l Exclusion of job-creating
small and medium-sized enterprises (SMEs) from FY2021 tax audit
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.
eligible for exclusion from tax audits are as below.
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
3% or more