Double taxation avoidance pact between S. Korea, Cambodia takes effect

A tax agreement signed between South Korea and Cambodia to prevent double taxation went into force Friday, the foreign ministry said.

The pact allows countries to avoid taxing the same income twice and helps ease the tax burden on companies doing business in another country.

South Korea and Cambodia signed the agreement in November 2019, and both countries gained parliamentary approval last month.

South Korea has now signed the double taxation avoidance pacts with all 10 members of the Association of Southeast Asian Nations (ASEAN). The first pact it signed with Vietnam went into effect in 1994.

Seoul has been pushing for its New Southern Policy, a key regional cooperation initiative aimed at deepening economic and other ties with ASEAN. (Yonhap)