KCCI "Tax Burden Relief for Mid-sized Companies"... National Tax Service "Actively Promoting Tax Support Measures"

KCCI Mid-sized Enterprises Committee Holds Meeting with Deputy Commissioner of National Tax Service

The Korea Chamber of Commerce and Industry (KCCI) held a meeting of the Mid-sized Enterprises Committee on the 27th at the Lotte Hotel in Jung-gu, Seoul, inviting Choi Jae-bong, Deputy Commissioner of the National Tax Service.

The meeting was organized to facilitate communication between the government and mid-sized business leaders regarding tax policy directions to support the growth of mid-sized enterprises amid worsening domestic and international conditions such as recent high interest rates, prolonged sluggish domestic demand, geopolitical risks, and increased global economic uncertainty.

Lee Jong-tae, Chairman of the KCCI Mid-sized Enterprises Committee (Chairman of Fursys), stated in his greeting, "In a rapidly changing environment, companies urgently need proactive tax support from the National Tax Service to achieve new innovations, growth, and expand overseas markets." In particular, Chairman Lee requested, "To allow mid-sized enterprises to focus solely on business management, please ease the burden of tax audits on sincere taxpayers and expand the tax support package for export companies to include mid-sized enterprises to strengthen global competitiveness."

In response, Choi Jae-bong, Deputy Commissioner of the National Tax Service, said, "In these challenging domestic and international conditions such as the global complex crisis and domestic economic slowdown, the innovation and growth of mid-sized enterprises are more important than ever for the re-leap of the Korean economy," adding, "We will prepare and implement various tax support measures to reduce the tax burden on mid-sized enterprises."

On the same day, the National Tax Service introduced 'National Tax Administration for Mid-sized Enterprises,' guiding mid-sized enterprises to utilize consulting services operated by the National Tax Service, such as business succession consulting, prior review of research and development (R&D) tax credits, and advance notice of applicable deductions and exemptions.

Additionally, as mid-sized enterprises increase their overseas expansion, the National Tax Service actively encouraged them to use the Mutual Agreement Procedure (MAP) and Advance Pricing Agreement (APA) systems, which are commonly used by large corporations.

Park Il-jun, Executive Vice Chairman of the KCCI, emphasized, "For our economy to maintain its growth momentum, the activities and growth of mid-sized enterprises, which play a major role in the Korean economy, are crucial," and requested, "We ask the National Tax Service to actively implement various tax support policies for mid-sized enterprises."

The KCCI Mid-sized Enterprises Committee was launched in 2009 to gather opinions on policy issues related to mid-sized enterprises and to strengthen communication with the government to enhance the competitiveness of mid-sized enterprises.