National Tax Service Unveils Major Tax Support Package for AI SMEs — Survey Exemptions, Fast‑Track R&D Credit Pre‑Reviews, Liquidity Measures and Dedicated Advisory Channels

Foreign startup team reviewing tax support documents — National Tax Service AI SME support

Summary

From Oct 27, 2025 the National Tax Service will implement an AI SME tax support package for approximately 4,800 firms, including audit exemptions/deferrals, priority R&D credit pre‑reviews, extended payment terms, and dedicated advisory channels.

Contents

Lead
Background & Rationale
Key Measures
Eligibility & Exclusions
Application Process & Documents
Operational Checklist
Illustrative Case
Compliance & Risks
FAQ
Contacts
Related Resources
Closing

Lead

On Oct 24, 2025 the National Tax Service announced a targeted support package to help AI SMEs scale up and ease operational burdens. Measures include audit exclusion/deferral, priority pre‑reviews for R&D tax credits, liquidity supports and dedicated advisory channels. The program takes effect on Oct 27, 2025.

Background & Rationale

Korea is prioritizing AI as a strategic sector. The tax support package is designed to mitigate early‑stage financing constraints and encourage investment in R&D and talent. Conditional safeguards and strict post‑support verification are part of the design.

Key Measures

Audit Exemption / Deferral

Early‑stage AI startups (under five years) are generally exempt from routine audits; others receive deferral up to two years unless serious misconduct is found.

Priority Pre‑Review for R&D Credits

Qualified R&D and personnel development tax credit applications will be prioritized to accelerate refunds or credit recognition.

Liquidity Measures

Options include payment extensions, collateral waivers, enforcement postponement, and expedited refunds.

Dedicated Advisory Services

Local tax offices will host AI advisory desks and the Hometax portal will provide dedicated channels for consultations.

Eligibility & Exclusions

Eligible firms must meet SME criteria and demonstrate qualifying AI activity. Firms with evidence of intentional tax evasion or criminal conduct are excluded.

Application Process & Documents

Self‑assessment: confirm eligibility against the official notice.
Prepare documents: business registration, financial summaries, R&D contracts and invoices, equipment contracts, payroll and technical documentation.
Submit via the NTS portal or local tax office; respond promptly to any information requests.

Operational Checklist

Form a cross‑functional team (finance, tax, R&D).
Digitize and back up all supporting evidence.
Consult a tax professional to pre‑validate claims.
Document internal accounting and retention policies.

FAQ

Q1. Are all AI companies eligible for this support?

A1. No. Eligibility requires meeting both SME thresholds and specific AI activity criteria (e.g., in‑house ML/AI model development, AI service operation, or a minimum level of R&D expenditure). Refer to the official NTS notice for full eligibility details.

Q2. Does exemption from routine tax audits mean permanent immunity?

A2. No. Exemption or deferral applies to routine scheduling only. Firms with clear signs of intentional tax evasion, embezzlement, or other serious misconduct remain investigable and may be subject to immediate audits.

Q3. Will priority pre‑review guarantee an immediate refund?

A3. Not automatically. Priority pre‑review accelerates processing and improves predictability, but refund or credit outcomes still depend on statutory compliance and the sufficiency of supporting evidence.

Q4. Can a licensed tax professional submit the application on our behalf?

A4. Yes. Submissions by licensed tax professionals are permitted and often recommended to reduce errors and respond quickly to any follow‑up requests.

Q5. How long can payment deferrals or extensions be granted?

A5. Deferral lengths vary by case and are determined through the NTS support desk based on the company’s financial situation. Terms will be negotiated individually.

Q6. Can these tax benefits be combined with other government supports?

A6. It depends. The official notice and implementing guidance specify whether benefits can be stacked or if exclusions apply. Check the guidance carefully for overlap rules.

Q7. How will post‑approval monitoring and verification be conducted?

A7. Monitoring may include document audits, electronic data validation, and potential on‑site inspections within a typical 6–12 month review window. Maintain originals and digital copies of all claimed documentation.

Q8. Where should companies go for official updates and help?

A8. Consult the NTS official website and your local tax office announcements first. Use the dedicated AI advisory windows and the Hometax portal channels referenced in the announcement, or contact the listed NTS support numbers for direct assistance.

Contacts

NTS Corporate Tax Division: +82‑44‑204‑3317
Public Interest & SME Legal Support Team: +82‑44‑204‑3922
Audit Planning Office: +82‑44‑204‑3517

Closing

Act quickly to assess eligibility and prepare documentation. The support offers real advantages but requires disciplined compliance and post‑approval readiness. If you want, I can produce the JSON‑LD, insert the official PDF link, or create downloadable application templates next.

National Tax Service Unveils Major Tax Support Package for AI SMEs — Survey Exemptions, Fast‑Track R&D Credit Pre‑Reviews, Liquidity Measures and Dedicated Advisory Channels

Lead

Background & Rationale