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Kyrgyz President Sadyr Zhaparov has signed into law the ratification of a key tax protocol with South Korea, strengthening the fiscal framework for cross-border investment and reinforcing economic cooperation between the two nations.
The ratified protocol updates the bilateral Agreement on the Avoidance of Double Taxation and the Prevention of Tax Evasion, originally signed on December 11, 2012. The amended accord initially agreed upon during a ministerial session in Seoul on December 3, 2024, targets enhanced tax transparency and a more equitable allocation of taxing rights on income and capital.
“This ratification eliminates major tax-related barriers for investors and institutions operating between the two countries,” the Kyrgyz government said in an official statement. “It sets the foundation for fair taxation and safeguards against abuse through mechanisms preventing tax base erosion.”
The updated provisions are expected to relieve businesses operating in both jurisdictions, particularly concerning dividends, royalties, interest, and capital gains. The agreement also enables enhanced administrative cooperation between the two governments to exchange tax-related information in line with international standards.
Kyrgyzstan’s Ministry of Foreign Affairs has been tasked with notifying South Korean counterparts upon completing all domestic procedures. The new law is scheduled to enter into force 10 days after its official publication.
South Korea is one of Kyrgyzstan’s growing trade partners in East Asia, with bilateral economic engagement ranging from mining and construction to information technology and infrastructure development. Analysts expect the updated tax treaty to improve investment flows and align Kyrgyzstan’s fiscal framework with global best practices.
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