By Reporter Lee jon young 

The Korean and Mongolian National Tax Agency Chiefs held their 12th meeting in Ulaanbaatar, Mongolia on July 18. During the meeting, a memorandum of understanding (MOU) was signed to enhance tax cooperation between the two countries.

According to the terms of the MOU, the Mongolian National Tax Agency will organize annual tax conferences exclusively for more than 450 Korean companies operating in Mongolia. These conferences aim to provide tax-related information, address any tax-related issues, and actively support Korean businesses from a tax perspective.

Additionally, the Korean National Tax Agency will extend its support to strengthen the Mongolian National Tax Agency's capabilities by sharing its expertise and know-how in taxation.

This meeting marked the first time in 10 years since 2013 that the National Tax Agency Chiefs held a meeting. It was prompted by Mongolia's request to learn from Korea's advanced tax administration system and the necessity to provide tax support for Korean companies operating in Mongolia.

During the meeting, both tax agencies agreed to enhance high-level exchanges, provide support for strengthening the Mongolian National Tax Agency's capabilities, and conduct tax conferences for Korean companies. They also committed to further enhancing tax cooperation between the two countries in various areas.

The economic exchange between Korea and Mongolia has significantly expanded, with trade volume increasing from 2.71 million dollars at the time of establishing diplomatic relations in 1990 to approximately 470 million dollars in 2022—an increase of about 170 times. In light of this, both countries empathized with the need to provide tax support for exporting companies.

As part of its efforts, the Mongolian National Tax Agency pledged to hold annual tax conferences for Korean companies to alleviate tax uncertainties and create a tax environment that allows businesses to focus solely on their operations.

Furthermore, to expand its tax base, the Mongolian National Tax Agency introduced its efforts to digitize tax administration and requested active support from the Korean National Tax Agency, which is considered a leader in e-tax administration.

In response, National Tax Agency Chairman Kim Chang-gi offered support tailored to the specific demands of Mongolia to enhance its tax capabilities. This support includes inviting Mongolian tax officials for training in Korea and expanding professional exchanges in various fields.

The National Tax Agency expressed its commitment to contribute to global tax challenges through active tax diplomacy and to provide proactive support for Korean companies' exports and overseas investments from a tax perspective.