NTS chief boosts cooperation with Bangladesh

National Tax Service (NTS) Commissioner Kim Hyun-jun, right, greets his Bangladesh counterpart Muhammad Mosharraf Hossain Bhuiyan at the NTS Seoul Regional Office on Wednesday. Courtesy of NTS

By Lee Kyung-min

National Tax Service (NTS) Commissioner Kim Hyun-jun met his Bangladesh counterpart Muhammad Mosharraf Hossain Bhuiyan to share Korea's know-how and experience in the effective management of electronic tax administration, the tax agency said Thursday.

The meeting was held at the NTS Seoul Regional Office on Wednesday. The two also discussed ways to strengthen bilateral ties and exchanges.

“The South Asian country, with around a 7 percent year-on-year growth rate, is a major trading partner of Korea,” Kim said. “Over 290 Korean firms have invested there and 75 businesses are operating there.

“We understand the authorities in Bangladesh have growing concerns over effective tax administration. We are happy to help.”

The two countries will boost data sharing on suspected tax dodgers and their financial asset statements while helping businesses avoid double taxation.

Korea will also help Bangladesh better administer e-filing, Korea's electronic tax administration long recognized for its effectiveness and efficiency by its global peers.

Korea will share experience in maintaining a high filing rate including government policies that encourage or incentivize people to participate in the voluntary filing.

In 2018, Korea had a value-added tax (VAT) filing rate of 98 percent. The rate for corporate tax was 97 percent and income tax 92 percent.

In 2017, the average rate of Organization for Economic Cooperation and Development (OECD) member countries for income tax filing was only 57 percent. The comparable rate for corporate tax was 80 percent and VAT was 87 percent.