I. Legal basis

• The Law on Tax Administration 2025
• The Law on Tax Administration 2019

II. Prohibited acts in tax administration

Article 6 of the Law on Tax Administration 2019 stipulates the following prohibited acts in tax administration:

• Collusion, connivance, or concealment between taxpayers and tax administration officials or tax authorities for the purposes of transfer pricing or tax evasion;
• Causing harassment or inconvenience to taxpayers;
• Abuse of authority to misappropriate or unlawfully use tax revenues;
• Deliberately failing to declare taxes, or declaring taxes in an incomplete, untimely, or inaccurate manner with respect to the tax amounts payable.
• Obstructing tax administration officials in the performance of their official duties.
• Using another taxpayer’s tax identification number to commit acts in violation of the law, or allowing another person to use one’s own tax identification number contrary to legal regulations.
• Sale of goods or provision of services without issuing invoices in accordance with the law, use of unlawful invoices, and unlawful use of invoices;
• Distortion, misuse, unauthorized access to, or destruction of taxpayer information systems;
• Failure to issue invoices is an act in violation of the law and shall be subject to administrative sanctions.

III. Key new features of the Law on Tax Administration 2025

1. Supplementation of an automated mechanism for tax refund, exemption, and reduction

Pursuant to Articles 18 and 19 of the Law on Tax Administration 2025, an automated mechanism for tax refund, exemption, and reduction has been introduced. The Government has revised the provisions to clarify the responsibility of tax authorities in implementing systems for automated processing based on risk criteria, technological procedures, and requirements for information security. The implementation of automated tax refund, exemption, and reduction shall be carried out in a phased manner, in accordance with practical conditions and the guidance of the Ministry of Finance.

2. Amendment and supplementation of seven (07) administrative procedures and groups of administrative procedures

The Law on Tax Administration 2025 does not introduce any new administrative procedures; it amends and supplements seven (07) administrative procedures and groups of administrative procedures, and abolishes two (02) administrative procedures.

3.  Tax arrears arising before 1 July 2026 shall be handled in accordance with the new Law

Accordingly, Clauses 1 and 2, Article 53 of the Law on Tax Administration 2025 provide transitional provisions under the Draft Law to the effect that all tax arrears arising before 1 July 2026 shall be handled in accordance with the new Law, thereby establishing a uniform legal basis for application. This is intended to ensure consistency with practical administrative conditions, reduce outstanding arrears, and enhance transparency in the State’s tax debt data.

IV. Conclusion

The new provisions of the Law on Tax Administration 2025, including the application of an automated mechanism for tax refund, exemption, and reduction; the simplification of administrative procedures; and, in particular, the uniform treatment of tax arrears arising prior to the effective date of the Law, will contribute to the modernization of tax administration, reduce compliance burdens for taxpayers, and enhance the efficiency of tax authorities.

From 1 July 2026, full compliance with tax regulations will not only constitute a legal obligation but also serve as an important factor enabling enterprises and individuals to mitigate legal risks and enhance their reputation and transparency in business operations. In the context of increasing digital transformation and increasingly stringent tax administration, taxpayers are required to proactively update policies and standardize their accounting, invoicing, and data systems, thereby promptly adapting to new regulatory requirements and ensuring sustainable development.

V. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

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To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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