Republic of Korea Shares Expertise on its E-Tax Invoice System with the Philippines

PHL Ambassador to Korea Raul S. Hernandez (left, center) flanked by Consul General Christian De Jesus and Commercial Counsellor Emmanuel Ang, Head of the Philippine Trade and Investment Center (PTIC), meet with the delegation led by Department of Finance Undersecretary Karl Kendrick T. Chua on 10 January 2018 at the Sentro Rizal Hall, Embassy of the Philippines, Seoul.

17 January 2018 SEOUL — A delegation from the Philippines—led by Undersecretary Karl Kendrick Chua and Assistant Secretary Mark Dennis Joven of the Department of Finance (DOF)—visited the Republic of Korea (ROK) from 08-10 January to gain a deeper insight into the ROK’s implementation of its Electronic Tax Invoice (ETI) System for its Value-Added Tax (VAT) Regime, which gained international renown for being one of the best VAT systems in the world.

During their visit to Korea, the Philippine delegation received a comprehensive briefing by concerned Korean government agencies and stakeholders on the ROK’s advanced Internet-connected E-Invoicing and E-Sales system. 

The Philippine delegation also learned more about the robust partnership between the public and private sectors in the implementation of the ETI system in 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, the delegation paid a courtesy call on Philippine Ambassador to Korea Raul S. Hernandez at the Philippine Embassy. Ambassador Hernandez was joined 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 the ROK’s experience in the implementation of the ETI system, as Korea has been recognized by the Organization for Economic Cooperation and Development for its highly efficient and technologically advanced VAT system.

During the meeting, Undersecretary Chua also discussed the Tax Reform for Acceleration and Inclusion (TRAIN). He conveyed that the law aims to accelerate the inclusion of more Filipinos in the economic development of the Philippines, and to finance the “Build, Build, Build” program of President Rodrigo R. Duterte that aims to ramp up infrastructure spending.

Undersecretary Chua further mentioned that the second package of the TRAIN would soon be introduced to Congress. He also confirmed that the National ID project would be implemented this year with the target date of completion by 2020, emphasizing that the initiative is 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 Philippine Embassy and the PTIC during their visit to Korea. The official visit was organized by the DOF, in collaboration with the Asian Development Bank. END

For more information, visit www.seoulpe.dfa.gov.ph/ www.philembassy-seoul.com or https://www.facebook.com/PHinKorea/

PH Ambassador to Korea Raul S. Hernandez and Department of Finance Undersecretary Karl Kendrick T. Chua (center) pose with the delegation on 10 January 2018 at the Sentro Rizal Hall, Embassy of the Philippines, Seoul.

Sitting-L-R: Ms. Janette Cruz (BIR), Ms. Rosario Curiba (BIR), Consul General Christian De Jesus, PH Ambassador to Korea Raul S. Hernandez, DOF Undersecretary Karl Kendrick T. Chua, Ms. Jamalliah Disomimba (DOF), Counsellor Emmanuel Ang.

Standing-L-R: Ms.Nina Asuncion (BIR), Mr. Mark David Ablang (DOF), Ms.Jean Dapula (House of Representatives), Mr. Donald Marasigan (House of Representatives), Dr. Lemuel Braña, Ms. Mildred Reyes (BIR), Ms .Emee Macabales (DOF) , Mr. Miguel Lima (Senate) and Mr. John Pagaran (BIR).