Kim Chang-ki Holds Relay Meeting with Vietnam and Cambodia National Tax Directors

Discussion on Tax Administration Cooperation System to Resolve Double Taxation for Korean Companies Expanding Overseas

Kim Chang-ki, Commissioner of the National Tax Service, is taking a commemorative photo with Cao Aing Tuan (CAO ANH TUAN), Commissioner of the Vietnam General Department of Taxation.

[Asia Economy Sejong=Reporter Kim Hyewon] Kim Chang-gi, Commissioner of the National Tax Service (NTS), met consecutively with the heads of the tax authorities of Cambodia and Vietnam to discuss measures to resolve double taxation for overseas companies.

On the 6th, the NTS announced on the 8th that it held the 3rd Korea-Cambodia Tax Commissioners' Meeting with Kong Vibol, Commissioner of the Cambodian General Department of Taxation, in Phnom Penh, Cambodia. On the 7th, the 21st Korea-Vietnam Tax Commissioners' Meeting was held in Hanoi, Vietnam, with Cao Anh Tuan, Commissioner of the General Department of Taxation of Vietnam.

Marking the 30th anniversary of diplomatic relations between Korea and Vietnam this year, the NTS plans to support corporate competitiveness from a tax administration perspective so that Korean companies, which regard Vietnam as the 4th largest trading partner, can focus on their business without difficulties caused by tax issues.

Commissioner Kim discussed measures to prevent and resolve double taxation for companies operating in Vietnam and shared key tasks for enhancing taxpayer convenience between the two tax authorities. Commissioner Kim pointed out, "Although an institutional mechanism called mutual agreement procedure has been established to resolve double taxation, it has not been actively utilized." Accordingly, the two commissioners agreed to further activate mutual agreements between the tax authorities through proactive efforts by both countries, the NTS reported.

Kim Chang-ki, Commissioner of the National Tax Service, is taking a commemorative photo after signing a Memorandum of Understanding (MOU) for cooperation with Kong Vibol, Commissioner of the Cambodia National Tax Service.

Regarding Cambodia, which marks the 25th anniversary of reestablishing diplomatic relations this year, regular meetings have been held since 2018. This was the third meeting, where they discussed the practical implementation of tax cooperation procedures following the enforcement of the Double Taxation Avoidance Agreement (tax treaty) in January last year, as well as support measures for Korean companies in tax administration.

Commissioner Kim stated, "Institutional mechanisms for cooperation between tax authorities have been established in various areas such as mutual agreement, exchange of tax information, and collection assistance," and added, "Let us operate these mechanisms practically at an early stage to contribute to the expansion of economic exchanges between the two countries." The two commissioners also signed a Memorandum of Understanding (MOU) for mutually beneficial and developmental cooperation in the field of tax administration. Korea will provide electronic tax administration training to the Cambodian General Department of Taxation, and Cambodia promised to hold annual tax briefings to resolve tax uncertainties for Korean companies.