Resolução

Resolução da Assembleia da República n.º 25/97

Aprova, para ratificação, a Convenção entre a República Portuguesa e a República da Coreia para Evitar a Dupla Tributação e Prevenir a Evasão Fiscal em Matéria de Imposto sobre o Rendimento, assinada em Seul em 26 de Janeiro de 1996

Capítulo I - Âmbito de aplicação da Convenção

Artigo 1.º

Pessoas visadas

Esta Convenção aplica-se às pessoas residentes de um ou de ambos os Estados Contratantes.

Artigo 2.º

Impostos visados

1 -Os impostos actuais a que esta Convenção se aplica são:
1. a)Relativamente à Coreia:
  1. i)O imposto de rendimento;
  2. ii)O imposto de sociedades;
  3. iii)O imposto sobre os habitantes; e
  4. iv)O imposto especial de desenvolvimento rural;
    (a seguir referidos pela designação de «imposto coreano»);
2. b)Relativamente a Portugal:
  1. i)O imposto sobre o rendimento das pessoas singulares (IRS);
  2. ii)O imposto sobre o rendimento das pessoas colectivas (IRC); e
  3. iii)A derrama;
    (a seguir referidos pela designação de «imposto português»).
2 -A Convenção será também aplicável aos impostos de natureza idêntica ou similar que entrem em vigor posteriormente à data da assinatura da Convenção e que venham a acrescer aos actuais ou a substituí-los. As autoridades competentes dos Estados Contratantes comunicarão uma à outra as modificações importantes introduzidas nas respectivas legislações fiscais.

Capítulo II - Definições

Artigo 3.º

Definições gerais

1 -Para efeitos desta Convenção, a não ser que o contexto exija interpretação diferente:
1. a)O termo «Coreia» compreende o território da República da Coreia, incluindo qualquer área adjacente ao mar territorial da República da Coreia que, em conformidade com o direito internacional, é ou venha a ser considerada pelas leis da República da Coreia uma área na qual a República da Coreia pode exercer os seus direitos soberanos relativos ao leito e subsolo do mar e respectivos recursos naturais;
2. b)O termo «Portugal» compreende o território da República Portuguesa situado no continente europeu, os arquipélagos dos Açores e da Madeira, o respectivo mar territorial e, bem assim, as outras zonas onde, em conformidade com a legislação portuguesa e o direito internacional, a República Portuguesa tem jurisdição ou direitos soberanos relativamente à prospecção, pesquisa e exploração dos recursos naturais do leito do mar, e seu subsolo;
3. c)As expressões «um Estado Contratante» e «o outro Estado Contratante» significam a República da Coreia ou a República Portuguesa, consoante resulte do contexto;
4. d)O termo «imposto» significa o imposto coreano ou o imposto português, consoante resulte do contexto;
5. e)O termo «pessoa» compreende uma pessoa singular, uma sociedade e qualquer outro agrupamento de pessoas;
6. f)O termo «sociedade» significa qualquer pessoa colectiva ou qualquer entidade que é tratada como pessoa colectiva para fins tributários;
7. g)As expressões «empresa de um Estado Contratante» e «empresa do outro Estado Contratante» significam, respectivamente, uma empresa explorada por um residente de um Estado Contratante e uma empresa explorada por um residente do outro Estado Contratante;
8. h)O termo «nacional» designa:
  1. i)Todas as pessoas singulares que tenham a nacionalidade de um Estado Contratante;
  2. ii)Todas as pessoas colectivas, associações ou outras entidades constituídas de harmonia com a legislação em vigor num Estado Contratante;
9. i)A expressão «tráfego internacional» significa qualquer transporte por navio ou aeronave explorado por uma empresa de um Estado Contratante, excepto se o navio ou aeronave for explorado somente entre lugares situados no outro Estado Contratante;
10. j)A expressão «autoridade competente» significa:
  1. i)Relativamente à Coreia, o Ministro das Finanças e da Economia ou os seus representantes autorizados;
  2. ii)Relativamente a Portugal, o Ministro das Finanças, o director-geral das Contribuições e Impostos ou os seus representantes autorizados.
2 -Para aplicação da presente Convenção por um Estado Contratante, qualquer expressão não definida de outro modo terá, a não ser que o contexto exija interpretação diferente, o significado que lhe for atribuído pela legislação desse Estado relativa aos impostos a que a Convenção se aplica.

Artigo 4.º

Residente

1 -Para efeitos desta Convenção, a expressão «residente de um Estado Contratante» significa qualquer pessoa que, por virtude da legislação desse Estado, está aí sujeita a imposto devido ao seu domicílio, à sua residência, ao local de direcção ou de administração ou a qualquer outro critério de natureza similar. Todavia, esta expressão não inclui qualquer pessoa que está sujeita a imposto nesse Estado apenas relativamente ao rendimento de fontes localizadas nesse Estado.
2 -Quando, por virtude do disposto no n.º 1, uma pessoa singular for residente de ambos os Estados Contratantes, a situação será resolvida como segue:
1. a)Será considerada residente do Estado em que tenha uma habitação permanente à sua disposição. Se tiver uma habitação permanente à sua disposição em ambos os Estados, será considerada residente do Estado com o qual sejam mais estreitas as suas relações pessoais e económicas (centro de interesses vitais);
2. b)Se o Estado em que tem o centro de interesses vitais não puder ser determinado ou se não tiver uma habitação permanente à sua disposição em nenhum dos Estados, será considerada residente do Estado em que permanece habitualmente;
3. c)Se permanecer habitualmente em ambos os Estados ou se não permanecer habitualmente em nenhum deles, será considerada residente do Estado de que for nacional;
4. d)Se for nacional de ambos os Estados ou não for nacional de nenhum deles, as autoridades competentes dos Estados Contratantes resolverão o caso de comum acordo.
3 -Quando, em virtude do disposto no n.º 1, uma pessoa que não seja uma pessoa singular for residente de ambos os Estados Contratantes, será considerada residente do Estado em que estiver situada a sua direcção efectiva. Em caso de dúvida, as autoridades competentes dos Estados Contratantes resolverão a questão de comum acordo.

Artigo 5.º

Estabelecimento estável

1 -Para efeitos desta Convenção, a expressão «estabelecimento estável» significa uma instalação fixa através da qual a empresa exerça toda ou parte da sua actividade.
2 -A expressão «estabelecimento estável» compreende, nomeadamente:
1. a)Um local de direcção;
2. b)Uma sucursal;
3. c)Um escritório;
4. d)Uma fábrica;
5. e)Uma oficina; e
6. f)Uma mina, um poço de petróleo ou gás, uma pedreira ou qualquer local de extracção de recursos naturais.
3 -Um local ou um estaleiro de construção ou de montagem só constitui um estabelecimento estável se a sua duração exceder seis meses.
4 -Não obstante as disposições anteriores deste artigo, a expressão «estabelecimento estável» não compreende:
1. a)As instalações utilizadas unicamente para armazenar, expor ou entregar mercadorias pertencentes à empresa;
2. b)Um depósito de mercadorias pertencentes à empresa, mantido unicamente para as armazenar, expor ou entregar;
3. c)Um depósito de mercadorias pertencentes à empresa, mantido unicamente para serem transformadas por outra empresa;
4. d)Uma instalação fixa, mantida unicamente para comprar mercadorias ou reunir informações para a empresa;
5. e)Uma instalação fixa, mantida unicamente para exercer, para a empresa, qualquer outra actividade de carácter preparatório ou auxiliar;
6. f)Uma instalação fixa, mantida unicamente para o exercício de qualquer combinação das actividades referidas nas alíneas a) a e), desde que a actividade de conjunto da instalação fixa resultante desta combinação seja de carácter preparatório ou auxiliar.
5 -Não obstante o disposto nos n.os 1 e 2, quando uma pessoa - que não seja um agente independente, a que é aplicável o n.º 7 - actue por conta de uma empresa e tenha e habitualmente exerça num Estado Contratante poderes para concluir contratos em nome da empresa, será considerado que esta empresa tem um estabelecimento estável nesse Estado relativamente a qualquer actividade que essa pessoa exerça para a empresa, a não ser que as actividades de tal pessoa se limitem às indicadas no n.º 4, as quais, se fossem exercidas através de uma instalação fixa, não permitiriam considerar esta instalação fixa como um estabelecimento estável, de acordo com as disposições desse número.
6 -Com ressalva do disposto nos n.os 4, 7 e 8 do presente artigo, considera-se que uma empresa de um Estado Contratante que exerce uma actividade com carácter de permanência através dos seus próprios empregados ou de outro pessoal que preste serviços substancialmente idênticos, durante 183 dias ou mais num período de 12 meses, no outro Estado Contratante, tem um estabelecimento estável nesse outro Estado.
7 -Não se considera que uma empresa tem um estabelecimento estável num Estado Contratante pelo simples facto de exercer a sua actividade nesse Estado por intermédio de um corretor, de um comissário-geral ou de qualquer outro agente independente, desde que essas pessoas actuem no âmbito normal da sua actividade.
8 -O facto de uma sociedade residente de um Estado Contratante controlar ou ser controlada por uma sociedade residente do outro Estado Contratante ou que exerce a sua actividade nesse outro Estado (quer seja através de um estabelecimento estável, quer de outro modo) não é, por si, bastante para fazer de qualquer dessas sociedades estabelecimento estável da outra.

Capítulo III - Tributação do rendimento

Artigo 6.º

Rendimentos dos bens imobiliários

1 -Os rendimentos que um residente de um Estado Contratante aufira de bens imobiliários (incluídos os rendimentos das explorações agrícolas ou florestais) situados no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -A expressão «bens imobiliários» terá o significado que lhe for atribuído pelo direito do Estado Contratante em que tais bens estiverem situados. A expressão compreende sempre os acessórios, o gado e o equipamento das explorações agrícolas e florestais, os direitos a que se apliquem as disposições do direito privado relativas à propriedade de bens imóveis, o usufruto de bens imobiliários e os direitos a retribuições variáveis ou fixas pela exploração ou pela concessão da exploração de jazigos minerais, fontes e outros recursos naturais; os navios e aeronaves não são considerados bens imobiliários.
3 -A disposição do n.º 1 aplica-se aos rendimentos derivados da utilização directa, do arrendamento ou de qualquer outra forma de utilização dos bens imobiliários.
4 -O disposto nos n.os 1 e 3 aplica-se igualmente aos rendimentos provenientes dos bens imobiliários de uma empresa e aos rendimentos dos bens imobiliários utilizados para o exercício de profissões independentes.
5 -As disposições anteriores aplicam-se igualmente aos rendimentos derivados dos bens mobiliários que, de acordo com o direito fiscal do Estado Contratante em que tais bens estiverem situados, sejam assimilados aos rendimentos derivados dos bens imobiliários.

Artigo 7.º

Lucros das empresas

1 -Os lucros de uma empresa de um Estado Contratante só podem ser tributados nesse Estado, a não ser que a empresa exerça a sua actividade no outro Estado Contratante por meio de um estabelecimento estável aí situado. Se a empresa exercer a sua actividade deste modo, os seus lucros podem ser tributados no outro Estado, mas unicamente na medida em que forem imputáveis a esse estabelecimento estável.
2 -Com ressalva do disposto no n.º 3, quando uma empresa de um Estado Contratante exercer a sua actividade no outro Estado Contratante por meio de um estabelecimento estável aí situado, serão imputados, em cada Estado Contratante, a esse estabelecimento estável os lucros que este obteria se fosse uma empresa distinta e separada que exercesse as mesmas actividades ou actividades similares, nas mesmas condições ou em condições similares, e tratasse com absoluta independência com a empresa de que é estabelecimento estável.
3 -Na determinação do lucro de um estabelecimento estável é permitido deduzir as despesas que tiverem sido feitas para a realização dos fins prosseguidos por esse estabelecimento estável, incluindo as despesas de direcção e as despesas gerais de administração, efectuadas com o fim referido, quer no Estado em que esses estabelecimento estável estiver situado quer fora dele.
4 -Nenhum lucro será imputado a um estabelecimento estável pelo facto da simples compra de mercadorias, por esse estabelecimento estável, para a empresa.
5 -Para efeitos dos números precedentes, os lucros a imputar ao estabelecimento estável serão calculados, em cada ano, segundo o mesmo método, a não ser que existam motivos válidos e suficientes para proceder de forma diferente.
6 -Quando os lucros compreendam elementos do rendimento especialmente tratados noutros artigos desta Convenção, as respectivas disposições não serão afectadas pelas deste artigo.

Artigo 8.º

Navegação marítima e aérea

1 -Os lucros de uma empresa de um Estado Contratante provenientes da exploração de navios ou aeronaves no tráfego internacional só podem ser tributados nesse Estado.
2 -O disposto no n.º 1 é aplicável igualmente aos lucros provenientes da participação num pool, numa exploração em comum ou num organismo internacional de exploração.

Artigo 9.º

Empresas associadas

Quando:

a)Uma empresa de um Estado Contratante participar, directa ou indirectamente, na direcção, no controlo ou no capital de uma empresa do outro Estado Contratante; ou
b)As mesmas pessoas participarem, directa ou indirectamente, na direcção, no controlo ou no capital de uma empresa de um Estado Contratante e de uma empresa do outro Estado Contratante:
e, em ambos os casos, as duas empresas, nas suas relações comerciais ou financeiras, estiverem ligadas por condições aceites ou impostas que difiram das que seriam estabelecidas entre empresas independentes, os lucros que, se não existissem essas condições, teriam sido obtidos por uma das empresas, mas não foram por causa dessas condições, podem ser incluídos nos lucros dessa empresa e, consequentemente, tributados.

Artigo 10.º

Dividendos

1 -Os dividendos pagos por uma sociedade residente de um Estado Contratante a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -Esses dividendos podem, no entanto, ser igualmente tributados no Estado Contratante de que é residente a sociedade que paga os dividendos e de acordo com a legislação desse Estado, mas se a pessoa que recebe os dividendos for o seu beneficiário efectivo, o imposto assim estabelecido não excederá 15% do montante bruto desses dividendos.
Este número não afecta a tributação da sociedade pelos lucros dos quais os dividendos são pagos.
3 -Não obstante o disposto no n.º 2, se o beneficiário efectivo for uma sociedade que, durante um período consecutivo de dois anos anteriormente ao pagamento dos dividendos, detiver 25% pelo menos do capital social da sociedade que paga os dividendos, o imposto assim estabelecido não excederá, relativamente aos dividendos pagos após 31 de Dezembro de 1996, 10% do montante bruto desses dividendos.
4 -O termo «dividendos», usado neste artigo, significa os rendimentos provenientes de acções, acções ou bónus de fruição, partes de minas, partes de fundadores, ou outros direitos, com excepção dos créditos, que permitam participar nos lucros, assim como os rendimentos derivados de outras partes sociais sujeitos ao mesmo regime fiscal que os rendimentos de acções pela legislação do Estado de que é residente a sociedade que os distribui. O disposto neste artigo é igualmente aplicável aos lucros atribuídos ou pagos a uma pessoa associada a uma actividade comercial ou industrial exercida por outra pessoa nos termos de um acordo de participação nos lucros, segundo o disposto na legislação de cada Estado Contratante (no caso de Portugal, associação em participação).
5 -O disposto nos n.os 1, 2 e 3 não é aplicável se o beneficiário efectivo dos dividendos residente de um Estado Contratante exercer actividade no outro Estado Contratante de que é residente a sociedade que paga os dividendos, por meio de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, por meio de uma instalação fixa aí situada, e a participação relativamente à qual os dividendos são pagos estiver efectivamente ligada a esse estabelecimento estável ou a essa instalação fixa. Neste caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.
6 -Quando uma sociedade residente de um Estado Contratante obtiver lucros ou rendimentos provenientes do outro Estado Contratante, este outro Estado não poderá exigir nenhum imposto sobre os dividendos pagos pela sociedade, excepto na medida em que esses dividendos forem pagos a um residente desse outro Estado ou na medida em que a participação relativamente à qual os dividendos são pagos estiver efectivamente ligada a um estabelecimento estável ou a uma instalação fixa situado nesse outro Estado nem sujeitar os lucros não distribuídos da sociedade a um imposto sobre os lucros não distribuídos, mesmo que os dividendos pagos ou os lucros não distribuídos consistam, total ou parcialmente, em lucros ou rendimentos provenientes desse outro Estado.

Artigo 11.º

Juros

1 -Os juros provenientes de um Estado Contratante e pagos a um residente do outro Estado Contratante podem ser tributados nesse outro Estado.
2 -No entanto, esses juros podem ser igualmente tributados no Estado Contratante de que provêm e de acordo com a legislação desse Estado, mas se a pessoa que recebe os juros for o seu beneficiário efectivo o imposto assim estabelecido não excederá 15% do montante bruto desses juros.
3 -Não obstante o disposto no n.º 2, os juros provenientes de um dos Estados Contratantes serão isentos de imposto nesse Estado se:
1. a)O devedor dos juros for o Governo do dito Estado, uma sua subdivisão política ou administrativa ou uma sua autarquia local; ou
2. b)Os juros forem pagos ao Governo do outro Estado Contratante, a uma sua subdivisão política ou administrativa ou a uma sua autarquia local ou a uma instituição ou organismo (incluídas as instituições financeiras) por virtude de financiamentos por eles concedidos no âmbito de acordos concluídos entre os Governos dos Estados Contratantes; ou
3. c)Relativamente a empréstimos ou a créditos concedidos:
  1. i)No caso da Coreia, pelo Banco da Coreia, Banco de Importação-Exportação da Coreia e Banco de Fomento da Coreia; e
  2. ii)No caso de Portugal, pelo Banco de Portugal, pela Caixa Geral de Depósitos, pelo Banco Nacional Ultramarino (BNU), pelo Banco de Fomento e Exterior (BFE), pelo Banco Borges e Irmão e pelo ICEP - Investimentos, Comércio e Turismo de Portugal.
4 -O termo «juros», usado neste artigo, significa os rendimentos de créditos de qualquer natureza com ou sem garantia hipotecária e com direito ou não a participar nos lucros do devedor, e nomeadamente os rendimentos da dívida pública e de obrigações de empréstimo, incluindo prémios atinentes a esses títulos, bem como quaisquer outros rendimentos assimilados aos rendimentos de importâncias emprestadas pela legislação fiscal do Estado de que provêm os rendimentos.
5 -O disposto nos n.os 1, 2 e 3 não é aplicável se o beneficiário efectivo dos juros residente de um Estado Contratante exercer actividade no outro Estado Contratante de que provêm os juros, por meio de um estabelecimento estável aí situado ou exercer nesse outro Estado uma profissão independente, por meio de uma instalação fixa aí situada, e o crédito relativamente ao qual os juros são pagos estiver efectivamente ligado a esse estabelecimento estável ou a essa instalação fixa.
Neste caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.
6 -Os juros consideram-se provenientes de um Es-tado Contratante quando o devedor for esse próprio Estado, uma sua subdivisão política ou administrativa, uma sua autarquia local ou um residente desse Estado. Todavia, quando o devedor dos juros, seja ou não residente de um Estado Contratante, tiver num Estado Contratante um estabelecimento estável ou uma instalação fixa em relação com os quais haja sido contraída a obrigação pela qual os juros são pagos a esse estabelecimento estável ou essa instalação fixa suportem o pagamento desses juros, tais juros são considerados provenientes do Estado Contratante em que o estabelecimento estável ou a instalação fixa estiverem situados.
7 -Quando, devido a relações especiais existentes entre o devedor e o beneficiário efectivo ou entre ambos e qualquer outra pessoa, o montante dos juros, tendo em conta o crédito pelo qual são pagos, exceder o montante que seria acordado entre o devedor e o beneficiário efectivo na ausência de tais relações, as disposições deste artigo são aplicáveis apenas a este último montante. Neste caso, o excesso pode continuar a ser tributado de acordo com a legislação de cada Estado Contratante, tendo em conta as outras disposições desta Convenção.

Artigo 12.º

Royalties

1 -As royalties provenientes de um Estado Contratante e pagas a um residente do outro Estado Contratante podem ser tributadas nesse outro Estado.
2 -Todavia, essas royalties podem ser igualmente tributadas no Estado Contratante de que provêm e de acordo com a legislação desse Estado, mas se a pessoa que receber as royalties for o seu beneficiário efectivo, o imposto assim estabelecido não excederá 10% do montante bruto das royalties.
3 -O termo «royalties», usado neste artigo, significa as retribuições de qualquer natureza atribuídas pelo uso ou pela concessão do uso de um direito de autor sobre uma obra literária, artística ou científica, incluindo os filmes cinematográficos, bem como filmes ou gravações para transmissão pela rádio ou pela televisão, de uma patente, de uma marca de fabrico ou de comércio, de um desenho ou de um modelo, de um plano, de uma fórmula ou de um processo secreto, bem como pelo uso ou pela concessão do uso de um equipamento industrial, comercial ou científico ou por informações respeitantes a uma experiência adquirida no sector industrial, comercial ou científico.
O termo «royalties» inclui também os pagamentos relativos a assistência técnica prestada em conexão com o uso ou concessão do uso dos direitos, bens ou informações referidos no presente número.
4 -O disposto nos n.os 1 e 2 não é aplicável se o beneficiário efectivo das royalties residente de um Estado Contratante exercer actividade no outro Estado Contratante de que provêm as royalties, por meio de um estabelecimento estável aí situado, ou exercer nesse outro Estado uma profissão independente, por meio de uma instalação fixa aí situada, e o direito ou bem relativamente ao qual as royalties são pagas estiver efectivamente ligado a esses estabelecimento estável ou a essa instalação fixa. Neste caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.
5 -As royalties consideram-se provenientes de um Estado Contratante quando o devedor for esse próprio Estado, uma sua subdivisão política ou administrativa, uma sua autarquia local ou um residente desse Estado. Todavia, quando o devedor das royalties, seja ou não residente de um Estado Contratante, tiver num Estado Contratante um estabelecimento estável ou uma instalação fixa em relação com os quais haja sido contraída a obrigação que dá origem ao pagamento das royalties e esse estabelecimento estável ou essa instalação fixa suportem o pagamento dessas royalties, tais royalties são consideradas provenientes do Estado em que o estabelecimento estável ou a instalação fixa estiverem situados.
6 -Quando, devido a relações especiais existentes entre o devedor e o beneficiário efectivo ou entre ambos e qualquer outra pessoa, o montante das royalties, tendo em conta o uso, o direito ou as informações pelos quais são pagas, exceder o montante que seria acordado entre o devedor e o beneficiário efectivo, na ausência de tais relações, as disposições deste artigo são aplicáveis apenas a este último montante. Neste caso, o excesso pode continuar a ser tributado de acordo com a legislação de cada Estado Contratante, tendo em conta as outras disposições desta Convenção.

Artigo 13.º

Mais-valias

1 -Os ganhos que um residente de um Estado Contratante aufira da alienação de bens imobiliários considerados no artigo 6.º e situados no outro Estado Contratante podem ser tributados nesse outro Estado.
2 -Os ganhos provenientes da alienação de bens mobiliários que façam parte do activo de um estabelecimento estável que uma empresa de um Estado Contratante tenha no outro Estado Contratante ou de bens mobiliários afectos a uma instalação fixa de que um residente de um Estado Contratante disponha no outro Estado Contratante para o exercício de uma profissão independente, incluindo os ganhos provenientes da alienação desse estabelecimento estável (isolado ou com o conjunto da empresa) ou dessa instalação fixa, podem ser tributados nesse outro Estado.
3 -Os ganhos provenientes da alienação de navios ou aeronaves utilizados no tráfego internacional ou de bens mobiliários afectos à exploração desses navios ou aeronaves só podem ser tributados no Estado Contratante de que a empresa for residente.
4 -Os ganhos provenientes da alienação de quaisquer outros bens diferentes dos mencionados nos n.os 1, 2 e 3 deste artigo só podem ser tributados no Estado Contratante de que o alienante é residente.

Artigo 14.º

Profissões independentes

1 -Os rendimentos obtidos por um residente de um Estado Contratante pelo exercício de uma profissão liberal ou de outras actividades de carácter independente só podem ser tributados nesse Estado. Esses rendimentos podem, porém, ser tributados no outro Estado Contratante nos seguintes casos:
1. a)Se esse residente dispuser, de forma habitual, no outro Estado Contratante de uma instalação fixa para o exercício das suas actividades; neste caso, podem ser tributados no outro Estado Contratante unicamente os rendimentos que forem imputáveis a essa instalação fixa; ou
2. b)Se o residente permanecer no outro Estado Contratante durante um período ou períodos que atinjam ou excedam, no total, 183 dias em qualquer período de 12 meses com início ou termo no ano fiscal em causa.
2 -A expressão «profissões liberais» abrange, em especial, as actividades independentes de carácter científico, literário, artístico, educativo ou pedagógico, bem como as actividades independentes de médicos, advogados, engenheiros, arquitectos, dentistas e contabilistas.

Artigo 15.º

Profissões dependentes

1 -Com ressalva do disposto nos artigos 16.º, 18.º, 19.º, 20.º e 21.º, os salários, ordenados e remunerações similares obtidos de um emprego por um residente de um Estado Contratante só podem ser tributados nesse Estado, a não ser que o emprego seja exercido no outro Estado Contratante. Se o emprego for aí exercido, as remunerações correspondentes podem ser tributadas nesse outro Estado.
2 -Não obstante o disposto no n.º 1, as remunerações obtidas por um residente de um Estado Contratante de um emprego exercido no outro Estado Contratante só podem ser tributadas no Estado primeiramente mencionado se:
1. a)O beneficiário permanecer no outro Estado durante um período ou períodos que não excedam, no total, 183 dias em qualquer período de 12 meses, com início ou termo no ano fiscal em causa; e
2. b)As remunerações forem pagas por uma entidade patronal ou em nome de uma entidade patronal que não seja residente do outro Estado; e
3. c)As remunerações não forem suportadas por um estabelecimento estável ou por uma instalação fixa que a entidade patronal tenha no outro Estado.
3 -Não obstante as disposições anteriores deste artigo, as remunerações de um emprego exercido a bordo de um navio ou de uma aeronave explorada no tráfego internacional por uma empresa de um Estado Contratante só podem ser tributadas nesse Estado.

Artigo 16.º

Percentagens de membros de conselhos

As percentagens, senhas de presença e remunerações similares obtidas por um residente de um Estado Contratante na qualidade de membro do conselho de administração ou fiscal ou de um órgão análogo de uma sociedade residente do outro Estado Contratante podem ser tributadas nesse outro Estado, desde que as remunerações pagas por essa sociedade a um membro dos seus órgãos, em virtude do exercício de uma actividade diária, possam ser tributadas de acordo com o disposto no artigo 15.º

Artigo 17.º

Artistas e desportistas

1 -Não obstante o disposto nos artigos 14.º e 15.º, os rendimentos obtidos por um residente de um Estado Contratante na qualidade de profissional de espectáculos, tal como artista de teatro, cinema, rádio ou televisão, ou músico, bem como de desportista, provenientes das suas actividades pessoais, exercidas, nessa qualidade, no outro Estado Contratante, podem ser tributados nesse outro Estado.
2 -Não obstante o disposto nos artigos 7.º, 14.º e 15.º, os rendimentos da actividade exercida pessoalmente pelos profissionais de espectáculos ou desportistas, nessa qualidade, atribuídos a uma outra pessoa, podem ser tributados no Estado Contratante em que são exercidas essas actividades dos profissionais de espectáculos ou dos desportistas.
3 -Não obstante o disposto nos n.os 1 e 2 do presente artigo, os rendimentos obtidos pelos profissionais de espectáculos ou desportistas residentes de um Estado Contratante da actividade exercida no outro Estado contratante no âmbito de um programa de intercâmbio cultural acordado entre os Governos de ambos os Estados Contratantes são isentos de imposto nesse outro Estado.

Artigo 18.º

Pensões

Com ressalva do disposto no n.º 2 do artigo 19.º, as pensões e remunerações similares pagas a um residente de um Estado Contratante em consequência de um emprego anterior só podem ser tributadas nesse Estado.

Artigo 19.º

Remunerações públicas

1 -a) As remunerações, excluindo as pensões, pagas por um Estado Contratante ou por uma das suas subdivisões políticas ou administrativas ou autarquias locais a uma pessoa singular, em consequência de serviços prestados a esse Estado ou a essa subdivisão ou autarquia, só podem ser tributadas nesse Estado.
1. b)Estas remunerações só podem, contudo, ser tributadas no outro Estado Contratante se os serviços forem prestados neste Estado e se a pessoa singular for um residente deste Estado:
  1. i)Sendo seu nacional; ou
  2. ii)Que não se tornou seu residente unicamente para o efeito de prestar os ditos serviços.
2 -a) As pensões pagas por um Estado Contratante ou por uma das suas subdivisões políticas ou administrativas ou autarquias locais, quer directamente quer através de fundos por elas constituídos, a uma pessoa singular, em consequência de serviços prestados a esse Estado ou a essa subdivisão ou autarquia, só podem ser tributados nesse Estado.
1. b)Estas pensões só podem, contudo, ser tributadas no outro Estado Contratante se a pessoa singular for um residente e um nacional desse Estado.
3 -O disposto nos artigos 15.º, 16.º e 18.º aplica-se às remunerações e pensões pagas em consequência de serviços prestados em relação com uma actividade comercial ou industrial exercida por um Estado Contratante ou por uma das suas subdivisões políticas ou administrativas ou autarquias locais.
4 -O disposto nos n.os 1 e 2 do presente artigo aplica-se igualmente às remunerações e pensões pagas:
1. a)Relativamente à Coreia, pelo Bank of Korea, Korea Export-Import Bank, Korea Development Bank e Korea Trade Promotion Corporation; e
2. b)Relativamente a Portugal, pelo Banco de Portugal, Caixa Geral de Depósitos, Banco Nacional Ultramarino (BNU), Banco de Fomento Externo e Desenvolvimento (BFED), Banco Borges e Irmão, Instituto de Comércio Externo de Portugal (ICEP) e Companhia de Seguros de Crédito (COSEC).

Artigo 20.º

Estudantes e estagiários

As importâncias que um estudante ou um estagiário que é ou foi, imediatamente antes da sua permanência num Estado Contratante, residente do outro Estado Contratante e cuja permanência no Estado Contratante primeiramente mencionado tem como único fim aí prosseguir os seus estudos ou a sua formação receba para fazer face às despesas com a sua manutenção, estudos ou formação não são tributadas nesse Estado desde que provenham de fontes situadas fora desse Estado.

Artigo 21.º

Professores

Uma pessoa que é ou foi residente de um Estado Contratante imediatamente antes e que se desloca ao outro Estado Contratante, a convite de uma universidade, colégio, escola ou outra instituição similar de ensino ou de pesquisa científica, reconhecida como não tendo fins lucrativos pelo Governo desse outro Estado, ou no âmbito de um programa oficial de intercâmbio cultural, durante um período não excedente a dois anos a contar da data da chegada a esse outro Estado, com vista unicamente a ensinar ou efectuar pesquisas científicas nas ditas instituições, é isenta de imposto nesse outro Estado pelas remunerações recebidas em consequência desse en-sino ou investigação.

Artigo 22.º

Outros rendimentos

1 -Os elementos do rendimento de um residente de um Estado Contratante e donde quer que provenham não tratados nos artigos anteriores desta Convenção só podem ser tributados nesse Estado.
2 -O disposto no n.º 1 não se aplica ao rendimento, que não seja rendimento de bens imobiliários como são definidos no n.º 2 do artigo 6.º, auferido por um residente de um Estado Contratante que exerce actividade no outro Estado Contratante por meio de um estabelecimento estável nele situado ou que exerce nesse outro Estado uma profissão independente através de uma instalação fixa nele situada, estando o direito ou a propriedade, em relação ao qual o rendimento é pago, efectivamente ligado a esse estabelecimento estável ou instalação fixa. Neste caso, são aplicáveis as disposições do artigo 7.º ou do artigo 14.º, consoante o caso.

Capítulo IV - Métodos para eliminação da dupla tributação

Artigo 23.º

Eliminação da dupla tributação

1 -Relativamente a um residente da Coreia, a dupla tributação será evitada do seguinte modo:
Com ressalva do disposto na legislação fiscal da Coreia relativa à concessão de dedução no imposto coreano do imposto pagável noutro país com excepção da Coreia, e que não afectará o princípio geral aqui estabelecido, o imposto português pagável por força da legislação de Portugal e de acordo com a presente convenção, quer directamente quer por dedução, sobre o rendimento proveniente de fontes situadas em Portugal (com exclusão, no caso de dividendos, do imposto pagável relativamente aos lucros de que aqueles são pagos) será deduzido do imposto coreano pagável relativamente a esse rendimento. A importância deduzida não poderá, contudo, exceder a fracção do imposto coreano correspondente aos rendimentos de fonte portuguesa em relação ao rendimento global sujeito a imposto da Coreia.
2 -Relativamente a um residente em Portugal, a dupla tributação será evitada do seguinte modo:
1. a)Quando um residente de Portugal obtiver rendimentos que, de acordo com o disposto nesta Convenção, possam ser tributados na Coreia, a República Portuguesa deduzirá do imposto sobre os rendimentos desse residente uma importância igual ao imposto sobre o rendimento pago na Coreia. A importância deduzida não poderá, contudo, exceder a fracção do imposto sobre o rendimento, calculado antes da dedução, correspondente aos rendimentos que podem ser tributados na Coreia; e
2. b)Quando, de acordo com o disposto nesta Convenção, o rendimento obtido por um residente de Portugal for isento de imposto neste Estado, Portugal poderá, não obstante, ao calcular o quantitativo do imposto sobre o resto dos rendimentos desse residente, ter em conta o rendimento isento.
3 -Para efeitos do disposto nos n.os 1 e 2 deste artigo, considera-se que as expressões «imposto português pagável», no n.º 1, ou «imposto sobre o rendimento pago na Coreia», no n.º 2, compreendem qualquer importância que teria sido paga a título de imposto português ou de imposto coreano, consoante o caso, se não fosse a isenção, dedução ou redução de imposto em virtude da legislação em vigor no respectivo Estado Contratante.

Capítulo V - Disposições especiais

Artigo 24.º

Não discriminação

1 -Os nacionais de um Estado Contratante não ficarão sujeitos no outro Estado Contratante a nenhuma tributação ou obrigação com ela conexa diferente ou mas gravosa do que aquela a que estejam ou possam estar sujeitos os nacionais desse outro Estado que se encontrem na mesma situação. Não obstante o estabelecido no artigo 1.º, esta disposição aplicar-se-á também às pessoas que não são residentes de um ou de ambos os Estados Contratantes.
2 -A tributação de um estabelecimento estável que uma empresa de um Estado Contratante tenha no outro Estado Contratante não será nesse outro Estado menos favorável do que a das empresas desse outro Estado que exerçam as mesmas actividades. Esta disposição não poderá ser interpretada no sentido de obrigar um Estado Contratante a conceder aos residentes do outro Estado Contratante as deduções pessoais, abatimentos e reduções para efeitos fiscais atribuídos em função do estado civil ou encargos familiares concedidos aos seus próprios residentes.
3 -Salvo se for aplicável o disposto no artigo 9.º, no n.º 7 do artigo 11.º ou no n.º 6 do artigo 12.º, os juros, royalties e outras importâncias pagas por uma empresa de um Estado Contratante a um residente do outro Estado Contratante serão dedutíveis, para efeitos da determinação do lucro tributável de tal empresa, como se fossem pagas a um residente do Estado primeiramente mencionado.
4 -As empresas de um Estado Contratante cujo capital, total ou parcialmente, directa ou indirectamente, seja possuído ou controlado por um ou mais residentes do outro Estado Contratante não ficarão sujeitas, no Estado primeiramente mencionado, a nenhuma tributação ou obrigação com ela conexa diferente ou mais gravosa do que aquela a que estejam ou possam estar sujeitas as empresas similares desse primeiro Estado.
5 -Não obstante o disposto no artigo 2.º, as disposições do presente artigo aplicar-se-ão aos impostos de qualquer natureza ou denominação.

Artigo 25.º

Procedimento amigável

1 -Quando uma pessoa considerar que as medidas tomadas por um Estado Contratante ou por ambos os Estados Contratantes conduzem ou poderão conduzir, em relação a si, a uma tributação não conforme com o disposto nesta Convenção, poderá, independentemente dos recursos estabelecidos pela legislação nacional desses Estados, submeter o seu caso à autoridade competente do Estado Contratante de que é residente ou, se o caso está compreendido no n.º 1 do artigo 24.º, à do Estado Contratante de que é nacional. O caso deverá ser apresentado dentro de dois anos a contar da data da primeira comunicação da medida que der causa à tributação não conforme com o disposto na presente Convenção.
2 -Essa autoridade competente, se a reclamação se lhe afigurar fundada e não estiver em condições de lhe dar uma solução satisfatória, esforçar-se-á por resolver a questão através de acordo amigável com a autoridade competente do outro Estado Contratante, a fim de evitar a dupla tributação não conforme com o disposto na presente Convenção.
3 -As autoridades competentes dos Estados Contratantes esforçar-se-ão por resolver, através de acordo amigável, as dificuldades ou as dúvidas a que possa dar lugar a interpretação ou aplicação da Convenção. Poderão também consultar-se a fim de eliminar a dupla tributação em casos não previstos pela Convenção.
4 -As autoridades competentes dos Estados Contratantes poderão comunicar directamente entre si, a fim de chegarem a acordo nos termos indicados nos números anteriores. Se se afigurar que tal acordo poderá ser facilitado por trocas de impressões orais, essas trocas de impressões poderão efectuar-se no seio de uma comissão composta por representantes das autoridades competentes dos Estados Contratantes.

Artigo 26.º

Troca de informações

1 -As autoridades competentes dos Estados Contratantes trocarão entre si as informações necessárias para aplicar esta Convenção e as leis internas dos Estados Contratantes relativas aos impostos abrangidos por esta Convenção, na medida em que a tributação nelas prevista for conforme com esta Convenção. Todas as informações deste modo trocadas serão consideradas secretas e só poderão ser comunicadas às pessoas ou autoridades (incluindo tribunais e autoridades administrativas) encarregadas do lançamento ou cobrança dos impostos abrangidos por esta Convenção. Essas pessoas ou autoridades utilizarão as informações apenas para os fins referidos. Poderão utilizar essas informações no caso de audiências públicas de tribunais ou de sentença judicial.
2 -O disposto no n.º 1 nunca poderá ser interpretado no sentido de impor a um Estado Contratante a obrigação:
1. a)De tomar medidas administrativas contrárias à sua legislação ou à sua prática administrativa ou às do outro Estado Contratante;
2. b)De fornecer informações que não possam ser obtidas com base na sua legislação ou no âmbito da sua prática administrativa normal ou das do outro Estado Contratante;
3. c)De transmitir informações reveladoras de segredos ou processos comerciais, industriais ou profissionais, ou informações cuja comunicação seja contrária à ordem pública.

Artigo 27.º

Agentes diplomáticos e funcionários consulares

O disposto na presente Convenção não prejudicará os privilégios fiscais de que beneficiem os agentes diplomáticos ou os funcionários consulares em virtude de regras gerais de direito internacional ou de disposições de acordos especiais.

Capítulo VI - Disposições finais

Artigo 28.º

Entrada em vigor

1 -A presente Convenção será ratificada e os instrumentos da ratificação serão trocados em ... o mais cedo possível. A Convenção entrará em vigor no 30.º dia após a data da troca dos instrumentos de ratificação.
2 -A presente Convenção será aplicável:
1. a)Na Coreia:
  1. i)Aos impostos devidos na fonte em ou depois de 1 de Janeiro do ano imediatamente seguinte ao da entrada em vigor da presente Convenção; e
  2. ii)Aos demais impostos, relativamente a qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano imediatamente seguinte ao da entrada em vigor da presente Convenção;
2. b)Em Portugal:
  1. i)Aos impostos devidos na fonte cujo facto gerador surja em ou depois de 1 de Janeiro do ano imediatamente seguinte ao da entrada em vigor da presente Convenção;
  2. ii)Aos demais impostos, relativamente aos rendimentos produzidos em qualquer ano fiscal com início em ou depois de 1 de Janeiro do ano imediatamente seguinte ao da entrada em vigor da presente Convenção.

Artigo 29.º

Denúncia

A presente Convenção permanecerá em vigor indefinidamente, mas qualquer dos Estados contratantes pode denunciar a Convenção por via diplomática, em ou antes de 30 de Junho de qualquer ano civil a contar do 3.º ano subsequente ao da troca dos instrumentos de ratificação. Nesse caso, a Convenção deixará de se aplicar:

a)Na Coreia:
1. i)Aos impostos devidos na fonte em ou depois de 1 de Janeiro do ano imediatamente seguinte ao do aviso da denúncia; e
2. ii)Aos demais impostos, relativamente ao ano fiscal com início em ou depois de 1 de Janeiro do ano imediatamente seguinte ao do aviso da denúncia;
b)Em Portugal:
1. i)Aos impostos devidos na fonte cujo facto gerador surja em ou depois de 1 de Janeiro imediatamente após a data em que o período referido no aviso de denúncia expira; e
2. ii)Aos demais impostos, relativamente aos rendimentos produzidos no ano fiscal com início em ou depois de 1 de Janeiro imediatamente após a data em que o período referido no aviso de denúncia expira.
  Em testemunho do qual, os abaixo assinados, devidamente autorizados para o efeito pelos Governos respectivos, assinaram a presente Convenção.
  Feito em duplicado, em Seul, aos 26 dias do mês de Janeiro de 1996, em português, coreano e inglês, sendo os três textos igualmente válidos. Em caso de divergência de interpretação, prevalecerá o texto inglês.
  Pelo Governo da República Portuguesa:
  Manuel Gervásio Leite.
  Pelo Governo da República da Coreia:
  Gong Ro-Myung.
  CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
  The Government of the Portuguese Republic and the Government of the Republic of Korea, desiring to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:
  CHAPTER I
  Scope of the convention
  Article 1
  Personal scope
  This convention shall apply to persons who are residents of one or both of the Contracting States.
  Article 2
  Taxes covered
1 -The existing taxes to which this Convention shall apply are:
1. a)In the case of Korea:
  1. i)The income tax;
  2. ii)The corporation tax;
  3. iii)The inhabitant tax; and
  4. iv)The special tax for rural development;
    (hereinafter referred to as «Korean tax»);
2. b)In the case of Portugal:
  1. i)Personal income tax (imposto sobre o rendimento das pessoas singulares - IRS);
  2. ii)Corporate income tax (imposto sobre o rendimento das pessoas colectivas - IRC); and
  3. iii)Local surtax on corporate income tax (derrama);
    (hereinafter referred to as «Portuguese tax»).
2 -The Convention shall apply also to any identical or substantially similar taxes wich are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substancial changes wich have been made in their respective taxation laws.
CHAPTER II
Definitions
Article 3
General definitions
1 -For the purposes of this Convention, unless the context otherwise requires:
1. a)The term «Korea» means the territory of the Republic of Korea including any area adjacent to the territorial sea of the Republic of Korea which, in accordance with international law, has been or may hereafter be designated under the laws of the Republic of Korea as an area within wich the sovereign rights of the Republic of Korea with respect to the sea-bed and subsoil and their natural resources may be exercised;
2. b)The term «Portugal» means the territory of the Portuguese Republic situated in the European continent, the archipelagoes of Azores and Madeira, the respective territorial sea and any other zone in wich, in accordance with the laws of Portugal and international law, the Portuguese Republic has its jurisdiction or sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed and subsoil;
3. c)The terms «a Contracting State» and «the other Contracting State» mean the Republic of Korea or the Portuguese Republic, as the context requires;
4. d)The term «tax» means Korean tax or Portuguese tax, as the context requires;
5. e)The term «person» includes an individual, a company and any other body of persons;
6. f)The term «company» means any body corporate or any entity which is treated as a body corporate for tax purposes;
7. g)The terms «enterprise of a Contracting State» and «enterprise of the other Contracting State» mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
8. h)The term «national» means:
  1. i)All individuals possessing the nationality of a Contracting State;
  2. ii)All legal persons, partnerships and associations deriving their status as such from the laws in force in a Contracting State;
9. i)The term «international traffic» means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
10. j)The therm «competent authority» means:
  1. i)In the case of Korea, the Minister of Finance and Economy or his authorized representative;
  2. ii)In the case of Portugal, the Minister of Finance, the Director-General of Taxation (Director-Geral das Contribuições e Impostos) or their authorized representative.
2 -As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to wich the Convention applies.
Article 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. But this term 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:
1. a)He shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which is personal and economic relations are closer (centre of vital interests);
2. b)If the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in wich he has an habitual abode;
3. c)If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
4. d)If he is a national of both 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. In case of doubts the competent authorities of the Contracting States shall settle the question by mutual agreement.
Article 5
Permanent establishment
1 -For the purposes of this Convention, the term «permanent establishment» means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2 -The term «permanent establishment» includes especially:
1. a)A place of management;
2. b)A branch;
3. c)An office;
4. d)A factory;
5. e)A workshop; and
6. f)A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3 -A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.
4 -Notwithstanding the preceding provisions of this article, the term «permanent establishment» shall be deemed not to include:
1. a)The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. b)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. c)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
4. d)The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
5. e)The maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
6. f)The maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
5 -Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
6 -Subject to the provisions of paragraphs 4, 7 and 8 of this article, an enterprise of a Contracting State which carries on business activity of a permanent nature through its own employees or any other personnel rendering a substantially similar service for 183 days or more in any twelve-month period in the other Contracting State shall be deemed to have a permanent establishment in that other State.
7 -An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general comission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
8 -The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
CHAPTER III
Taxation of income
Article 6
Income from immovable property
1 -Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2 -The term «immovable property» shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.
3 -The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4 -The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
5 -The foregoing provisions shall also apply to income from movable property which, under the taxation law of the Contracting State in which the property in question is situated, is assimilated to income from immovable property.
Article 7
Business profits
1 -The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contraction State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
2 -Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3 -In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4 -No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
5 -For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
6 -Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Article 8
Shipping and air transport
1 -Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2 -The provisions of paragraph 1 shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
Where:
1. a)An enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
2. b)The same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
Article 10
Dividends
1 -Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2 -However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 15 per cent of the gross amount of the dividends.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3 -Notwithstanding the provisions of paragraph 2, if the beneficial owner is a company that, for an uninterrupted period of two years prior to the payment of the dividend, owns directly at least 25 per cent of the capital stock (capital social) of the company paying the dividends, the tax so charged shall not exceed with respect to dividends paid after December 31, 1996, 10 per cent of the gross amount of such dividends.
4 -The term «dividends» as used in this article means income from shares, «jouissance» shares or «jouissance» rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. The provisions of this article shall also apply to profits attributed or paid to a person associated to a business activity carried out by another person under an arranjement for participation in profits as laid down by the law of each Contracting State (in case of Portugal, associação em participação).
5 -The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
6 -Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
Article 11
Interest
1 -Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of the State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 15 per cent of the gross amount of the interest.
3 -Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempted from tax in that State:
1. a)If the debtor of such interest is the Government of that State, a political or administrative subdivision or a local authority thereof; or
2. b)If interest is paid to the Government of the other Contracting State, a political or administrative subdivision or a local authority thereof or an institution or body (including a financial institution) in connection with any financing granted by them under an agreement between the Governments of the Contracting States; or
3. c)In respect of loans or credit made by:
  1. i)In the case of Korea, the Bank of Korea, the Korean Export-Import Bank and the Korea Development Bank; and
  2. ii)In the case of Portugal, the Bank of Portugal, the Caixa Geral de Depósitos, the Banco Nacional Ultramarino (BNU), the Bank for External Development (BFE), the Banco Borges e Irmão and the ICEP - Investment, Trade and Tourism of Portugal.
4 -The term «interest» as used in this article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures as well as all other income assimilated to income from money lent by taxation law of the State in which the income arises.
5 -The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
6 -Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political or administrative subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
7 -Where, by reason of a special relationshipt between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 12
Royalties
1 -Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such royalties may also be taxed in the Contracting State in wich they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.
3 -The term «royalties» as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
The term «royalties» also comprises payments received as a consideration for technical assistance in connection with the use or the right to use any copyright, goods or information to which this paragraph applies.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Royalties shall be deemed to arise in a Contract-ing State when the payer is that State itself, a political or administrative subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establisment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
1 -Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State may be taxed in that other State.
2 -Gains from the alienation of movable property forming part of the businesse property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or a such fixed base, may be taxed in that other State.
3 -Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the enterprise is a resident.
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 of which the alienator is a resident.
Article 14
Independent personal services
1 -Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. However, in the following circumstances, such income may be taxed in the other Contracting State, that is to say:
1. a)If he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities: in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or
2. b)If his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned.
2 -The term «professional services» includes especialy independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1 -Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similiar 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:
1. 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
2. b)The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
3. c)The remuneration is not borne by a permanent establishment or a fixed base wich the employer has in the other State.
3 -Notwithstanding the preceding provisions of this article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in internacional traffic by an enterprise of a Contracting State shall be taxable only in that State.
Article 16
Directors' fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board (in Portugal, conselho fiscal), or of another similar organ of a company which is a resident of the other Contracting State may be taxed in that other State, provided that remuneration paid by that company to a member of its organs in respect of the exercise of a daily activity shall be taxable according to the provisions of article 15.
Article 17
Artists and sportsmen
1 -Notwithstanding the provisions of articles 14 and 15, income derived be a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2 -Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
3 -Notwithstanding the provisions of paragraphs 1 and 2 of this article, income derived by entertainers or sporstmen who are residents of a Contracting State from the activities exercised in the other Contracting State under a special programme of cultural exchange agreed upon between the governments of both Contracting States, shall be exempt from tax in that other State.
Article 18
Pensions
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
Article 19
Government service
1 -a) Remuneration, other than a pension, paid by a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State of subdivision or authority shall be taxable only in that State.
1. b)However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
  1. i)Is a national of that State; or
  2. ii)Did not become a resident of that State solely for the purpose of rendering the services.
2 -a) Any pension paid by, or out of funds created by, a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rederend to that State or subdivision or authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
1. b)However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3 -The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.
4 -The provisions of paragraphs 1 and 2 of this article shall likewise apply in respect of remuneration or pensions paid by:
1. a)In the case of Korea, the Bank of Korea, the Korean Export-Import Bank, the Korea Development Bank, and the Korea Trade Promotion Corporation; and
2. b)In the case of Portugal, the Bank of Portugal, the Caixa Geral de Depósitos, the Banco Nacional Ultramarino (BNU), the Bank for the External Development (BFE), the Banco Borges e Irmão, the ICEP - Investment, Trade and Tourism of Portugal, and the COSEC - Credit Insurance Company.
  Article 20
  Students and apprentices
  Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of this maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.
  Article 21
  Professors and teachers
  An individual who is or was a resident of a Contracting State immediately before making a visit to the other Contracting State, who, at the invitation of any university, college, school, or other similar educational or scientific research institution which is recognised as non-profitable by the Government of that State, or under an official programme of cultural exchange, visits that other State for a period not exceeding two years from the date of his first arrival in that other State, solely for the purpose of theaching or research or both at such institution shall be exempt from tax in that other State on his remuneration for such teaching or research.
  Article 22
  Other income
1 -Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.
2 -The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 14, as the case may be, shall apply.
CHAPTER IV
Methods for elimination of double taxation
Article 23
Methods for 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 Portuguese tax payable (excluding, in the case of dividends, tax payable in respect of the profits out of which the dividends are paid) under the laws of Portugal and in accordance with this Convention, whether directly or by deduction, in respect of income from sources within Portugal shall be allowed as a credit against the Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of the Korean tax which the income from sources whithin Portugal bears to the entire income subject do Korean tax.
2 -In the case of a resident of Portugal, double taxation shall be avoided as follows:
1. a)When a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Korea, the Portuguese Republic shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Korea; such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Korea; and
2. b)When in accordance with any provision of the Convention income derived by a resident of Portugal is exempt from tax in this State, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
3 -For the purpose of paragraphs 1 and 2 of this article, the expressions «Portuguese tax payable» in paragraph 1 or «income tax paid in Korea» in paragraph 2 shall be deemed to include any amount which would have been paid as Portuguese tax or Korean tax, as the case may be, but for the exemption, deduction or reduction of tax under the laws in force in the respective Contracting State.
CHAPTER V
Special provisions
Article 24
Non-discrimination
1 -Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nations of that other State in the same circumstances are or may be subjected. This provision shall, notwhithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States.
2 -The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activites. This provision shall not be construed as obliging a Contracting State to grant to residents of the other contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsabilities which it grants to its own residents.
3 -Except where the provisions of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
4 -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 be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5 -The provisions of this article shall, notwithstading the provisions of article 2, apply to taxes of every kind and description.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within two years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2 -The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention.
3 -The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any dificulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.
4 -The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.
Article 26
Exchange of information
1 -The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention and of the domestic laws of the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
2 -In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
1. a)To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. b)To supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
3. c)To supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
  Article 27
  Diplomatic agents and consular officers
  Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.
  CHAPTER VI
  Final provisions
  Article 28
  Entry into force
1 -This Convention shall be ratified and the instruments of ratification shall be exchanged at ... as soon as possible. The Convention shall enter into force on the thirtieth day after the date of exchange of the instruments of ratification.
2 -This Convention shall have effect:
1. a)In Korea:
  1. i)In respect of taxes withheld at the source on or after the first day of January in the year next following that in which this Convention enters into force; and
  2. ii)In respect of other taxes for any taxable year beginning on or after the first day of January in the year next following that in which this Convention enters into force;
2. b)In Portugal:
  1. i)In respect of taxes whithheld at source, the fact giving rise to them appearing on or after the first day of January in the year next following that in which this Convention enters into force; and
  2. ii)In respect of others taxes as to income arising in any fiscal year beginning on or after the first day of January in the year next following that in which this Convention enters into force.
    Article 29
    Termination
    This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirthieth day of June in any calendar year from the third year following that in which the instruments of ratification have been exchanged, give to the other Contracting State, through diplomatic channels, written notice of termination and in such event, this Convention shall cease to have effect:
3. a)In Korea:
  1. i)In respect of taxes withheld at the source on or after the first day of January in the year next following that in which the notice is given; and
  2. ii)In respect of other taxes for the taxable year beginning on or after the first day of January in the year next following that in which the notice is given;
4. b)In Portugal:
  1. i)In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January in the year next following the date on which the period specified in the said notice of termination expires; and
  2. ii)In respect of other taxes as to income arising in the fiscal year beginning on or after the first day of January in the year next following the date on which the period specified in the said notice of termination expires.
    In witness whereof the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention.
    Done in duplicate at Seoul this 26th day of January of the year one thousand nine hundred and ninety six in the Portuguese, Korean and English languages, all texts being equally authentic. In case of divergency of interpretation, the English text shall prevail.
    For the Government of the Portuguese Republic:
    Manuel Gervásio Leite.
    For the Government of the Republic of Korea:
    Gong Ro-Myung.

Artigo 29.º

Denúncia

a)Na Coreia:
1. i)Aos impostos devidos na fonte em ou depois de 1 de Janeiro do ano imediatamente seguinte ao do aviso da denúncia; e
2. ii)Aos demais impostos, relativamente ao ano fiscal com início em ou depois de 1 de Janeiro do ano imediatamente seguinte ao do aviso da denúncia;
b)Em Portugal:
1. i)Aos impostos devidos na fonte cujo facto gerador surja em ou depois de 1 de Janeiro imediatamente após a data em que o período referido no aviso de denúncia expira; e
2. ii)Aos demais impostos, relativamente aos rendimentos produzidos no ano fiscal com início em ou depois de 1 de Janeiro imediatamente após a data em que o período referido no aviso de denúncia expira.
  Em testemunho do qual, os abaixo assinados, devidamente autorizados para o efeito pelos Governos respectivos, assinaram a presente Convenção.
  Feito em duplicado, em Seul, aos 26 dias do mês de Janeiro de 1996, em português, coreano e inglês, sendo os três textos igualmente válidos. Em caso de divergência de interpretação, prevalecerá o texto inglês.
  Pelo Governo da República Portuguesa:
  Manuel Gervásio Leite.
  Pelo Governo da República da Coreia:
  Gong Ro-Myung.
  CONVENTION BETWEEN THE PORTUGUESE REPUBLIC AND THE REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME.
  The Government of the Portuguese Republic and the Government of the Republic of Korea, desiring to conclude a convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, have agreed as follows:
  CHAPTER I
  Scope of the convention
  Article 1
  Personal scope
  This convention shall apply to persons who are residents of one or both of the Contracting States.
  Article 2
  Taxes covered
1 -The existing taxes to which this Convention shall apply are:
1. a)In the case of Korea:
  1. i)The income tax;
  2. ii)The corporation tax;
  3. iii)The inhabitant tax; and
  4. iv)The special tax for rural development;
    (hereinafter referred to as «Korean tax»);
2. b)In the case of Portugal:
  1. i)Personal income tax (imposto sobre o rendimento das pessoas singulares - IRS);
  2. ii)Corporate income tax (imposto sobre o rendimento das pessoas colectivas - IRC); and
  3. iii)Local surtax on corporate income tax (derrama);
    (hereinafter referred to as «Portuguese tax»).
2 -The Convention shall apply also to any identical or substantially similar taxes wich are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substancial changes wich have been made in their respective taxation laws.
CHAPTER II
Definitions
Article 3
General definitions
1 -For the purposes of this Convention, unless the context otherwise requires:
1. a)The term «Korea» means the territory of the Republic of Korea including any area adjacent to the territorial sea of the Republic of Korea which, in accordance with international law, has been or may hereafter be designated under the laws of the Republic of Korea as an area within wich the sovereign rights of the Republic of Korea with respect to the sea-bed and subsoil and their natural resources may be exercised;
2. b)The term «Portugal» means the territory of the Portuguese Republic situated in the European continent, the archipelagoes of Azores and Madeira, the respective territorial sea and any other zone in wich, in accordance with the laws of Portugal and international law, the Portuguese Republic has its jurisdiction or sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed and subsoil;
3. c)The terms «a Contracting State» and «the other Contracting State» mean the Republic of Korea or the Portuguese Republic, as the context requires;
4. d)The term «tax» means Korean tax or Portuguese tax, as the context requires;
5. e)The term «person» includes an individual, a company and any other body of persons;
6. f)The term «company» means any body corporate or any entity which is treated as a body corporate for tax purposes;
7. g)The terms «enterprise of a Contracting State» and «enterprise of the other Contracting State» mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
8. h)The term «national» means:
  1. i)All individuals possessing the nationality of a Contracting State;
  2. ii)All legal persons, partnerships and associations deriving their status as such from the laws in force in a Contracting State;
9. i)The term «international traffic» means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
10. j)The therm «competent authority» means:
  1. i)In the case of Korea, the Minister of Finance and Economy or his authorized representative;
  2. ii)In the case of Portugal, the Minister of Finance, the Director-General of Taxation (Director-Geral das Contribuições e Impostos) or their authorized representative.
2 -As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to wich the Convention applies.
Article 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. But this term 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:
1. a)He shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which is personal and economic relations are closer (centre of vital interests);
2. b)If the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in wich he has an habitual abode;
3. c)If he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;
4. d)If he is a national of both 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. In case of doubts the competent authorities of the Contracting States shall settle the question by mutual agreement.
Article 5
Permanent establishment
1 -For the purposes of this Convention, the term «permanent establishment» means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
2 -The term «permanent establishment» includes especially:
1. a)A place of management;
2. b)A branch;
3. c)An office;
4. d)A factory;
5. e)A workshop; and
6. f)A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
3 -A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.
4 -Notwithstanding the preceding provisions of this article, the term «permanent establishment» shall be deemed not to include:
1. a)The use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. b)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. c)The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
4. d)The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;
5. e)The maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
6. f)The maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
5 -Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
6 -Subject to the provisions of paragraphs 4, 7 and 8 of this article, an enterprise of a Contracting State which carries on business activity of a permanent nature through its own employees or any other personnel rendering a substantially similar service for 183 days or more in any twelve-month period in the other Contracting State shall be deemed to have a permanent establishment in that other State.
7 -An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general comission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
8 -The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
CHAPTER III
Taxation of income
Article 6
Income from immovable property
1 -Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2 -The term «immovable property» shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.
3 -The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4 -The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
5 -The foregoing provisions shall also apply to income from movable property which, under the taxation law of the Contracting State in which the property in question is situated, is assimilated to income from immovable property.
Article 7
Business profits
1 -The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contraction State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
2 -Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3 -In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
4 -No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
5 -For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.
6 -Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Article 8
Shipping and air transport
1 -Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
2 -The provisions of paragraph 1 shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.
Article 9
Associated enterprises
Where:
1. a)An enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
2. b)The same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
Article 10
Dividends
1 -Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
2 -However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 15 per cent of the gross amount of the dividends.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3 -Notwithstanding the provisions of paragraph 2, if the beneficial owner is a company that, for an uninterrupted period of two years prior to the payment of the dividend, owns directly at least 25 per cent of the capital stock (capital social) of the company paying the dividends, the tax so charged shall not exceed with respect to dividends paid after December 31, 1996, 10 per cent of the gross amount of such dividends.
4 -The term «dividends» as used in this article means income from shares, «jouissance» shares or «jouissance» rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident. The provisions of this article shall also apply to profits attributed or paid to a person associated to a business activity carried out by another person under an arranjement for participation in profits as laid down by the law of each Contracting State (in case of Portugal, associação em participação).
5 -The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
6 -Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
Article 11
Interest
1 -Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of the State, but if the recipient is the beneficial owner of the interest, the tax so charged shall not exceed 15 per cent of the gross amount of the interest.
3 -Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempted from tax in that State:
1. a)If the debtor of such interest is the Government of that State, a political or administrative subdivision or a local authority thereof; or
2. b)If interest is paid to the Government of the other Contracting State, a political or administrative subdivision or a local authority thereof or an institution or body (including a financial institution) in connection with any financing granted by them under an agreement between the Governments of the Contracting States; or
3. c)In respect of loans or credit made by:
  1. i)In the case of Korea, the Bank of Korea, the Korean Export-Import Bank and the Korea Development Bank; and
  2. ii)In the case of Portugal, the Bank of Portugal, the Caixa Geral de Depósitos, the Banco Nacional Ultramarino (BNU), the Bank for External Development (BFE), the Banco Borges e Irmão and the ICEP - Investment, Trade and Tourism of Portugal.
4 -The term «interest» as used in this article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures as well as all other income assimilated to income from money lent by taxation law of the State in which the income arises.
5 -The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.
6 -Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political or administrative subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
7 -Where, by reason of a special relationshipt between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 12
Royalties
1 -Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2 -However, such royalties may also be taxed in the Contracting State in wich they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.
3 -The term «royalties» as used in this article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
The term «royalties» also comprises payments received as a consideration for technical assistance in connection with the use or the right to use any copyright, goods or information to which this paragraph applies.
4 -The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 14, as the case may be, shall apply.
5 -Royalties shall be deemed to arise in a Contract-ing State when the payer is that State itself, a political or administrative subdivision, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establisment or fixed base is situated.
6 -Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13
Capital gains
1 -Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State may be taxed in that other State.
2 -Gains from the alienation of movable property forming part of the businesse property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or a such fixed base, may be taxed in that other State.
3 -Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the enterprise is a resident.
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 of which the alienator is a resident.
Article 14
Independent personal services
1 -Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. However, in the following circumstances, such income may be taxed in the other Contracting State, that is to say:
1. a)If he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities: in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or
2. b)If his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned.
2 -The term «professional services» includes especialy independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Article 15
Dependent personal services
1 -Subject to the provisions of articles 16, 18, 19, 20 and 21, salaries, wages and other similiar 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:
1. 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
2. b)The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
3. c)The remuneration is not borne by a permanent establishment or a fixed base wich the employer has in the other State.
3 -Notwithstanding the preceding provisions of this article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in internacional traffic by an enterprise of a Contracting State shall be taxable only in that State.
Article 16
Directors' fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or supervisory board (in Portugal, conselho fiscal), or of another similar organ of a company which is a resident of the other Contracting State may be taxed in that other State, provided that remuneration paid by that company to a member of its organs in respect of the exercise of a daily activity shall be taxable according to the provisions of article 15.
Article 17
Artists and sportsmen
1 -Notwithstanding the provisions of articles 14 and 15, income derived be a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.
2 -Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.
3 -Notwithstanding the provisions of paragraphs 1 and 2 of this article, income derived by entertainers or sporstmen who are residents of a Contracting State from the activities exercised in the other Contracting State under a special programme of cultural exchange agreed upon between the governments of both Contracting States, shall be exempt from tax in that other State.
Article 18
Pensions
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
Article 19
Government service
1 -a) Remuneration, other than a pension, paid by a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State of subdivision or authority shall be taxable only in that State.
1. b)However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
  1. i)Is a national of that State; or
  2. ii)Did not become a resident of that State solely for the purpose of rendering the services.
2 -a) Any pension paid by, or out of funds created by, a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rederend to that State or subdivision or authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
1. b)However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.
3 -The provisions of articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.
4 -The provisions of paragraphs 1 and 2 of this article shall likewise apply in respect of remuneration or pensions paid by:
1. a)In the case of Korea, the Bank of Korea, the Korean Export-Import Bank, the Korea Development Bank, and the Korea Trade Promotion Corporation; and
2. b)In the case of Portugal, the Bank of Portugal, the Caixa Geral de Depósitos, the Banco Nacional Ultramarino (BNU), the Bank for the External Development (BFE), the Banco Borges e Irmão, the ICEP - Investment, Trade and Tourism of Portugal, and the COSEC - Credit Insurance Company.
  Article 20
  Students and apprentices
  Payments which a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of this maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.
  Article 21
  Professors and teachers
  An individual who is or was a resident of a Contracting State immediately before making a visit to the other Contracting State, who, at the invitation of any university, college, school, or other similar educational or scientific research institution which is recognised as non-profitable by the Government of that State, or under an official programme of cultural exchange, visits that other State for a period not exceeding two years from the date of his first arrival in that other State, solely for the purpose of theaching or research or both at such institution shall be exempt from tax in that other State on his remuneration for such teaching or research.
  Article 22
  Other income
1 -Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.
2 -The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of article 7 or article 14, as the case may be, shall apply.
CHAPTER IV
Methods for elimination of double taxation
Article 23
Methods for 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 Portuguese tax payable (excluding, in the case of dividends, tax payable in respect of the profits out of which the dividends are paid) under the laws of Portugal and in accordance with this Convention, whether directly or by deduction, in respect of income from sources within Portugal shall be allowed as a credit against the Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of the Korean tax which the income from sources whithin Portugal bears to the entire income subject do Korean tax.
2 -In the case of a resident of Portugal, double taxation shall be avoided as follows:
1. a)When a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Korea, the Portuguese Republic shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Korea; such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Korea; and
2. b)When in accordance with any provision of the Convention income derived by a resident of Portugal is exempt from tax in this State, Portugal may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
3 -For the purpose of paragraphs 1 and 2 of this article, the expressions «Portuguese tax payable» in paragraph 1 or «income tax paid in Korea» in paragraph 2 shall be deemed to include any amount which would have been paid as Portuguese tax or Korean tax, as the case may be, but for the exemption, deduction or reduction of tax under the laws in force in the respective Contracting State.
CHAPTER V
Special provisions
Article 24
Non-discrimination
1 -Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nations of that other State in the same circumstances are or may be subjected. This provision shall, notwhithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States.
2 -The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activites. This provision shall not be construed as obliging a Contracting State to grant to residents of the other contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsabilities which it grants to its own residents.
3 -Except where the provisions of article 9, paragraph 7 of article 11, or paragraph 6 of article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
4 -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 be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
5 -The provisions of this article shall, notwithstading the provisions of article 2, apply to taxes of every kind and description.
Article 25
Mutual agreement procedure
1 -Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of article 24, to that of the Contracting State of which he is a national. The case must be presented within two years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.
2 -The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention.
3 -The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any dificulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.
4 -The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.
Article 26
Exchange of information
1 -The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention and of the domestic laws of the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is in accordance with this Convention. Any information so exchanged shall be treated as secret and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
2 -In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:
1. a)To carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
2. b)To supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
3. c)To supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).
  Article 27
  Diplomatic agents and consular officers
  Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.
  CHAPTER VI
  Final provisions
  Article 28
  Entry into force
1 -This Convention shall be ratified and the instruments of ratification shall be exchanged at ... as soon as possible. The Convention shall enter into force on the thirtieth day after the date of exchange of the instruments of ratification.
2 -This Convention shall have effect:
1. a)In Korea:
  1. i)In respect of taxes withheld at the source on or after the first day of January in the year next following that in which this Convention enters into force; and
  2. ii)In respect of other taxes for any taxable year beginning on or after the first day of January in the year next following that in which this Convention enters into force;
2. b)In Portugal:
  1. i)In respect of taxes whithheld at source, the fact giving rise to them appearing on or after the first day of January in the year next following that in which this Convention enters into force; and
  2. ii)In respect of others taxes as to income arising in any fiscal year beginning on or after the first day of January in the year next following that in which this Convention enters into force.
    Article 29
    Termination
    This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirthieth day of June in any calendar year from the third year following that in which the instruments of ratification have been exchanged, give to the other Contracting State, through diplomatic channels, written notice of termination and in such event, this Convention shall cease to have effect:
3. a)In Korea:
  1. i)In respect of taxes withheld at the source on or after the first day of January in the year next following that in which the notice is given; and
  2. ii)In respect of other taxes for the taxable year beginning on or after the first day of January in the year next following that in which the notice is given;
4. b)In Portugal:
  1. i)In respect of taxes withheld at source, the fact giving rise to them appearing on or after the first day of January in the year next following the date on which the period specified in the said notice of termination expires; and
  2. ii)In respect of other taxes as to income arising in the fiscal year beginning on or after the first day of January in the year next following the date on which the period specified in the said notice of termination expires.
    In witness whereof the undersigned, being duly authorised thereto by their respective Governments, have signed this Convention.
    Done in duplicate at Seoul this 26th day of January of the year one thousand nine hundred and ninety six in the Portuguese, Korean and English languages, all texts being equally authentic. In case of divergency of interpretation, the English text shall prevail.
    For the Government of the Portuguese Republic:
    Manuel Gervásio Leite.
    For the Government of the Republic of Korea:
    Gong Ro-Myung.