Foreign businesses in North stand to benefit
Corporate profits earned by foreign investors in North Korea can be sent abroad tax free, according to a guidebook for foreign investors published by North Korea’s Committee for the Promotion of External Economic Cooperation (CPEEC) in 2005. The guidebook also guarantees foreign investors’ legal rights and approves foreign-owned corporations to own property in the North. Given the guidebook’s parameters, barring the occurrence of natural disaster or a change in the national development plan, the communist nation will neither nationalize nor collect the profits earned by foreign investors on its soil.The new measure is aimed at easing the uneasiness felt by foreign investors in North Korea. Pyongyang has already clarified that it will not levy taxes when foreign investors send foreign currency abroad.
