Article 24 - Elimination of double taxation - Korea (Old - Effective upto 31-3-2017)

Article 24 : Elimination of double taxation 1. In the case of a resident of Korea, double taxation shall be avoided as follows: 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), the Indian tax payable (excluding in the case of a dividend, tax payable in respect of the profit out of which the dividend is paid) under the laws of India and in accordance with this convention, whether directly or by deduction, in respect of income from sources within India 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 India bears to the entire income subject to Korean tax. 2. For the purposes of paragraph 1, the term "Indian tax payable" shall be deemed to include the amount of Indian tax which would have been payable in accordance with Indian tax laws but for the exemption or reduction of Indian tax in accordance with the laws relating to incentives for the promotion of economic development in India which were in force on the date of signature of this Convention or any other provisions which may subsequently be introduced in India in modification of, or in addition to, these laws so far as they are agreed by the competent authorities of the Contracting States, provided that the amount of the tax referred to in this paragraph shall not, however, exceed: (a) in the case of dividends referred to in paragraph 2 (a) of Article 11, an amount of 15 per cent, of the gross amount of such dividends and, in the case of dividends referred to in paragraph 2(b) of Article 11, an amount of 20 per cent. of the gross amount of such dividends; (b) in the case of interest referred to in paragraph 2 of Article 12, an amount of 15 per cent. of the gross amount of such interest and in the case of interest referred to in paragraph 3(a) of Article 12, an amount of 10 per cent. of the gross amount of such interest; and (c) in the case of royalties referred to in paragraph 2 of Article 12, an amount of 15 per cent. of the gross amount of such royalties. 3. In the case of a resident of India, double taxation shall be avoided as follows: Subject to the provisions of Indian tax law regarding the allowance as a credit against Indian tax of tax payable in any country other than India (which shall not affect the general principle hereof), the Korean 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 Korea and in accordance with this Convention, whether directly or by deduction, in respect of income from sources within Korea shall be allowed as a credit against Indian tax payable in respect of that income. The credit shall not, however, exceed that proportion of Indian tax which the income from sources within Korea bears to the entire income subject to Indian tax. 4. For the purposes of paragraph 3, the term "Korean tax payable" shall be deemed to include the amount of Korean tax which would have been payable in accordance with Korean tax laws but for the exemption or reduction of Korean tax in accordance with the laws relating to incentives for the promotion of economic development in Korea which were in force on the date of signature of this Convention or any other provisions which may subsequently be introduced in Korea in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States, provided that, the amount of the tax referred to in this paragraph shall not, however, exceed; (a) in the case of dividends referred to in paragraph 2(a) of Artilce 11, an amount of 15 per cent. of the gross amount of such dividends and, in the case of the dividends referred to in paragraph 2(b) of Article 11, an amount of 20 per cent. of the gross amount of such dividends; (b) in the case of interest referred to in paragraph 2 of Article 12, an amount of 15 per cent. of the gross amount of such interest and in the case of interest referred to in paragraph 3(a) of Article 12, an amount of 10 per cent. of the gross amount of such interest; and (c) in the case of royalties referred to in paragraph 2 of Article 13, an amount of 15 per cent. of the gross amount of such royalties.