Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
19(1) HBW 4125-K3
David R. Senécal
(613)957-2074
February 6, 1991
Dear 19(1)
This is in reply to your letter of this date requesting information with respect to the possibility of the Korean tax authorities subjecting a license fee, to be paid to your company by a Korean company, to a withholding tax.
As indicated to you by Mr. Senécal of this division, we are of the view that there is no provision in Canada-Korea Income Tax Convention which would prevent Korea from taxing a royalty payment to a resident of Canada solely on the fact that the fee was paid in the form of a lump sum amount rather than a series of periodic payments.
We also confirm that the Convention does not provide an exemption for payments of license fees involving "new advanced technology". However, this is not to say that such an exemption does not exist in Korea's domestic tax legislation and we suggest that you contact the Korean authorities in this regard. Perhaps, Mr. Jacob Kunzer at our embassy in Seoul may be of assistance to you as you have indicated that he is familiar with your situation.
Yours sincerely,
No.910082 Christine Savage
File copy Acting Director
Sequence file Provincial and International
Author's copy Relations Division
Chrono file(2)
Reading file
000260
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© Her Majesty the Queen in Right of Canada, 1991
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© Sa Majesté la Reine du Chef du Canada, 1991
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