National Tax Service Revamps Corporate Tax Credit and Exemption Consulting for SMEs

[Asia Economy Sejong=Reporter Kim Hyewon] The National Tax Service announced on the 26th that it will conduct corporate tax credit and exemption consulting for small and medium-sized enterprises (SMEs) starting in August.

Corporate tax credit and exemption consulting informs SMEs in advance about the possibility and amount of credits and exemptions, aiming to resolve tax uncertainties and encourage employment and investment to support the growth of SMEs. The National Tax Service has revamped the tax consulting system, which has been in place since July 2020, to focus primarily on corporate tax credits and exemptions.

The eligible applicants are approximately 40,000 corporations classified as SMEs with revenue between 10 billion and less than 100 billion KRW in the previous fiscal year. The previous tax consulting system selected corporations based on internal criteria after receiving applications from SMEs and provided consulting across all tax categories through agreements. However, under the revamped system, while maintaining the revenue eligibility criteria for consulting applications, any SME wishing to apply for tax credits or exemptions can apply without restrictions on the number of applications.

When specific matters arise where credits or exemptions for employment or facility investment can be applied, inquiries about the applicability of tax credits or exemptions and the amount of credits can be made, and the National Tax Service will respond in writing by the end of the month following the application date.

If a corporation intends to file an amended claim due to failure to apply tax credits or exemptions in past fiscal years, it can apply before filing the amended claim.

If an SME files corporate tax based on the consulting content, it will be excluded from the verification of the filing details and post-management of exemptions, and even if taxation is imposed differently from the consulting content due to future tax audits, the underreporting penalty will be waived.

The Public Interest SME Corporate Support Team of the Corporate Taxation Bureau at the National Tax Service stated, "We plan to analyze the number of companies applying for corporate tax credit and exemption consulting and the effectiveness of the system, and if necessary, consider expanding the scope of applicants."

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