NationalSymbols of the Republic of Korea
International Taxation
Mutual Agreement
Mutual Agreement Procedure (MAP)


If a Korean resident individual, a domestic company, a nonresident individual or a foreign company with permanent establishment (PE) in Korea requests that his/her/its case be resolved through consultation with the competent authorities under an applicable tax treaty, the Minister of Finance and Economy or the Commissioner of the National Tax Service shall invoke the mutual agreement procedures (MAP). The MAP will be invoked in the following cases:

- Where it is necessary for Korea to consult with a foreign competent authorities with respect to the application and interpretation of the tax treaty

- Where a Korean resident is subject to taxation in a foreign country contrary to the tax treaty concerned or;

- Where it becomes necessary for the competent authorities of the two countries to adjust the taxable income of a taxpayer.

Once the MAP is invoked, the taxpayer will be allowed to postpone the filing of an appeal until the MAP is completed. Furthermore, if the MAP is invoked under an applicable tax treaty, the collection of national and local taxes will be postponed on a reciprocal basis until the MAP is completed.
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