Meeting of Korea-Indonesia National Tax Chiefs Held: "Supporting Entering Companies and Korean Residents through Tax Administration Cooperation"

[Sejong=Asia Economy Reporter Kim Hyunjung] The National Tax Service (NTS) of Korea and the Directorate General of Taxes of Indonesia revised the Memorandum of Understanding (MOU) for continuous cooperation between the two tax authorities and discussed the activation of mutual agreements and support for corporate tax administration.

According to the NTS on the 26th, NTS Commissioner Kim Daeji visited Jakarta, Indonesia the previous day and held the 10th Korea-Indonesia National Tax Service Commissioners' Meeting with Suryo Utomo, Commissioner of the Indonesian Directorate General of Taxes. At this meeting, the Korean NTS introduced 'K-Electronic Tax Administration,' a key topic of interest for Indonesia, and pledged active support for the Indonesian tax administration system (CTAS) construction project currently underway.

The commissioners of both countries agreed on the importance of close exchange and cooperation and signed the revised MOU on mutual exchange and cooperation. The Korean NTS requested the activation of mutual agreement procedures (MAP/APA) between the two countries to resolve issues of double taxation arising from increased economic exchanges and tax uncertainties faced by companies. Additionally, they collected tax difficulties of local companies in advance through written communication and visited companies struggling due to COVID-19 to listen directly to their tax-related challenges.

Indonesia ranks 4th in the world by population (approximately 270 million) and 16th in gross domestic product (GDP) (about 1.1 trillion USD). It is Korea's 6th largest country for corporate expansion, 12th largest investment destination, and 15th largest trading partner. Particularly, as a major country accounting for 37% of ASEAN GDP and 41% of its population, Indonesia is Korea's 2nd largest country for corporate expansion and 3rd largest investment destination within ASEAN.

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