Im Kwanghyun: "Korea-Japan Tax Information Exchange Strengthened... Working-Level Meetings to Be Regularized"

The 30th Korea-Japan National Tax Service Commissioners Meeting Held in Seoul

Strengthening Cooperation in Information Exchange and Joint Collection

Discussing Strategies for Responding to Tax Crimes and Utilizing AI

South Korea and Japan have agreed to regularize working-level meetings for the exchange of tax information in order to strengthen information sharing between the two countries. Building on 35 years of shuttle diplomacy since the first Korea-Japan National Tax Service Commissioners Meeting in 1991, the two countries plan to expand their cooperation beyond information exchange and joint tax collection to include responses to tax crimes and the use of artificial intelligence (AI) and big data.

The National Tax Service announced on the 25th that Im Kwanghyun, Commissioner of the National Tax Service, hosted the 30th Korea-Japan National Tax Service Commissioners Meeting in Seoul on the 24th, inviting Kazuhiko Ejima, Commissioner of the Japanese National Tax Agency.

At the 30th Korea-Japan National Tax Service Chiefs Meeting held in Seoul on the 24th, Kwanghyun Lim, Commissioner of the National Tax Service (left), and Kazuhiro Ejima, Commissioner of the Japanese National Tax Agency, shake hands for a commemorative photo. National Tax Service

At this event, Commissioner Im stated, “The cooperative relationship that our two countries have built over the years in areas such as information exchange, joint collection, and mutual agreement has greatly contributed to the advancement of tax administration and the securing of tax claims for both countries.” He went on to propose, “Let us work closely together to tackle new challenges such as AI through ongoing cooperation.” In response, Commissioner Ejima expressed his gratitude for the invitation from the National Tax Service of Korea and said he hoped that this meeting would further strengthen the bond between the two agencies.

During the meeting, the two countries acknowledged that tax cooperation—including information exchange and joint collection—is being carried out more closely and smoothly than with any other nation, and they explored ways to further enhance this collaboration. To this end, they agreed to regularize working-level meetings for information exchange, which had previously been held on an irregular basis.

In the area of joint collection, the two tax authorities agreed to jointly participate in the OECD’s Taskforce on Tax Debt Management Network (TDMN) to raise the level of cooperation in delinquency management and joint collection. The TDMN, established under the OECD Forum on Tax Administration, provides a platform for tax authorities to share experiences in tax debt management and international collection policies and administration. In Asia, Japan and Singapore are currently participants.

The commissioners of the two countries also discussed ways to respond to tax crimes and leverage AI and big data. Recognizing the unique nature of Korea-Japan relations, which involve active exchanges of people and goods, they shared the view that building a close cooperative relationship is essential to effectively respond to cross-border tax evasion and other tax crimes.

Additionally, Commissioner Im asked Commissioner Ejima to help relieve the burden of double taxation on businesses from both countries so that they can focus on their core operations, and also requested the attention and support of the Japanese National Tax Agency for Korean companies and residents in Japan. As of now, there are 960,000 Korean residents and 325 locally incorporated Korean companies in Japan, while there are 70,000 Japanese residents and 2,119 Japanese-affiliated companies in Korea, demonstrating the active exchanges between the two countries.

This content was produced with the assistance of AI translation services.