NTS has announced a suite of tax administrative measures for 2026, targeting liquidity support, payment flexibility, and incentives for research, development, and strategic industries.
Korea(Rep.)’s National Tax Service (NTS) has rolled out comprehensive tax support and administrative measures to assist businesses facing economic challenges and to strengthen strategic growth sectors in 2026.
Corporate liquidity and payment extensions
The NTS has earmarked KRW 3 trillion to support around 100,000 corporations, including export-oriented firms experiencing revenue declines, companies in the petrochemical, steel, and construction industries, and those located in Employment or Industrial Crisis Preemptive Response Zones.
- Exporting companies: 13,000 entities, KRW 1.3 trillion
- Petrochemical/steel/construction sectors: 65,000 entities, KRW 1.4 trillion
- Crisis Preemptive Response Zones: 26,000 entities, KRW 0.4 trillion
Corporate income tax payment deadlines have been extended:
- General corporations: from 31 March to 30 June
- SMEs: until 1 September
For installment taxes exceeding KRW 10 million, deadlines are also extended: 31 July for general corporations and 1 September for SMEs. Corporations still facing financial hardship may apply for an additional extension until 31 December. Despite these extensions, tax returns must still be filed by 31 March, while expedited refunds for eligible corporations will be issued by 10 April, 20 days ahead of the statutory deadline.
R&D and strategic industry support
To bolster innovation, the NTS will defer post-verification audits for R&D Special Zone SMEs for one year, covering approximately 13,500 firms across six Metropolitan Special Zones and 13 Gangso Special Zones. Additional measures include:
- Extended tax payment deadlines for SMEs in future-growth sectors, up to nine months
- Waiver of collateral for tax amounts up to KRW 100 million
- Priority processing of R&D tax credit pre-review applications
National tax administration plan highlights
The NTS outlined plans to secure stable tax revenue, targeting KRW 381.7 trillion, and enhance voluntary compliance through improved taxpayer services and guidance. Key measures include:
- Strengthened litigation capabilities, with open competition for high-value cases and lowered thresholds for pursuing delinquent taxpayers;
- Enhanced support for micro and small enterprises, including simplified VAT taxation and dedicated tax support centres;
- Promotion of global expansion for strategic industries such as semiconductors, secondary batteries, and K-culture, including mutual agreement procedures and international tax seminars.
Measures for fair taxation and enforcement
The NTS will target sophisticated tax evasion, offshore profit shifting, abusive corporate practices, and the misuse of public-interest corporations. Special relief measures for financially distressed delinquent taxpayers have also been expanded.
Innovations in tax administration
The agency plans AI-driven services for improved efficiency and taxpayer support, enhanced information security frameworks, integrated revenue collection systems, and preparation for global minimum tax filings in June 2026 and virtual asset taxation from January 2027.
Tax incentives and growth initiatives
The Ministry of Economy and Finance proposes amendments to the Special Tax Treatment Control Law and Special Tax for Rural Development Law to support:
- Reshoring investment accounts (RIA) with temporary capital gains tax deductions of up to 100% for foreign-stock sales reinvested domestically;
- A temporary increase of the Dividend Received Deduction (DRD) rate to 100% for dividends from foreign subsidiaries received from 1 January 2026;
- A National Growth Collective Investment Savings Plan offering tiered income deductions and a separate 9% tax on dividends for investors in qualifying strategic industries.
These measures aim to strengthen liquidity, reduce tax-related uncertainty, and incentivise investment in R&D and strategic sectors, reflecting a proactive approach to economic resilience and growth.
