Korea

Convention between Republic of Korea and Ukraine for the avoidance of double taxation dated 29 September 1999 entered into force on 19 March 2002 (ratified by the Law of Ukraine # 3040 dated 7 February 2002).

Article 10 (Dividends):

Paragraph 2. Dividends may 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:

(a) 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds at least 20% of the capital of the company paying the dividends;

(b) 15% of the gross amount of the dividends in all other cases.

Article 11 (Interest):

Paragraph 2. Interest may be taxed in the Contracting State in which it arises and according to the laws of that State, but if the recipient who is the beneficial owner of the interest is the resident of the other Contracting State the tax so charged shall not exceed 5% of the gross amount of the interest.

Paragraph 7. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and received by the Government of the other Contracting State, its local authority, the Central Bank of that other Contracting State or any financial institution owned by the Government of the other Contracting State and founded for promoting trade and investment, or interest received by any resident of the other Contracting State in respect of guaranteed debt-claims insured by the Government of that other Contracting State, its local authority, the Central Bank of the other Contracting State or any other financial institution owned by the Government of the other Contracting State and founded for promoting trade and investment, shall be exempt from tax in the first-mentioned Contracting State.

Paragraph 8. For the purposes of paragraph 7 the term “Central Bank” and “financial institution owned by the Government of the other Contracting State and founded for promoting trade and investment” means:

(a) in case of Korea:

(i) the Bank of Korea;

(ii) the Korean Export-Import Bank; and

(iii) the Korean Bank of Development;

(b) In case of Ukraine

(i) The National Bank of Ukraine;

(ii) The State Export-Import Bank of Ukraine.

Article 12 (Royalties):

Paragraph 2. Royalties may be taxed in the Contracting State in which they arise and in accordance with the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 5% of the gross amount of the royalties.