30th Korea-Japan National Tax Service commissioners' meeting

National Tax Service Commissioner Lim Gwang-hyeon (left) poses for a photo with Japanese National Tax Agency Commissioner Ejima Kazuhiko after the 30th Korea-Japan NTS commissioners' meeting in Seoul on Wednesday. [National Tax Service]
National Tax Service Commissioner Lim Gwang-hyeon (left) poses for a photo with Japanese National Tax Agency Commissioner Ejima Kazuhiko after the 30th Korea-Japan NTS commissioners' meeting in Seoul on Wednesday. [National Tax Service]

South Korea and Japan's tax authorities have agreed to further strengthen cooperation on tax collection assistance, tax crimes and information exchange.

National Tax Service Commissioner Lim Gwang-hyeon invited Japanese National Tax Agency Commissioner Ejima Kazuhiko to Seoul on Wednesday for the 30th Korea-Japan NTS commissioners' meeting, where the two sides discussed the cooperation measures, the NTS said Thursday.

The two countries have held the commissioners' meeting every year since their first gathering in 1991, with this year marking the 30th session. At this year's meeting, the two sides exchanged views on three main issues: information exchange and tax collection cooperation, tax support for Korean companies and residents in Japan, and responses to tax crimes and the use of AI.

Some 960,000 Korean nationals live in Japan, and 325 Korean corporations operate there. Bilateral trade last year totaled $77.2 billion, ranking Japan fifth among South Korea's trading partners and making it a key partner across economic, cultural and security domains.

"The cooperative relationship the two countries have built over the years in areas such as information exchange, collection assistance and mutual agreement procedures has contributed greatly to the development of each other's tax administration and the securing of tax claims," Lim said. He proposed that the two sides "work closely together through mutual cooperation to address new challenges such as AI."

On information exchange, the two commissioners agreed to regularize working-level meetings on the subject, which had previously been held on an irregular basis.

On tax collection cooperation, the two sides agreed to jointly participate in the OECD's Tax Debt Management Network (TDMN) under the Forum on Tax Administration to raise the level of cooperation on delinquency management and collection assistance. The network allows tax authorities to share experience on tax claim management and international collection cooperation policies and administration. Japan and Singapore are currently the only Asian members.

Lim also asked Japan's NTS to pay greater attention to and provide support for Korean companies and residents there, and stressed that building close bilateral cooperation is essential to effectively combating tax crimes such as offshore tax evasion. He also shared a road map for an "AI transformation" initiative aimed at achieving the future vision of rational tax administration.


oskymoon@heraldcorp.com