The double tax avoidance (DTA) agreement between Cambodia and South Korea came into effect on January 29, according to Yonhap News Agency.
The tax treaty will help taxpayers avoid paying double taxes on the same income and alleviate the tax burdens on enterprises doing business in the other country.
The Kingdom penned the DTA pact with South Korea in November 2019 and both countries obtained National Assembly approval in December, the South Korean outlet said.
Bilateral trade volume between Cambodia and South Korea amounted to $884.88 million in 2020, down 17.77 per cent from $1.032 billion in 2019, according to data from the Korea International Trade Association (KITA).
According to the data, Cambodia exported $317 million of goods to the South Korean market last year, a drop of 5.4 per cent, while Korean exports to the Kingdom totaled $567 million, down 18.6 per cent from $696 million in 2019.
Cambodia’s primary exports to South Korea include garments, footwear, travel goods, beverages, rubber, pharmaceuticals, agricultural products and components for electronic equipment.
Imports from South Korea include vehicles, electronics, kitchen equipment, beverages, pharmaceuticals and plastic products.
The Ministry of Economy and Finance’s General Department of Customs and Excise of Cambodia logged $1.272 billion in revenue for the first half of last year, marking a 16.2 per cent decline from the $1.517 billion posted in the corresponding period in 2019.