Kim Hyunjun, Commissioner of the National Tax Service, Holds Video Conference with Chinese Tax Commissioner... Requests 'Tax Support for Korean Companies'

"Efforts to Prevent Double Taxation for Businesses Must Not Be Interrupted Due to COVID-19"

Kim Hyun-joon, Commissioner of the National Tax Service, and Wang Jun, Commissioner of the State Taxation Administration of China, are sharing experiences between the two countries, including tax support measures promoted to overcome difficulties caused by the novel coronavirus infection (COVID-19), through a video conference.

[Asia Economy Reporter Kwangho Lee] On the 14th, Kim Hyun-joon, Commissioner of the National Tax Service (NTS) of Korea, requested Wang Jun, Commissioner of the State Taxation Administration of China, for active attention and tax administration support for Korean companies struggling due to the novel coronavirus disease (COVID-19). A total of 27,799 Korean companies have entered the Chinese market, with investments amounting to 70.813 billion USD.

On the afternoon of the same day, Commissioner Kim held a video conference with Commissioner Wang Jun to discuss key issues for joint response to COVID-19.

This video conference was held based on the recognition that tax administration cooperation and support between the two countries' tax authorities are more important than ever to successfully overcome COVID-19.

During the meeting, the two tax authorities shared their experiences regarding tax support measures that have been promoted to overcome difficulties caused by COVID-19.

Commissioner Kim said, "The Korean NTS is making all-out efforts to promptly overcome the national crisis caused by COVID-19 by proactively supporting affected taxpayers, strictly cracking down on market-disturbing acts such as mask hoarding, and establishing thorough quarantine and response systems."

He added, "To proactively respond to changes caused by COVID-19, reporting and payment services must be converted to untact (non-face-to-face) methods. The Korean NTS will focus its capabilities on providing customized reporting guidance and improving the convenience of using the Hometax and Sontax systems."

In response, Commissioner Wang Jun said, "The tax administration experiences of both countries can serve as a milestone for other countries," and emphasized the importance of continuous experience sharing and inter-country tax cooperation.

Commissioner Kim then conveyed the difficulties faced by Korean companies operating in China and requested active attention and support.

He mentioned, "Advance Pricing Agreements (APA) should continue through telephone conferences and correspondence, and efforts to prevent double taxation of companies must not be interrupted due to COVID-19."

He also added, "Please carefully implement tax administration to provide practical assistance to companies newly entering China that are experiencing refunds due to initial investments."

The NTS plans to switch the previously suspended commissioner-level tax diplomacy due to COVID-19 to a video conference format going forward. It aims to strengthen cooperation with tax authorities of each country so that Korean companies operating abroad can successfully overcome COVID-19 and return to normal operations as soon as possible.

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