New tax deal strengthens Vietnam-South Korea ties

New tax deal strengthens Vietnam-South Korea ties

The Vietnam Department of Taxation and the South Korea’s National Tax Service (NTS) convened a high-level bilateral meeting to sign their fourth Bilateral Cooperation Agreement on March 11, marking a new milestone in the longstanding partnership between the two tax authorities.

The meeting was attended by Mai Xuan Thanh, director general of the Vietnam Department of Taxation, Kang Min Su, commissioner of the NTS and senior representatives from both sides.

In his welcoming speech, Thanh emphasised that this latest engagement marks a significant milestone in bilateral tax cooperation and highlights the strong diplomatic and economic ties between Vietnam and South Korea.

"This agreement reflects our shared commitment to improving tax administration, enhancing policy frameworks, and strengthening measures against tax fraud. Over the years, our collaboration has provided valuable opportunities for both sides to exchange knowledge and develop more effective tax management strategies," said Thanh.

The bilateral cooperation framework between the two tax authorities has now seen 20 official engagements, facilitating extensive knowledge-sharing and capacity-building. Through these efforts, both Vietnam and South Korea have been able to refine their tax administration models and align with international best practices.

Mai Xuan Thanh, director general of the Vietnam Department of Taxation (right) warmly welcomed Kang Min Su, commissioner of the NTS. Photo: Phuong Thao

As economies worldwide undergo rapid digital transformation, tax authorities face increasing demands for modernisation and efficiency. In this context, Vietnam’s tax sector has been actively transitioning towards a more technology-driven approach to improve tax collection, compliance, and service delivery.

"Digital transformation is reshaping global tax administration, and Vietnam is committed to leveraging technology to optimise tax management. South Korea’s advanced experience in tax digitalisation provides valuable insights that will help Vietnam implement more effective policies and management systems," said Thanh.

Echoing this sentiment, commissioner Kang Min Su reaffirmed South Korea’s commitment to further strengthening cooperation with Vietnam’s tax authorities. He acknowledged the positive outcomes achieved through previous collaborations and expressed confidence in the continued success of this partnership.

"We greatly appreciate the close and effective cooperation with Vietnam’s tax authorities over the years. With a shared commitment to collaboration, we will continue to achieve significant milestones, fostering a more transparent and efficient tax environment," he said.

During the meeting, both sides exchanged insights on successful case studies in tax digitalisation, focusing on best practices that enhance compliance and revenue collection. They also discussed strategies for optimising tax administration through technology, particularly in the context of the evolving digital economy.

A key highlight of the discussions was Vietnam’s ongoing cooperation with the NTS and the Korea International Cooperation Agency in modernising tax management. As part of this initiative, the two sides reviewed a consultancy venture on redesigning tax management processes and developing a comprehensive IT system architecture.

These initiatives align with Vietnam’s broader tax reform agenda, which aims to streamline operations, improve efficiency, and enhance transparency. Both parties agreed that continued collaboration in this area would contribute to stronger tax governance and economic development in both countries.

The signing of the fourth Bilateral Cooperation Agreement reaffirms the commitment of Vietnam and South Korea to deepening their tax partnership. Moving forward, both tax authorities will expand cooperation in areas such as digital tax administration, policy development, and cross-border tax compliance.

VIR