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 Contracting State. 　　2. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that Contracting 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, know-how, 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 . 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 Contracting 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 Contracting State when the payer is the Government of that Contracting State, a local authority thereof or a resident of that Contracting 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 of a fixed base in connection with which 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 Contracting State in which the permanent establishment 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 Agreement. 　　Article 13 Capital Gains 　　1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6and situated in the other Contracting State may be taxed in that other Contracting State. 　　2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which and 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 of such a fixed base, may be taxed in that other Contracting 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 that Contracting State in which the place of head office or effective management of the enterprise is situated. 　　4. Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that Contracting State.　 　　5. Gains from the alienation of any property other than that referred to in paragraphs 1 to 4 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 Contracting State except in one of the following circumstances, when such income may also be taxed in the other Contracting State.: 　　(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 Contracting State.; 　　(b) if his stay in the other Contracting State is for a period or periods in the aggregate 183 days in the calendar year concerned; in that case, only so much of the income as is derived from his activities performed in that other Contracting State may be taxed in that other Contracting State. 　　2. The term "professional services" includes especially 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 similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that Contracting 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 Contracting State. 　　2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if : 　　(a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any twelve- month period concerned ;and (b) the remuneration is paid by ,or on behalf of , an employer who is not a resident of the other Contracting State.; and 　　(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other Contracting State. 　　3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated by an enterprise of a Contracting State in international traffic shall be taxable only in the Contracting State in which the place of head office or effective management of the enterprise is situated. 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 of a comparable which is a resident of the other Contracting State may be taxed in that other Contracting State. Article l7 Artistes and Athletes 1．Notwithstanding the provisions of Articles l4 and l5，income derived by a resident of a Contracting State as an entertainer，such as a theatre，motion Picture，radio or television artiste，or a musician， or as an athlete，from his personal activities as such exercised in the other Contracting State，may be taxed in that other Contracting State． 2．Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person， that income may， notwithstanding the provisions of Articles 7，14，and l5，be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised． 3．Notwithstanding the provisions of paragraphs 1and 2 of this Article, income derived by entertainers or athletes who are residents of a Contracting State from the activities exercised in the other Contracting State under a plan of cultural exchange between the Governments of both Contracting State shall be exempt from tax in that other Contracting State . Article 18 Pensions 1．Subject to the Provisions of paragraph 2 of Article l9，pensions and other similar remuneration paid to a resident of a Contracting state in consideration of past employment shall be taxable only in that Contracting State． 2．Notwithstanding the provisions of paragraph l，pensions and other similar payments made by the Government of a Contracting State or a local authority thereof under a public welfare scheme of the social security system of that Contracting State shall be taxable only in that Contracting State . 　　Article 19 Government Service 　 1．(a) Remuneration， other than pension ，paid by the Government of a Contracting State, a local authority or organization thereof to an individual in respect of services rendered to the Government of that Contracting State , a local authority or organization thereof, in the discharge of the functions of a governmental nature, shall be taxable only in that Contracting State． 　　(b ) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other Contracting State and the individual is a resident of that other Contracting State who: 　　(i) is a national of that other Contracting State; or 　　(ii) did not become a resident of that other Contracting State solely for the purpose of rendering the services. 　　2.(a) Any pension paid by, or out of funds created by, the Government of a Contracting State ,a local authority or organization thereof to an individual in respect of services rendered to the Government of the Contracting State, a local authority or organization thereof, in the discharge of the functions of governmental nature, shall be taxable only in that Contracting State. 　　(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 other Contracting State. 　　3. The provisions of Articles 15, 16, 17 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by the Government of a Contracting State or a local authority thereof. 　　Article 20 Students and Trainees 　　A student, business apprentice or trainee 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 shall be exempt from tax in that first mentioned State on the following payments or income received or derived by him for the purpose of his maintenance, education or training: 　　(a) payments derived from sources outside that Contracting State for the purpose of his maintenance, education, study, research or training; 　　(b) grants, scholarships or awards supplied by the Government, or a scientific, educational, cultural or other tax-exempt organization; and 　　(c) income derived from personal services in connection with his education or training performed in that Contracting State. 　　Article 21 Teachers and Researchers 　　An individual who is, or immediately before visiting a Contracting State, was a resident of the other Contracting State and, at the invitation of a university, college ,school or other educational institution or scientific research institution recognized as non-profitable by the Government of the first-mentioned Contracting State, is present in the first-mentioned Contracting State solely for the purpose of teaching ,giving lectures or conducting research, shall be exempt from tax in the first-mentioned Contracting State, for a period of three years from the date of his first arrival in the first-mentioned Contracting State in respect of remuneration for such teaching ,lectures or research. 　　Article 22 other income 　　1.tems of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that Contracting 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 Contracting 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. 　　Article 23 Methods for the Elimination of Double Taxation 　　1.In the case of a resident of China, double taxation shall be avoided as follows: 　　(a) Where a resident of China derives income from Korea, the amount of tax on that income payable under the laws of Korean tax and in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of credit ,however, shall not exceed the amount of the Chinese tax on that income computed in accordance with the taxation laws and regulations of China. 　　(b) Where the income derived from Korea is a dividend paid by a company which is a resident of Korea to a company which is a resident of China and which owns not less than 10 percent of the shares of the company paying the dividend , the credit shall take into account the tax paid to Korea by the company paying the dividend in respect of its income. 　　2.In the case of 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 Chinese tax payable (excluding , in the case of dividend, tax payable in respect of profits out of which the dividend is paid) under the laws of China and in accordance with this Agreement, whether directly or by deduction, in respect of income from sources within China shall be allowed as a credit against Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of Korean tax which the income from sources within China bears to the entire income subject to Korean tax. 　　3. the tax payable in a Contracting State mentioned in paragraphs 1 and 2 of this Article, shall be deemed to include the tax which would have been payable but for the legal provisions concerning tax reduction, exemption or other tax incentives of the Contracting State for the promotion of economic development. 　　For the purpose of the is paragraph, the amount of tax shall be deemed to be 10 per cent of the gross amount of the dividends, interest and royalties in the case of paragraph 2　of Article 10, paragraph 2　of Article 11　and paragraph 2of Article 12, respectively. 　　4. The provisions of paragraph 3　of this Article shall apply only during a period of ten years starting from the first day of the calendar year following that in which this Agreement enters into force in accordance with the provisions of Artiicle 28. 　　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 nationals of that other Contracting State in the same circumstances are or may be subjected. The provisions of this paragraph shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting State. 　　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 Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. The provisions of this paragraph 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 responsibilities which it grants to its own residents. 　　3.Except where the provisions of paragraph of Article 9, paragraph 7 or 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 firs-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, notwithstanding 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 State result or will result for him in taxation not in accordance with the provisions of this Agreement, 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 three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement. 　　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 Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting State. 　　3.The competent authorities of the Contracting State shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application or the Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement. 　　4.The competent authorities of the Contracting State may communicate with each other directly for the purpose of reaching an agreement in the sense of paragraphs 2and 3. When it seems advisable for reaching agreement, representatives of the competent authorities of the Contracting State may meet together for an oral exchange of opinions. 　　Article 26 Exchange of Information 　　1.The competent authorities of the Contracting State shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting State concerning taxes covered by the Agreement, insofar as the taxation thereunder is not contrary to this Agreement, in particular for the prevention of evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that Contracting State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of , the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Agreement. 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.: 　　(a) to carry out administrative measures at variance with the laws and the administrative practice of that or of the other Contracting State; 　　(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; 　　(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 (order public). Article 27 diplomatic Agents and Consular Officers 　　Nothing in this Agreement 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. 　　Article 28 Entry Into Force 　　1. This Agreement shall enter into force on the thirtieth day after the date on which diplomatic notes indicating the completion of internal legal procedures necessary in each country for the entry into force of this Agreement have been exchanged. 　　2. This Agreement shall have effect: 　　(a) in respect of taxes withheld at source on or after the first day of January in the year following that in which this Agreement enters into force; and 　　(b) in respect of other taxes for the taxable year beginning on or after the first day of January in the following that in which this Agreement enters into force. 　　Article 29 Termination 　　This Agreement shall remain in force indefinitely but either of the Contracting States may ,on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give written notice of termination to the other Contracting State through the diplomatic channel. In such event this Agreement shall cease to have effect: 　　(a) in respect of taxes withheld at the source on or after the first day of January of the calendar year next following that in which the notice is given; and 　　(b) in respect of other taxes for any taxable year beginning on or after the first day of January of the calendar year next following that in which the notice is given. 　　IN WITNESS WHEREOF the undersigned , duly authorized thereto, by their respective Governments, have signed this Agreement. 　　DONE in duplicate at Beijing the 28th day of March of the year one thousand nine hundred and ninety four in the Chinese, Korean and English languages, all texts being equally authentic. In case of any divergence of interpretation, the English text shall prevail. For the Government of For the Government of The People's Republic of China the Republic of Korea