SEJONG– South Korean and Chinese tax agencies agreed to strengthen two-way cooperation in taxation administration amid the diplomatic row caused by the deployment of U.S. anti-missile system on the Korean Peninsula, the government said Tuesday.

South Korea’s National Tax Service (NTS) Commissioner Han Seung-hee held an annual meeting with his Chinese counterpart Wang Jun in Beijing, according to his office.

The two tax authorities have held regular talks every year since 1996, four years after the two neighbors normalized diplomatic ties.

At the meeting, they agreed to create a business-friendly environment in terms of taxation in order to boost bilateral trade and investment.

Also, Han asked the Chinese tax chief to implement bilateral tax agreements including mutual agreement procedures and the advance pricing arrangement, aimed at easing tax burdens on South Korean companies doing business in China.

China is South Korea’s biggest trade partner, with trade reaching US$211.4 billion last year. It accounts for nearly 20 percent of Seoul’s entire outbound and inbound shipments.

Despite progress made, the 25-year ties have been hurt by the prolonged dispute over South Korea’s decision to deploy a U.S. missile shield on its soil.

 

 

Source: Yonhap News Agency