraft in international traffic shall be taxable only in that State. 2. For the purposes of this Article, profits derived from the operation of ships
aircraft in international traffic include profits derived from the rental on a bareboat basis of ships
aircraft if such ships
aircraft are operated in international traffic by the lessee
if such rental profits are incidental to other profits described in paragraph 1 of this Article. 3. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business
an international operating agency. ARTICLE 9 Associated Enterprises Where ( a ) an enterprise of a Contracting State participates directly
indirectly in the management, control
capital of an enterprise of the other Contracting State,
( b ) the same persons participate directly
indirectly in the management, control
capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made
imposed between the two enterprises in their commercial
financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. ARTICLE 10 Dividends 1. Dividends derived from a company which is a resident of Korea by a resident of Ireland may be taxed in Ireland. Such dividends may also be taxed in Korea, and according to the laws of Korea, but provided that the beneficial owner of the dividends is a resident of Ireland the tax so charged shall not exceed: ( a ) 10 per cent of the gross amount of the dividends if the beneficial owner is a company which controls directly
indirectly 10 per cent
more of the voting power in the company paying the dividends; ( b ) 15 per cent of the gross amount of the dividends in all other cases. 2. ( a ) Dividends derived from a company which is a resident of Ireland by a resident of Korea may be taxed in Korea. ( b ) Where, under paragraph 3 of this Article, a resident of Korea is entitled to a tax credit in respect of such a dividend, tax may also be charged in Ireland and according to the laws of Ireland on the aggregate of the amount
value of that dividend and the amount of that tax credit at a rate not exceeding 15 per cent. ( c ) Except as provided in subparagraph (b) of this paragraph, dividends derived from a company which is a resident of Ireland and which are beneficially owned by a resident of Korea shall be exempt from any tax in Ireland which is chargeable on dividends. 3. A resident of Korea who receives dividends from a company which is a resident of Ireland shall, subject to the provisions of paragraph 4 of this Article and provided he is the beneficial owner of the dividends, be entitled to the tax credit in respect thereof to which an individual resident in Ireland would have been entitled had he received those dividends, and to the payment of any excess of that tax credit by Ireland over any tax chargeable in accordance with the provisions of paragraph
is associated with, a company which either alone
together with one
more associated companies controls directly
indirectly 10 per cent
more of the voting power in the company from which the dividend is derived. For the purposes of this paragraph two companies shall be deemed to be associated if one is controlled directly
indirectly by the other,
both are controlled directly
indirectly by a third company.
other rights, not being debt-claims, participating in profits, and includes any income
distribution assimilated to income from shares under the taxation laws of the Contracting State of which the company paying the dividends
income
making the distribution is a resident. 7. The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment situated therein,
performs in that other Contracting State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment
fixed base. In such case the provisions of Article 7 (Business Profits)
8. Where a company which is a resident of a Contracting State derives profits
income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State
insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment
a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid
the undistributed profits consist wholly
partly of profits
income arising in such other State. ARTICLE 11 Interest
not secured by mortgage and whether
not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds
debentures, including premiums and prizes attaching to such securities, bonds
debentures as well as all other income assimilated to income from money lent by the laws of the State in which the income arises but does not include any income which is treated as a dividend under Article 10 (Dividends). 3. The provisions of paragraph 1 of this Article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein,
performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment
fixed base. In such case the provisions of Article 7 (Business Profits)
4. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority
a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State
not, has in a Contracting State a permanent establishment
a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and the interest is borne by such permanent establishment
fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment
fixed base is situated. 5. Where, by reason of a special relationship between the payer and the beneficial owner
between both of them and some other person, the amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 12 Royalties 1. Royalties arising from sources in a Contracting State which are derived and beneficially owned by a resident of the other Contracting State shall be taxable only in that other State. 2. The term "royalties", as used in this Article, means payments of any kind received as a consideration for the use of,
the right to use, any copyright of literary, artistic
scientific work (including motion pictures
films, recordings on tape
other media used for radio
television broadcasting
other means of reproduction
transmission), any patent, trade mark, design
model, plan, secret formula
process,
, subject to the provisions of paragraph 2 of Article 8 (Shipping and Air Transport), for the use of,
the right to use, industrial, commercial
scientific equipment,
for information concerning industrial, commercial
scientific experience. 3. The provisions of paragraph 1 of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein,
performs in that other State independent personal services from a fixed base situated therein, and the right
property in respect of which the royalties are paid is effectively connected with such permanent establishment
fixed base. In such case, the provisions of Article 7 (Business Profits)
4. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority
a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State
not, has in a Contracting State a permanent establishment
a fixed base in connection with which the obligation to pay the royalties was incurred, and the royalties are borne by that permanent establishment
fixed base, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment
fixed base is situated. 5. Where, by reason of a special relationship between the payer and the beneficial owner
between both of them and some other person, the amount of the royalties paid, having regard to the use, right
information for which they are paid, exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention. ARTICLE 13 Capital Gains 1. Capital gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State. 2. Capital gains from the alienation of shares of a company the property of which consists directly
indirectly principally of immovable property situated in a Contracting State may be taxed in that State. In this paragraph the term "shares" does not include shares quoted
listed on a recognised stock exchange.
of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone
together with the whole enterprise)
of such fixed base, may be taxed in that other State. Provided that if such movable property consists of shares the gains from the alienation of which may under paragraph 2 of this Article be taxed in the Contracting State of which the alienator is a resident, because the relevant immovable property is situated in that State, the said gains shall be taxable only in that State. 5. Except as provided in paragraph 2 of this Article and notwithstanding the provisions of paragraph 4 of this Article, capital gains from the alienation of ships
aircraft operated in international traffic and movable property pertaining to the operation of such ships
aircraft shall be taxable only in the Contracting State in which the profits from the operation of such ships
aircraft are taxable according to the provisions of Article 8 (Shipping and Air Transport).
other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational
teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists, accountants and veterinary practitioners. ARTICLE 15 Dependent Personal Services
periods not exceeding in the aggregate 183 days in the fiscal year concerned; and ( b ) the remuneration is paid by,
on behalf of, an employer who is not a resident of the other State; and ( c ) the remuneration is not borne by a permanent establishment
a fixed base which the employer has in the other State. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship
aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State. ARTICLE 16 Directors' Fees Directors' fees and other similar remuneration derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other Contracting State. ARTICLE 17 Entertainers and Sportsmen 1. Notwithstanding the provisions of Articles 14 (Independent Personal Services) and 15 (Dependent Personal Services), income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio
television artiste,
as a musician,
as a sportsman such as an athlete, footballer, golfer, snooker player, card player
boxer, from his personal activities as such exercised in the other Contracting State, whether individually
as a member of a group, may be taxed in that other State. 2. Where income in respect of personal activities exercised by an entertainer
a sportsman, in his capacity as such, accrues not to the entertainer
sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7 (Business Profits), 14 (Independent Personal Services) and 15 (Dependent Personal Services), be taxed in the Contracting State in which the activities of the entertainer
sportsman are exercised. 3. The provisions of paragraphs 1 and 2 shall not apply to remuneration
profits, salaries, wages and similar income derived from activities performed in a Contracting State by entertainers
athletes if their visit to that State is substantially supported from the public funds of the other Contracting State, including those of any political subdivision, a local authority
statutory body thereof, nor to income derived by a non-profit making
ganization in respect of such activities provided no part of its income is payable to,
is otherwise available for the personal benefit of its proprietors, members
shareholders. ARTICLE 18 Pensions and Annuities
during a specified
ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money
money's worth. ARTICLE 19 Government Service 1. ( a ) Remuneration, other than a pension, paid by a Contracting State
a political sub division
a local authority thereof to an individual in respect of services rendered to that Contracting State
subdivision
authority in the discharge of functions of a governmental nature shall be taxable only in that State. ( b ) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i) is a national of that State;
(ii) did not become a resident of that State solely for the purpose of rendering the services. 2. ( a ) Any pension paid by,
out of funds created by, a Contracting State
a political subdivision
a local authority thereof to an individual in respect of services rendered to that Contracting State
subdivision
authority in the discharge of functions of a governmental nature shall be taxable only in that State. ( b ) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State. 3. Notwithstanding the preceding provisions of this Article the provisions of Articles 15 (Dependent Personal Services), 16 (Directors' Fees) and 18 (Pensions and Annuities), as the case may be, shall apply to remuneration and pensions in respect of services rendered in connection with any trade
business carried on by a Contracting State
a political subdivision
a local authority thereof. 4. The provisions of paragraphs 1, 2 and 3 of this Article shall likewise apply in respect of remuneration
pensions paid by a government-owned institution performing functions of a governmental nature which in the case of Korea shall include the Bank of Korea, the Export Import Bank of Korea and the Korea Trade Promotion Corporation. ARTICLE 20 Students Payments which a student, apprentice
business trainee who is
was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the purpose of his education
training receives for the purpose of his maintenance, education
training shall not be taxed in the first-mentioned State, provided that such payments arise from sources outside that State. ARTICLE 21 Professors and Teachers 1. A professor
teacher who visits one of the Contracting States for a period not exceeding two years for the sole purpose of teaching
carrying out advanced study (including research) at a university, college
other recognised research institute
other establishment for higher education in that Contracting State and who was immediately before that visit a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State on any remuneration for such teaching
research for a period not exceeding two years from the date he first visits that Contracting State for such purpose. 2. The preceding provisions of this Article shall not apply to remuneration which a professor
teacher receives for conducting research if the research is undertaken primarily for the private benefit of a specific person
persons. ARTICLE 22 Other Income
performs in that other State independent personal services from a fixed based situated therein, and the right
property in respect of which the income is paid is effectively connected with such permanent establishment
fixed base. In such a case the provisions of Article 7 (Business Profits)
ARTICLE 23 Elimination of Double Taxation 1. Subject to the provisions of Korean tax law regarding the allowance as a credit against Korean tax of tax payable in any country other than Korea (which shall not affect the general principle hereof), Irish tax payable (excluding, in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) under the laws of Ireland and in accordance with this Convention, whether directly
by deduction, in respect of income from sources within Ireland shall be allowed as a credit against Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of Korean tax which the income from sources within Ireland bears to the entire income subject to Korean tax. 2. (a) Subject to the provisions of the laws of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland (which shall not affect the general principle hereof), Korean tax payable under the laws of Korea and in accordance with this Convention, whether directly
by deduction, on profits, income
chargeable gains from sources within Korea (excluding in the case of a dividend tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Irish tax computed by reference to the same profits, income
chargeable gains by reference to which Korean tax is computed. (
(b) of that paragraph, whichever is appropriate.
a reduction of tax on the profits of an enterprise is granted for the purpose of encouraging economic development in that State for a limited period of time, the tax which would have been paid but for such exemption
reduction shall be deemed to have been paid for the purposes of the preceding paragraphs of this Article: provided that the tax so deemed to have been paid in this paragraph shall not, however, exceed an amount of 15 percent of such profits.
any requirement connected therewith which is other
more burdensome than the taxation and connected requirements to which a national of that other State in the same circumstances is
may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one
both of the Contracting States.
paragraph 5 of Article 12 (Royalties), apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. 5. Enterprises of a Contracting State, the capital of which is wholly
partly owned
controlled, directly
indirectly, by one
more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation
any requirement connected therewith which is other
more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are
may be subjected.
both of the Contracting States result
will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic laws of those States, present his case to the competent authority of the Contracting State of which he is a resident
, if his case comes under paragraph 1 of Article 24 (Non-Discrimination), to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action regarded by such resident as resulting in taxation not in accordance with the provisions of the Convention.
doubts arising as to the interpretation
application of this Convention.
of the domestic laws of the Contracting States concerning taxes covered by this Convention in so far as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1. Any information so exchanged shall be treated as secret and shall be disclosed only to persons
authorities (including courts and administrative bodies) involved in the assessment
collection of, the enforcement
prosecution in respect of,
the determination of appeals in relation to, the taxes covered by this Convention. Such persons
authorities shall use the information only for such purposes. They may disclose the information in public court proceedings
in judicial decisions. 2. In no case shall the provisions of paragraph 1 of this Article be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice of that
of the other Contracting State; (b) to supply information which is not obtainable under the laws
in the normal course of the administration of that
of the other Contracting State; (c) to supply information which would disclose any trade, business, industrial, commercial
professional secret
trade process,
information, the disclosure of which would be contrary to public policy (
dre public). ARTICLE 27 Diplomatic Agents and Consular Officers Nothing in this Convention shall affect the fiscal privileges of diplomatic agents
consular officers under the general rules of international law
under the provisions of special agreements. ARTICLE 28 Entry into Force
credited to non-residents on
after the first day of January of the calendar year next following that in which this Convention enters into force; and (ii) in respect of other taxes for taxation years beginning on
after the first day of January of the calendar year next following that in which this Convention enters into force. (
after the sixth day of April in the year next following the year in which the Convention enters into force; (ii) as respects corporation tax, for any financial year beginning on
after the first day of January in the year next following the year in which this Convention enters into force. ARTICLE 29 Termination This Convention shall remain in force indefinitely but either of the Contracting States may, on
before the thirtieth day of June in any calendar year from the fifth year following that in which the instruments of ratification have been exchanged, give to the other Contracting State, through diplomatic channels, written notice of termination and, in such event, this Convention shall cease to have effect: (a) in Korea (i) in respect of tax withheld at the source on amounts paid
credited to non-residents on
after the first day of January in the calendar year next following that in which the notice is given; and (ii) in respect of other taxes for taxation years beginning on
after the first day of January in the calendar year next following that in which the notice is given; (
after the sixth day of April next following the date on which the period specified in the said notice of termination expires; (ii) as respects corporation tax, for any financial year beginning on
after the first day of January next following the date on which the period specified in the said notice of termination expires. IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention. DONE in duplicate at Dublin this 18th day of July of the year one thousand nine hundred and ninety in the English. For the Government of Ireland For the Government of The Republic of Korea PROTOCOL At the time of signing of the Convention concluded this day between the Government of the Republic of Korea and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains, the undersigned have agreed that the following provisions shall form an integral part of the Convention: 1. In respect of subparagraph (a) of paragraph 1 of Article 2 (Taxes Covered) of the Convention, it is understood that the Convention shall apply to the Korean defence tax where charged by reference to the income tax
the corporation tax. 2. In respect of Article 8 (Shipping and Air Transport) of the Convention, it is understood that the provisions of paragraph 1 of that Article shall also apply to profits from the operation of vessels engaged in fishing, dredging
hauling activities on the high seas. 3. With reference to paragraph
der to establish new provisions concerning the credit to be allowed by Korea against its tax on dividends. IN WITNESS WHEREOF, the undersigned have signed this Protocol which shall have the same force and validity as if it were inserted word by word in the Convention. DONE in duplicate at Dublin this 18th day of July of the year one thousand nine hundred and ninety in the English. For the Government of Ireland For the Government of The Republic of Korea GIVEN under the Official Seal of the Government, this 21st day of November, 1991. CHARLES J. HAUGHEY, Taoiseach. EXPLANATORY NOTE. This
der gives the force of law in Ireland to the Convention with the Republic of Korea set out in the Schedule to the
der. The Convention provides for the allocation of taxing rights between Ireland and the Republic of Korea and for the granting of relief from double taxation with regard to items of income and capital gains which, under the laws of Ireland and the laws of the Republic of Korea, may be taxed in both countries. For example, items such as trading profits, interest, royalties and gains on movable property not arising through
connected with a permanent establishment in the source country, profits from the operation of ships
aircraft in international traffic and non-government pensions are taxable only in the country of residence of the recipient. On the other hand, remuneration in respect of services rendered to a government of one of the countries is normally taxable only in that country, i.e. the country of source. Where both countries continue to have taxing rights, for example, with regard to trading profits arising through a permanent establishment which an enterprise of one country has in the other country
dividends received in one country from the other country, the Convention provides that the country of residence of the recipient will allow a credit against its own tax for the tax imposed on the same income by the country of source. Thus double taxation is relieved. Capital gains arising from the disposal of immovable property and of shares linked with immovable property may be taxed by the country in which the property is situated. Capital gains arising from the disposal of other property are normally to be taxed only in the country of residence of the taxpayer unless they arise from the disposal of assets of a permanent establishment
fixed base which the taxpayer has in the other country. Double taxation is relieved by the granting of a credit in the country of residence for tax paid in the country where the property is located. In the case of a dividend flowing from Ireland to Korea, the Convention grants to a Korean resident portfolio investor* a right to the Irish tax credit in respect of the dividend. Payment of this tax credit can be obtained by the resident of Korea subject to a liability to Irish tax of not more than 15 per cent on the aggregate of the dividend and the tax credit. There is no Irish withholding tax on dividends flowing from an Irish company to a direct investor† resident in Korea. In the case of a dividend flowing from Korea to Ireland, the Convention provides for a reduction of the Korean withholding tax on dividends from 25 per cent to 15 per cent in the case of a portfolio investor and to 10 per cent in the case of a direct investor. The reduced withholding tax is creditable against Irish tax on such dividends. There is no provision in the Convention for the giving of credit relief for the underlying corporate tax paid on the profits out of which the dividends are paid from a company resident in one State to a company resident in the other State. This is so because the current system of company tax in Korea does not acknowledge that dividends flowing from one Korean company to another Korean company should carry a tax credit
, as is the case in Ireland, be exempt from any further company tax in the hands fo the receiving company. However, the Protocol includes at paragraph 3 a provision securing that if the Korean tax law with regard to inter-company dividends is changed in the future, Korea must immediately notify Ireland and enter into negotiations to provide for a new basis for dealing with this issue. The Convention secures that the benefits of tax incentive reliefs are preserved in large measure for branch profits flowing from Ireland to Korea. Paragraph 4 of Article 23 provides that the business profits of a permanent establishment of a Korean company operating in Ireland which have been taxed at the 10 per cent rate in Ireland will be deemed to have borne an additional amount of tax equal to 15 per cent of the profits. The effect of this is that credit for Irish tax at an effective rate of 25 per cent on such profits will be available for set off against Korean tax on those profits. Provision is made for safeguarding nationals and enterprises of one country against discriminatory taxation in the other country, for consultation between the competent authorities of the two countries for the purpose of resolving any difficulties
doubts arising as to the interpretation
application of the Convention and for the exchange of such information between these authorities as is necessary for the carrying out of the provisions of the Convention
of the domestic law of either State in relation to the taxes covered by the Convention.The Convention will be effective in Ireland as follows: (i) as respects income tax and capital gains tax, for any year of assessment beginning on
after 6 April in the year next following the year in which the Convention enters into force, and (ii) as respects corporation tax, for any financial year beginning on
after 1 January in the year next following the year in which the Convention enters into force. *A shareholder who is an individual
a company other than a company which, directly
indirectly, holds 10 per cent
more of the voting power in the company resident in the other Contracting State which pays the dividend. †A company which controls 10 per cent
more of the voting power in the company resident in the other Contracting State which pays the dividend. Privacy Statement Accessibility European Legislation Identifier (PDF) Open Data License Ráiteas Príobháideachais Inrochtaineacht Aitheantóir Eorpach Reachtaíochta (ELI) Ceadúnas Sonraí Oscailte Liosta Fianán © Government of Ireland. Oireachtas Copyright Material is reproduced with the permission of the Houses of the Oireachtas © Rialtas na hÉireann. Atáirgtear ábhar faoi Chóipcheart le cead ó Thithe an Oireachtais
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.