National Tax Service Commissioner Lim Gwang-hyeon (left) poses for a photo with Vietnamese tax chief Mai Xuan Thanh at the 25th Korea-Vietnam NTS Commissioners' Meeting in Seoul on Wednesday. [National Tax Service]
National Tax Service Commissioner Lim Gwang-hyeon (left) poses for a photo with Vietnamese tax chief Mai Xuan Thanh at the 25th Korea-Vietnam NTS Commissioners' Meeting in Seoul on Wednesday. [National Tax Service]

National Tax Service Commissioner Lim Gwang-hyeon has stepped up efforts to resolve delays in value-added tax refunds facing South Korean companies operating in Vietnam, Korea's third-largest trading partner.

At the 25th Korea-Vietnam NTS Commissioners' Meeting held in Seoul on Wednesday, Lim called on Vietnamese tax authorities to strengthen support for Korean businesses operating in the country, the NTS said Thursday.

Bilateral trade between South Korea and Vietnam reached $94.5 billion last year, placing Vietnam third behind China ($272.7 billion) and the United States ($197 billion). Vietnam is a key economic partner for South Korea, with Korean companies active across manufacturing, construction, finance and other sectors. Some 2,602 Korean firms — including Samsung — currently operate in the country.

At the meeting, the heads of the two countries' tax authorities exchanged views on major issues, including prompt resolution of VAT refund delays and broader tax support for Korean firms in Vietnam, as well as the NTS's AI transformation initiative and changes under Vietnam's revised tax laws.

Lim said some Korean companies in Vietnam are facing operational difficulties due to delayed VAT refunds, and urged Vietnamese authorities to take an active interest and cooperate in expediting the process.

He also asked that bilateral advance pricing agreement negotiations be accelerated. An APA is a regime under which tax authorities from two countries agree in advance on the arm's-length price for transactions between related entities within a multinational group, reducing tax uncertainty.

Lim further urged Vietnam to actively consider joining the automatic information exchange agreement under the global minimum tax framework.

Although Vietnam has adopted the global minimum tax, it has not joined the automatic exchange agreement, forcing Korean companies there to file returns with both countries separately.

Lim also shared the NTS's ongoing initiative to transform tax administration through AI with the Vietnamese side.

"We will continue to actively resolve tax difficulties so that Korean companies operating abroad can focus on their business activities with stability," the NTS said. "We will also share our AI-driven tax administration expertise to solidify South Korea's standing as a global leader in tax administration."


oskymoon@heraldcorp.com