section 1 of the agreement for the avoidance of double taxation and the prevention of
fiscal evasion with respect to income taxes that Sweden and the Republic of Korea
signed on 27 May 1981 and the Protocol annexed to the
the agreement, together with the agreement on the application of
agreement concluded by letter of 15 May and 7 June 1991
apply that law in this country.
The agreement and the Protocol are contained as annex 1 to this
law and the agreement as annex 2. Lag (1991:1884).
section 2 of the Agreement shall apply only in so far as it imposes a restriction
of the tax liability in Sweden that would otherwise exist.
3 repealed by law (2011:1310).
4 repealed by Act (1991:1884).
Annex 1
Agreement between the Republic of Korea and the Kingdom of Sweden for the avoidance of
of double taxation and the prevention of fiscal evasion with respect to
income taxes
The Government of the Republic of Korea and the Government of the Kingdom of Sweden,
wish to conclude an agreement for the avoidance of double taxation and the prevention of
tax evasion, have agreed as follows:
ARTICLE 1
Persons to whom the agreement applies
This agreement shall apply to persons domiciled in a Contracting
State or in both States.
ARTICLE 2
Taxes covered by the agreement
1. The taxes covered by this agreement are:
(a) ") for Korea:
1) the income tax;
2) corporate income tax; and
3) resident tax
(in the following referred to as "Korean tax").
b) in the case of Sweden:
1) state income tax, withholding tax rate tax and seamen's in that
involved;
2) replacement levy and the tax statutes;
3) bevillingsavgiften for some public performances; and
4) the municipal income tax
(in the following referred to as "Swedish tax").
2. This agreement shall also apply to taxes for the same or essentially
Similarly, after the signing of the agreement are imposed on this page
of or instead of the currently outgoing taxes. The
competent authorities of the Contracting States shall notify the
each other the essential changes taken in the respective
tax legislation.
ARTICLE 3
General definitions
1. Unless the context gives rise to different, have in the application of
This agreement the following expressions the following meaning:
a) "Korea" refers to the territory of the Republic of Korea and includes every
area located next to the Republic of Korea territorial waters which, in
accordance with the General rules of international law, in the Republic of Korea
legislation designated or later will be designated as a
area in which the Republic of Korea may exercise their sovereign
rights with respect to the sea bed, its surface, and where
existing natural assets;
b) "Sweden" refers to the Kingdom of Sweden and the includes each outside
Sweden's territorial waters situated area in which Sweden in accordance with
Swedish law and in conformity with the General rules of international law there own
exercise their rights with respect to the exploration and exploitation
of natural resources on the ocean floor or in its documentation;
(c)) "a Contracting State" and "the other Contracting State"
relating to Korea or Sweden depending on context;
d) "tax" means Korean tax or Swedish tax depending on
context;
e) "person" includes a natural person, company or other association;
f) "company" refers to the legal person or other person who in
tax treatment are treated as entity;
g) "enterprise of a Contracting State" and "enterprise of the other
Contracting State "refers to the business carried on by any person with
resident in one Contracting State, each company operated by
a resident of the other Contracting State;
h) "international traffic" refers to transport by vessels or
aircraft used by enterprises of a Contracting State, except when the
vessel or aircraft are used exclusively between places in the
other Contracting State;
in) "competent authority" refers to:
1) in Korea, the Minister of finance or his delegate befullmäktige;
2) in Sweden, the Financial Secretary or his representative befullmäktige.
2. Where a Contracting State applies this agreement is considered, unless
context gives rise to different, each expression that is not defined in the
the agreement, have the meaning the term has under the State's
relating to such taxes to which the agreement shall apply.
ARTICLE 4
Resident
1. for the purposes of this agreement reference to the expression "any person with
resident in one Contracting State "person under the legislation of
This State is taxable there because of domicile, residence, place
for headquarters or management or other similar
circumstance. However, the term does not include a person who is
taxable in that State only on income from sources in that State.
2. where by reason of the provisions of paragraph 1 an individual is a resident of
both of the Contracting States, is determined his residence as follows:
a) He shall be deemed to have established in the State where he has a home that
permanently available to him. If he has such a home in
both States, he shall be deemed to be a resident of the State with which his
personal and economic relations are the strongest (Centre for
life interests).
(b)) if it cannot be settled in the State he has the Centre of its
living or if he's not in either State has a home that
Permanent stands at his disposal, he is deemed to be resident in the
State where he usually resides.
(c)) if he usually resides in both States, or if he does not
reside permanently in any of them, he shall be deemed to be a resident of the State
of which he is a national.
d) if he is a national of both States or if he is not
nationals of any of them, the competent authorities of the
Contracting States the question by mutual agreement.
3. where by reason of the provisions of paragraph 1 a person, who is not a natural
person, is a resident of both Contracting States, the person is deemed to
be a resident of the State in which its place of effective management. In
in case of doubt determine the competent authorities of the Contracting
States the question by mutual agreement.
ARTICLE 5
Permanent establishment
1. for the purposes of this agreement reference to the expression "fixed
establishment means a fixed place of business, from which
a business is wholly or partly carried on.
2. The term "permanent establishment" includes especially:
a) place for business management;
b) branch;
c) Office;
d) facility;
e) workshop; and
f) mine, an oil or gas well, a quarry or any other place of
the extraction of natural resources.
3. Place for construction, landscaping or installation work is
a permanent establishment only if the operation lasts more than six months.
4. Enterprises of a Contracting State shall be deemed to have a permanent establishment in the
other Contracting State if it carries on supervisory
business in that other State for more than six months in connection with
building, construction or installation work that is going on in this
other State.
5. Notwithstanding the preceding provisions of this article shall be deemed to
the term "permanent establishment" shall not include:
(a)) the use of facilities solely for storage, exhibition
or disclosure of the company belonging to goods;
(b) holding of a company belonging to) stock in trade solely for
storage, exhibition, or disclosure;
(c) holding of a company belonging to) stock in trade solely for
working or processing by other company merchandise;
d) holding of fixed place of business exclusively
for purchases of goods or acquisition of information for
the company;
e) holding of fixed place of business exclusively
to engage in other activities of the undertaking of preliminary or
Deputy art;
f) holding of fixed place of business exclusively
to combine the activities listed in paragraphs a)-(e)), during
provided that all the activities from the
permanent place of business because of this
combination is of a preparatory or auxiliary character.
6. If the person who not is such independent representative at any point
7 apply, works for a company, as well as in one Contracting State
have and which regularly uses full power to conclude agreements in
the company's name, it is considered that company-notwithstanding the provisions of
paragraphs 1 and 2 to have a permanent establishment in that State in respect of each
activity which that person carries on business. However, this does
No, if the activities of such person are limited to the
such as specified in point 5 and which-if it is carried out from a
fixed place of business-would not make this
fixed place of business a permanent establishment under the
the provisions of that paragraph.
7. the Company is not considered to have a permanent establishment in a Contracting State
only on the basis that the company is doing business in this
State through the intermediary of brokers, Commissioner or other independent
Representative, if such a person thus engaged in their customary
business operations.
8. the fact that a company resident in a Contracting
State controls or is controlled by a company established in the
other Contracting State or a company engaged in
business activities in the other State (either from a permanent establishment
or otherwise), shall not of itself be either company
constitute a permanent establishment of the other.
ARTICLE 6
Income from immovable property
1. income, as a person resident in one Contracting State acquires
of immovable property (in that included income from agriculture and forestry)
situated in the other Contracting State, may be taxed in that other
State.
2. The term "immovable property" has the meaning the term has under the
the law of the Contracting State in which the property is situated.
The term includes, however, always accessory to immovable property, live
and kill the equipment in agriculture and forestry, rights to which the
the provisions of civil law relating to immovable property apply, usufruct
of immovable property and rights to changing or fixed remuneration
for the use of, or the right to use mineral occurrence, source
or other natural resource. Ships, boats and aircraft is not considered to
be real property.
3. the provisions of paragraph 1 shall apply to income that is acquired through
immediately use, through rental or other use of the fixed
property.
4. the provisions of paragraphs 1 and 3 shall also apply to the income of
immovable property belonging to the company and on income from immovable property
used for the independent professional practice.
ARTICLE 7
Income from operating
1. Operating Income, acquired by the company in a Contracting
State, shall be taxable only in that State unless the enterprise carries on
on business in the other Contracting State from which permanent
establishment. If the enterprise carries on business recently, may
the company's income be taxed in that other State but only so much
part thereof as is attributable to that permanent establishment.
2. enterprises of a Contracting State carries on business in the other
Contracting State from where the permanent establishment situated, are entered, if
not the provisions of paragraph 3 shall give rise to another, in each
Contracting State to the permanent establishment the income that it
can be assumed that the establishment would have acquired if there has been a
independent company, which operated out of the same or similar
battles over the same or similar conditions and independently completed
business with the undertaking to which the establishment belongs.
3. In determining permanent establishment income shall be allowed a deduction for
expenditure incurred for the permanent establishment, including included
expenditure for management and public administration, whether
expenditure incurred in the State in which the permanent establishment is situated
or elsewhere.
4. income is not considered to be attributable to a permanent establishment by reason only of the
the reason to purchase goods through the Agency of the permanent establishment for
the company.
5. Included in income by operating income such as that dealt with in particular in
other articles of this agreement, concerned berstämmelserna in these articles
not by the rules of the present article.
ARTICLE 8
Sea and air transport
1. income, acquired by the enterprises of a Contracting State through the
operation of shipping or air transport in international traffic,
shall be taxable only in that State.
2. the provisions of paragraph 1 shall also apply to income acquired
through participation in a pool, a joint business or an
international operating agency.
ARTICLE 9
Companies with associated enterprises
In cases where the
a) an enterprise of a Contracting State participates directly or indirectly in
the management or monitoring of a company in the other
Contracting State or own part in this undertaking, or
(b)) the same person participates directly or indirectly in the management or
monitoring of an enterprise of a Contracting State as an
business in the other Contracting State, or owns part of both these
corporate capital, observed the following. If between companies in terms of
trade or financial relations be agreed or
provides for conditions which differ from those which would have been agreed between
independent companies, receives all the income, that without such
the conditions would have been one company but who, because of
the terms in question did not come about this company, be included in this
corporate income and taxed accordingly.
ARTICLE 10
Dividend
1. Dividends paid by a company resident in a Contracting State to the
a resident of the other Contracting State may be taxed in the
that other State.
2. Dividends may be taxed in the Contracting State
which the company paying the dividends is a resident, according to the law
in that State, but if the recipient is entitled to the dividend, the tax
do not exceed:
a) 10 per cent of the gross amount of the dividends if the beneficial owner of
the dividends is a company (other than a partnership) which directly
mastered at least 25 percent of the paying company's capital;
b) 15 per cent of the gross amount of the dividends in all other cases.
This paragraph does not affect the company's taxation of profit of the
the dividend is paid.
3. The term "dividends" is understood in this article income by
shares, mining stiftarandelar shares, or other rights, not
is debt, with the right to share in profits, as well as income from other
shares in the company, which under the law of the State where the
distributing company is resident for tax purposes shall be treated in the same
as income from shares.
4. Notwithstanding the provisions of paragraph 1, the dividends from companies
resident in Korea to companies established in Sweden be exempt
from taxation in Sweden to the extent that the dividends would have been
exempt from taxation under Swedish law if both companies had
been Swedish companies. This exception applies only if the profit of the
the dividend will be paid has been subject to the normal
corporate taxes in Korea in effect at the time of signature of the
This agreement or comparable corporate tax. The tax exemption
However, even in cases where such profit has not been
subject to the corporation tax due to specific provisions
If tax relief of occasional nature in particular Korean
law on investment promotion tax incentives applied.
5. the provisions of paragraphs 1 and 2 shall not apply if the
entitled to dividends is a resident of a Contracting State, and
carries on business in the other Contracting State in which the company
paying the dividends is a resident, from a permanent establishment situated there
or exercising independent professional activities in the other State from where
located permanent device, and the proportion due to the
dividend paid owns truly connected with the permanent establishment
or the permanent devices. In such a case be applied
the provisions of article 7 or article 14.
6. If the company resident in a Contracting State receives income
from the other Contracting State, that other State may not
taxing dividend that the company pays, except to the extent that the dividend
paid to a resident of that other State or insofar as the
share on account of which the dividend is paid possesses genuine link with
permanent establishment or permanent device in the other State, and
nor does not tax the company distributed profit, even if the dividend
or not distributed profits consists wholly or partly of income
arising in that other State.
ARTICLE 11
Interest rate
1. interest, stemming from a Contracting State and paid to the
a resident of the other Contracting State, may be taxed in the
that other State.
2. interest may also be taxed in the Contracting State of
which it was derived, according to the laws of that State, but if the
the recipient is entitled to the rate may not exceed:
(a)) 10 per cent of the gross amount of the interest if the recipient is a bank and
the loan runs for a period exceeding seven years;
b) 15 per cent of the gross amount of the interest in all other cases.
3. Notwithstanding the provisions of paragraph 2, the following applies:
(a)) interest rate, which is derived from one Contracting State and received by
Government of the other Contracting State, its political
subdivisions or local authorities, or the Riksbank in this
other Contracting State, be taxable only in that other
Contracting State.
(b)) interest rate, which is derived from one Contracting State and relates to loans or
credits, which provided or guaranteed by,
-in the case of Korea, Korea's Export and Import bank,
-in the case of Sweden, the Swedish Export Credits Guarantee Board,
and paid to a resident of the other Contracting
State, shall be taxable only in that other State.
4. The term "interest" for the purposes of this article the income of
securities, issued by the State, and bonds
either they or debentures issued secured by property or
not and either the right to share in profits or not.
Name also refers to the income of any other kind of claim as well as all
other income under the tax laws of the State from which
the income derived shall be assimilated to income of pre-stretch.
5. the provisions of paragraphs 1, 2 and 3 shall not apply if the
is entitled to the interest is resident in a Contracting State and carries on
on business in the other Contracting State, from which the interest arises,
from where the permanent establishment situated or exercising independent
professional activities in the other State from where located permanently
device, as well as the claim in respect of which the interest is paid owns real
connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
6. interest shall be deemed to arise from a Contracting State, if the payer is
the State itself, a political subdivision, local authority or
resident of this State, if the person paying the interest,
either he is domiciled in a Contracting State or not, in a
Contracting State has a permanent establishment or a permanent device
in connection with which the liability arose on which the interest is paid, and
the interest rate borne by the permanent establishment or the Permanent
the device, however, is considered to be the rate obtained from the State in which the Permanent
establishment or permanent device, see.
7. with regard to cases in which the special relations between
the payer and the beneficial owner of the interest or between both of them and
other person gives rise to the amount of the interest, having regard to the debt
for which the interest is paid, exceeds the amount which would be
agreed between the payer and the beneficial owner of the interest on such
relations do not exist, the provisions of this article
only the latter amount. In such a case be taxed in excess
amounts in accordance with the laws of each Contracting State with
observance of the other provisions of this agreement.
ARTICLE 12
Royalty
1. Roytalty, derived from a Contracting State and paid
to a resident of the other Contracting State, may
be taxed in that other State.
2. Royalties may also be taxed in the Contracting State
from which it is derived, under the legislation of that State, but if the
the recipient is entitled to the royalty may not exceed:
a) 15 per cent of the gross amount of such royalties referred to in paragraph 3
(a)); and
b) 10 per cent of the gross amount of such royalties referred to in paragraph 3
(b)).
3. The term "royalties" in this article, of course, every kind of
payments received as compensation for the use by or for the
right to use:
a) copyright of literary, artistic or scientific works;
cinema video herein included; and
(b)), any patent, trade mark, design or model, plan, secret formula
or secret manufacturing method, as well as for the use by or for the
the right to use industrial, commercial or scientific
equipment, or for information concerning industrial,
commercial or scientific nature.
4. the provisions of paragraphs 1 and 2 shall not apply if the
entitled to the royalty is a resident of a Contracting State and carries on
on business in the other Contracting State, from which the royalty
stem, from where the permanent establishment situated or exercising independent
professional activities in the other State from where located permanently
device, and the right or property in respect of which the royalty
paid owns truly connected with the permanent establishment or the
permanent device. In such cases, apply the provisions of
Article 7 or article 14.
5. Royalties shall be deemed to arise from a Contracting State where the payer is
the State itself, a political subdivision, local authority or
resident of this State, if the person paying the royalties,
either he is domiciled in a Contracting State or not, in a
Contracting State has a permanent establishment or a permanent device
on whose behalf the right or property giving rise to the royalty,
acquired and the royalty charged to the permanent establishment or the
permanent device, however, the royalty is considered to come from the State
in which the permanent establishment or the permanent devices are available.
6. with regard to cases in which the special relations between
the payer and the beneficial owner of royalties or between both of them
and other person gives rise to royalty amount, taking into account the
utilization, the right or the enlightenment for which royalties are payable,
exceeds the amount which would have been agreed between the payer and the
the person entitled to the royalty, if such links do not exist,
the provisions of this article shall apply only to the last-mentioned amount.
In such case, the excess amount is taxed according to law
in each Contracting State in accordance with the other provisions
in this agreement.
ARTICLE 13
Capital gain
1. Profit, as a person resident in one Contracting State acquires at
alienation of such immovable property referred to in article 6 and
situated in the other Contracting State and profit by
the transfer of shares or similar investments in a company whose
main assets consist of such immovable property, may be taxed in the
that other State.
2. Gains from the alienation of movable property that is included in the fixed
establishment which an enterprise of a Contracting State has in the
other Contracting State or of movable property pertaining to
permanent device to exercise an independent profession;
as a resident of a Contracting State has in the other
Contracting State, may be taxed in that other State. the same
apply to gains from the alienation of such a permanent establishment (for
out of or in connection with the transfer of the whole enterprise) or of such a
permanent device.
3. Profit as a company of a Contracting State to acquire because
of the transfer of ships or aircraft used in
international traffic, or movable property which are attributable to
the use of such ships or aircraft shall be taxable only in
This state.
4. Gains from the alienation of any property other than that referred to in
paragraphs 1, 2 and 3 shall be taxable only in the Contracting State in which the
alienator is a resident.
ARTICLE 14
Independent professional activities
1. income, as a person resident in one Contracting State acquires
through the exercise of profession or other independent activity,
shall be taxable only in that State unless he in the other Contracting
the State has a permanent device, which are regularly at his
disposal to pursue the activity. If he has such a permanent
device, the income taxed in the other State but only so
large part thereof as is attributable to that permanent device.
2. The expression "liberal profession" includes especially independent
scientific, literary and artistic activities, educational and
teaching activities as well as such independent operations, as a doctor,
lawyers, engineers, architects, dentists and accountants.
ARTICLE 15
Single service
1. the provisions of articles 16, 18, 19 and 20 prompts
other, taxable wages and other similar remuneration, as a person with
resident in one Contracting State receives on account of employment,
only in that State unless the work is carried out in the other
Contracting State. If the work is performed in that other State, may
compensation received for work are taxed there.
2. Notwithstanding the provisions of paragraph 1 shall be taxable compensation, which
person resident in one Contracting State receives for work
performed in the other Contracting State, only in the former
State, if:
a) recipient residing in the other State during the period or time periods
that total does not exceed 183 days in the tax year in
question; and
(b)) the compensation is paid by or on behalf of employers who do not
a resident of the other State; as well as the
c) compensation does not affect the permanent establishment or habitual
device which the employer has in the other State.
3. Notwithstanding the preceding provisions of this article shall apply
the following:
a) remuneration for work carried out on board ships used in
international traffic of enterprises of a Contracting State,
taxation in that State;
b) compensation, as a person resident in one Contracting State receives
for work performed on board the aircraft in international traffic,
shall be taxable only in that State.
ARTICLE 16
Directors ' fees
Directors ' fees and other similar payments, as a person with
resident in one Contracting State receives as a member of the Board of
a company resident in the other Contracting State, may be taxed in the
that other State.
ARTICLE 17
Artists and athletes
1. Notwithstanding the provisions of articles 14 and 15, income,
as a resident of a Contracting State acquires by their
personal business in the other Contracting State in the capacity of
artist, such as a theatre or movie actor, radio or
television artist or musician or athlete, taxed in this
other State.
2. In cases where the income through activities, as an artist or sportsman
exercising as such, do not become the property of the artist or athlete
but another person, that income may, notwithstanding the
the provisions of artiklaran 7, 14 and 15, be taxed in the
Contracting State in which the artist or athlete exercising
the business.
3. Notwithstanding the provisions of paragraph 1, income as an artist
or athlete acquires through their personal activities in a
Contracting State shall be taxable only in the other Contracting
State if his stay in the former State, mainly
paid for by public funds of the other State or from one of its
political subdivisions or local authorities.
4. In cases where the income through activities, as an artist or sportsman
exercises in this property in a Contracting State, not become the property of
the artist or sportsman himself but to another person, be taxed
income, notwithstanding the provisions of paragraph 2, only in the second
Contracting State, if this person is mainly supported by
public funds from the other State or from one of its political
subdivisions or local authorities, or if that person is a
Organization of the other State whose business is not conducted in
profit.
ARTICLE 18
Pensions
1. Except where the provisions of article 19 paragraph 2 shall give rise to another,
taxable pensions and other similar remuneration, with reason
of past employment paid to a resident of a
Contracting State, only in that State.
2. Notwithstanding the provisions of paragraph 1, pensions and other
benefits under the social security legislation of a utbetals
Contracting State may be taxed in that State.
ARTICLE 19
Public service
1. a) Compensation (except for retirement), paid for by a
Contracting State, its political subdivisions or local
authorities to the natural person on the basis of the work carried out in this
the State, its political underavdelningars or local authorities
service, shall be taxable only in that State.
b However, such remuneration shall be taxable only) in the second
Contracting State, if the work is performed in that State and the individual in
question is domiciled in this State and
1) is a national of that State, or
2) were not allowed to live in this State solely to perform the work.
2. a) Pensions, paid by, or out of funds created by, a
Contracting State, its political subdivisions or local
authorities to the natural person on the basis of the work carried out in this
the State, its political underavdelningars or local authorities
service, shall be taxable only in that State.
(b) However, such pension shall be taxable only) in the second
Contracting State, if the person concerned is resident and is
citizens of this State.
3. the provisions of articles 15, 16 and 18 shall apply to remuneration
the pension paid on the basis of the work carried out in connection with
motion carried on by a Contracting State, its political
subdivisions or local authorities.
ARTICLE 20
Students and trainees
1. students, affärspraktiant or technical intern, who is staying in the
a Contracting State of their teaching/training
has, or immediately prior to his stay in that State had established in the
other Contracting State is exempt from tax in the first-mentioned
Contracting State for:
a) amount paid to him from the person resident outside
This former State to defray his living,
teaching or training; as well as the
b) remuneration for work carried out in this former State, under
provided that compensation does not in any one tax year
exceeds 10 000 Swedish kronor or the equivalent in Korean currency.
The exemption referred to in paragraph (b)) are allowed only for such time as is reasonably
or is usually required to complete the studies or training
in question, but may not, under any circumstances, refer to a longer period of time than five on
consecutive years.
2. Natural person domiciled in a Contracting State immediately
before a stay in the other Contracting State and who are temporarily
stay in the other Contracting State for a period not
exceed five years from the date of his first arrival in this
other Contracting State for the purpose of this stay is-under the
condition that he stay there for study, research or
training exclusively as the recipient of the scholarship, allowance
or reward from the Government of either Contracting State or
from the educational institution or scientific or religious
organization or charity, or in accordance with
technical assistance programme in which the Government of either Contracting
the State participates-exempt from tax for the following payments:
a) amount of such scholarship or grant or award;
b) amounts paid to him from the person resident outside this
State for his living, teaching or training; as well as the
c) remuneration for work performed in that other State, under
condition that the compensation does not exceed 10 000 Swedish kronor
or the equivalent in Korean currency for any tax year and work
performed in connection with the studies, research or education or in
comparison thus appears to be temporary.
3. Natural persons domiciled in a Contracting State immediately
before a stay in the other Contracting State and who are temporarily
stay in the other Contracting State exclusively as an employee
of or under contract with the Government or companies in the
first-mentioned Contracting State solely to obtain technical,
Professional or commercial experience over a period of time that
less than one year from the date of his first arrival in
the other Contracting State in connection with the stay,
exempt from tax in that other Contracting State for the following
payouts:
a) compensation from abroad for their livelihood, their teaching or
education; as well as the
b) remuneration for work performed in the other Contracting State,
provided that the compensation for this period does not exceed
30 000 Swedish kronor or the equivalent in Korean currency and work
performed in connection with education or compared thereby emerges
temporarily.
ARTICLE 21
Other income
1. income as a resident of a Contracting State acquires
and which are not dealt with in the foregoing articles of this Agreement shall be taxable
only in this State, regardless of where the income is derived.
2. the provisions of paragraph 1 shall not apply to income, other than
for income from immovable property referred to in article 6, paragraph 2, of
the recipient of the income is resident in a Contracting State and
carries on business in the other Contracting State from where located
permanent establishment or exercise of independent professional activity in this
other State from where located permanent device, as well as the
right or property on account of which the income is paid is the owner
effectively connected with the permanent establishment or the Permanent
the device. In such cases, apply the provisions of article 7
and article 14.
ARTICLE 22
Avoidance of double taxation
1. In Korea, double taxation is avoided in the following ways:
In accordance with the Korean tax law relating to set-off from
Korean tax of tax payable in any country other than Korea, shall
Swedish tax (on dividends except for tax on profits of
the dividend will be paid), that according to Swedish law and in
compliance with this agreement will be paid, either directly or through
deduction, on income from a source in Sweden, be offset against Korean tax
on the income. Settlement amount shall not, however, exceed the
share of the Korean tax as income from a source in Sweden
make up the whole of the income taxed in Korea.
2. In Sweden, double taxation shall be avoided as follows:
If resident in Sweden receives income according to
the provisions of this agreement, may be taxed in Korea shall, unless
the provisions of paragraph 3 of this article and paragraph 4 of article 10
causing the other, Sweden from the person's income tax
deduct an amount equal to the income tax paid in
Korea.
Settlement amount shall not, however, exceed the amount of the
part of the income tax, calculated without such a settlement, charged on
the income which may be taxed in Korea.
3. If a resident of a Contracting State in receipt of income
in accordance with the provisions of this Agreement shall be taxable only in the other
Contracting State, the Contracting State
the inclusion in income in the tax base but from tax on
income offset part of the income tax levied on the income
acquired from the other Contracting State.
4. for the purposes of applying the provisions of paragraph 2 of this article shall
"tax on income paid in Korea" be deemed to amount to 20 per cent
of the gross amount of the income specified in article 10, paragraph 2,
Article 11, paragraph 2 and article 12 paragraph 2. The provisions of this
paragraph only applies to the first ten years during which this agreement
applied. The competent authorities shall consult each other in order
to determine whether this period shall be extended.
ARTICLE 23
Prohibition of discrimination
1. nationals of a Contracting State shall not, in the second
Contracting State be subject to taxation or
coherent demands that are of a different kind or more onerous than the
taxation and related requirements as national
other State in the same circumstances are or may be subject to. Without
by way of derogation from article 1, this provision also
the person who is not domiciled in a Contracting State, or in both
States.
2. The term "national" refers to:
a) natural person who has the nationality of a Contracting State;
b) legal entity and other Association incorporated under the
laws in force in a Contracting State.
3. the taxation on a permanent establishment which businesses of a Contracting
State has in the other Contracting State, that other State
not be less advantageous than the taxation of the company in this second
State, that carries out activities of the same kind. This provision is considered to
not involve obligation of a Contracting State to grant to a person
resident in the other Contracting State such personal deductions
for tax purposes, exemptions or reductions because of
marital or dependent on family, which allowed a person with
live in their own State.
4. Except where the provisions of article 9, article 11, paragraph 7
or article 12 paragraph 6 apply, interest, royalties and other
payment from the company of a Contracting State to the person with
resident in the other Contracting State tax deductible at
the determination of the taxable income of such company on
same conditions as payment to a resident of the first-mentioned
State. Similarly, debt as a company of a Contracting State
have to a resident of the other Contracting State
deductible in determining such taxable
fortune on the same basis as liability to a resident of the
first State.
5. Enterprises of a Contracting State, the capital of which is wholly or partly
owned or controlled, directly or indirectly, by one or more
residents of the other Contracting State, shall not in
the first State become subject to taxation or
coherent demands that are of a different kind or more onerous than the
taxation and related requirements as other similar companies
in the first State are or may be subjected.
6. Notwithstanding the provisions of article 2 shall apply the provisions
in the present article on the taxes of every kind and nature.
ARTICLE 24
The procedure for the mutual agreement
1. If a person alleges that a Contracting State or both
States took measures to him causes or will
bring a warring against the provisions of this agreement, may
He-without prejudice to his right to make use of the
legal remedies in the domestic legal system of those States, present
matter to the competent authority of the Contracting State in which he
is a resident or, if the question is whether the application of article 23, paragraph 1, in
the Contracting State of which he is a national. The matter shall be submitted
within three years from the time the person in question had knowledge of the
action giving rise to taxation contrary to
the provisions of this agreement.
2. If the competent authority finds the complaint justified but not
can bring about a satisfactory resolution, shall
authority to resolve the matter by mutual agreement with the
competent authority of the other Contracting State for the purpose of
avoid taxation which conflict with this agreement. Agreement
met is carried out without prejudice to the time limits of the Contracting
States ' internal legislation.
3. the competent authorities of the Contracting States shall by
mutual agreement, seek to determine difficulty or doubt as
arise regarding the interpretation or application of this agreement. The
can also initiate consultations with a view to eliminating double taxation in cases
not covered by this agreement.
4. the competent authorities of the Contracting States may enter into
direct connection with each other in order to reach agreement in
the cases specified in the preceding paragraphs. If oral proceedings
be considered to facilitate an agreement, such consultations take place
in a Commission consisting of representatives of the competent
the authorities of the Contracting States.
ARTICLE 25
Exchange of information
1. the competent authorities of the Contracting States shall exchange
such information as is necessary to implement the provisions
in this agreement, or in the internal law of the Contracting States
in the case of taxes covered by this agreement, to the extent
taxation as a result of this legislation is not contrary to the agreement
or to prevent fraud or to implement
constitutional provisions to legally avoid taxes
covered by the agreement. Exchange of information is not restricted by article
1. information received that a Contracting State shall be treated
such as secret in the same manner as information obtained under the
internal law of that State and have disclosed only for people
or authorities (including courts and administrative bodies therein)
establishing, or collect the taxes which are the subject of
This agreement or dealing with criminal charges or complaints regarding these
taxes. Such persons or authorities shall use the information
only for such purposes. They may disclose the information in public
trial or in judicial decisions.
2. the provisions of paragraph 1 is not considered to entail the obligation for an
Contracting State to:
a) take administrative measures derogating from the legislation and
administrative practice in this State or of the other Contracting
the State;
b) provide information that is not available under the legislation
or the usual administrative practice in this State or in the second
Contracting State;
c) supply information which would disclose any trade secret,
industrial, commercial or professional secret or of a commercial
used procedure or information whose transmission would
contrary to General considerations of public policy.
ARTICLE 26
Diplomatic representatives and consular officials
The provisions of this Agreement shall not affect the privileges of
taxation which, according to the General rules of international law or
provisions of specific agreements apply diplomatic
representatives or consular officials.
Article 27
Date of entry into force
1. This agreement shall be ratified and the instruments of ratification documents shall
are exchanged in Stockholm as soon as possible. Entry into force of the agreement
30th day following the exchange of the ratification documents.
2. This agreement shall apply:
(a)) with respect to tax content at the source, on amounts paid
to or credited person resident abroad the first
January of the year in which the agreement is signed, or later.
(b)) in respect of other taxes, for taxation years beginning on
first of January of the year in which the agreement is signed, or later.
ARTICLE 28
Termination
This agreement will remain in force indefinitely but each of the
Contracting States may-30 June in any
calendar year from the fifth year following that in which the exchange of
the ratification documents were held-on diplomatic channels in writing
terminate the agreement of the other Contracting State. In the event of
such termination the agreement ceases to be valid:
(a)) with respect to tax content at the source, on amounts paid
to or credited person resident abroad the first
January of the calendar year immediately following that in which the notice
took place or later;
(b)) in respect of other taxes, for taxation years beginning on
first of January of the calendar year immediately following that in which the
the dismissal took place or later.
In witness whereof the undersigned, being duly
authorized by their respective Governments, have signed this agreement.
That took place in Seoul on May 27, 1981, in duplicate, in English
the language.
Protocol
At the signing of the agreement between the Government of the Republic of Korea and
The Government of the Kingdom of Sweden for the avoidance of double taxation and the
Prevention of fiscal evasion with respect to taxes on income, the undersigned
agreed that the following provisions shall constitute a
integral part of the agreement.
To article 2
The parties agree that article 2 point 3 (a)) of the agreement
includes Korea's defense tax, as it is applicable to income tax or
corporate income tax as a basis.
To article 8
The provisions of article 8 paragraph 1 apply to the income
acquired by the air transport Consortium Scandinavian Airlines System (SAS)
but only in respect of that part of the income corresponding to the proportion of
the consortium which is held by AB Aerotransport (ABA), the Swedish
part owner of Scandinavian Airlines System (SAS).
To article 19
The provisions of article 19, paragraphs 1 and 2 shall also apply in the case
If compensation or pensions paid by the Bank of Korea, Korea
The export and Import bank, Korea's company for the promotion of trade and other
similar Korean establishments practising by State
character.
In witness whereof the undersigned, being duly
authorized by their respective Governments, have signed this
Protocol.
That took place in Seoul on May 27, 1981, in duplicate, in English
the language.
