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Korea–Vietnam tax treaty · Protocol royalties

Korea’s 183-day residence limb can span two tax years — that geometry does not match Vietnam’s day count. Second Protocol royalties are 5% or 10% by category; PPT applies. Treaty in force since 1994-09-09; Protocol from 2021-01-20.

Visa → days → tax → labour

  1. TRC / stay sets how long you may remain.
  2. Days and habitual abode decide Vietnam tax residence (threshold 183 days).
  3. Working needs a permit or exemption — separate from tax.
  4. Relief between the states runs through the Korea–Vietnam DTA (signed 1994-05-20).

Treaty article caps on file

Primary 1994 text (WTO Center / VCCI). Second Protocol summary: MOFA 조약 제2466호.

Article / topicOn file
Dividends10 %
Interest10 %
Royalties — 5% limb5 % — patent, design/model, plan, secret formula/process; industrial/commercial/scientific equipment; know-how
Royalties — other (was 15%, post-Protocol)10 %
Second Protocol PPTExists — treaty benefit denied if main purpose is obtaining the benefit
Property-rich share gainsSource may tax when immovable property exceeds 50 % of share value
Construction PEmore than 6 months
Art 15 short-stay limb183 days
Art 18 pensionsTaxable only in the residence state
Art 21 teachers / researchersUp to 2 years
Art 23 credit KR ← VN taxExists — dollar amounts refused
Art 23 credit VN ← KR taxExists — dollar amounts refused
Art 4 dual-resident tie-breakerpermanent home → centre of vital interests → habitual abode → nationality → mutual agreement

Art 23 tax-sparing / deemed-tax limbs were time-limited to ten years from entry into force unless competent authorities extended them — dollar sparing refused.

Dual residence — why day counts disagree

Korea-side traps

Domestic Republic of Korea gates. They do not travel from the Australia page. We state the gate — not the bill.

1. Worldwide tax for residents

Korean tax residents are generally taxed on worldwide income. Vietnam residence does not by itself switch that off.

2. The 183-day limb (and two-year span)

Korea residence uses domicile or a place of residence for 183 days. Continuously staying across two tax periods can still meet the limb — that span is the Korea differentiator. Day counts are not interchangeable with Vietnam’s machine.

3. Exit tax

Leaving Korea permanently can trigger a deemed-gain regime on certain stock holdings. Dollar thresholds refused.

What stays refused

Dollar Art 23 credits and tax-sparing amounts, exit-tax KRW maths, NPS refund eligibility matrices, and full Protocol article wording beyond the MOFA gates filed here.

All cells on this page

Common questions

Is there a Korea–Vietnam tax treaty?
Yes. The 1994 DTA is in force; the Second Protocol entered into force on 20 January 2021. Royalties are capped at 5% or 10% by category; a principal-purpose test applies.
Is Korea’s 183-day test the same as Vietnam’s?
No. Korea’s place-of-residence limb can span two tax periods. Vietnam’s day count is a separate machine. Dual residence goes to DTA Art 4.
What are the Korea royalty rates?
Art 12(2)(a) caps patent, equipment, and know-how royalties at 5%. Other royalties were 15% and are 10% after the Second Protocol. Category wording is filed from the 1994 text and MOFA Protocol summary.
Does Korea have an exit tax?
Yes — a deemed-gain regime can apply when leaving permanently with certain stock holdings. KRW thresholds and gain maths are refused; only the gate is filed.

Cells cite primary sources with check months. Method · Sources · Disclosure. Not personalised tax advice.

Also filed: Australia · Singapore · China · Japan · United Kingdom · Canada · United States.

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