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%]

   Interests: 10%

   Royalties: 10%