Can double taxation be avoided under the Korea-Singapore tax treaty?

Yes, Korea and Singapore have an agreement for the avoidance of double taxation (tax treaty), so where the requirements are met, the double tax burden on the same income can be reduced and withholding tax rates on interest and royalties can be lowered.

The current agreement, an updated treaty, entered into force on 31 December 2019, and the update lowered the withholding tax rate on royalties. To claim treaty benefits, the recipient of the income generally must confirm requirements such as being a resident of the other country and have the necessary supporting documents.

• If a Korean head office receives income from a Singapore subsidiary: Singapore withholding tax and taxation and tax credits in Korea must be reviewed together, and the treatment under Korean tax law needs to be checked separately.

Tax treatment can differ depending on the company's revenue, shareholder structure and transactions, so please consult an accounting professional before applying it.

The Lee Kim Alliance accounting team provides accounting and tax consultations.

As of November 2026, source: IRAS