Tax chiefs in Asia to discuss digital tax

SEJONG, Oct. 23 (Yonhap) -- Tax chiefs in the Asia-Pacific region began their annual talks in Indonesia to discuss a digital tax and how to tackle the issue of base erosion and profit shifting (BEPS), South Korea's tax agency said Wednesday. National Tax Service Commissioner Kim Hyun-jun met with his counterparts in the region at the three-day meeting of the 17-member Study Group on Asian Tax Administration and Research. BEPS refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profit to low or no-tax locations. In 2015, leaders of the Group of 20 advanced economies agreed to give countries the tools they need to ensure that a so-called "Google tax" will be levied against multinationals that try to avoid paying their dues in countries where they make a profit. The Asia-Pacific tax authorities agreed to avoid double taxation and to exchange tax information meant to prevent offshore tax evasion, according to the National Tax Service. Kim also held separate talks with his counterparts from the Philippines and Thailand and requested their assistance for South Korean companies operating in the two countries over tax issues. The members of the study group are South Korea, Japan, China, Australia, Vietnam, Indonesia, the Philippines, Malaysia, Taiwan, Singapore, Hong Kong, Thailand, Mongolia, New Zealand, Macau, Cambodia and Papua New Guinea. The Asia-Pacific region accounts for 56 percent of South Korea's trade, according to the South Korean tax agency. entropy@yna.co.kr (END)