'Export Tower' Awarded 1700+ SMEs Given Tax Audit Exemption Opportunity

Muheop-Kuksecheong, 'Export Tower' SME Tax Support
Extension of Deadlines, Early Refund Payments, Tax Guarantee Exemptions
Opportunities to Be Excluded from Regular Tax Audits Through Review

The path has been opened for small and medium-sized enterprises (SMEs) awarded the 'Export Tower' and companies awarded the 'Korea Trade Person of the Month Award' to be exempted from regular tax audits.

The Korea International Trade Association (KITA) and the National Tax Service (NTS) announced on the 13th that they have agreed to provide tax administration support, including exclusion from selection for regular tax audits, to these companies.

KITA will provide the NTS with the list of companies awarded the Export Tower and Trade Person awards. Upon receiving the list, the NTS Future Growth Tax Support Center plans to offer support such as extension of payment deadlines, early refund payments, and exclusion from selection for regular tax audits.

Exemption from regular tax audits will be applied after review by a deliberation committee. Companies deemed to have signs of non-compliance will be excluded.

Additionally, benefits such as priority processing of amended tax returns, suspension of seizure and sale, priority pre-review of research and development (R&D) tax credits, and exemption from tax payment guarantees will be provided.

Jung Manki, Executive Vice Chairman of the Korea International Trade Association. [Photo by Yonhap News]

At the end of the year, companies awarded the Export Tower are selected and granted tax administration support benefits for one year starting the following year. Considering the recent difficulties in the export industry, last year’s awardees will receive benefits starting from the second half of this year.

The Export Tower is an award given annually on Trade Day (December 5) by the Ministry of Trade, Industry and Energy and KITA to companies that have expanded exports. Last year, about 1,700 SMEs received the Export Tower. Their export performance last year amounted to $114.5 billion (approximately 148 trillion KRW), accounting for about 15% of all SMEs.

Jeong Manki, Vice Chairman of KITA, said, "The NTS’s decision to provide tax administration support is expected to greatly help alleviate the financial pressure and secure liquidity for small export companies struggling due to high interest rates and export contraction." He added, "KITA plans to continue identifying financial difficulties faced by exporters and propose measures to the government and financial institutions."

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