1. Foreign Minister Kang Kyung-wha, together with Czech Ambassador to the Republic of Korea Tomas Husak, signed the ROK-Czech “Convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income” at the Foreign Ministry on January 12.

2. The agreement, a fully revised version of the one brought into force in 1995, has been concluded to reflect the changes in the bilateral economic ties since the effectuation of the original version -- including due to the split of Czechoslovakia into the Czech Republic and Slovakia -- as well as the progress in the recent discussions on the Organization for Economic Co-operation and Development (OECD) Base Erosion & Profit Shifting project, the aim of which is to prevent the abuse of tax treaties for tax evasion.

3. The agreement, by preventing the two countries from each levying taxes on the same income, is expected to facilitate the transfer of workforce, capital and technology and boost economic exchanges between the two countries.

4. The revised ROK-Czech “Convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income” will be brought into force after being ratified by the parliaments of the two countries and undergoing other necessary procedures.

* unofficial translation