NTS to Defer Regular Tax Audits for Foreign-Invested Companies Expanding Investments in Korea

The National Tax Service (NTS) plans to grant a deferral of regular tax audits for “foreign-invested companies expanding investments in Korea” in order to significantly alleviate tax uncertainty and compliance burdens for foreign enterprises making large-scale investments in Korea (effective from December 1, 2025).

This is the first-ever tax audit deferral program introduced exclusively for foreign-invested companies and is intended to help create a more business-friendly environment for global companies operating in Korea.

Under this measure, if a company plans to increase its investment amount by at least 10% (for SMEs) or 20% (for mid-sized companies) compared to the previous year in the fiscal year in which the prior notice of a regular tax audit is issued, the company may apply for the program and, upon approval, the commencement of the regular tax audit may be deferred for up to two years.

This initiative, which extends the tax audit deferral mechanism—traditionally available only to SMEs—to mid-sized companies for the first time, is expected to strengthen a virtuous cycle of “investment → production → sales growth → reinvestment” and support the stable growth of foreign-invested companies in Korea