The Korean Tax Tribunal (Josae Simpanwon) has published three significant rulings for the fourth quarter of 2025, focusing on issues closely tied to citizens’ economic activities and daily lives. These decisions address disputes over value-added tax (VAT) exemptions for public housing landscaping, procedural requirements for tax investigations, and acquisition tax obligations for families with newborns. The Tribunal’s intent is to provide clear guidance and relief for taxpayers facing unfair or unclear tax burdens. The rulings are designed to ensure that tax administration aligns with legal standards and the practical realities faced by individuals and businesses.
The affected groups include construction companies involved in public housing projects, corporations subject to tax investigations, and families acquiring homes after childbirth. For example, landscaping work such as playgrounds and community facilities within public housing is now confirmed as VAT-exempt, benefiting registered construction firms. Corporations are protected from tax investigations conducted without proper advance notice unless specific legal exceptions are met. Families who move into a new home within three months of purchase, even if administrative errors occur in residency registration, are safeguarded from retroactive acquisition tax charges.
The Tribunal’s decisions were issued between October and December 2025, with case numbers 2025전1843, 2025중1805, and 2025방1621. These cases clarify the application of the Restriction of Special Taxation Act, the Framework Act on National Taxes, and the Local Tax Special Cases Act. The rulings are now available for public review on the Tax Tribunal’s official website. The Tribunal encourages taxpayers to consult these decisions to better understand their rights and obligations under current tax law.
Frequently asked questions include: Does landscaping in public housing qualify for VAT exemption? The Tribunal ruled that landscaping is an essential part of public housing construction and is therefore VAT-exempt. What happens if a tax investigation is conducted without advance notice? Unless evidence shows that advance notice would compromise the investigation, such actions are deemed procedurally improper. If a family’s residency registration is canceled due to administrative reasons, are they still liable for additional acquisition tax? The Tribunal found that actual residence within three months is sufficient, even if registration is later withdrawn for technical reasons.
Metaqsol opinion: The 2025 Q4 Tax Tribunal decisions provide important clarification and protection for taxpayers in Korea. By explicitly recognizing landscaping as VAT-exempt in public housing, ensuring procedural fairness in tax investigations, and safeguarding families from unjust acquisition tax, the Tribunal addresses key areas of concern for both businesses and individuals. These rulings demonstrate a commitment to transparent and equitable tax administration. Taxpayers should review the full decisions to understand their rights and ensure compliance.