Tax Audits Exempted for Foreign-Invested Companies Increasing Investment or Employment... Lim Kwanghyun: "All Tax Administration Capabilities to Be Mobilized"

Meeting with Foreign Chambers of Commerce Held in Seoul on the 14th
Dedicated Consultation Desks for Foreign Companies Established at Regional Tax Offices

The National Tax Service has announced plans to actively provide tax administration support in order to encourage foreign-invested companies to expand their investments in Korea and increase youth employment. Foreign-invested companies that increase either their investment or youth employment by more than 10% will be exempted from tax audits, and their applications for preliminary review of research and human resources development tax credits will be processed on a priority basis.

On the 14th, the National Tax Service stated that Commissioner Kwanghyun Lim hosted a meeting in Seoul, inviting the leaders of eight major foreign chambers of commerce in Korea—including those from the United States, Europe, Germany, Japan, and China—to announce these tax support measures. The purpose of this meeting was to back domestic investment expansion and job creation for young people through tax administration policies.

On the 14th, Lim Kwang-hyun, Commissioner of the National Tax Service, held the first joint meeting with foreign chambers of commerce from eight countries to explain tax support measures for foreign-invested companies. National Tax Service

On this day, Commissioner Lim presented tailored tax support measures for foreign-invested companies that boost domestic investment and youth employment. Specifically, foreign-invested companies that have either increased their investment amount by more than 10% compared to the previous year or increased the number of full-time employees, including youth, by more than 10% in the past year will be excluded for the next year from the corporate tax return verification procedure for international taxation. The return verification process is a procedure to check the appropriateness of the information reported by foreign-invested companies. However, if there is clear evidence of tax evasion, these companies will not be exempted. In addition, the National Tax Service plans to provide support by processing preliminary reviews for R&D tax credits on a priority basis, regardless of the order of application.

A permanent support system has also been established. While the presence of foreign companies in Korea has expanded, difficulties have persisted due to limited accessibility to domestic tax laws and procedures. To address this, dedicated consultation desks for foreign companies have been set up at regional tax offices in the Seoul metropolitan area (Seoul, Jungbu, and Incheon). These desks will offer comprehensive consultation on all aspects of tax administration, including tax systems and the procedures for filing and paying taxes for foreign companies.

Commissioner Lim stated, "Foreign investment is not simply an inflow of capital but a driving force for future growth. We will focus all our tax administration capabilities to ensure that Korea remains an attractive and sustainable investment destination," adding, "We will continue to pursue practical tax support measures that foreign companies can tangibly experience."

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