South Korea is holding discussions with Indonesia to revise its tax deal signed decades ago as part of efforts to reflect the latest market situations, sources said Wednesday.
The talks kicked off on Wednesday for a three-day run in the government's complex building in Gwacheon, south of Seoul, according to the sources who spoke on the condition of anonymity as the government is in the middle of negotiations.
The South Korea-Indonesia tax deal went into effect in 1989 and was mostly aimed at avoiding double taxation between the two nations. This is the first attempt to revise the deal, the sources said.
The finance ministry in charge of international tax deals confirmed that negotiations are under way with Indonesia for the tax revision but declined to elaborate on the details.
Earlier this year, the ministry revised its tax deal with Malaysia partly in order to exclude such tax havens as Labuan from benefits under the two nation's double taxation avoidance agreement.