Kim Dae-ji, commissioner of the National Tax Service (left) and Cao Anh Tuan, general director of Vietnam’s General Department of Taxation, pose for a photo after their meeting Monday. (NTS)
National Tax Service Commissioner Kim Dae-ji on Monday met with his Vietnamese counterpart in Seoul to share know-how on digital transformation and how to resolve double taxation on South Korean companies in Vietnam, the tax agency said.
Kim and Cao Anh Tuan, general director of Vietnam’s General Department of Taxation, agreed to further strengthen cooperation by sharing experience in addressing new challenges of the Fourth Industrial Revolution such as the growth of the platform industry and blockchain-based trading.
Monday’s meeting was the 20th meeting between the two countries’ tax chiefs since 2003.
More than 7,000 South Korean companies are doing business in Vietnam, Korea’s fourth-largest trading partner.
Bilateral trade and investment are expected to grow further as the two countries’ relationship will be elevated to a comprehensive strategic partnership this year, which marks the 30th anniversary of their diplomatic ties.
Upon request from the Vietnamese tax department, Kim gave a presentation on Korea’s digital tax administration including how it collects taxation data, how it has cut tax compliance costs by redesigning its Hometax service, and how it collects taxes in arrears through analyzing big data.
Tuan requested the NTS to share more on its digital taxation, and Kim promised to do so through working-level exchanges, the NTS said.
Kim also stressed during the meeting the importance of resolving double taxation on businesses and preventing tax disputes through a mutual agreement procedure (MAP) and an advance pricing arrangement (APA) to avoid transfer pricing disputes.
Kim welcomed Vietnam’s recent overhaul of the APA system, and suggested going ahead with the MPA and APA negotiations this year. Tuan agreed to proceed with the MAP this year, the NTS said.
By Kim So-hyun (email@example.com