December 28, 2023
No. 455
To enhance investment and promote fairness in taxation, and deepen bilateral substantive relations, Taiwan and the Republic of Korea concluded the Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (ADTA) on November 17, 2021, signed remotely by the representative offices of the two countries following seven years of negotiations. The ADTA took effect on December 27, 2023, after the two countries had completed relevant domestic legal procedures and notified one another. It will officially apply to tax cases from January 1 next year. The Ministry of Foreign Affairs (MOFA) of the Republic of China (Taiwan) sincerely welcomes this development.
Taiwan and the ROK are one another’s fifth-largest trading partners. They share a close partnership in semiconductor and IT industrial supply chains, vibrant economic and trade relations, and frequent people-to-people exchanges. In setting out appropriate tax reduction and exemption measures, the ADTA will bolster bilateral industrial cooperation and technological exchanges.
The Taiwan-ROK accord is the second comprehensive income tax agreement that Taiwan has concluded with a northeast Asian nation after Japan. By fostering better investment environments for businesses from both countries, it will further expand bilateral economic and trade relations, enhance people’s welfare, and create a mutually beneficial, win-win situation. (E)