The Ministry of Economy and Finance building in Sejong (Image courtesy of Yonhap)
SEOUL, July 4 (Korea Bizwire) — A revised tax treaty between South Korea and Kyrgyzstan aimed at preventing double taxation and curbing tax avoidance is set to take effect later this week, the finance ministry said Friday.
According to the Ministry of Economy and Finance, the revised agreement, which will come into force on Saturday, is intended to eliminate potential double taxation on cross-border investments and economic activities between the two nations.
South Korea and Kyrgyzstan first signed a bilateral tax treaty in 2012.
The two countries began discussions to revise the agreement in 2018 to reflect international tax standards promoted by the Organization for Economic Cooperation and Development (OECD), particularly in addressing profit shifting and offshore tax evasion.
The revision strengthens cooperation between the two countries to prevent treaty abuse and ensure that treaty benefits are not granted to transactions conducted solely for the purpose of avoiding taxes.
It also aims to enhance the convenience of dispute resolution procedures for taxpayers facing taxation issues, the ministry said.
(Yonhap)
