Start with residence, income and PE
The revised agreement’s Article 7 covers enterprise profits, including professional and independent-character services, subject to PE taxation. Article 5 includes construction or related supervisory projects lasting more than twelve months, alongside fixed-place and agency tests. Specific dividends, interest and royalties follow their own articles rather than a blanket no-PE exemption. Eligible royalty beneficial owners have a 5% source-tax ceiling, subject to conditions and the effectively-connected exception.
Check the applicable period and evidence
Annexes retain the 1979 convention and 2010 protocol for historical reference. The revised agreement includes an anti-abuse preamble and specific relief/dispute rules; the old professional-services outcome should not be applied to a post-2020 company payment without checking the new text. Identify the recipient’s Korean tax residence and actual contractual rights/services, obtain relevant residence evidence and use IRAS treaty-relief procedures. A treaty maximum is a ceiling on permitted source tax, not a requirement to impose tax where domestic law does not.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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