Protocol - Protocol - Korea

PROTOCOL At the moment of signing the Agreement between the Government of the Republic of India 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, the undersigned have agreed that the following provisions shall form an integral part of the Agreement. 1. With reference to Article 13(Capital Gains), it is understood that the term shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property means shares deriving more than 50 per cent of their value directly or indirectly from immovable property ; 2. With reference to Article 24(Non-discrimination), it is understood that: (a) in the case of India, it shall not be construed as preventing India from charging the profits of a permanent establishment which a company of Korea has in India at a rate of tax which is higher than that imposed on the profits of a similar company of India, nor as being in conflict with the provisions of paragraph 3 of Article 7; (b) in the case of Korea, where a company which is a resident of India has a permanent establishment in Korea, the profits of the permanent establishment may be subjected to an additional tax in Korea in accordance with its law, but the additional tax so charged shall not exceed 15 per cent of the amount of such profits after deducting therefrom income tax and other taxes on income imposed thereon in Korea. IN WITNESS WHEREOF the undersigned, duly authorized thereto by their respective Governments, have signed this Protocol, which shall have the same force and validity as if it were inserted word by word in the Agreement. DONE in duplicate at Seoul, this 18th day of May, 2015, in the Hindi, Korean and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail. For the Government of For the Government of the Republic of India the Republic of Korea Anil Wadhwa, Yun Byung-se, Vice Minister of Foreign Affairs Minister of Foreign Affairs