The income tax treaty between South Korea and Turkmenistan entered into force on 26 November 2016. The treaty, signed 13 April 2015, is the first of its kind between the two countries.
The treaty covers Korean income tax, corporation tax, special tax for rural development, and local income tax. It covers Turkmen tax on profits (income) of juridical persons and tax on income of individuals.
The treaty includes the provision that a permanent establishment will be deemed constituted when an enterprise furnishes services in a Contracting State through employees or other engaged personnel for the same or several projects for a period or periods aggregating more than 183 days within any 12-month period.
The following capital gains derived by a resident of one Contracting State may be taxed by the other State:
Gains from the alienation of other property by a resident of a Contracting State may only be taxed by that State.
Both countries apply the credit method for the elimination of double taxation.
The treaty applies from 1 January 2017.
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