South Korea’s finance ministry said Friday it has initialed a double-taxation prevention pact with the European microstate of Andorra, in a move that could boost bilateral economic cooperation.
The pact allows countries to avoid taxing the same income twice and helps ease the tax burden on companies doing business in the other country.
The agreement is set to take effect after a formal signing and parliamentary ratification in both countries, according to the Ministry of Economy and Finance.
The treaty with Andorra, once implemented, would become the 95th of its kind for Asia’s No. 4 economy. South Korea will also become the first Asian nation to have a double-tax avoidance pact with Andorra.
Source: Yonhap News Agency