National Tax Service Introduces Compulsory Fines for Multinational Corporations

The National Tax Service has decided to introduce a ‘compulsory performance fine’ for multinational corporations that obstruct investigations. This move aims to prevent acts of interference with investigations and ensure fair taxation.

Expanding Appraisal of Expensive Real Estate

The National Tax Service will expand the scope and target of appraisal of expensive real estate, including small buildings and commercial-residential housing. This decision aims to increase the fairness of the tax burden and prevent excessive and duplicate deductions.

Strengthening Fair Taxation

The National Tax Service will strengthen fair taxation by expanding the appraisal of small buildings that are taxed at the standard market price rather than the market price. Additionally, ultra-high-priced apartments and commercial-residential complexes will be included in the valuation target.

Innovating the System to Prevent Tax Evasion

The National Tax Service will innovate the system to prevent excessive and duplicate deductions by restricting access to information on dependents who are not eligible for deductions during the year-end tax settlement. The tax office will also utilize an AI and big data-based tax evasion analysis and detection system to select targets for regular tax investigations.

On-Site Tax Collection and Flexible Management

The National Tax Service will strengthen on-site tax collection, including inquiring into and searching the actual residences of tax evaders and those living in luxury lifestyles that infringe on people’s livelihoods. The tax office will flexibly manage the annual number of cases by taking into account economic conditions and human resources.

Commissioner’s Statement

Commissioner Kang Min-soo stated that he would become a National Tax Service that “does what needs to be done properly, to the end.”