Korea and Thailand revenue agencies step up cooperation against offshore tax evasion… expand exchange of crypto-asset information

The National Tax Service (NTS) of Korea and Thailand’s Revenue Department agreed to strengthen the exchange of tax information to track assets concealed overseas and prevent the illegal transfer of domestic assets abroad, and to expand the scope of exchanges to include crypto-asset transaction data from 2028.

The NTS said on the 26th that it held the 4th Korea–Thailand Commissioners’ Meeting in Seoul between NTS Commissioner Lim Kwang-hyun and Kulaya Tantitemit, Commissioner-General of Thailand’s Revenue Department, and signed an administrative arrangement (MOU) focused on responding to offshore tax evasion and providing tax administration support for companies operating abroad.

The two heads shared the view that it is necessary to activate information exchange and establish a framework for cooperation in tax collection. Lim proposed setting up such a framework to enable swift collection when concealed assets of delinquent taxpayers located in the other country are detected. Collection assistance is a system under which one country collects a finalized tax claim on behalf of the other or supports enforcement measures such as asset seizure.

The two countries are currently exchanging financial information—such as offshore trust accounts—on a regular basis, and plan to expand the scope to include crypto-asset transaction information from 2028. The NTS said it expects the move to further strengthen its ability to respond to offshore tax evasion.

Thailand is the third-largest economy in ASEAN by GDP as of 2024 and the fourth most common destination for Korean companies’ overseas expansion. The number of operating overseas subsidiaries was tallied at 2,602 in Vietnam, 2,397 in China and 933 in the United States, followed by Thailand with 348. The two countries have expanded economic cooperation since elevating their ties to a strategic partnership in 2012.

Lim expressed gratitude for the high agreement rate under the advance pricing arrangement (APA) program and called for cooperation to resolve double taxation. He also requested an expansion of communication channels, including holding local tax briefings for Korean companies and expatriates in Thailand.

The agenda also covered the introduction of the global minimum tax in Thailand starting next year. The global minimum tax is a regime that imposes a top-up tax on multinational enterprise groups with revenue exceeding €750 million when the effective tax rate falls below 15%. The NTS said that if Thailand amends its tax laws in line with changes to OECD standards, it would be able to maintain the effects of existing investment incentives.

The meeting also discussed the direction of tax administration in the AI era. Lim shared the 2026 operational plan for the tax administration, saying the NTS will focus on improving taxpayer convenience, fair taxation and support for compliant filing, while expanding the use of AI. The NTS also provided the Thai side with an education program related to the digital transformation of tax administration, including the operation of the electronic tax invoice system.

The NTS said, “This agreement will serve as an opportunity to institutionalize tax administration cooperation between the two countries, and we will continue to support Korean companies’ overseas expansion through tax diplomacy.”