Korea-Rwanda double taxation avoidance treaty to take effect Thurs.

Finance Minister Choi Sang-mok speaks during a press conference with foreign media in Seoul, Dec. 18. Yonhap A bilateral double taxation avoidance treaty between Korea and Rwanda is set come into force later this week, the finance ministry said Wednesday.

The agreement, scheduled to take effect Thursday, allows the source country where the business is conducted to impose taxes on income generated from business activities, according to the ministry. Under the treaty, the maximum tax rate on dividends, interest and royalties will be capped at 10 percent. Additionally, capital gains from the transfer of shares will be exempt from taxation in the source country, except in specific exceptional cases.



The treaty aims to ease the tax burden on companies operating in each other's territories while enhancing measures to prevent double taxation and tax evasion. The ministry expressed hope that it will lower the local tax burden for Korean businesses operating in Rwanda, contributing to an expansion of economic exchanges between the two nations. The bilateral treaty was signed in September 2023, the ministry added.

(Yonhap).