National Tax Service (South Korea)
Overview
The National Tax Service (NTS, 대한민국 국세청) is a central administrative agency under the Ministry of Economy and Finance, overseeing the imposition, reduction/exemption, collection, and support of national taxes. Established on March 3, 1966, as an external agency of the Ministry of Finance (now the Ministry of Economy and Finance), its headquarters is located in Sejong Special Self-Governing City. The NTS manages major national taxes such as income tax, corporate tax, value-added tax, and inheritance/gift tax through seven regional tax offices and over 130 local tax offices nationwide, while also striving to protect taxpayer rights and foster a culture of voluntary tax compliance.
Main Content
Organizational Structure
The NTS is composed of the Commissioner (vice-ministerial level) and Deputy Commissioner (Senior Executive Service Grade A), under which there are five bureaus (Tax Collection and Legal Affairs Bureau, Income Support Bureau, Corporate Taxation Bureau, Value-Added Tax Bureau, and Asset Taxation Bureau), one office (Inspector General), and one division (Spokesperson). Nationwide, there are seven regional tax offices in Seoul, Central (Jungbu), Daejeon, Gwangju, Daegu, Busan, and Incheon, with local tax offices under each regional office. As of 2025, approximately 20,000 employees work at the NTS, with about 60% engaged in on-site tax investigations and consultation services.
Main Functions
- National Tax Imposition and Collection: Imposition and collection of 14 tax items, including income tax, corporate tax, value-added tax, inheritance/gift tax, and comprehensive real estate tax.
- Tax Investigations: Tax investigations of suspected tax evaders and analysis of tax data. In 2024, special tax investigations were strengthened for high-value and habitual delinquents.
- Taxpayer Support: Tax consultation, operation of the electronic filing system (Hometax), and adherence to the Taxpayer Bill of Rights.
- International Cooperation: Information exchange and prevention of tax avoidance with international organizations such as the OECD and the Asian Tax Administration Heads Meeting.
Tax Administration System
The NTS has operated the Hometax (홈택스) system since 1997 to support electronic filing and payment. As of 2024, over 95% of individual and corporate filings are done online, and the mobile app 'Sontax' (손택스) enables convenient inquiries and filings. Additionally, since 2023, an AI-based 'Smart Tax Investigation System' has been introduced to automatically detect anomalies.
Tax Revenue Status
In 2024, national tax revenue was approximately 400 trillion KRW, with income tax (about 130 trillion KRW), corporate tax (about 100 trillion KRW), and value-added tax (about 80 trillion KRW) accounting for the largest shares. The 2025 budget proposal includes measures to improve collection efficiency to compensate for tax revenue shortfalls.
Recent Trends
In 2024–2025, the NTS is focusing on digital transformation and enhancing transparency. From July 2024, the mandatory issuance of electronic tax invoices was expanded to all businesses, and in 2025, the 'AI Tax Investigation System' is planned to be rolled out nationwide. Additionally, to strengthen taxation on virtual asset (cryptocurrency) transactions, a system requiring regular submission of transaction records from virtual asset exchanges was implemented in January 2025. Alongside this, cash transaction tracking for high-income self-employed individuals and professionals has been strengthened, and the reporting threshold for foreign financial accounts was lowered from 500 million KRW to 300 million KRW. At the end of 2024, a 'Taxpayer Rights Protection Officer' system was newly established to prevent rights violations during tax investigations.
Related Topics
- [[Ministry of Economy and Finance]]
- [[Hometax]]
- [[Comprehensive Real Estate Tax]]
- [[Tax Investigation]]
- [[Tax Avoidance]]
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