Copying and distributing are prohibited without permission of the publisher

Georgia: Georgia and South Korea DTA applies from 2017

25 January 2017

Email a friend
  • Please enter a maximum of 5 recipients. Use ; to separate more than one email address.


Lopatina Irina

The provisions of the double tax treaty between Georgia and South Korea apply from January 1 2017.

Georgia's Minister of Finance Nodar Khaduri and Yoo Il Ho, the deputy prime minister and minister of strategy and finance of South Korea signed the DTA on March 31 2016. Following appropriate actions, the treaty was enacted and entered into force on November 17 2016 and it generally applies from the beginning of 2017.

The DTA intends to facilitate economic cooperation and the inflow of investments, along with the avoidance of double taxation, which will be achieved through the introduction of international standards for the exchange of information for tax purposes.

The agreement is based on the model tax convention developed by the OECD and defines the principles of taxation between the countries. In terms of withholding tax rates, it stipulates a 5% (assuming at least 10% participation) or 10% withholding tax rate on dividends (in all other cases), as well as 10% withholding tax rate on interest and royalties.

South Korea is one of the significant economic partners of Georgia. In line with the data released by the National Statistics Office of Georgia (GeoStat), the inflow of foreign direct investments (FDI) from the South Korea into Georgia is increasing. In 2015-16 (Q1 and Q2 of 2016), FDIs into Georgia reached $61.5 million.

The treaty concluded with South Korea is the latest in a list of 53 DTA signed between Georgia and other countries.

Lopatina Irina (irina.lopatina@eurofast.eu)
Eurofast Georgia
Tel: +995 322 18 03 10
Website: www.eurofast.eu






International Tax Review Profile

RT @kylegriffin1: An analysis by The AP shows the nation's six big Wall Street banks saved at least $3,590,000,000 in taxes last quarter, t…

Apr 20 2018 04:00 ·  reply ·  retweet ·  favourite
International Tax Review Profile

@VidyaKauri For information on that, you should get in touch with anjana.haines@euromoneyplc.com

Apr 20 2018 03:42 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Exchange of information in Switzerland affecting corporations: In the fight against harmful tax practices and to ac… https://t.co/zrc67pWrxz

Apr 20 2018 01:00 ·  reply ·  retweet ·  favourite
International Tax Review Profile

UK revenue authority #HMRC is under scrutiny after refusing to cooperate with a French investigation of Lycamobile,… https://t.co/iymYRkhhOl

Apr 20 2018 11:13 ·  reply ·  retweet ·  favourite
International Tax Review Profile

Glad you enjoyed it, Vanni https://t.co/jKqnAwbAIy

Apr 20 2018 09:05 ·  reply ·  retweet ·  favourite
International Correspondents