3 days Ago By Raina song
The Ministry of Economy and Finance announced on the 18th that a bilateral double taxation avoidance agreement between Korea and Rwanda will take effect on December 19. This follows the completion of domestic procedures for the agreement signed between the two countries in September last year. Under the agreement, business income may be taxed in the country where it is generated, while the tax rate on dividends, interest, and royalty income is capped at a maximum of 10%.
With certain exceptions, capital gains from shares are not subject to taxation in the source country. Additionally, the Ministry of Economy and Finance announced the establishment of a framework for cooperation among tax authorities, which includes mutual consultation procedures to address tax disputes and the exchange of critical tax information for effective tax law enforcement. An official from the Ministry of Economy and Finance stated, "This agreement is expected to alleviate the tax burden on Korean companies operating in Rwanda and stimulate economic exchanges between the two countries.
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