The governments of Iceland and South Korea have agreed to work together in order to foster stronger economic cooperation. According to reports in the China View, representatives from the two governments put their feelings on paper, signing a double taxation convention on Thursday.
Kim Sung-hwan, South Korea’s vice foreign minister and Gunnar Snorri Gunnarsson, Iceland’s ambassador to South Korea, signed the document in Seoul.
The document is officially entitled the “Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital”.
The Convention was designed to simplify the application of tax laws on people and businesses which operate between the two countries. In addition, the document prevents conflict between the two nations, according to local media reports.
Both countries must first ratify the document in their respective parliaments before the terms laid out in the Convention can officially go into effect.
The first diplomatic relations between Iceland and South Korea were established in 1982. The Embassy of Iceland in Beijing is responsible for overseeing the growing levels of bilateral trade between Iceland and China as well as between Iceland and South Korea. Trade between South Korea and Iceland is particularly developed in the areas of technology and fish products.