Capital gains definition clarified: shares deriving majority value from immovable property; treaty preserves PE taxation rules.

The Protocol to the India-Republic of Korea DTAA defines for Article 13 that shares ''principally of immovable property'' are those deriving more than 50% of their value from immovable property; and for Article 24 it confirms that India may tax profits of a Korean company's permanent establishment in India at a higher rate than for similar Indian companies, while Korea may impose an additional tax on an Indian resident company's permanent establishment in Korea not exceeding 15% of profits after deducting Korean income and other taxes. The Protocol is integral to the Agreement and establishes English as the prevailing text in case of divergence.

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