Taiwan and South Korea ink income tax treaty to avoid double taxation

E211130Y8・E211130Z8 Jan. 2022(E266)
 Taiwan and South Korea signed the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income on November 17, 2021 (hereinafter referred to as the Taiwan-Korea Income Tax Agreement).  The agreement will enter into force after both parties each have completed the respective necessary domestic legal procedures relating to the agreement and notified each other in writing of that effect, and will further apply to tax-related matters from the very first day of January following the year in which the Agreement enters into force.  

 The Department of Finance of Taiwan indicated the following figures to explain the close and intense relationship between Taiwan and South Korea in economy and trade.  That is, the bilateral total trade between Taiwan and South Korea had amounted to USD35.7407 billion, and Taiwan and South Korea became each other’s 5th largest trading partner in 2020.  Moreover, the investments from Taiwanese enterprises to South Korea were USD2.041 billion, and USD1.506 billion vice versa as of the end of July 2021.  The Taiwan-Korea Income Tax Agreement provides appropriate tax reduction and exemption measures that will eliminate double taxation, relieve tax burden, enhance bilateral industrial cooperation and technology exchanges, step up competitiveness of enterprises, create employment opportunities, boost both countries’ economic growth, and ultimately form a win-win situation.

 The Taiwan-Korea Income Tax Agreement is the second income tax treaty Taiwan has concluded with the north-east countries in addition to Japan.  The conclusion and effect of the Taiwan-Korea Income Tax Agreement will be able to reinforce income tax treaty network of Taiwan in the north-east Asia and further to facilitate Taiwan’s conclusion of other income tax agreements with other countries and upgrade Taiwan’s international competitiveness.  (Released 2021.11.30)
/CCS

TIPLO ECARD Fireshot Video TIPLOBrochure_English TIPLO News Channel TIPLO TOUR 7th FIoor TIPLO TOUR 15th FIoor