S. Korea, Kyrgyzstan agree on double-taxation avoidance deal

SEOUL, Nov. 20 (Yonhap) -- South Korea and Kyrgyzstan have agreed to sign a
double-taxation avoidance pact to boost bilateral investment and other exchanges,
Seoul officials said Thursday.
South Korea's Finance Ministry said it recently held working-level talks with
Kyrgyzstan officials and reached a preliminary agreement on the taxation pact
earlier this week.
Under the deal, yet to be officially signed, South Korean companies will be
subject to lower tax rates than local enterprises for investment income in
Kyrgyzstan.
Tax will be levied only on profits directly related to permanent establishments
or fixed locations where business activities are carried out, the ministry said.
Offshore income by construction firms will also be exempt from taxation.
Currently, South Korea has double-taxation avoidance pacts with 78 countries.
According to the ministry, 71 of them are currently in effect.
Kyrgyzstan, which gained independence from the Soviet Union in 1991, is known to
hold a vast amount of natural resources such as gold, tin and Uranium.
kokobj@yna.co.kr
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