Korea, Vietnam discuss use of tech to collect taxes

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Korea, Vietnam discuss use of tech to collect taxes

Published: 04 Apr. 2022, 16:03 Updated: 04 Apr. 2022, 17:09

Korean National Tax Service Commissioner Kim Dae-ji, left, poses with Director General of the General Department of Taxation of Vietnam Cao Anh Tuan in Seoul on Monday. [NATIONAL TAX SERVICE]

The heads of Korea and Vietnam's tax agencies met in Seoul to discuss tax challenges faced by Korean companies and digital technology and its uses.
According to the Korean National Tax Service (NTS), Commissioner Kim Dae-ji and Director General of the General Department of Taxation of Vietnam Cao Anh Tuan met Monday and discussed issues on Korean companies operating in Vietnam, including taxes.

Kim welcomed Vietnam’s recent change to its advanced pricing arrangement (APA), which is an agreement between the tax authorities of the countries on transfer pricing policies between Korean headquarters and their operations in Vietnam.

In October, Vietnam revised its APA program, which was first adopted in 2013. It lifted complicated procedures and regulations to keep companies from facing double taxation.

Kim suggested increasing cooperation on APA 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 views on challenges accompanying the development of technologies including blockchain-based transactions.

The NTS demonstrated how it uses technology including collecting information on taxpayers as well as analyzing it through Big Data. The NTS explained the cost effectiveness of these technologies, and also showed tech under development, including use of the metaverse, artificial intelligence and cracking down on tax evasion using blockchain technologies.

“[These technology developments] will raise the public’s trust [in tax agencies] by improving tax services as well as contributing to fairer taxation,” Kim said.

This year is the 30th anniversary of Korea and Vietnam establishing diplomatic relations. The heads of their tax agencies have met frequently since 2003.

This year, the countries are considering stepping up relations to a comprehensive strategic partnership.

BY LEE HO-JEONG [[email protected]]