National Tax Service (NTS) Commissioner Kim Chang-ki, left, poses with Vietnamese Tax Commissioner Cao Ahn Tuan at their meeting in Hanoi, Vietnam, Wednesday. Courtesy of NTS

By Yoon Ja-young

The National Tax Service (NTS) is planning to collaborate closely with the tax agencies of Vietnam and Cambodia to tackle problems such as international double taxation faced by Korean firms operating overseas.

NTS Commissioner Kim Chang-ki had a meeting with Kong Vibol, tax commissioner of Cambodia, at the country's capital, Phnom Penh, on Tuesday, followed by a meeting with the tax commissioner of Vietnam, Cao Ahn Tuan, in Hanoi, Wednesday.

The meeting comes as Korea and Vietnam, which are marking the 30th anniversary of diplomatic relations this year, recently agreed to elevate their bilateral relationship to a "Comprehensive Strategic Partnership."

Vietnam is Korea's fourth-largest trading partner, with more than 7,000 Korean companies operating there. Thus, a tax administrative system that relieves companies of tax-related difficulties and helps them focus on businesses activities is strongly needed.

Kim and his Vietnamese counterpart discussed measures to prevent and address double taxation, and shared major action plans to make tax payments easier. Kim also demonstrated example cases of easy and convenient digital tax-payment services along with customized services that cater to taxpayers' needs.

NTS Commissioner Kim Chang-ki, left, poses with Cambodian Tax Commissioner Kong Vibol after signing an MOU in Phnom Penh, Tuesday. Courtesy of NTS

The meeting with the Cambodian tax agency, meanwhile, comes as this year marks the 25th anniversary of diplomatic ties reestablishment between the two countries. Bilateral trade volume increased by more than 18 times since then, and the two countries are expected to see both trade and investment expand even further with the Regional Comprehensive Economic Partnership (RCEP) and bilateral free trade agreement (FTA), which recently came into effect.

The two commissioners signed an MOU for mutually constructive and beneficial cooperation. Korea will be providing digital tax administration education to Cambodia's tax agency to help enhance tax administrative capacity, while Kong pledged to hold annual tax seminars specifically for Korean companies to address tax uncertainties they face in Cambodia.

The NTS announced in a press release that it will continue to pursue bilateral cooperation with tax authorities around the world to provide active tax administrative support for Korean companies' exports and overseas expansion.