The chief of the National Tax Service of South Korea has approached Indonesia in hopes of revitalizing the mutual agreement procedure and advance pricing arrangement between the two countries to prevent double taxation and ease uncertainties for trading firms, according to the tax agency Wednesday.

NTS Commissioner Kim Dae-ji visited Jakarta on Tuesday to meet with Indonesia’s tax authority, Commissioner Suryo Utomo. During the meeting, they discussed ways to maintain close interaction and cooperation between the two agencies.

Indonesia is Korea’s 15th-largest trade partner and the sixth-most-active market for Korean companies doing business overseas. It is also the 12th-most-preferred investment destination for Koreans, the NTS said.

In response to increasing demand for a taxation partnership, Kim pledged to continually support his Indonesian counterpart’s project to build the country’s core tax administration system and introduce Korea’s electronic tax administration system.

By Jie Ye-eun (yeeun@heraldcorp.com)