National Tax Service Maintains Tax Audit Reduction Policy... Yoon Administration's Tax Administration Focused on 'Minsheng'

[Asia Economy Sejong=Reporter Kim Hyewon] The Yoon Seok-yeol administration has decided to maintain its policy of reducing tax audits in consideration of the complex economic crisis and the resurgence of COVID-19. Tax audits will be operated at around 14,000 cases, and the proportion of simplified audits will be expanded to the 20% range. Additionally, small and medium taxpayers will be allowed to choose the timing of simplified audits themselves, and early payments of value-added tax refunds and earned income and child tax credits will be made, emphasizing support for the "people's economy" in the blueprint for national tax administration.

On the 22nd, the National Tax Service (NTS) held the first nationwide tax office chiefs meeting since Commissioner Kim Chang-gi's inauguration and finalized eight key tasks and operational plans including these contents. The NTS plans to establish a National Tax Administration Capacity Enhancement Task Force (TF) led by the deputy commissioner and operate it with four divisions (support for the people's economy, resolution of taxpayer inconveniences, strengthening tax transparency and accountability, and organizational culture innovation). To prepare improvement measures with high field applicability, private sector and frontline employees such as economic and taxpayer organizations and tax agents will participate in the discussion process of the TF.

The scale of tax audits this year will be maintained at the average level during the COVID-19 period (14,322 cases). Before COVID-19, it exceeded 16,000 cases. The proportions of regular audits and simplified audits will be expanded to about 63% and about 20%, respectively, to substantially reduce the audit burden on taxpayers. The earned income and child tax credits for the regular filing period this year (about 2.8045 trillion won) will be paid by the end of August, more than a month earlier than the legal deadline (September 30), by shortening the review period.

The NTS will also provide tax support such as extension of payment deadlines for ultra-gap strategic technologies like semiconductors, displays, batteries, and five major green new industries, and will offer customized consulting to companies with a high possibility of business succession, which has been a frequent inquiry recently. It announced that it will strictly respond to tax evasion by businesses disrupting the supply of raw and subsidiary materials that cause excessive profits through price increases and price instability.

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho urged the Ministry of Economy and Finance and the NTS to work organically as an economic one-team to thoroughly prepare for the execution of the 2022 tax reform plan and to strive for stable tax revenue collection. Commissioner Kim, who presided over the meeting, emphasized, "To become a National Tax Service where the people are the true owners, we must provide convenient non-face-to-face tax services based on digital technology and mobilize all capabilities of national tax administration to provide comprehensive tax support for stabilizing the people's economy, such as extending tax payment deadlines, early payment of refunds, and reducing the burden of tax verification."

This content was produced with the assistance of AI translation services.