The Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income between Taiwan and the Republic of Korea will start from Jan. 1, 2024. The agreement prevents double taxation and reduces tax rates to enhance the investment climate, advance tax equality and deepen substantive bilateral bonds, according to the Ministry of Foreign Affairs Dec. 28 in Taipei City.
The ministry said the two sides signed the agreement Nov. 17, 2021. Following the completion of respective law-making procedures and reciprocal notification, it took effect Dec. 27, 2023.
Taiwan and Korea are each other’s fifth largest trade partner, with close links in both semiconductor industry and information technology supply chains. In addition to deep ties in economy and trade, the two countries also have frequent people-to-people exchanges.
The agreement provides taxation exemption and reduction measures for both Taiwan expatriates and businesses operating in South Korea and vice versa. The protocol will facilitate enhancement of two-way industry cooperation and technical exchange, the MOFA added.
It is the second comprehensive agreement on income tax that Taiwan has signed with a northeast Asian country, after one with Japan. The treaty provides an improved investment environment, creating a win-win situation for the two nations, the ministry concluded. (POC-E)
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