Kim Chang-ki, Commissioner of the National Tax Service, "We Will Continue Efforts to Ease Tax Audit Burden on Foreign Companies"

Meeting with the European Chamber of Commerce in Korea
Communication with European companies in Korea after 12 years since 2011

Commissioner Kim Chang-gi of the National Tax Service stated on the 23rd, "We will continue to make efforts to alleviate the burden of tax audits, including non-discriminatory enforcement of tax audits on foreign companies and the expansion of simplified audits."

On the same day, Commissioner Kim made these remarks during a meeting with the European Chamber of Commerce in Korea (ECCK). The meeting, held at the invitation of ECCK Chairman Dirk Lukat, was attended by more than 30 representatives of European companies in Korea. This marks the first time in 12 years since 2011 that the National Tax Service has engaged in communication with European companies in Korea.

Commissioner Kim expressed gratitude to European businesspeople who have shown unwavering trust in Korea over a long period, saying, "Since the Korea-European Union (EU) Free Trade Agreement came into effect in 2011, bilateral trade volume has increased by more than 50%, resulting in the EU becoming Korea's largest investor and third-largest trading partner."

According to the National Tax Service, European businesspeople attending the meeting expressed appreciation for the tax administration support efforts and strengthened field communication by the National Tax Service, while suggesting measures such as reducing the burden of tax audits, easing regulations on alcoholic beverage e-commerce, and simplifying the Advance Pricing Agreement (APA) procedures. The APA is a system where the prices of international transactions (transfer prices) between related companies within multinational corporate groups are pre-determined through consultations among tax authorities to prevent tax disputes related to international transactions.

In response, Commissioner Kim said, "We will establish a stable and predictable tax administration environment that allows foreign companies to focus on their business and expedite the APA procedures," adding, "I hope this meeting will serve as an opportunity to strengthen the cooperative relationship between the National Tax Service and foreign companies."

Kim Chang-ki, Commissioner of the National Tax Service, is explaining tax support measures for foreign companies at a meeting with the European Chamber of Commerce in Korea (ECCK) on the 23rd.