Framework Act on National Taxes — Limits on Tax Audits and Pre-Assessment Review
Articles are cited from the version in force on 11 August 2026 (Act No. 21860), checked on 20 September 2026.
Before the disposition
The appeals of chapter 5 dealt with the period after a disposition. This chapter deals with what comes before: what rights the taxpayer has in the process that leads to a tax being set.
Chapter 7-2 of the Act, “Taxpayers’ Rights”, is devoted entirely to this. The order of the articles follows the chronology of an audit: before it starts, while it runs, and after the results come out.
Prohibition of abuse of audit powers (Article 81-4)
The minimum necessary
Tax officials shall conduct tax audits within the minimum scope necessary to achieve proper and fair taxation, and shall not abuse audit powers for other purposes (paragraph 1).
“Tax audits” include tax crime investigations. Investigations under the Tax Crime Procedure Act fall within the protection of these rights provisions.
Paragraph 3 has the same aim. Requests for books and records must also be kept to a minimum, and books unrelated to calculating the tax base and tax for the audited tax and period must not be requested.
Prohibition of duplicate audits and seven exceptions (paragraph 2)
The principle is clear: the same tax and the same tax period may not be audited again.
| Item | Ground |
|---|---|
| 1 | There is clear evidence supporting a suspicion of tax evasion |
| 2 | An audit of a transaction counterparty is necessary |
| 3 | There are errors relating to two or more tax periods |
| 4 | An audit is conducted following a reinvestigation decision (limited to the scope stated in the operative part of the decision) |
| 5 | The taxpayer offered or arranged money or goods for a tax official in connection with the official's duties |
| 6 | After a partial audit, parts not covered by it are audited |
| 7 | Other cases similar to items 1–6 specified by presidential decree |
The word “clear” in item 1 is the gatekeeper. Vague suspicion does not open the door.
Item 4 connects directly to chapter 5: audits following reinvestigation decisions on requests for review or adjudication (proviso to Article 65(1)3) and on pre-assessment review (proviso to Article 81-15(5)2). The parenthesis matters: they are limited to the scope stated in the operative part of the decision. The 60-day and scope limits seen in chapter 5 are confirmed again here.
Paragraph 4 points the other way. No one may engage in conduct that undermines a fair tax audit, such as causing tax officials to break the law or abuse their powers. Improper requests from the taxpayer’s side are barred too.
Right to assistance (Article 81-5)
When undergoing a tax audit (including a tax crime investigation), a taxpayer may have an attorney, certified public accountant or certified tax accountant participate in the audit or state opinions.
The three qualifications are listed side by side: tax accountants and accountants for tax issues, and attorneys where a matter may turn criminal.
Before it starts — advance notice and postponement (Article 81-7)
20 days ahead
Tax officials must give notice of the tax to be audited, the audit period, the reason for the audit and so on 20 days before starting. For a re-audit following a reinvestigation decision, it is 7 days.
Requests for postponement
A taxpayer who has received advance notice may request postponement if it would be difficult to undergo the audit for the following reasons (paragraph 2):
- a natural disaster has caused substantial damage to life, body, property or supply chains;
- the business the taxpayer runs has suffered significant losses or is at risk of default or bankruptcy;
- other reasons specified by presidential decree.
“Supply chains” in item 1 is new wording added by the amendment of 11 August 2026. It refers to supply chains under Article 2(2) of the Framework Act on Supporting the Stabilisation of Supply Chains for Economic Security, broadening the scope of disaster beyond physical damage.
The head of the competent tax office must give notice of whether postponement is approved before the audit starts (paragraph 3).
Even if postponed, there are two cases in which the audit may start before the postponement period ends (paragraph 4): when the reason for postponement has ceased, and when an urgent start is recognised as necessary to secure tax claims.
While it runs — duration and scope
Audit duration of 20 days (Article 81-8)
The principle is “the minimum”. But paragraph 2 fixes a number.
There are six grounds for extension (proviso to paragraph 1): audit avoidance such as hiding books or delaying or refusing to submit them is clear; an audit of business partners or on-site confirmation of financial transactions is needed; suspicion of evasion is found or a tax crime investigation begins; the audit is interrupted by natural disaster or labour dispute; a taxpayer protection officer recognises the need to confirm additional facts; or the taxpayer requests an extension to provide explanations and a taxpayer protection officer approves.
The last two are interesting: an extension can come from the taxpayer’s side, when time is needed to explain.
Limits on widening the scope (Article 81-9)
While an audit is under way, its scope cannot be widened. The only exceptions are those set by presidential decree, such as when specific suspected evasion is confirmed to extend to several tax periods or other taxes.
When the scope is widened, the reason and scope must be notified to the taxpayer in writing (paragraph 2).
No retention of books (Article 81-10)
Tax officials may not retain a taxpayer’s books and records at the tax office at will for audit purposes.
Temporary retention requires three layers of conditions: a statutory ground applies, the records were voluntarily submitted by a person with proper authority, and the taxpayer consents. The official must also obtain a consent form for temporary retention and issue a receipt for it (paragraph 3).
After the results — pre-assessment review (Article 81-15)
This is the heart of the chapter: a procedure for contesting before a disposition is issued.
Advance notice of assessment (paragraph 1)
The head of a tax office or regional tax office must give advance written notice in the following cases:
- taxing on the basis of the results of an operational audit;
- taxing a person other than the audited taxpayer on the basis of tax data confirmed in a tax audit or an on-site confirmation;
- the tax to be demanded by payment notice is ₩1 million or more.
Item 3 has two exclusions: taxation following a Board of Audit and Inspection correction demand where the taxpayer received an explanation request before the demand (sub-item a); and where a person who filed a return after the deadline did not pay or underpaid and the tax is determined exactly as stated on that return (sub-item b). Sub-item b links to Article 45-3 in chapter 4: when the tax is determined on the taxpayer’s own figures, there is no reason to give advance notice again.
Request within 30 days, answer within 30 days (paragraphs 2 and 4)
Four cases where it does not apply (paragraph 3)
| Item | Ground | Why |
|---|---|---|
| 1 | A ground for collection before the due date under Article 9 of the National Tax Collection Act, or a ground for occasional assessment under the tax laws, exists | The situation cannot wait |
| 2 | A criminal complaint or notice disposition is made for violating the Punishment of Tax Evaders Act (excluding unrelated taxes and amounts) | It goes to criminal proceedings |
| 3 | Three months or less remain from the notice date until the assessment exclusion period expires | The power to assess would lapse during the review |
| 4 | Other cases specified by presidential decree | — |
Item 3 is the practical one. Pre-assessment review can take up to 60 days (30 to request plus 30 to decide). If three months or less remain in the exclusion period, the power to assess itself could be lost during the review. Article 26-2 from chapter 2 comes into play here.
Three decisions (paragraph 5)
| Decision | Requirement |
|---|---|
| Not adopted | The request is found to be without grounds |
| Adopted or partly adopted | The request is found to have grounds |
| Not reviewed | Time limit passed, not corrected within the correction period, or the request is otherwise unlawful |
The acceptance side also includes a reinvestigation decision (proviso to item 2). If further investigation is needed to determine the extent of adoption, the head of the tax office or regional tax office that gave notice reinvestigates and gives notice of the revised content of the original notice.
Set beside the decisions on requests for review in chapter 5 (Article 65), the structure is the same: the equivalent of dismissal without merits (not reviewed), rejection (not adopted), acceptance (adopted), and the reinvestigation decision.
One line linking before and after
The same skeleton is used twice, before and after. What differs is the timing and the periods: 30 days before, 90 days after.
What remains
- The principle of integrated audits (Article 81-11), notice of audit results (Article 81-12) and confidentiality (Article 81-13) are not covered.
- The Commissioner’s protection of taxpayers’ rights (Article 81-16) and taxpayer protection committees (Articles 81-18 and 81-19) are internal controls on audit procedures.
- Whether a breach of audit procedure makes the resulting tax disposition void is a matter for case law, especially the effect of breaching the prohibition of duplicate audits.
References
- Korea Law Information Center, Framework Act on National Taxes, Articles 81-4, 81-5, 81-6, 81-7, 81-8, 81-9, 81-10 and 81-15 (in force 11 August 2026, Act No. 21860; checked 2026-09-20)
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