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South Korea to Defer Routine Tax Audits for Foreign Firms That Boost Investment

Applications open Monday to reduce tax uncertainty through quicker APAs, AI filing help, expanded guidance.

Overview

  • From Monday, eligible foreign companies that increase domestic investment can apply to postpone routine tax audits for up to two years.
  • The National Tax Service set thresholds of at least 10 percent investment growth for small enterprises and 20 percent for medium-sized firms compared with the previous fiscal year.
  • The policy is the first audit deferral program explicitly tailored to foreign businesses and extends a benefit previously centered on small domestic firms to medium-sized companies.
  • The package includes expanded corporate tax filing guidance and AI-based multilingual assistance for foreign employees.
  • Advance Pricing Arrangement processing will be accelerated and briefings will prepare companies for Korea’s first Global Minimum Tax filing next year, with Amcham welcoming the measures as improving predictability.