I. Legal basis

Law on Tax Administration No. 38/2019/QH14

Decree No. 126/2020/ND-CP

Circular No. 205/2013/TT-BTC

List of TDT agreements

II. TDT

A TDT is an agreement between two or more countries aimed at avoiding double taxation of an individual or organization on the same source of income. This agreement plays an important role in creating a favorable environment for international investment and trade, while promoting cooperation between countries in the field of tax administration.

III. Objectives of the Double Taxation Agreement (TDT)

Double Taxation Avoidance: TDT helps prevent the same source of income from being taxed in two countries, thereby reducing the tax burden on individuals and businesses. This helps create fairness and transparency in the tax system.

Encourage investment and trade: When investors know that they are not taxed twice, they will find it easier to make investment decisions. This not only benefits investors but also creates more job opportunities and economic growth for both countries.

Enhance international cooperation: TDT creates a legal basis for the exchange of tax information between countries. This helps improve the efficiency of tax administration, while minimizing the possibility of tax evasion.

IV. Main contents of the TDT:

Division of taxing rights: TDT determines which country has the right to collect tax on each type of income. For example, income from wages will usually be taxed in the country where the individual works, while dividends may be taxed in the country where the capital is sourced.

Certification procedures: The agreement sets out how an individual or entity must apply for tax exemption or reduction under the agreement. These steps typically include filing an application and providing documentation of income.

Dispute resolution: The TDT agreement also sets out how disputes between countries regarding the application of the agreement will be resolved, ensuring that issues that arise are handled fairly and transparently.

V. Types of income covered

Salaries and wages: Usually taxed in the country where the individual works.

Dividends: May be taxed in both countries, but the agreement usually sets out a maximum tax rate that the country where the dividend is received is allowed to collect.

Interest: Similar to dividends, the TDT agreement usually sets out a maximum tax rate for interest income.

Royalties: Royalty income is also often covered by TDT agreements, with clear provisions on tax rates.

VI. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

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To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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