Seoul, 11 January 2018 - A delegation from the Philippines, led by Undersecretary Karl Kendrick Chua and Assistant Secretary Mark Dennis Joven of the Department of Finance (DOF), visited South Korea from 8-10 January 2017 to gain a deeper insight into ROK’s implementation of its Electronic Tax Invoice (ETI) System for its Value-Added Tax (VAT) Regime which has gained international renown for being one of the best VAT systems in the world.
During their visit to Korea, the Philippine delegation was provided a comprehensive briefing by concerned Korean government agencies and stakeholders on ROK’s advanced internet connected E-Invoicing and E-Sales system.
The Philippine delegation was also able to learn more about the robust partnership between the public and private sectors in the implementation of the ETI system in South Korea. Some of the agencies visited were the Korea Institute of Public Finance, the Ministry of Strategy and Finance, and the National Tax Service.
On 10 January 2018, the delegation paid a courtesy call on Philippine Ambassador to Korea Raul S. Hernandez at the Philippine Embassy. Ambassador Hernandez was joined at the meeting by Consul General Christian L. De Jesus and Commercial Counsellor Emmanuel Ang, Head of the Philippine Trade and Investment Center (PTIC).
Ambassador Hernandez conveyed to Undersecretary Chua that the Philippines can gain valuable lessons from ROK’s experience in the implementation of the ETI system as ROK has been recognized by the Organization for Economic Cooperation and Development (OECD) for its highly efficient and technologically advanced VAT system.
Also, during the meeting, Undersecretary Chua discussed the Tax Reform for Acceleration and Inclusion (TRAIN). He conveyed that the law aims for the acceleration of development and inclusion of more Filipinos in the economic growth of the Philippines and to finance the “Build, Build, Build” program of President Rodrigo R. Duterte which aims to ramp up infrastructure spending and opening up more opportunities in infrastructure development to foreign investors.
Undersecretary Chua further mentioned that the second package of the TRAIN would be introduced to Congress for their consideration. He also confirmed that the National ID project would be implemented this year with the target date of completion in 2020, emphasizing that the initiative would be important as more people would be able to open bank accounts and apply for credit cards.
On behalf of the delegation, Undersecretary Chua expressed appreciation for the assistance rendered by the Embassy of the Philippines and the PTIC during their visit to Korea.
The official visit was organized by the Department of Finance in collaboration with the Asian Development Bank (ADB).
