South Korea’s Ministry of SMEs and Startups and National Tax Service are linking government business programs with tax-administration support for 2,559 AI SMEs and startups. Announced on October 11, the measures include relief from regular audits, priority tax-credit reviews and faster refunds. Which measures apply depends on the program that selected a company and how long it has been operating.
Who is eligible
The ministry has given the NTS its list of AI companies supported through 20 programs this year, covering research and development, commercialization of AI products, AI and AI-transformation credit guarantees, smart factories, deep-tech startups and overseas expansion. The NTS uses the list to confirm recipients.
Using AI alone does not qualify a company; eligibility depends on selection for a ministry program.
Audit relief
Eligible AI startups within five years of founding are excluded from selection for regular tax audits. Other eligible AI SMEs can apply to defer a regular audit for two years from its scheduled start date, or three years for companies in regional locations.
Firms with no clear suspicion of tax evasion are also excluded from post-filing verification. Exclusion from audit selection and application-based deferral are separate measures, and neither removes tax obligations or all tax scrutiny.
R&D and cash-flow support
Advance reviews of R&D and personnel-development tax credits and consultations on corporate-tax credits and exemptions will be prioritized. The package also includes payment-deadline extensions, tax-collateral exemptions, deferral of seizure or sale, priority handling of amendment claims and expedited corporate-tax and VAT refunds.
The announcement does not set credit or refund amounts for individual companies. Consultation desks explain the conditions for each measure.
Program period and consultation
The tax-support period runs from October 1, 2026 through February 28, 2028. That is the program period, not a common application deadline. Audit deferrals are counted separately from the scheduled audit start date.
The NTS will offer dedicated consultation for AI SMEs through Hometax and at corporate-tax desks in tax offices nationwide. The NTS release below lists all 20 programs and the detailed measures.
The National Tax Service building in Sejong on November 10, 2014. This archival photograph does not show the 2026 tax-support announcement or recipient companies. Wikimedia’s proportional thumbnail is used.
