NTS has launched a Fast-track procedure for Advance Pricing Agreement renewals and introduced additional tax support measures to improve tax certainty and encourage foreign investment.
South Korea’s National Tax Service (NTS) has introduced a Fast-track procedure for Advance Pricing Agreement (APA) renewals and rolled out a broader package of tax support measures for foreign-invested enterprises (FIEs) aimed at strengthening the country’s investment climate.
The initiatives were announced during the NTS’s first joint meeting on 14 May 2026 with representatives of eight major foreign chambers of commerce and the Foreign Investment Ombudsman.
APA Fast-track procedure
The new Fast-track procedure applies to bilateral and multilateral APA renewal applications that are substantially similar to previously approved agreements. Eligible applications will undergo an initial desk review within three months of submission, after which the NTS will consult with the relevant tax authority or authorities to designate the case as a priority.
To qualify, an application must be submitted within six months before the expiration of the existing APA, retain the same transaction structure, corporate functions and business risks, maintain a similar proportion of related-party transactions, and request an arm’s length price range comparable to the previously agreed range. The procedure applies to pre-filing consultation applications submitted on or after 14 May 2026.
Tax audit relief and R&D support
The NTS said foreign-invested enterprises that increase domestic investment or youth employment by more than 10% compared with the previous year will receive a one-year exemption from corporate tax reporting verifications in the international tax field.
These companies will also receive priority processing of R&D Tax Credit Pre-assessments, regardless of the order in which applications are submitted.
Dedicated consultation desks
The NTS has established dedicated consultation desks at the Seoul, Jungbu and Incheon Regional Tax Offices to assist foreign companies with Korean tax laws.
The desks provide guidance on the tax system, reporting requirements and payment procedures through dedicated hotlines, web-mail and scheduled in-person consultations.
Global minimum tax assistance
Ahead of the first Global Minimum Tax filing in June 2026, the NTS is providing English-language guidance videos and leaflets, along with one-to-one consultations for companies requiring assistance with the filing process.
Corporate tax consulting for SMEs
Small and medium-sized foreign enterprises will be able to receive Corporate Tax consulting on available tax credits and reductions. The NTS will verify eligibility and calculate potential benefits in advance to help businesses claim incentives for which they qualify.
NTS Commissioner Lim Kwang-hyun said foreign investment remains an important driver of future economic growth and reaffirmed the agency’s commitment to creating a predictable and attractive tax environment for global investors.
