Tax cooperation between Cambodia and the Republic of Korea is expected to improve after Cambodia’s General Department of Taxation (GDT) signed a memorandum of understanding (MoU) with the National Tax Service of the Republic of Korea on the exchange of information for tax purposes.

GDT director-general Kong Vibol and Lim Kwang Hyun, commissioner of the Korean tax service, signed the agreement during a March 12 ceremony at the GDT headquarters.

During the visit, the tax authorities of both countries discussed several key topics, including the investigation of tax crimes and combating money laundering. They also shared experiences on modernisation and tax administration reform through the use of information technology, particularly the development and implementation of the “GDT HomeTax” system.

Bothe parties also engaged on tax obligations related to alcoholic beverages and tobacco products.

The GDT explained that exchange of information MoU aimed to deepen cooperation between the tax administrations of both countries and enhance the exchange of tax-related information in line with the existing principles of the double taxation avoidance agreement that both countries have previously agreed upon.

“This MoU is also important in improving the effective management of tax revenue collection in response to the rapidly changing global tax environment, and is based on mutual respect and the shared interests of both countries,” it added.