Korea to cooperate with India on tax policy

National Tax Service (NTS) Commissioner Kim Chang-ki, left, poses with India Revenue Secretary Sanjay Malhotra after a meeting at New Delhi, India, Wednesday. Courtesy of NTS

National Tax Service (NTS) Commissioner Kim Chang-ki, left, poses with India Revenue Secretary Sanjay Malhotra after a meeting at New Delhi, India, Wednesday. Courtesy of NTS

By Yoon Ja-young

The National Tax Service (NTS) agreed with its Indian counterpart to foster a stable tax environment that promotes corporate activities, allowing businesses to focus on their core operations. This will also include extending tax support to Korean companies operating in India, specifically to help mitigate tax uncertainties.

According to the NTS, the tax agencies of both countries held the 8th Korea-India Commissioner-Revenue Secretary Meeting in New Delhi, India, Feb. 21.

The bilateral meeting has been held since 2011, to exchange views on prevailing tax matters, with the goal of reinforcing robust cooperation.

NTS Commissioner Kim Chang-ki and India Revenue Secretary Sanjay Malhotra recognized the significant benefits of sharing tax administration practices and mitigating the tax uncertainties encountered by Korean enterprises operating in India. Furthermore, both tax chiefs agreed that improving taxpayer services and reducing non-compliance risks in the evolving tax environment would significantly improve tax morale.

During the meeting, the NTS highlighted the recently introduced policy initiatives geared towards enhancing taxpayer convenience, while sharing experiences that are driven by the digital transformation in tax administration, which leverages cutting-edge technology such as the Customizing User Portal, AI Tax Assistant, and Chatbot User-Support Service.

The two tax chiefs reached an understanding regarding the critical need for proactive measures to alleviate the burden of double taxation on taxpayers, recognizing its pivotal role in facilitating expansive investments and trade opportunities between the two nations. In particular, Kim requested robust engagement and support from the Indian tax authority to address tax-related challenges faced by Korean enterprises operating in India.

“We will uphold our commitment to intensifying collaborative frameworks among tax authorities to advocate mutual development through the sharing of leading practices and experiences. At the same time, we promise steadfast support to establish a favorable business environment for Korean businesses operating overseas,” the tax agency noted.

Leave a Comment