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        <preface>
            <p>
                <docNumber>74-75/1981</docNumber>
                <docTitle>Convention between the Republic of Finland and the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income</docTitle>
            </p>
        </preface>
        <preamble>
            <p>
                <embeddedStructure class="mli-addition">
                    <tblock>
                        <heading>SYNTHESISED TEXT OF THE MLI AND THE CONVENTION BETWEEN THE REPUBLIC OF FINLAND AND THE REPUBLIC OF KOREA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME</heading>
                        <p>This document presents the synthesised text for the application of the Convention
      between the Republic of Finland and the Republic of Korea for the Avoidance of Double Taxation
      and the Prevention of Fiscal Evasion with respect to Taxes on Income signed on 8 February 1979
      (the “Convention”), as modified by the Multilateral Convention to Implement Tax Treaty Related
      Measures to Prevent Base Erosion and Profit Shifting signed by the Republic of Finland and the
      Republic of Korea on 7 June 2017 (the “MLI”).</p>
                        <p>This document was prepared by the competent authority of Finland and represents its
      understanding of the modifications made to the Agreement by the MLI.</p>
                        <p>The document was prepared on the basis of the MLI position of the Republic of Finland
      submitted to the Depositary upon acceptance on 25 February 2019 and of the MLI position of the
      Republic of Korea submitted to the Depositary upon ratification on 13 May 2020. These MLI
      positions are subject to modifications as provided in the MLI. Modifications made to MLI
      positions could modify the effects of the MLI on the Convention. The Republic of Finland
      modified its MLI position by withdrawing its reservation made to Article 9 and by making
      additional notifications (consolidated MLI position of the Republic of Finland on 27 June
      2023). These modifications did not modify the effects of the MLI on the Convention.</p>
                        <p>The authentic legal texts of the Convention and the MLI take precedence and remain the
      legal texts applicable.</p>
                        <p>The provisions of the MLI that are applicable with respect to the provisions of the
      Convention are included in boxes throughout the text of this document in the context of the
      relevant provisions of the Convention. The boxes containing the provisions of the MLI have
      generally been inserted in accordance with the ordering of the provisions of the 2017 OECD
      Model Tax Convention.</p>
                        <p>Changes to the text of the provisions of the MLI have been made to conform the
      terminology used in the MLI to the terminology used in the Convention (such as “Covered Tax
      Agreement” and “Convention”, “Contracting Jurisdictions” and “Contracting States”), to ease
      the comprehension of the provisions of the MLI. The changes in terminology are intended to
      increase the readability of the document and are not intended to change the substance of the
      provisions of the MLI. Similarly, changes have been made to parts of provisions of the MLI
      that describe existing provisions of the Convention: descriptive language has been replaced by
      legal references of the existing provisions to ease the readability.</p>
                        <p>In all cases, references made to the provisions of the Convention or to the Convention
      must be understood as referring to the Convention as modified by the provisions of the MLI,
      provided such provisions of the MLI have taken effect.</p>
                        <p>
                            <b>Entry into Effect of the MLI Provisions</b>
                        </p>
                        <p>The provisions of the MLI applicable to this Convention do not take effect on the same
      dates as the original provisions of the Convention. Each of provisions of the MLI could take
      effect on different dates, depending on the types of taxes involved (taxes withheld at source
      or other taxes levied) and on the choices made by the Republic of Finland and the Republic of
      Korea in their MLI positions.</p>
                        <p>Dates of the deposit of instruments of ratification, acceptance or approval: 25
      February 2019 for the Republic of Finland and 13 May 2020 for the Republic of
      Korea.</p>
                        <p>Entry into force of the MLI: 1 June 2019 for Republic of Finland and 1 September 2020
      for the Republic of Korea.</p>
                        <p>This document provides specific information on the dates on or after which each of the
      provisions of the MLI has effect with respect to the Convention throughout this
      document.</p>
                        <p>
                            <b>References</b>
                        </p>
                        <p>The authentic legal texts of the MLI can be found on the MLI Depositary (OECD)
      webpage:</p>
                        <p>
                            – in English:
                            <a href="http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf">http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf</a>
                                  and
                        </p>
                        <p>
                            – in French:
                            <a href="http://www.oecd.org/fr/fiscalite/conventions/convention-multilaterale-pour-la-mise-en-oeuvre-des-mesures-relatives-aux-conventions-fiscales-pour-prevenir-le-BEPS.pdf">http://www.oecd.org/fr/fiscalite/conventions/convention-multilaterale-pour-la-mise-en-oeuvre-des-mesures-relatives-aux-conventions-fiscales-pour-prevenir-le-BEPS.pdf</a>
                        </p>
                        <p>
                            The MLI position of the Republic of Finland submitted to the Depositary upon
      acceptance on 25 February 2019, the consolidated MLI position of the Republic of Finland
      submitted to the Depositary on 27 June 2023 and the MLI position of the Republic of Korea
      submitted to the Depositary upon ratification on 13 May 2020 can be found on the MLI
      Depositary (OECD) webpage:
                            <a href="http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf">http://www.oecd.org/tax/treaties/beps-mli-signatories-and-parties.pdf</a>
                        </p>
                        <p>
                            The MLI Matching Database is publicly available on the OECD webpage:
                            <a href="http://www.oecd.org/tax/treaties/mli-matching-database.htm">http://www.oecd.org/tax/treaties/mli-matching-database.htm</a>
                        </p>
                        <p>
                            The Act on Multilateral Convention to Implement Tax Treaty Related Measures to Prevent
      Base Erosion and Profit Shifting is published in Statute Book of Finland 231/2019. Link to
      Finnish language version
                            <a href="https://www.finlex.fi/fi/laki/alkup/2019/20190231">https://www.finlex.fi/fi/laki/alkup/2019/20190231</a>
                                  Link to Swedish language version
                            <a href="https://www.finlex.fi/sv/laki/alkup/2019/20190231">https://www.finlex.fi/sv/laki/alkup/2019/20190231</a>
                        </p>
                        <p>
                            The Government´s Statute on the entry into force of the MLI and the Act and the
      Finnish text (translation) of the MLI is published in the Treaty Series of the Statute Book of
      Finland SopS 21-22/2019. Links to Finnish language versions
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190021">https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190021</a>
                                  and
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190022">https://www.finlex.fi/fi/sopimukset/sopsteksti/2019/20190022</a>
                                  Links to Swedish language versions
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190021.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190021.pdf</a>
                                  and
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190022.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2019/fds20190022.pdf</a>
                        </p>
                        <p>
                            The Announcement of the Ministry of Finance on withdrawal of reservation made to
      Article 9 of the MLI and on additional notifications is published in the Treaty Series of the
      Statute Book of Finland SopS 48/2023. Link to Finnish language version
                            <a href="https://finlex.fi/fi/sopimukset/sopsteksti/2023/20230048/20230048_1">https://finlex.fi/fi/sopimukset/sopsteksti/2023/20230048/20230048_1</a>
                                  Link to Swedish language version
                            <a href="https://finlex.fi/sv/sopimukset/sopimussarja/2023/fds20230048.pdf">https://finlex.fi/sv/sopimukset/sopimussarja/2023/fds20230048.pdf</a>
                        </p>
                        <p>
                            The Announcement of the Ministry of Finance on the entry into force of the MLI in the
      Republic of Korea is published in the Treaty Series of the Statute Book of Finland SopS
      88/2020. Link to Finnish language version
                            <a href="https://finlex.fi/fi/sopimukset/sopsteksti/2020/20200088">https://finlex.fi/fi/sopimukset/sopsteksti/2020/20200088</a>
                                  Link to Swedish language version
                            <a href="https://www.finlex.fi/sv/sopimukset/sopimussarja/2020/fds20200088.pdf">https://www.finlex.fi/sv/sopimukset/sopimussarja/2020/fds20200088.pdf</a>
                        </p>
                        <p>
                            Convention between the Republic of Finland and the Republic of Korea for the Avoidance
      of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income signed
      on 8 February 1979 is published in the Treaty Series of the Statute Book of Finland SopS
      75/1981. Link to Finnish language version
                            <a href="https://www.finlex.fi/fi/sopimukset/sopsteksti/1981/19810075">https://www.finlex.fi/fi/sopimukset/sopsteksti/1981/19810075</a>
                        </p>
                    </tblock>
                </embeddedStructure>
            </p>
            <p class="title">Convention between the Republic of Finland and the Republic of Korea for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income</p>
            <p>The Government of the Republic of Finland and the Government of the Republic of Korea, </p>
            <p>
                <embeddedStructure class="mli-replaced">
                    <p>
                        <authorialNote>
                            <p>[REPLACED by paragraph 1 of Article 6 of the MLI]</p>
                        </authorialNote>
                    </p>
                    <p>[Desiring to conclude a Convention for the avoidance of double taxation and the
      prevention of fiscal evasion with respect to taxes on income,]</p>
                </embeddedStructure>
            </p>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 6 of the MLI replaces the text referring to
      an intent to eliminate double taxation in the preamble of this Convention:
                                <authorialNote marker="1" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 6 of the MLI has effect with respect to the application of this Convention by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2021;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraph 1 of Article 35 of the MLI, paragraph 1 of Article 6
          of the MLI has effect with respect to the application of the Convention by the Republic of
          Korea:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2021;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Korea, for taxes
          levied with respect to taxable periods beginning on or after 1 March 2021.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 6 OF THE MLI – PURPOSE OF A COVERED TAX AGREEMENT</num>
                        <content>
                            <p>
                                Intending to eliminate double taxation with respect to the taxes covered by
          [
                                <i>this Convention</i>
                                ] without creating opportunities for non-taxation
        or reduced taxation through tax evasion or avoidance (including through treaty-shopping
        arrangements aimed at obtaining reliefs provided in [
                                <i>the Convention</i>
                                ]
        for the indirect benefit of residents of third jurisdictions),
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <p>Have agreed as follows:</p>
        </preamble>
        <mainBody>
            <article eId="art_1">
                <num>Article 1</num>
                <heading>Personal Scope</heading>
                <content>
                    <p>This Convention shall apply to persons who are residents of one or both of the
      Contracting States.</p>
                </content>
            </article>
            <article eId="art_2">
                <num>Article 2</num>
                <heading>Taxes Covered</heading>
                <content>
                    <p>1. This Convention shall apply to taxes on income imposed on behalf of a Contracting
      State or of its political subdivisions, local authorities or public communities, irrespective
      of the manner in which they are levied.</p>
                    <p>2. There shall be regarded as taxes on income all taxes imposed on total income, or on
      elements of income, including taxes on gains from the alienation of movable or immovable
      property, as well as taxes on capital appreciation.</p>
                    <p>3. The existing taxes to which the Convention shall apply are:</p>
                    <p>a) in Korea:</p>
                    <p>(i) the income tax;</p>
                    <p>(ii) the corporation tax; and</p>
                    <p>(iii) the inhabitant tax</p>
                    <p>(hereinafter referred to as "Korean tax");</p>
                    <p>b) in Finland:</p>
                    <p>(i) the state income tax;</p>
                    <p>(ii) the communal tax;</p>
                    <p>(iii) the church tax;</p>
                    <p>(iv) the sailors' tax; and</p>
                    <p>(v) the tax withheld at source from non-residents' income</p>
                    <p>(hereinafter referred to as "Finnish tax").</p>
                    <p>4. The Convention shall apply also to any identical or substantially similar taxes
      which 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 significant change which has been made in their respective taxation
      laws.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_1" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/75#protocol">Protocol</a>
                          to this Convention.
                </p>
            </tblock>
            <article eId="art_3">
                <num>Article 3</num>
                <heading>General Definitions</heading>
                <content>
                    <p>1. For the purposes of this Convention, unless the context otherwise
      requires:</p>
                    <p>a) the term "Korea" means the Republic of Korea, and when used in a geographical
      sense, the term means all the territory in which the laws relating to Korean tax are in force.
      The term also includes the territorial sea thereof, and the seabed and sub-soil of the
      submarine areas adjacent to the coast thereof, but beyond the territorial sea, over which
      Korea exercises sovereign rights, in accordance with international law, for the purpose of
      exploration and exploitation of the natural resources of such area;</p>
                    <p>b) the term "Finland" means the Republic of Finland and, when used in a geographical
      sense, means the territory of the Republic of Finland and any area adjacent to the territorial
      waters of the Republic of Finland within which, under the laws of Finland and in accordance
      with international law, the rights of Finland with respect to the exploration and exploitation
      of the natural resources of the seabed and its sub-soil may be exercised;</p>
                    <p>c) the terms "a Contracting State" and "the other Contracting State" mean Finland or
      Korea, as the context requires;</p>
                    <p>d) the term "tax" means Finnish tax or Korean tax, as the context requires;</p>
                    <p>e) the term "person" includes an individual, a company and any other body of
      persons;</p>
                    <p>f) the term "company" means any body corporate or any entity which is treated as a
      body corporate for tax purposes;</p>
                    <p>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;</p>
                    <p>h) the term "national" means:</p>
                    <p>(i) in respect of Korea all individuals possessing the nationality in Korea and all
      legal persons, partnerships, associations and other entities deriving their status as such
      from the laws in force in Korea;</p>
                    <p>(ii) in respect of Finland, any individual possessing the nationality of Finland, and
      any legal person, partnership and association deriving its status as such from the laws in
      force in Finland;</p>
                    <p>i) the term "competent authority" means:</p>
                    <p>(i) in Korea, the Minister of Finance or his authorised representative;</p>
                    <p>(ii) in Finland, the Ministry of Finance or its authorised representative;</p>
                    <p>j) the term "international traffic" means any transport by 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.</p>
                    <p>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 laws of that State concerning the taxes to which the Convention applies.</p>
                </content>
            </article>
            <article eId="art_4">
                <num>Article 4</num>
                <heading>Resident</heading>
                <content>
                    <p>1. For the purpose 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. However, this term does not include any person who is liable to tax in
      that State in respect only of income from sources therein.</p>
                    <p>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:</p>
                    <p>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 his personal and economic relations are closer
      (centre of vital interests);</p>
                    <p>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 which he has an habitual abode;</p>
                    <p>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;</p>
                    <p>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.</p>
                    <p>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 of the
      Contracting 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.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_2" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/75#protocol">Protocol</a>
                          to this Convention.
                </p>
            </tblock>
            <article eId="art_5">
                <num>Article 5</num>
                <heading>Permanent Establishment</heading>
                <content>
                    <p>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.</p>
                    <p>2. The term "permanent establishment" includes especially:</p>
                    <p>a) a place of management;</p>
                    <p>b) a branch;</p>
                    <p>c) an office;</p>
                    <p>d) a factory;</p>
                    <p>e) a workshop; and</p>
                    <p>f) a mine, an oil or gas well, a quarry or any other place of extraction of natural
      resources.</p>
                    <p>3. A building site or construction or installation project constitutes a permanent
      establishment only if it lasts more than six months.</p>
                    <p>4. Notwithstanding the preceding provisions of this Article, the term "permanent
      establishment" shall be deemed not to include:</p>
                    <p>a) the use of facilities solely for the purpose of storage, display or delivery of
      goods or merchandise belonging to the enterprise;</p>
                    <p>b) the maintenance of a stock of goods or merchandise belonging to the enterprise
      solely for the purpose of storage, display or delivery;</p>
                    <p>c) the maintenance of a stock of goods or merchandise belonging to the enterprise
      solely for the purpose of processing by another enterprise;</p>
                    <p>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;</p>
                    <p>e) the maintenance of a fixed place of business solely for the purpose of carrying on,
      for the enterprise, any other activity, if it has a preparatory or auxiliary
      character;</p>
                    <p>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.</p>
                    <p>5. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than
      an agent of an independent status to whom paragraph 6 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.</p>
                    <p>6. 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 commission agent or any other agent of an independent status, provided that such
      persons are acting in the ordinary course of their business.</p>
                    <p>7. 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.</p>
                </content>
            </article>
            <article eId="art_6">
                <num>Article 6</num>
                <heading>Income from Immovable Property</heading>
                <content>
                    <p>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.</p>
                    <p>2. a) The term "immovable property" shall, subject to the provisions of sub-paragraph
      b) and c), be defined in accordance with the law of the Contracting State in which the
      property in question is situated.</p>
                    <p>b) The term "immovable property" 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 the
      rights to work, mineral deposits, sources and other natural resources.</p>
                    <p>c) Ships and aircraft shall not be regarded as immovable property.</p>
                    <p>3. The provisions of paragraph 1 of this Article shall apply to income derived from
      the direct use, letting, or use in any other form of immovable property.</p>
                    <p>4. Where the ownership of shares or other corporate rights in a company entitles the
      owner of such shares or corporate rights to the enjoyment of immovable property owned by the
      company, the income from the direct use, letting, or use in any other form of such right to
      the enjoyment may be taxed in the Contracting State in which the immovable property is
      situated.</p>
                    <p>5. The provisions of paragraphs 1 and 3 of this Article shall also apply to the income
      from immovable property of an enterprise and to income from immovable property used for the
      performance of professional services.</p>
                    <p>The provisions of paragraph 4 shall likewise apply to the income from a right of
      enjoyment referred to in that paragraph of an enterprise and to income from such right of
      enjoyment used for the performance of professional services.</p>
                </content>
            </article>
            <article eId="art_7">
                <num>Article 7</num>
                <heading>Business Profits</heading>
                <content>
                    <p>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 Contracting 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.</p>
                    <p>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.</p>
                    <p>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.</p>
                    <p>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.</p>
                    <p>5. 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.</p>
                </content>
            </article>
            <article eId="art_8">
                <num>Article 8</num>
                <heading>Shipping and Air Transport</heading>
                <content>
                    <p>1. Profits from the operation of ships or aircraft in international traffic shall be
      taxable only in the Contracting State of which the enterprise is a resident.</p>
                    <p>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.</p>
                </content>
            </article>
            <article eId="art_9">
                <num>Article 9</num>
                <heading>Associated Enterprises</heading>
                <content>
                    <p>Where</p>
                    <p>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</p>
                    <p>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,</p>
                    <p>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.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 17 of the MLI applies and supersedes the
      provisions of this Convention:
                                <authorialNote marker="2" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 17 of the MLI has effect with respect to the application of this Convention by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2021;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraph 1 of Article 35 of the MLI, paragraph 1 of Article 17
          of the MLI has effect with respect to the application of the Convention by the Republic of
          Korea:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2021;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Korea, for taxes
          levied with respect to taxable periods beginning on or after 1 March 2021.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 17 OF THE MLI – CORRESPONDING ADJUSTMENTS</num>
                        <content>
                            <p>
                                Where a [
                                <i>Contracting State</i>
                                ] includes in the profits of an
        enterprise of that [
                                <i>Contracting State</i>
                                ] – and taxes accordingly –
        profits on which an enterprise of the other [
                                <i>Contracting State</i>
                                ] has
        been charged to tax in that other [
                                <i>Contracting State</i>
                                ] and the profits
        so included are profits which would have accrued to the enterprise of the first-mentioned
          [
                                <i>Contracting State</i>
                                ] if the conditions made between the two
        enterprises had been those which would have been made between independent enterprises, then
        that other [
                                <i>Contracting State</i>
                                ] shall make an appropriate adjustment
        to the amount of the tax charged therein on those profits. In determining such adjustment,
        due regard shall be had to the other provisions of [
                                <i>the Convention</i>
                                ]
        and the competent authorities of the [
                                <i>Contracting States</i>
                                ] shall if
        necessary consult each other.
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <article eId="art_10">
                <num>Article 10</num>
                <heading>Dividends</heading>
                <content>
                    <p>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.</p>
                    <p>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 the
      tax so charged shall not exceed:</p>
                    <p>a) 10 per cent of the gross amount of the dividends if the recipient is a company
      (other than a partnership) which holds directly at least 25 per cent of the capital of the
      company paying the dividends;</p>
                    <p>b) 15 per cent of the gross amount of the dividends in all other cases.</p>
                    <p>The competent authorities of the Contracting States shall by mutual agreement settle
      the mode of application of these limitations.</p>
                    <p>This paragraph shall not affect the taxation of the company in respect of the profits
      out of which the dividends are paid.</p>
                    <p>3. The term "dividends" as used in this Article means income from 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 taxation laws of the State of which the company making distribution is a
      resident.</p>
                    <p>4. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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.</p>
                    <p>5. 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.</p>
                </content>
            </article>
            <article eId="art_11">
                <num>Article 11</num>
                <heading>Interest</heading>
                <content>
                    <p>1. Interest arising in a Contracting State and paid to a resident of the other
      Contracting State may be taxed in that other State.</p>
                    <p>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 the tax so charged shall not exceed 10 per
      cent of the gross amount of the interest.</p>
                    <p>The competent authorities of the Contracting States shall by mutual agreement settle
      the mode of application of this limitation.</p>
                    <p>3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting
      State and received by the Government of the other Contracting State, its political
      subdivision, local authority or public community or the Central Bank of that other Contracting
      State shall be taxable only in that other Contracting State.</p>
                    <p>4. The term "interest" as used in this Article means income from Government
      securities, bonds or debentures, whether or not secured by mortgage and whether or not
      carrying a right to participate in profits, and debt-claims of every kind as well as all other
      income assimilated to income from money lent according to the taxation laws of the State in
      which the income arises.</p>
                    <p>5. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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 a case, the provisions of
      Article 7 or Article 14, as the case may be, shall apply.</p>
                    <p>6. Interest shall be deemed to arise in a Contracting State when the payer is that
      State itself, a political subdivision, local authority or public community 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.</p>
                    <p>7. Where, by reason of a special relationship between the payer and the recipient 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 recipient 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 payment
      shall remain taxable according to the laws of each Contracting State, due regard being had to
      the other provisions of this Convention.</p>
                </content>
            </article>
            <article eId="art_12">
                <num>Article 12</num>
                <heading>Royalties</heading>
                <content>
                    <p>1. Royalties arising in a Contracting State and paid to a resident of the other
      Contracting State may be taxed in that other State.</p>
                    <p>2. However, such royalties may also be taxed in the Contracting State in which they
      arise, and according to the laws of that State, but the tax so charged shall not exceed 10 per
      cent of the gross amount of the royalties. The competent authorities of the Contracting States
      shall by mutual agreement settle the mode of application of this limitation.</p>
                    <p>3. The term "royalties" as used in this Article means payments of any kind received as
      a consideration</p>
                    <p>a) 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 television or radio
      broadcasting;</p>
                    <p>b) for the use of, or the right to use, any patent, trade mark, design or model, plan,
      secret formula or process, or any industrial, commercial or scientific equipment;</p>
                    <p>c) for information concerning industrial, commercial or scientific
      experience.</p>
                    <p>4. The provisions of paragraph 1 and 2 shall not apply if the recipient of the
      royalties, being a resident of a Contracting State, carries on business in the 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 a case, the provisions of Article 7
      or Article 14, as the case may be, shall apply.</p>
                    <p>5. Royalties shall be deemed to arise in a Contracting State when the payer is that
      state itself, a political subdivision, a local authority, a public community 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 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.</p>
                    <p>6. Where, by reason of a special relationship between the payer and the recipient or
      between both of them and some other person, the amount of the royalties paid, 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 recipient in the absence of such relationship, the
      provisions of this Article shall apply only to the last-mentioned amount. In that case, the
      excess part of the payments shall remain taxable according to the law of each Contracting
      State, due regard being had to the other provisions of this Convention.</p>
                </content>
            </article>
            <article eId="art_13">
                <num>Article 13</num>
                <heading>Capital Gains</heading>
                <content>
                    <p>1. Gains from the alienation of immovable property, as defined in paragraph 2 of
      Article· 6, may be taxed in the Contracting State in which such property is
      situated.</p>
                    <p>2. Gains from the alienation of shares or other corporate rights referred to in
      paragraph 4 of Article 6 may be taxed in the Contracting State in which the immovable property
      owned by the company is situated.</p>
                    <p>3. Gains from the alienation of movable property forming part of the business 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 of such a fixed base, may be taxed in the other
      State. However, gains from the alienation of ships or aircraft operated in international
      traffic and 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.</p>
                    <p>4. Gains from the alienation of any property other than referred to in paragraphs 1, 2
      and 3 shall be taxable only in the Contracting State of which the alienator is a
      resident.</p>
                    <p>5. The provisions of paragraph 4 of this Article shall not affect the right of a State
      to tax according to its own law a tax on capital gains from the alienation of movable property
      derived by an individual who is a resident of the other State and has been a resident of the
      first-mentioned State at any time during the five years immediately preceding the alienation
      of the property, in case it has been acquired during his residency in the first-mentioned
      State.</p>
                </content>
            </article>
            <article eId="art_14">
                <num>Article 14</num>
                <heading>Independent Personal Services</heading>
                <content>
                    <p>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
      unless he has a fixed base regularly available to him in the other Contracting State for the
      purpose of performing his activities. If he has such a fixed base, the income may be taxed in
      the other State but only so much of it as is attributable to that fixed base.</p>
                    <p>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.</p>
                </content>
            </article>
            <article eId="art_15">
                <num>Article 15</num>
                <heading>Dependent Personal Services</heading>
                <content>
                    <p>1. Subject to the provisions of Articles 16, 18, 19 and 20 salaries, wages and other
      similar remuneration derived by a resident of a Contracting State in respect of an employment
      shall be taxable only in that State unless the employment is exercised in the other
      Contracting State. If the employment is so exercised, such remuneration as is derived
      therefrom may be taxed in that other State.</p>
                    <p>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:</p>
                    <p>a) the recipient is present in the other State for a period or periods not exceeding
      in the aggregate 183 days in the calendar year concerned;</p>
                    <p>b) the remuneration is paid by, or on behalf of, an employer who is not a resident of
      the other State; and</p>
                    <p>c) the remuneration is not borne by a permanent establishment or a fixed base which
      the employer has in the other State.</p>
                    <p>3. Notwithstanding the preceding provisions of this Article, remuneration in respect
      of an employment exercised abroad a ship or aircraft in international traffic, may be taxed in
      the Contracting State of which the enterprise is a resident.</p>
                </content>
            </article>
            <article eId="art_16">
                <num>Article 16</num>
                <heading>Directors' Fees</heading>
                <content>
                    <p>Directors' fees and other similar payments derived by a resident of a Contracting
      State in this capacity as a member of the board of directors or another similar organ of a
      company which is a resident of the other Contracting State may be taxed in that other
      State.</p>
                </content>
            </article>
            <article eId="art_17">
                <num>Article 17</num>
                <heading>Artistes and Athletes</heading>
                <content>
                    <p>1. Notwithstanding the provisions of Articles 14 and 15, 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 State.</p>
                    <p>2. Where income in respect of personal activities exercised by an entertainer or
      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 15, be
      taxed in the Contracting State in which the activities of the entertainer or athlete are
      exercised.</p>
                    <p>3. Income in respect of personal activities exercised in a Contracting State by an
      entertainer or an athlete, being a resident of the other Contracting State in his capacity as
      such, whether or not that income accrues to that entertainer or athlete himself, shall,
      notwithstanding the provisions of paragraphs 1 and 2 of this Article and of Articles 7, 14 and
      15, be taxable only in that other State if his visit to the first-mentioned State is supported
      substantially from public funds of the other State, a political subdivision, a local authority
      or a public community thereof, or if the recipient of the income is a non-profit making
      organisation of the other State.</p>
                </content>
            </article>
            <article eId="art_18">
                <num>Article 18</num>
                <heading>Pensions</heading>
                <content>
                    <p>1. Subject to the provisions of paragraph 2 of this Article or 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.</p>
                    <p>2. Subject to the provisions of paragraph 2 of Article 19, pensions and other payments
      made under the social security legislation: of a Contracting State shall be taxable only in
      that State.</p>
                </content>
            </article>
            <article eId="art_19">
                <num>Article 19</num>
                <heading>Government Service</heading>
                <content>
                    <p>1. Subject to the provisions of paragraph 2 of this Article or 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.</p>
                    <p>2. Subject to the provisions of paragraph 2 of Article 19, pensions and other payments
      made under the social security legislation: of a Contracting State shall be taxable only in
      that State.</p>
                    <p>Article 19</p>
                    <p>Government Service</p>
                    <p>1. a) Remuneration, other than a pension, paid by a Contracting State, a political
      subdivision, a local authority or a public community thereof to any individual in respect of
      services rendered to that State, political subdivision, local authority or public community
      shall be taxable only in that State.</p>
                    <p>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:</p>
                    <p>(i) is a national of that State; or</p>
                    <p>(ii) did not become a resident of that State solely for the purpose of rendering the
      services.</p>
                    <p>2. a) Any pension paid by, or out of funds created by, a Contracting State, a
      political subdivision, a local authority or a public community thereof to any individual in
      respect of services rendered to that State, political subdivision, local authority or public
      community, shall be taxable only in that State.</p>
                    <p>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.</p>
                    <p>3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions
      in respect of services rendered in connection with any business carried on by a Contracting
      State, a political subdivision, a local authority or a public community thereof.</p>
                    <p>4. The provisions of paragraph 1 of this Article shall likewise apply in respect of
      remuneration or pensions paid, in the case of Finland, by the Bank of Finland, the Finnish
      Foreign Trade Association and other government owned institutions performing functions of a
      governmental nature and, in the case of Korea, by the Bank of Korea, the Korea Trade Promotion
      Corporation and other government owned institutions performing functions of a governmental
      nature.</p>
                </content>
            </article>
            <article eId="art_20">
                <num>Article 20</num>
                <heading>Students and Apprentices</heading>
                <content>
                    <p>1. An individual 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 Contracting
      State solely as a student at a recognised university, college, school or other similar
      recognised educational institution in the first-mentioned Contracting State or as a business
      or technical apprentice therein, for a period not exceeding five years from the date of the
      first arrival in the first-mentioned Contracting State in connection with that visit, shall be
      exempt from tax in that first-mentioned Contracting State on</p>
                    <p>a) all remittances from abroad for the purpose of his maintenance, education or
      training and</p>
                    <p>b) any remuneration for personal services rendered in the first-mentioned Contracting
      State with a view to supplementing the resources available to him for such purpose.</p>
                    <p>2. An individual 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 Contracting
      State for the purpose of study, research or training solely as a recipient of a grant,
      allowance or award from one of the Contracting States, a political subdivision, a local
      authority or a public community thereof or from a scientific, educational, religious or
      charitable organisation or under a technical assistance programme entered into by one of the
      Contracting States, a political subdivision, a local authority or a public community thereof
      for a period not exceeding five years from the date of his first arrival in the
      first-mentioned Contracting State in connection with that visit shall be exempt from tax in
      that first-mentioned State on</p>
                    <p>a) the amount of such grant, allowance or award;</p>
                    <p>b) all remittances from abroad for the purpose of his maintenance, education or
      training; and</p>
                    <p>c) any remuneration in respect of services in the first-mentioned State if the
      services are performed in connection with his study, research or training or are incidental
      thereto.</p>
                    <p>3. An individual 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 Contracting
      State solely as an employee of, or under contract with, one of the Contracting States, a
      political subdivision, a local authority or a public community thereof, or an enterprise of
      the other Contracting State solely for the purpose of acquiring technical, professional or
      business experience for a period not exceeding two years from the date of his arrival in the
      first-mentioned Contracting State in connection with that visit shall be exempt from tax in
      that first-mentioned Contracting State on:</p>
                    <p>a) all remittances from abroad for the purposes of his maintenance, education or
      training;</p>
                    <p>b) any remuneration for personal services rendered in the first-mentioned Contracting
      State, provided such services are in connection with his studies or training or are incidental
      thereto.</p>
                </content>
            </article>
            <article eId="art_21">
                <num>Article 21</num>
                <heading>Other Income</heading>
                <content>
                    <p>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.</p>
                </content>
            </article>
            <article eId="art_22">
                <num>Article 22</num>
                <heading>Elimination of Double Taxation</heading>
                <content>
                    <p>1. In case of a resident of Korea, double taxation shall be avoided as
      follows:</p>
                    <p>Subject to the existing provisions of the law of Korea regarding credit for foreign
      tax, Finnish tax payable in respect of income derived from Finland shall be allowed as a
      credit against Korean tax payable in respect of that income.</p>
                    <p>2. In case of a resident of Finland, double taxation shall be avoided as
      follows:</p>
                    <p>a) Where a resident of Finland derives income which, in accordance with the provisions
      of this Convention, may be taxed in Korea, Finland shall, where the provisions of
      sub-paragraph b) are not applicable, allow as a deduction from the taxes on income of that
      person, an amount equal to the taxes on income paid in Korea.</p>
                    <p>The deduction shall not, however, exceed that part of the tax on income as computed
      before the deduction is given, which is appropriate to the income which may be taxed in
      Finland.</p>
                    <p>b) Notwithstanding the provisions of sub-paragraph a), dividends paid by a company
      which is a resident of Korea to a company which is a resident of Finland shall be exempt from
      Finnish tax to the extent that the dividends would have been exempt from tax under Finnish
      taxation law if both companies had been residents of Finland.</p>
                    <p>3. For the purpose of paragraph 2 a) of this Article, the Korean tax payable on
      dividends, interest and royalties shall be deemed to include any amount which would have been
      payable under Korean tax law for any year but for an exemption or reduction of tax granted for
      that year or any part thereof under:</p>
                    <p>a) Article 15 and Article 24 of the Foreign Capital Inducement Law of Korea (so far as
      they were in force on and have not been modified since the date of signature of this
      Convention, or have been modified only in minor respects so. as not to affect their general
      character), in any case where the induced capital, loan or technology in question is certified
      by the competent authority of Korea as being for the purpose of promoting new industrial,
      commercial, scientific or educational development in Korea; or</p>
                    <p>b) any other provision which may subsequently be made granting an exemption or
      reduction of tax which is agreed by the competent authorities of the Contracting States to be
      of a substantially similar character, if it has not been modified thereafter or has been
      modified only in minor respects so as not to effect its general character.</p>
                </content>
            </article>
            <tblock class="noteEditorial" eId="note_3" finlex:outline="huomautus">
                <p>
                    See also
                    <a href="/akn/fi/doc/tax-treaty-consolidated/1981/75#protocol">Protocol</a>
                          to this Convention.
                </p>
            </tblock>
            <article eId="art_23">
                <num>Article 23</num>
                <heading>Non-Discrimination</heading>
                <content>
                    <p>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 State
      in the same circumstances are or may be subjected. This provision shall, notwithstanding the
      provisions of Article 1, also apply to persons who are not residents of one or both of the
      Contracting States.</p>
                    <p>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
      activities.</p>
                    <p>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 responsibilities which it grants. to
      its own residents.</p>
                    <p>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 condition as
      if they had been paid to a resident of the first-mentioned State.</p>
                    <p>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 Contracting 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 that first-mentioned State are or
      may be subjected.</p>
                    <p>5. In this Article the term "taxation" means taxes of every kind and description. The
      provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes
      of every kind and description.</p>
                </content>
            </article>
            <article eId="art_24">
                <num>Article 24</num>
                <heading>Mutual Agreement Procedure</heading>
                <content>
                    <p>
                        <embeddedStructure class="mli-replaced">
                            <p>
                                <authorialNote>
                                    <p>1. [REPLACED by the first sentence of paragraph 1 of Article 16 of the
        MLI]</p>
                                </authorialNote>
                            </p>
                            <p>[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 23, to that of the Contracting
        State of which he is a national.] This 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
      Convention.</p>
                        </embeddedStructure>
                    </p>
                    <p>
                        <embeddedStructure class="mli-replacement">
                            <p>
                                <authorialNote>
                                    <p>
                                        The following first sentence of paragraph 1 of Article 16 of the MLI replaces
        the first sentence of paragraph 1 of Article 24 of this Convention:
                                        <authorialNote marker="3" placement="bottom">
                                            <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, the first
            sentence of paragraph 1 of Article 16 of the MLI has effect with respect to the
            application of this Convention by the Republic of Finland:</p>
                                            <p>a) with respect to taxes withheld at source on amounts paid or credited to
            nonresidents, where the event giving rise to such taxes occurs on or after 1 January
            2021; and</p>
                                            <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
            levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                            <p>and,</p>
                                            <p>In accordance with paragraph 1 of Article 35 of the MLI, the first sentence of
            paragraph 1 of Article 16 of the MLI has effect with respect to the application of the
            Convention by the Republic of Korea:</p>
                                            <p>a) with respect to taxes withheld at source on amounts paid or credited to
            nonresidents, where the event giving rise to such taxes occurs on or after 1 January
            2021; and</p>
                                            <p>b) with respect to all other taxes levied by the Republic of Korea, for taxes
            levied with respect to taxable periods beginning on or after 1 March 2021.</p>
                                        </authorialNote>
                                    </p>
                                </authorialNote>
                            </p>
                            <article>
                                <num>ARTICLE 16 OF THE MLI – MUTUAL AGREEMENT PROCEDURE</num>
                                <content>
                                    <p>
                                        Where a person considers that the actions of one or both of the
            [
                                        <i>Contracting States</i>
                                        ] result or will result for that person in
          taxation not in accordance with the provisions of [
                                        <i>this
          Convention</i>
                                        ], that person may, irrespective of the remedies provided by the
          domestic law of those [
                                        <i>Contracting States</i>
                                        ], present the case to the
          competent authority of either [
                                        <i>Contracting State</i>
                                        ].
                                    </p>
                                </content>
                            </article>
                        </embeddedStructure>
                    </p>
                    <p>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. Any
      agreement reached shall be implemented notwithstanding any time limits in the domestic law of
      the Contracting States.</p>
                    <p>3. The competent authorities of the Contracting States shall endeavour to resolve by
      mutual agreement any difficulties 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.</p>
                    <p>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.</p>
                </content>
            </article>
            <article eId="art_25">
                <num>Article 25</num>
                <heading>Exchange of Information</heading>
                <content>
                    <p>1. The competent authorities of the Contracting States shall exchange such information
      as is necessary for the carrying out the provisions of this Convention or of the domestic laws
      of the Contracting States concerning taxes covered by the Convention insofar as the taxation
      thereunder is not contrary to this Convention, or for the prevention of fraud or the
      administration of statutory provisions against legal avoidance in relation to the taxes
      covered by this Convention. 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 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 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.</p>
                    <p>2. In no case shall the provisions of paragraph 1 be construed so as to impose on one
      of the Contracting States the obligation:</p>
                    <p>a) to carry out administrative measures at variance with the laws or administrative
      practice of that or of the other Contracting State;</p>
                    <p>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;</p>
                    <p>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).</p>
                </content>
            </article>
            <article eId="art_26">
                <num>Article 26</num>
                <heading>Diplomatic and Consular Officials</heading>
                <content>
                    <p>Nothing in this Convention shall affect the fiscal privileges of diplomatic or
      consular officials under the general rules of international law or under the provisions of
      special agreements.</p>
                </content>
            </article>
            <p>
                <embeddedStructure class="mli-replacement">
                    <p>
                        <authorialNote>
                            <p>
                                The following paragraph 1 of Article 7 of the MLI applies and supersedes the
      provisions of this Convention:
                                <authorialNote marker="4" placement="bottom">
                                    <p>In accordance with paragraphs 1 and 3 of Article 35 of the MLI, paragraph 1 of
          Article 7 of the MLI has effect with respect to the application of this Convention by the
          Republic of Finland:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2021;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Finland, for taxes
          levied with respect to taxable periods beginning on or after 1 January 2022;</p>
                                    <p>and,</p>
                                    <p>In accordance with paragraph 1 of Article 35 of the MLI, paragraph 1 of Article 7
          of the MLI has effect with respect to the application of the Convention by the Republic of
          Korea:</p>
                                    <p>a) with respect to taxes withheld at source on amounts paid or credited to
          nonresidents, where the event giving rise to such taxes occurs on or after 1 January 2021;
          and</p>
                                    <p>b) with respect to all other taxes levied by the Republic of Korea, for taxes
          levied with respect to taxable periods beginning on or after 1 March 2021.</p>
                                </authorialNote>
                            </p>
                        </authorialNote>
                    </p>
                    <article>
                        <num>ARTICLE 7 OF THE MLI – PREVENTION OF TREATY ABUSE (Principal purposes test provision)</num>
                        <content>
                            <p>
                                Notwithstanding any provisions of [
                                <i>the Convention</i>
                                ], a benefit
        under [
                                <i>the Convention</i>
                                ] shall not be granted in respect of an item of
        income [ ] if it is reasonable to conclude, having regard to all relevant facts and
        circumstances, that obtaining that benefit was one of the principal purposes of any
        arrangement or transaction that resulted directly or indirectly in that benefit, unless it
        is established that granting that benefit in these circumstances would be in accordance with
        the object and purpose of the relevant provisions of [
                                <i>the
        Convention</i>
                                ].
                            </p>
                        </content>
                    </article>
                </embeddedStructure>
            </p>
            <article eId="art_27">
                <num>Article 27</num>
                <heading>Entry into force</heading>
                <content>
                    <p>1. The Governments of the Contracting States shall notify to each other that the
      constitutional requirements for the entry into force of this Convention have been complied
      with.</p>
                    <p>2. The Convention shall enter into force thirty days after the date of the later of
      the notifications referred to in paragraph 1 and its provisions shall have effect in both
      Contracting States:</p>
                    <p>a) in respect of taxes withheld at source, to amounts derived on or after 1 January in
      the calendar year next following the year in which the Convention enters into
      force;</p>
                    <p>b) in respect of other taxes on income, to taxes chargeable for any taxable year
      beginning on or after 1 January in the calendar year next following the year in which the
      Convention enters into force.</p>
                </content>
            </article>
            <article eId="art_28">
                <num>Article 28</num>
                <heading>Termination</heading>
                <content>
                    <p>This Convention shall remain in force until terminated by one of the Contracting
      States. Either Contracting State may terminate the Convention, through diplomatic channels, by
      giving notice of termination at least six months before the end of any calendar year following
      after the period of five years from the date on which the Convention enters into force. In
      such event, the Convention shall cease to have effect in both Contracting States:</p>
                    <p>a) in respect of taxes withheld at source, to amounts derived on or after 1 January in
      the calendar year next following the year in which the notice is given;</p>
                    <p>b) in respect of other taxes on income, to taxes chargeable for any taxable year
      beginning on or after 1 January in the calendar year next following the year in which the
      notice is given.</p>
                    <p>In witness whereof the undersigned, duly authorized thereto, have signed this
      Convention.</p>
                    <p>Done in duplicate at Seoul this eighth day of February of the year one thousand nine
      hundred and seventy-nine in the English language.</p>
                </content>
            </article>
            <hcontainer name="attachments">
                <hcontainer eId="protocol" name="attachment">
                    <heading>Protocol</heading>
                    <content>
                        <p>At the moment of signing the Convention between the Government of the Republic of
      Finland and the Government of the Republic of Korea for the Avoidance of Double Taxation and
      the Prevention of Fiscal Evasion with respect to Taxes on Income, the undersigned have agreed
      that the following provisions shall form an integral part of the Convention.</p>
                        <p>1. In respect of paragraph 1 of Article 2, it is understood that the term "public
      communities" in this Convention shall be applicable only in the case of Finland and mean
      Congregations of the. Evangelical Lutheran Church and the Greek Orthodox Church in
      Finland.</p>
                        <p>2. In respect of sub-paragraph a) of paragraph 3 of Article 2 of the Convention, it is
      understood that the Convention shall apply to the Korean defense tax where charged by
      reference to the income tax or the corporation tax.</p>
                        <p>3. The competent authorities of the Contracting States shall by mutual agreement
      resolve cases where double taxation results from the fact that an undivided estate of a
      deceased person, being resident of Finland, may be taxed in Finland as such and its
      beneficiaries, being residents of Korea, may be taxed in Korea, in respect of the income which
      is derived in Korea.</p>
                        <p>4. In respect of Article 22, it is understood that in case where an individual who is
      a resident of Korea and is subject to the taxes referred to in Article 2 on the basis of
      residency in Korea is regarded as a resident of Finland under the provisions of Section 9 of
      the Act on Tax on Income and Capital (31 December 1974 No. 1043) of Finland, the provisions of
      this Convention shall not prevent Finland from taxing him as a resident of Finland according
      to the said Act. However, Finland shall allow Korean taxes payable in respect of the income as
      a deduction from Finnish taxes in respect of that income in accordance with the provisions of
      paragraph 2 of Article 22. These provisions shall apply only to nationals of
      Finland.</p>
                        <p>In witness whereof, the undersigned have signed the present Protocol which shall have
      the           same force and validity as if it were inserted word by word in the
      Convention.</p>
                        <p>Done in duplicate at Seoul this eighth day of February the year one thousand nine
      hundred and seventy-nine in the English language.</p>
                    </content>
                </hcontainer>
            </hcontainer>
        </mainBody>
    </doc>
</akomaNtoso>
