India: Treaty with South Korea would allow bilateral APAs, MAPs

India: Treaty with South Korea, bilateral APAs, MAPs

An income tax treaty between India and South Korea includes provisions that would allow for bilateral advance pricing agreements (APAs) and mutual agreement procedures (MAPs) to resolve transfer pricing issues. The treaty was signed in May 2015, and is pending ratification and the final notification procedures before the treaty’s entry into force.

Related content

Historically, India’s tax authorities claimed that India’s network of income tax treaties did not allow for bilateral APAs or MAPs of transfer pricing issues. This was also true for an earlier income tax treaty between India and South Korea. However, with the 2015 tax treaty between India and South Korea, there is a new provision—Article 9(2)—that would allow for the use of bilateral APAs and MAPs to resolve transfer pricing issues of taxpayers possibly encountering double taxation for India and South Korea. 


Read a September 2016 report [PDF 285 KB] prepared by the KPMG member firm in India that describes these and other provisions in the treaty

© 2016 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG's new digital platform