The heads of Korea’s and Vietnam’s tax agencies met in Seoul to discuss tax challenges facing Korean businesses and digital technology and its uses.
According to the Korean National Tax Service (NTS), Commissioner Kim Dae-ji and Director General of Vietnam’s General Department of Taxation Cao Anh Tuan met on Monday and discussed issues related to Korean companies operating in Vietnam, including the taxes.
Kim welcomed Vietnam’s recent amendment to its Advanced Pricing Agreement (APA), which is an agreement between countries’ tax authorities on transfer pricing policies between the Korean headquarters and their operations in Vietnam.
In October, Vietnam revised its ABS program, which was first adopted in 2013. It lifted complicated procedures and regulations to prevent businesses from facing double taxation.
Kim suggested increasing cooperation on ABS agreements this year.
There are 7,813 Korean companies operating in Vietnam.
Korea’s trade with Vietnam amounted to $80.7 billion in 2021, including imports and exports.
Kim and Tuan exchanged their views on the challenges accompanying the development of technologies, including blockchain-based transactions.
The NTS demonstrated how it uses technology, including collecting taxpayer information and analyzing it through Big Data. The NTS explained the profitability of these technologies and also showed the technologies being developed, including the use of the metaverse, artificial intelligence and the suppression of tax evasion using blockchain technologies. blocks.
“[These technology developments] increase public confidence [in tax agencies] improving tax services and contributing to fairer taxation,” Kim said.
This year marks the 30th anniversary of the establishment of diplomatic relations between Korea and Vietnam. The heads of their tax agencies have met frequently since 2003.
This year, the countries plan to intensify their relations towards a comprehensive strategic partnership.
BY LEE HO-JEONG [[email protected]]