Kim Dae-ji, Commissioner of the National Tax Service, Attends NTS Commissioner Meetings in Russia and Uzbekistan... Discusses Double Taxation Prevention and Offshore Tax Evasion Cooperation

Kim Dae-ji, Commissioner of the National Tax Service (right), is having a meeting of tax commissioners and taking a commemorative photo with Sherzod Kudbiyev, Commissioner of the Uzbekistan State Tax Committee (left), in Tashkent, Uzbekistan.

[Sejong=Asia Economy Reporter Kim Hyunjung] Kim Daeji, Commissioner of the National Tax Service (NTS), held NTS Commissioner meetings in Russia and Uzbekistan to discuss cooperation on preventing double taxation and offshore tax evasion. He also introduced Korea's electronic tax administration innovation cases and agreed to support the tax administration computerization projects currently underway by the local tax authorities.

According to the NTS on the 27th, Commissioner Kim visited Moscow, Russia, and Tashkent, Uzbekistan, consecutively on the 23rd and 26th to hold NTS Commissioner meetings. Russia is Korea's 12th largest trading partner (USD 17.5 billion), 17th largest country for corporate entry (629 companies), and 34th largest investment destination (USD 2.9 billion), marking the 30th anniversary of diplomatic relations last year. Uzbekistan ranks as Korea's 24th largest country for corporate entry (415 companies), 52nd largest investment destination (USD 780 million), and trading partner (USD 1.72 billion), and trade agreement negotiations began following a summit in January.

Through these bilateral meetings, the NTS discussed ▲establishing channels to prevent double taxation to support corporate competitiveness ▲expanding cooperation networks against offshore tax evasion ▲sharing Korea's electronic tax administration.

Kim Dae-ji, Commissioner of the National Tax Service (left), is having a meeting of tax commissioners with Daniil Yegorov, Commissioner of the Russian Federal Tax Service (right), in Moscow, Russia, and taking a commemorative photo.

First, to resolve tax uncertainties and double taxation issues, the NTS requested the Russian Federal Tax Service to implement the Mutual Agreement Procedure (MAP) and Advance Pricing Agreement (APA) systems, to which Daniil Yegorov, Commissioner of the Russian Federal Tax Service, responded positively. Prior to this, Commissioner Kim held a tax administration meeting with Korean companies operating in Russia to listen to their tax difficulties in advance.

Both countries will also jointly respond to offshore tax evasion by strengthening cooperation. With Russia, which is currently pushing to block offshore tax evasion, they agreed to activate strategic bilateral information exchange and actively cooperate and jointly respond to the 'multilateral automatic exchange of information,' which is becoming a new international cooperation tool. Regarding Uzbekistan, where the number of residents in Korea is increasing and tax issues are expected to expand, Korea proposed developing bilateral information cooperation relations and shared its experience in responding to offshore tax evasion.

Furthermore, the Korean NTS introduced the innovative case of 'K-electronic tax administration,' a major interest topic for Russia and Uzbekistan, and agreed to actively support the tax administration computerization projects promoted by the tax authorities of both countries. Korea's electronic tax administration, which incorporates big data and artificial intelligence (AI) functions into its information system for taxpayer services, tax base management, and tax audits, is receiving significant global attention. Last year, Korea exported a Korean-style national tax information system worth 100 billion KRW to the Indonesian government.