South Korea and Cambodia Sign Agreement to Prevent Tax Evasion Abroad......Strengthen International Tax Cooperation

The Korea National Tax Service has signed a financial asset information exchange agreement with the Cambodian tax authorities to prevent offshore tax evasion and money laundering. This agreement is part of international efforts to combat tax crimes, aiming to block illegal fund flows through real-time sharing of tax information between the two countries.

At a meeting held in Phnom Penh, Cambodia, on the 12th, Noh Kwang-woon, Commissioner of the Korea National Tax Service, and Kong Vibo, Director General of the Cambodian General Department of Taxation, emphasized the importance of information exchange for tax purposes and signed the agreement. This establishes a foundation for tracking cross-border financial assets related to criminal activities and more effectively combating money laundering using virtual assets.

The cooperation between the two countries goes beyond data exchange and is expected to further strengthen substantive tax measures. The Korea National Tax Service has decided to focus on resolving tax issues faced by Korean companies operating in Cambodia. Commissioner Noh gathered feedback from local businesses during a meeting and conveyed their concerns to Cambodian authorities, while also requesting support.

Expected outcomes include increased transparency of both countries’ tax systems and crime prevention. The Korea National Tax Service hopes these efforts will develop into a “tax diplomacy” that resonates with taxpayers.

Against the backdrop of the growing importance of international tax cooperation, this move indicates the potential to build a broader global tax response system. Future plans may also include expanding agreements with other countries.