All material subject to strictly enforced copyright laws. © 2022 ITR is part of the Euromoney Institutional Investor PLC group.

Georgia: Georgia and South Korea DTA applies from 2017

irina.jpg

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

More from across our site

This week European Commission officials consider legal loopholes to secure minimum corporate taxation, while Cisco and Microsoft shareholders call for tax transparency.
The fast-food company’s tax settlement with French authorities strengthens the need for businesses to review their TP arrangements and documentation.
The full ALP model will be adopted through a new TP regime, which is set to boost the country’s investments and tax certainty.
Tax professionals have called on the UK government to reconsider its online sales tax as it would affect the economy at the worst time.
Tax professionals have called on companies to act urgently to meet e-invoicing compliance targets as the EU plans to ramp up digitisation.
In the wake of India’s ambitious 25-year plan for economic growth, ITR has partnered with leading tax commentators to discuss what the future will look like for India and for the rest of the world.
But experts cast doubt on HMRC's data and believe COVID-19 would have increased the revenue shortfall.
EY’s plan to separate its auditing and consulting businesses might lessen scrutiny from global regulators, but the brand identity could suffer, say sources.
Multinationals are asking world leaders to put a scale on carbon pricing to tackle climate change at the 48th G7 summit in Germany, from June 26 to 28.
The state secretary told the French press that the country continues to oppose pillar two’s global minimum tax rate following an Ecofin meeting last week.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree