early 2012west 5032, 27 March 2013

Whether it is a non-resident under the Income Tax Act

In light of the fact that the plaintiff did not have acquired a foreign nationality or permanent residence, and that the plaintiff had a domicile in Korea mainly with his family and resided in Korea, and that the claimant has received wages while holding a representative director of a domestic corporation and was confirmed to have not imposed a foreign income tax, such as the claimant's wage and salary, etc., the claimant is a resident under the Income Tax Act.

Article 1 of the Income Tax Act

Seoul Administrative Court

Part IV

2013Guhap6454 global income and revocation of such disposition

Plaintiff 1

Gangnam-gu Seoul Metropolitan Government Substitute Dong

[Defendant-Appellee] Plaintiff 1 and 1 other

The Head of Defendant post office

Litigation Performers △△△

March 20, 2015

April 17, 2015

1. The plaintiff's claim is dismissed.

2. The costs of lawsuit shall be borne by the Plaintiff.

Cheong-gu Office

The Defendant’s disposition of imposing global income tax on the Plaintiff on August 1, 2012 is revoked in entirety. The disposition of imposing global income tax on the Plaintiff in 2007, global income tax on the 2008, global income tax on the 2009, global income tax on the 2009, and global income tax on the 2010.

1. Details of the disposition;

A. On October 15, 2003, the Plaintiff established a “△△△△△” (referred to as “△△△. Co. Ltd.; hereinafter the same shall apply) in the Kingdom of Saudi Arabia (hereinafter referred to as “ Saudi Arabia”) and is currently a shareholder and a representative director of the said corporation.

B. From April 23, 2012 to July 3, 2012, the director of the Seoul Regional Tax Office: (a) determined that the Plaintiff omitted the filing of global income tax on KRW 00,00 of the other income income received from Satar corporation from January 1, 2007 to December 31, 2010; (b) determined that the Plaintiff omitted the filing of global income tax on KRW 00,00 of the other income income received from construction works and related technical services provided by △△△△△, a construction corporation located in Katar; and (c) notified the Defendant thereof.

C. Accordingly, on August 1, 2012, the Defendant decided and notified the Plaintiff’s global income tax for the year 2007, the global income tax for the year 2008, the global income tax for the year 2008, the global income tax for the year 2009, the global income tax for the year 2009, and the global income tax for the year 2010 (hereinafter “instant disposition”).

D. The Plaintiff filed an appeal with the Tax Tribunal on October 25, 2012, but was dismissed on September 27, 2013.

[Ground of recognition] Facts without dispute, entry of Gap evidence 1 to 3 (including paper numbers; hereinafter the same shall apply) and the purport of whole pleadings

2. Whether the instant disposition is lawful

(a) Relevant statutes;

As shown in the attached Form [including the Convention between the Government of the Republic of Korea and the Government of the Kingdom of Saudi Arabia for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (hereinafter referred to as the “Korea-Saudi Arabia Tax Treaty”).]

B. Facts of recognition

1) both the Plaintiff’s spouse, children, and their spouses are located in Gangnam-gu Seoul Metropolitan Government. Meanwhile, the number of days of stay in Korea of the Plaintiff and the Plaintiff’s spouse is as follows.

Classification

2007

208

209

2010

Average

120 days

223 days

181 Date

228 Date

188 days

Spouse

340 days

36 days

309 days

324 Date

327 Date

2) The details of the Plaintiff’s business in Korea since 1990 are as follows.

Trade Name

Location

Opening date of business

Closure

Jinay

△△△△△

Seoul Songpa-gu

January 10, 1990

December 20, 1995

Private/construction Business

△△ Corporation

Seoul Songpa-gu

December 5, 1995

Continuous Business

Corporation / Construction Business

△△△△△

Seoul Gwangjin-gu

October 29, 1998

September 30, 2001

Private/Lease Business

3) The Plaintiff reported the salary received as the representative director of the above corporation △△△△△△ (hereinafter referred to as “△△△△△△”) to ○○○ in 2007, 2008, 2009, 009, 2010, 000, and 2011. Meanwhile, the salary received from the Plaintiff from the private sector is the ○○○○○ in 2007, 2008, 2009, 2010, and 000 won in 2010.

4) The Plaintiff owns the land in △△ City (site, 236 square meters) and its ground (76.99 square meters), the land in △△ City (Field 278 square meters), and the apartment housing (the same as the domicile of the Plaintiff and his spouse) located in △△ City, △△△△ (the spouse of the Plaintiff is the same as that of the Plaintiff and his spouse). The Plaintiff, a spouse, owns one commercial building in △△ City, △△ City, Seoul, and operates a lease business at that place.

5) The Plaintiff does not have any assets, other than the stocks of Saudidi corporation, residing in the intra-company accommodation (Camp1, Maddi corporation) located in the Maddi Maddi’s Maddi’s Maddi’s Maddi’s terms and conditions.

The plaintiff is registered as a Korean national residing abroad at the Embassy of Saudidi, and is responsible for the vice-chairpersons of the local associations of Saudidi and the scholarship members of the National Assembly of Saudidi.

6) On the website of Saudidi corporation, △△△△△ is introduced as the headquarters of the Republic of Korea (Korea Haddi) and △△△○○○, a party to the project where Saudidi is in progress, is an enterprise of the Republic of Korea, a Korean company, and the other party to the project.

[Reasons for Recognition] Unsatisfy, W. Each entry in the evidence of Nos. 1 to 5

C. Determination

1) Whether the Plaintiff constitutes a resident under the Income Tax Act

A) The plaintiff's assertion

The plaintiff shall be deemed to have no address in Korea on the ground that he has a job that requires him to reside abroad for not less than one year after continuing the "Article 2 (4) 1 of the Enforcement Decree of the Income Tax Act". Therefore, the disposition in this case is unlawful because the plaintiff is not a resident under the Income Tax Act.

B) Determination

An individual who has a domicile in Korea for not less than one year is liable to pay income tax corresponding to a resident under the Income Tax Act (Articles 1-2 and 2 of the Income Tax Act, and Article 1(1) of the former Income Tax Act). Here, the address shall be determined based on objective facts of his/her living relationship, such as the existence of a family living together in Korea and of assets located in Korea (see Supreme Court Decision 96Nu2927, Nov. 14, 1997), and matters to be determined by mainly considering activities abroad and living relations, such as holding assets (see Supreme Court Decision 2010Du28946, Apr. 14, 201).

According to the above facts, the plaintiff's domicile in his apartment house together with his spouse.

During the pertinent taxable period, the Plaintiff’s annual 188 days, and the spouse’s 327 days were staying in Korea. Moreover, the Plaintiff and his spouse owned a number of land, housing, etc. in Korea, and the Plaintiff was paid benefits from △ Contract during the taxable period of the instant disposition. Considering such a period of stay and place of the Plaintiff and his spouse, the type and scale of assets located in Korea, and the wage and salary income generated in Korea, the Plaintiff constitutes “resident having a domicile in Korea”

Therefore, the plaintiff's above assertion is not accepted.

2) Whether the Korea-Japan Tax Treaty is applicable

A) The plaintiff's assertion

Even if the Plaintiff is a resident under the Income Tax Act, the Plaintiff is also a resident of private interest at the same time. Accordingly, the instant disposition based on the premise that the Plaintiff is a domestic resident is illegal, since it is a private interest centering on the permanent domicile or personal and economic interests of the Plaintiff.

B) The scope of the application of the Korea-Syd Tax Treaty

According to Article 28 of the Korea-U.S. Tax Treaty, the above treaty takes effect with respect to taxes in the taxable year since 2009, and the above treaty is examined only for the taxable year 2009 and 2010 among the disposition of this case (the plaintiff appears to have made the above assertion about the taxable period in 2007 and 2008, but no further examination is made on this ground, since the above treaty does not apply in the above taxable period).

C) Determination of residents pursuant to the Korea-SaBD Tax Treaty

(1) A taxpayer who is a domestic resident at the same time bears the burden of proving that a tax treaty should apply to a foreign resident (see, e.g., Supreme Court Decision 2006Du3964, Dec. 11, 2008).

Article 4 (1) of the Korea-U.S. Tax Treaty provides that "the term "resident of a Contracting State" includes a person liable to pay taxes in accordance with his/her domicile, residence, head office, main office, place of management, or any other similar criteria in accordance with the laws of that Contracting State, and any political subdivision or local government." Paragraph (2) of the same Article provides that "a person is a resident of both Contracting States, pursuant to the provisions of paragraph (1) of the same Article, if the person is a resident of both Contracting States, a country with a permanent residence (a), a country with a human and economic relationship (b) is the most closely closely related with each other; (c) a country with a usual residence; and (d) a country with a citizen's residence (the order of a Contracting State), but if it is impossible to determine a country of residence in accordance with any of the standards, it shall be subject to mutual agreement.

(2) Examining whether the Plaintiff is a resident of Saudidi, Article 3 of the Income Tax Act provides that “A natural person or juristic person who satisfies the resident requirements stipulated in Article 3 of the Act,” and Article 3 of the same Act provides that “A natural person shall be deemed a resident if the Plaintiff is a resident of Saudididididididididididididididididididididididididididi whose permanent residence is in Saudididididididididididididididididididididididi whose total amount of 30 days or more, and where the Plaintiff is staying in Saudidididididididididididididididididididi in a taxable year in which he has a total of 183 days or more (hereinafter referred to as “the above fact of recognition”).”

'항구적인 주거지'에 대해서 사우디 소득세법과 한・사우디 조세조약에서 개념 정의를 두고 있지 않다. 한편 OECD 모델협약 주석서 제4조 주석 13 문단은 주거지(home)의 개념에 대해서 "단기 체류 목적이 아니라 언제나 계속적으로 머무를 수 있는 장소[But the permanence of the home is essential; this means that the individual has arranged to have the dwelling available to him at all times continuously, and not occasionally for the purpose of a stay which, owing to the reasons for it, is necessarily of short duration(travel for pleasure, business travel, educational travel, attending a course at a school, etc.)] 라고 설명하고 있다. 따라서 '항구적인 주거지'는 계속적으로 머무를 수 있는 장소라는 객관적인 요소와 단기 체류 목적이 아닐 것이라는 주관적인 요소를 필요로 한다.

According to the above facts of recognition, the Plaintiff is residing in an intra-company lodging in the name of a corporation with private interest. Considering that the Plaintiff is the representative director and the shareholder of a corporation with private interest, the above intra-company lodging constitutes the Plaintiff’s permanent residence in private interest. Therefore, the Plaintiff is a resident of private interest under the Income Tax Act, since he/she has a permanent residence in private interest and has been staying in private interest for at least 30 days in a taxable year.

(3) However, since the 'portal residence' under the Income Tax Act and the 'portal residence' under the Korea-U.S. Tax Treaty are conceptually identical or similar, the plaintiff has a permanent residence not only in Korea but also in Saudidi. In this case, in order to determine the plaintiff's residence country, the issue is whether a country of personal and economic relations between the Republic of Korea and Saudidi under Article 4 (2) (a) of the Korea-U.S. Tax Treaty is the most closely related country. The plaintiff's spouse staying in Korea in 209 and 2010 of the taxable year at issue and 2010, and the period of stay in Korea exceeds the period of stay in Saudidididididi. The plaintiff's main property and the spouse's actual management in Korea, and the plaintiff's major business partners are being operated in Korea as the head office of Saudidididididididi. Furthermore, considering the fact that the plaintiff's major business partners are Korean enterprises, it is more closely related to the plaintiff's local residents and its vice-chairpersons.

Therefore, we cannot accept this part of the plaintiff's assertion.

3) Whether the Korean taxation authority exists

A) The plaintiff's assertion

Since the Republic of Korea does not have the right to impose taxes on the wage income received by the Plaintiff as a director of a private corporation pursuant to Article 16 of the Korea-SaBD Tax Treaty, the part of taxation on the wage income after 2009, to which the Korea-SaBD Tax Treaty applies, is unlawful.

B) Determination

Article 15 of the Korea-U.S. Tax Treaty provides that "the income tax may be imposed only on the pay, wage, and other similar remuneration that a resident of a Contracting State acquires in connection with an employment, unless the employment is carried out in the other Contracting State, in either Contracting State, unless the employment is carried out in the other Contracting State. However, if the employment is carried out in the other Contracting State, the remuneration accruing from the employment may be imposed in the other Contracting State," and Article 16 provides that "the remuneration for directors and other similar remuneration that a resident of either Contracting State acquires in the capacity of a resident of the other Contracting State as a member of the board of directors of a juristic person who is a resident of the

In this case, according to the above provisions, the benefits that the plaintiff received from the corporation

It does not mean that only private interest can be imposed on a taxpayer. The purpose of the Korea- Saudidi Tax Treaty is to prevent double taxation, and in case of deprivation of or restriction on the right to impose taxes on a taxpayer in a Contracting State, the ownership of the right to impose taxes is specified as stated in Article 15 above. Notwithstanding Article 15, the purport of Article 16 is to treat directors' remuneration differently from ordinary wages and wages related to employment. It is interpreted to the effect that directors' remuneration can be imposed on both Contracting States (and the problem of double taxation can be resolved with the tax credit under Article 23 of the Korea-Saudidi Tax Treaty). Furthermore, as long as it is determined that a Contracting State should priority to a resident in accordance with Article 4 of the Korea- Saudididididi Tax Treaty, Articles 15 and 16 are meaningful in cases where only one Contracting State is a resident in a Contracting State (e.g., a resident in a Contracting State) and a resident in a other Contracting State (e., a resident in the other Contracting State).

For this reason, the Republic of Korea cannot be viewed as not having the right to impose taxes, and the first plaintiff's assertion is rejected on a different premise.

3. Conclusion

Therefore, the plaintiff's claim of this case is dismissed, and it is so decided as per Disposition.

Relevant statutes

▣ 소득세법

Article 1-2 (Definitions)

(1) The terms used in this Act shall be defined as follows:

1. The term "resident" means an individual who has his/her domicile or residence in the Republic of Korea for at least one year;

Article 2 (Liability for Tax Payment)

(1) Any of the following individuals shall be liable to pay income tax on his/her income pursuant to this Act:

1. A resident;

2. Any nonresident who has income from domestic sources;

▣ 구 소득세법(2009. 12. 31. 법률 제9897호로 개정되기 전의 것)

Article 1 (Liability for Tax Payment)

(1) Any individual who falls under any of the following subparagraphs shall be liable to pay income tax on his/her income under this Act:

1. Any individual who has a domicile in Korea or has a domicile in Korea for not less than one year (hereinafter referred to as "resident");

2. Any person who is not a resident (hereinafter referred to as "non-resident") and has income from domestic sources;

(2) Any person who falls under any of the following subparagraphs shall be liable to pay withholding income tax under this Act:

1. A resident;

2. A nonresident;

3. A corporation whose headquarters or main office is located in the Republic of Korea (hereinafter referred to as a "domestic corporation");

4. A domestic branch or domestic business office (including a branch office or other similar business office; hereinafter the same shall apply) of a corporation having its headquarters or domestic business office in a foreign country (hereinafter referred to as a “foreign corporation”);

5. Other withholding agents as prescribed by this Act.

(4) Classification of the address and residence under paragraph (1) and the resident and non-resident shall be prescribed by Presidential Decree.

▣ 소득세법 시행령

Article 2 (Determination on Domicile and Place of Residence)

(1) The address under Article 1-2 of the Income Tax Act (hereinafter referred to as the "Act") shall be determined by the objective facts of living relationship, such as the existence of a family living together in Korea and of the property located in Korea.

(2) The place of residence prescribed in Article 1-2 of the Act shall be the place where a person has resided for a long time besides his/her address, and in which no close general living relationship is formed as the address.

(3) Where an individual who resides in Korea falls under any of the following subparagraphs, he/she shall be deemed to have an address in Korea:

1. When a person has an occupation which requires him to continually dwell in Korea for 1 year or longer; and

2. When a person has a family living together in Korea, and is considered to dwell in Korea continuously for 1 year or longer judging from his occupation and property status; and

(4) Where a person residing or working overseas falls under any of the following cases, he/she shall be deemed to have no address in Korea:

1. When a person has an occupation which usually requires him to continually dwell abroad for 1 year or longer; and

2. When a person with a foreign nationality or citizenship under the foreign laws, who has no family living together with him in Korea, and is not deemed to return home again and mainly dwell in Korea in view of his occupation and property status.

▣ 구 소득세법 시행령(2010. 2. 18. 대통령령 제22034호로 개정되기 전의 것)

Article 2 (Determination on Domicile and Place of Residence)

(1) The address under Article 1 of the Act shall be judged by the objective facts of living relationship, such as the existence of a family living together in Korea and of the property located in Korea.

(2) The term "place of abode" in Article 1 of the Act means the place where a person has resided for a long time besides his/her address, and in which no close general living relationship is formed as the address.

(3) Where an individual who resides in Korea falls under any of the following subparagraphs, he/she shall be deemed to have an address in Korea:

1. When a person has an occupation which requires him to continually dwell in Korea for 1 year or longer; and

2. When a person has a family living together in Korea, and is considered to dwell in Korea continuously for 1 year or longer judging from his occupation and property status; and

(4) Where a person residing or working overseas falls under any of the following cases, he/she shall be deemed to have no address in Korea:

1. When a person has an occupation which usually requires him to continually dwell abroad for 1 year or longer; and

2. When a person with a foreign nationality or citizenship under the foreign laws, who has no family living together with him in Korea, and is not deemed to return home again and mainly dwell in Korea in view of his occupation and property status.

▣ 사우디아라비아 소득세법

Definter 1: Definit Policy

22(1)(1)(2)(1)(2)(2)(2)(2)(2)(3)(2)(2)(2)(2)(2)(2)(2)(3)(2)(2)(2)(3)(2)(2

Resident : A natural person, a company that satisfies the residency conditions stipulated in Article Three of this Law, any governmental department or ministry or public entity or any other corporate person or entity formed in the Kingdom.

Articles 3: Conceability of the General Provisions of the Public Notice

(a) The period of 200 Do governor-20 Do governor-20 Do governor-20 Do governor-20 Do governor-20 Do governor-20 Do governor-20 Do governor-20 Do governor-20 Do governor-20

(1) Domination Domination, Domination Domination, Domination Domination, Domination Domination, Domination Domination Domination, other than Domination Domination, Domination Domination, Domination Domination, Domination, Domination,

(2) The number of hrings in excess of the number of persons who are not registered for the purposes of the Act on the Promotion of Maritime Affairs and Fisheries shall be able to be able to enjoy in hrings.

▣ 대한민국 정부와 사우디아라비아왕국 정부 간의 소득에 대한 조세의 이중과세회피와 탈세방지를 위한 협약

Article 4 Residents

1.For the purposes of this Convention, the term "resident of a Contracting State" includes, under the laws of that Contracting State, persons liable to pay taxes in accordance with their addresses, addresses, headquarters or principal office, places of management, or other similar standards, and their political subdivisions or local governments. However, this definition does not include persons taxable only in respect of income in which a Contracting State is derived from its source.

2.Where, under the provisions of paragraph 1, an individual is a resident of both Contracting States, the status of that individual shall be determined as follows:

(a)the person shall be deemed to be a resident of the Contracting State which has a permanent residence available to him. If the person has a permanent residence available to him in the Contracting State, that person shall be deemed to be a resident of a Contracting State whose personal and economic relationship is more closely related (the center of a serious interest);

(b)if it is impossible to determine a State with a focus on the important interest of the person or it does not have a permanent residence available to him/her in a Contracting State, he/she shall be considered as a resident in the Contracting State in which he/she has an ordinary residence;

(c)if that individual has a usual residence in both Contracting States or does not have a usual residence in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he is a national;

(d)if that individual is not a national of the Contracting State or a national of either Contracting State, the competent authorities of the Contracting State shall resolve the problem by mutual agreement.

Article 10 Distribution

1. The dividends paid by a corporation which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in the other Contracting State;

2.However, such dividends may also be taxed in the Contracting State in which the corporation paying the dividends is a resident, in accordance with the laws of that Contracting State, provided that if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so levied;

(a) shall not exceed five percent of the total amount of dividends: Provided, That for this purpose, at least 25 percent of the capital of a corporation in which the beneficial owner pays dividends shall be a corporation (other than the partnership relationship);

(b)in other cases not exceed 10 percent of the total amount of dividends.

Article 15 Subordinate Personal Services

Unless the employment of a Contracting State is carried out in the other Contracting State, with respect to the pay, wage, and other similar remuneration which a resident of a Contracting State acquires in connection with employment, tax shall be levied only in the other Contracting State, unless the employment is carried out in the other Contracting State: Provided, That if the employment is carried out in the other Contracting State, the tax may be levied

Article 16 Remuneration for Directors

The remuneration and other similar payments of directors acquired by a resident of a Contracting State as a member of the board of directors of a corporation which is a resident of the other Contracting State may be taxed in the other Contracting State.

Article 22 Other Incomes

1.The income items of a resident of a Contracting State not specified in any of the above Articles of this Convention shall be taxed only in that Contracting State, regardless of the place where the income is generated.

Article 23 Prevention of Dual Taxation

1.The double taxation shall be prevented as follows:

(a) for Korea:

Subject to the provisions of the tax law of Korea relating to the granting of tax credit to be paid by countries other than Korea (not affecting general principles under the same Act)

1) If a Korean resident obtains income from Saudi Arabia and such income can be taxed in Saudi Arabia pursuant to the provisions of the Convention and in accordance with the laws of Saudi Arabia, the tax payable in Saudi Arabia with respect to the income shall be granted a tax credit on such income to be paid to Korea. This credit, however, shall not exceed the Korean tax amount calculated prior to the grant of the credit.

2) The income acquired from Saudi Arabia is a dividend paid as a Korean resident by a Korean resident entity that is a resident of Saudi Arabia, and the Korean entity holds at least 20 percent of the total equity interest of the entity that is a resident of Saudi Arabia, the tax credit must take into account the tax to be paid by the Saudi Arabia in relation to the profit which is the source of the dividend by the entity that is the source of the dividend.

(b) In cases of Saudi Arabia:

If a resident of Saudi Arabia acquires income to be taxed in Korea in accordance with the provisions of this Convention, the resident of Saudi Arabia shall be granted a tax credit of an amount equivalent to the tax paid in Korea by that resident, but such credit shall not exceed the Korean tax credit calculated before the tax credit for that income.

2. For the purposes of paragraph 1 of this Article, if taxes on business profits generated in a Contracting State are exempted or reduced for the purpose of facilitating foreign investment for economic development in accordance with the laws and regulations of either Contracting State, those taxes shall be considered to be not paid. The provisions of this paragraph shall apply for the first five years in which the Convention enters into force.

Article 28 Effectiveness

1.Each Contracting State shall notify through diplomatic channels of the completion of its domestic procedures for the entry into force of the Convention.

The Convention shall enter into force on the first day of the second month from the month of final notification.

2.This Convention shall have effect:

(1) As to taxes withheld on or after January 1 of the calendar year following the year in which the Convention is in force;

(2)with respect to any other taxes for the taxable year following the year in which the Convention is in force or for which the subsequent taxable year begins:

【English Copy】

Articles 4 RESIDENT

1. For the purposes of this Convention, the term resident of a Contracting State means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of head or main office, place of management, or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) Domins 198 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201. 201

1. 12. 12. 12. 12. 12. 12. 3.2. 3.2. 3.2. 3.2. 3.2. 3.2. 3.2. 3.2. 3.3.2. 13.2.

b) report on the act of dealing with the State in national affairs, which is about 1999, is about 200, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 200,000,000, 200,000,000, 200,000,000, 200,000, 200,000,00,000.

c) 이 이 이이 이이 이 이 이 이이 이 이이 이이 이 이이 이이 이이 이이 이이 이이 이이 이이 이 이이 이 이이 이이 이 이 이 이 이 이이 이 이 이이 이 이 이이 이

d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

Articles 15. DPENES PERSONAL SERVE

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned State if:

a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and

b)the State, which has been discharged by the Director of the Office of Patriots and Veterans Affairs, shall be responsible for any violation of the Act on the Protection, etc. of Agricultural and Marine Affairs, and any violation of the Act on the Protection, etc. of Agricultural and Marine Affairs.

c) The managementor a fixed ba, which is subject to reporting by the Minister of Maritime Affairs and Fisheries, shall be the State, which has been subject to reporting by the Minister of Maritime Affairs and Fisheries.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State shall be taxable only in that State.

"The 16Drrr'ssss", "Dr's", "Dr'sss", and "Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dor's Dot."

1. Double drup shallated :

a) In case of the Republic of Korea:

Subject to the provisions of Korean tax law regarding the allowance as credit against Korean tax of tax payable in any country other than Korea (which shall not affect the general principle thereof);

i) Where a resident of Korea derives income from Saudi Arabia which may be taxed in Saudi Arabia under the laws of Saudi Arabia in accordance with the provisions of this Convention, in respect of that income, the amount of Saudi tax payable shall be allowed as a credit against the Korean tax payable imposed on that resident. The amount of credit shall not, however, exceed that part of Korean tax as computed before the credit is given, which is appropriate to that income;

ii) Doing 20, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000, 2000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,000,00,000,00

b) In the case of the Bank of Korea, the United States of America:

Where a resident of the Kingdom of Saudi Arabia derives income which, in accordance with the provisions of this Convention, may be taxed in Korea, the Kingdom of Saudi Arabia shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Korea. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Korea.

2. For the purposes of the provisions in paragraph 1 of this Article, where tax on business profits arising in a Contracting State is exempted or reduced for a limited period of time in accordance with the laws and regulations of that State to promote foreign investments for economic development purposes, such tax which has been exempted or reduced shall be deemed to have been paid. The provisions of this sub paragraph shall apply for the first 5 years for which this Convention is effective.

Articles 220(s) and (3)

1. Doing 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201 201.