Georgia: Georgia and South Korea DTA applies from 2017

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

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 across site & shared bottom lb ros

More from across our site

William Paul is being replaced as IRS chief counsel just two months after starting, it is understood
Wopke Hoekstra implored US officials to ‘truly look into the facts’; in other news, the EU Council has reached a political agreement on DAC9
The US president’s flippant approach to international trade will cause chaos for corporations, but there are opportunities for intrepid tax advisers
The ruling underscores that tax authorities must provide ‘detailed, well-supported, and logically sound justifications’ when determining reference prices in tax assessments, one expert told ITR
Tax teams and the IT experts they rely on should be wary of increased compliance, says Richard Sampson, chief revenue officer at Tax Systems
The law firm was representing a businessman in the commodities sector who had previously been convicted of tax fraud
One expert last month predicted the short-term impact of tariffs would be “devastating” for both Canada and the US, particularly if the former instituted retaliatory measures
Ahead of another busy year for the World Tax rankings and ITR Awards, we profile some of the UK’s major firms and explore key market trends
The Labor government has done more than any previous administration to crack down on multinational tax avoidance, Andrew Leigh also tells ITR
Companies that come to terms with digitised tax processes now will stand to gain from FASTER’s disruption, argues Carlos Silva of Xceptor
Gift this article