SEOUL, November 28 (AJP) - South Korea’s National Tax Service (NTS) will postpone regular tax audits for up to two years for foreign companies that substantially increase their investments in the country.
NTS Commissioner Lim Gwang-hyun announced the measure on Friday during a meeting hosted by the American Chamber of Commerce in Korea (AmCham) in Seoul. Companies that raise their domestic investment by a defined percentage compared with the previous year will be eligible to apply for the audit deferment.
Under the revised criteria, small foreign businesses that increase investment by at least 10 percent and medium-sized firms that boost investment by 20 percent will qualify for the program. Previously, the audit delay was available only to small enterprises.
The tax authority also said it plans to ease the burden of double taxation on foreign firms by accelerating the Advance Pricing Agreement process, which provides tax certainty for companies engaged in cross-border transactions.
To improve accessibility for international taxpayers, the agency is expanding its AI-based foreign language consultation services launched in September.
James Kim, chairman of AmCham Korea, welcomed the steps and stressed that fair and predictable treatment of foreign companies is essential for South Korea to compete with regional investment hubs such as Singapore and Hong Kong.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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