Digitalization of the Tax Administration and Its Achievements in the Republic of Korea

Abstract

This chapter presents how digitalization of the tax administration in the Republic of Korea (ROK) has evolved and its corresponding achievements. The ROK has won distinction in the international community as the most advanced country in information technology. Further, the advancement of information technology, particularly in the area of tax administration, is one of the fundamental factors behind the ROK’s remarkable economic success. This chapter reviews each initiative taken by the Government of the ROK to digitalize its tax administration before examining the achievements of this endeavor. Of these, one of the most noteworthy is the increase in tax revenues through enhanced transparency. Another remarkable success is the reduction in operating costs, comprising compliance costs incurred by taxpayers and administrative costs incurred mainly by tax officials. Finally, digitalization has improved convenience to the satisfaction of taxpayers, resulting in more tax payments. As the global tax environment is constantly changing because of changes in society, tax policymakers in countries working to digitalize their tax administrations are encouraged to take note of the case of the ROK and find tailored solutions to make their tax administrations more transparent, efficient, and convenient.