India-South Korea DTAA
Treaty signed: July 19, 1985 | Effective from: September 12, 1986
● Live · Rates served from /api/tax-rules/dtaa/KR
Dividends
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Interest
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Royalties
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Capital Gains
Fees for Technical Services
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Key Treaty Provisions
- Older treaty (1985) - covers major income types relevant to India-Korea bilateral trade
- Important for Korean investments in India (Samsung, LG, Hyundai, Posco)
- Korea has ratified MLI; India has also ratified - PPT provisions apply
- Construction PE: 6 months
- Korea companies in Indian manufacturing/technology sector are significant treaty users
Frequently Asked Questions
What TDS rate applies on interest paid by an Indian subsidiary to its Korean parent company?▾
Under the India-South Korea DTAA, interest is taxable at 10% in India. The Korean company must provide TRC from the National Tax Service of Korea and Form 10F to the Indian company.
How are royalties from technology transfer from a Korean company to Indian company taxed?▾
Royalties, including fees for use of industrial/commercial/scientific equipment, are taxable at 10% in India under the India-Korea DTAA. The 10% rate applies to the gross royalty amount.
Does a Korean IT company providing managed services to India create a PE?▾
Remote managed services generally do not create a PE (no fixed place in India). If Korean employees visit India for more than 6 months for services under a single project, a Service PE may be created. For persistent remote-service-only models without physical presence, no PE is typically created.
Browse all articles
20 articlesArticle 1 of the India-South Korea DTAA governs persons covered.…
Article 4 of the India-South Korea DTAA governs resident.…
Article 5 of the India-South Korea DTAA governs permanent establishment.…
Article 7 of the India-South Korea DTAA governs business profits.…
Article 8 of the India-South Korea DTAA governs shipping, inland waterways, and air transport.…
Article 9 of the India-South Korea DTAA governs associated enterprises.…
Dividends paid by a company resident in one State to a resident of the other State may be taxed in the recipie…
Interest arising in one State and paid to a resident of the other may be taxed in the recipient's State, with …
Royalties paid to a resident of the other State may be taxed in the recipient's State; the source State retain…
FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a speci…
Article 13 allocates taxing rights over capital gains between India and South Korea.…
Article 14 of the India-South Korea DTAA governs independent personal services.…
Article 15 sets the taxing rights for salaries earned by an employee of one State who works in the other.…
Article 17 of the India-South Korea DTAA governs artistes and sportspersons.…
Article 18 of the India-South Korea DTAA governs pensions.…
Article 19 of the India-South Korea DTAA governs government service.…
Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax cre…
MAP allows the competent authorities of India and South Korea to resolve disputes - particularly transfer pric…
Allows the competent authorities to exchange information necessary to apply the treaty or domestic tax laws.…
Treaty benefits are denied where the principal purpose of the transaction was to obtain them.…
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