Tax Support for Companies with Excellent Job Creation


l Exclusion of job-creating small and medium-sized enterprises (SMEs) from FY2021 tax audit

The National Tax Service (“NTS”) announced on October 18, 2022 that the SMEs will be excluded from the target list of periodic tax audits for corporate income tax or individual income tax returns filed for the fiscal year 2021 if certain requirements are met.

SMEs eligible for exclusion from tax audits are as below.

SMEs1) as specified under the Korean Special Tax Treatment Control Law (“STTCL”) with a revenue of less than KRW 150 billion for the fiscal year 2021 (less than KRW 50 billion for corporations with total assets of KRW 200 billion or more or professional personal service providers);

*1) Determined based on FY2021, and grace period (i.e., considered as SMEs up to 3 tax years after exceeding the criteria for SMEs) shall not be applied.

Submission of ‘Job creation plans’ to the National Tax Service through ‘HomeTax’ by November 30, 2022, and implementation of the plans to increase the number of full-time employees in 2023 by more than 2% or 3% (and at least one new full-time employee) compared to the numbers in 2022.

Revenue for FY2021

less than KRW50 billion

from KRW50 billion to less than KRW150 billion

Increase requirement


3% or more