ID :
193672
Fri, 07/08/2011 - 10:24
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https://oananews.org//node/193672
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S. Korea, Peru initial deal to avoid double taxation
SEOUL, July 8 (Yonhap) -- South Korea initialed a tax deal with Peru to help their companies avoid double taxation in each country, the finance ministry said Friday.
Under the deal, both nations will exempt taxation on capital gains from stock sales in the country where the profit is created, according to the Ministry of Strategy and Finance.
Tax rates will be limited to 10 percent on dividend profits in the country where they are generated. Tax rates on interest profits and royalties will be restricted to 15 percent each, the ministry said.
The deal also called for both countries to expand information sharing in taxation and financial sectors to the level of international standards.
The ministry expects the taxation deal to help South Korean companies advance into the resource-rich Latin American country by providing tax-related support.
Under the deal, both nations will exempt taxation on capital gains from stock sales in the country where the profit is created, according to the Ministry of Strategy and Finance.
Tax rates will be limited to 10 percent on dividend profits in the country where they are generated. Tax rates on interest profits and royalties will be restricted to 15 percent each, the ministry said.
The deal also called for both countries to expand information sharing in taxation and financial sectors to the level of international standards.
The ministry expects the taxation deal to help South Korean companies advance into the resource-rich Latin American country by providing tax-related support.
