Union Cabinet gave nod for revised DTAA with South Korea [ Current Affairs ]
The Union Cabinet gave its approval for the revised Double Taxation Avoidance Agreement (DTAA) with South Korea. In 1985, DTAA (Double Taxation Avoidance Agreement) was signed for the avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income for the citizens of both the countries.
- According to the bilateral Double Taxation Avoidance Agreement (DTAA), India and South Korea will facilitate the mutual economic cooperation as well as stimulate the flow of investment, technology and services and the primary aim at provide for tax stability between the these countries.
- Both countries enable effective exchange of information and assistance in collection of taxes between tax authorities.
- DTAA provides for source based taxation of capital gains, making adjustments to profits of associated enterprises on the basis of arm’s length principle and residence based taxation of shipping income.
- Genuine residents of both countries incorporate limitation of benefits provisions under the agreement to ensure that the benefits such as rationalizes tax rates in the Articles on Dividends, Interest and Royalties and Fees for Technical Services.
- Published on: May 14, 2015