Agreement on Korea-Hong Kong Tax Treaty
The Ministry of Strategy and Finance had meetings to conclude the Korea-Hong Kong Tax Treaty during September 11th - 13th in Hong Kong and agreed and signed a provisional Korea-Hong Kong Tax Treaty.
The main contents of the agreement of the Tax Treaty are as follows.
■ Exchange of taxation information
The government of Korea and Hong Kong agreed to exchange taxation information for a suspected tax evader of respective country. Especially, the taxation information covers information that financial institutions hold and past information that each government holds.
■ Reduced withholding tax rates
Dividends: 10% [ 15% if the ownership ratio is less than 25%]