ID :
203381
Thu, 08/25/2011 - 06:48
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Shortlink :
https://oananews.org//node/203381
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S. Korea, Ecuador sign deal to avoid double taxation
SEOUL, Aug. 25 (Yonhap) -- South Korea initialed a tax deal with Peru to help their companies avoid double taxation in each country, the finance ministry said Thursday.
Under the deal, both nations will limit taxation on capital gains from stocks and bonds "to a certain level" in the country where the profit is created, according to the Ministry of Strategy and Finance.
Tax rates will be limited to 5-10 percent on dividend profits in the country where they are generated. Tax rates on interest profits and royalties will also be restricted to 12 percent each, the ministry said.
The deal also called for both countries to expand information sharing in the taxation and financial sectors to the level of international standards.
The ministry expects the deal will help South Korean companies advance into the resource-rich Latin American country by providing tax-related support.
kokobj@yna.co.kr
(END)
Under the deal, both nations will limit taxation on capital gains from stocks and bonds "to a certain level" in the country where the profit is created, according to the Ministry of Strategy and Finance.
Tax rates will be limited to 5-10 percent on dividend profits in the country where they are generated. Tax rates on interest profits and royalties will also be restricted to 12 percent each, the ministry said.
The deal also called for both countries to expand information sharing in the taxation and financial sectors to the level of international standards.
The ministry expects the deal will help South Korean companies advance into the resource-rich Latin American country by providing tax-related support.
kokobj@yna.co.kr
(END)
