By Lee Hyo-sik
Staff Reporter
The government has been organizing a series of meetings with foreign business leaders here to hear their concerns about the country's taxation system as part of its effort to encourage foreign companies to expand their presence and attract more fresh investment from outside.
The Ministry of Strategy and Finance said Friday that its officials in charge of tax policies met with leaders of the foreign business community and discussed a range of tax-related issues to reflect their opinions in the policymaking.
There has been mounting calls from the foreign business community for the government to simplify tax laws and collection procedures, as well as minimize audits, citing complicated tax laws and frequent audits as one of the biggest obstacles to doing business in Korea.
The ministry said several participants complained that tax authorities apply provisions to foreign businesses differently from what the law states, calling for a more consistent and transparent policy enforcement.
In response, ministry officials said they will look into how tax laws are interpreted and executed when non-Korean companies and investors are concerned, stressing the government will continue to make an all-out effort to turn Korea into a good place for foreigners to do business.
Tami Overby, president of the American Chamber of Commerce in Korea (AMCHAM), and seven other leaders of the foreign business community attended the Friday's meeting.
It is the latest government-wide effort to ensure that foreign businesses will be treated fairly and equally under the country's tax regime. President Lee Myung-bak has pledged to create a more business-friendly tax environment for non-Korean firms and investors.
Last Month, National Tax Service Commissioner Han Sang-yool held a meeting with European Union Chamber of Commerce in Korea President Jean-Marie Hurtiger and other European business persons, pledging that the tax agency will promptly respond to the needs of foreign customers.
Also in January, Han met with William Oberlin, chairman of the AMCHAM, and other American business executives, promising to minimize audits on foreign companies operating here.
The commissioner also said the agency will reduce the number of corporate tax audits and exempt compliant corporate taxpayers from routine investigations.