▲ This file photo taken June 8, 2021, shows South Korean (R) and Iranian national flags raised in Tehran. (Yonhap)

S Korea-Iran-tax treaty

S. Korea, Iran sign tentative deal on revision to double taxation treaty

SEOUL, Nov. 9 (Yonhap) -- South Korea and Iran signed a provisional agreement Thursday to revise a bilateral double taxation treaty to better prevent the avoidance of double taxation and fiscal evasion, and to boost cooperation on tax issues, Seoul's finance ministry said.

The two sides held three-day negotiations from Monday in Seoul to revise their agreement for the avoidance of double taxation with respect to taxes and income and on capital, which came into force in December 2009, and reached an agreement, according to the Ministry of Economy and Finance.

The revision calls for easing some regulations for residents of a contracting state seeking a mutual agreement procedure to resolve difficulties regarding the interpretation of the agreement.

The revision also aims to enhance the bilateral information exchanges and the overall cooperation on tax matters.

"We've tried to upgrade the agreement by reflecting changing international standards and recommendations presented by the Organization for Economic Cooperation and Development and other institutions," a ministry official said.

The two sides plan to hold a ceremony for a formal signing and go through due domestic procedures to have it come into force, the ministry said, without elaborating on the time frame.

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