l NTS strive to minimize the
burden of tax audits on taxpayers as much as possible
Extension of the advance
To address concerns about
taxpayers having insufficient time to prepare for tax audits adequately, NTS
had decided to extend the advance notification period for small and medium-sized
taxpayers1 to 20 days (currently 15 days).
taxpayers with annual revenue of less than KRW 50 billion and Individual
taxpayers with annual revenue of less than KRW 10 billion
Decrease the duration of the
If a taxpayer’s accounting
process is deemed transparent, their suspicion of evasion is low, and they
actively cooperate in submitting the requested data, NTS will reduce the number
of on-site tax audit days to 50~70% of the total tax audit period.
Rationalize the requirements
for data submission
To address concerns raised by
taxpayers regarding the challenging nature of excessive data requests during
tax audits, the following measures will be implemented.
In principle, comprehensive
data requests will be prohibited.
NTS will systematically manage a
list of data submission requests.
Data will be requested to the
minimum extent possible, ensuring a thorough review by managers to determine
the essential information required.
l NTS committed to actively listening
and providing precise and accurate information
Hearing for tax audit manager
NTS will introduce a new
initiative called the ‘Hearing for Tax Audit Manager’. This will provide an
opportunity for direct communication between taxpayers and tax audit managers
(i.e., Director or Director General). It aims to facilitate open dialogue,
allowing taxpayers to express their opinions or discuss any difficulties they
encounter during the tax audit process.
Brief session to inform a
taxpayer about a tax audit result
Within 20 days following the end
of the tax audit periods, NTS will deliver a written report directly to the
taxpayer. This report will encompass comprehensive details of the tax audit, including
specific grounds for taxation, a breakdown of the audit finding, results of the
review on the taxpayer's explanation, and a thorough explanation of the
available procedures for seeking relief or exercising their right.
l NTS committed to
implementing legitimate taxation through the utilization of collective
review meeting in advance of taxation
To ensure thoroughness and
accuracy in taxation, the NTS has introduced a legality review meeting prior to
the implementation of taxation. This meeting involves the tax audit team,
deliberation team (supporting the tax audit team’s decision-making), and expert
group (where the Red Team exclusively represents the taxpayer's position). During
this meeting, independent and horizontal discussions take place, focusing on
critical taxation issues that may deviate from the taxpayer's perspective.