Tax Agents Banned from “No.1 in Tax Refund” Ads without Evidence... National Tax Service Sets Detailed Advertising Standards

Administrative Notice on “Advertising Prohibited for Tax Agents” Begins August 20
Direct Comparison of Fees or Promises of Economic Benefits in Ads Now Banned
Only Ads with “Objective Evidence” Will Be Permitted

From now on, tax advertisements claiming to be “No. 1 in tax refund rate” or similar without objective evidence will be prohibited. Advertising that directly compares service fees with other tax professionals will also be banned.

The National Tax Service announced on August 20 that it will begin an administrative notice of the “Regulations on Prohibited Advertisements for Tax Agents,” which aims to prevent harm to taxpayers caused by exaggerated or misleading advertisements by tax agents. These regulations will apply not only to tax accountants, tax firms, foreign tax advisors, foreign tax corporations, and both individual and corporate foreign tax advisory offices but also to attorneys and certified public accountants registered for tax agency work.

An official from the National Tax Service explained, “This notice concretizes the types of improper advertisements that may harm taxpayers seeking tax agency services, in accordance with Article 12-7 of the Certified Tax Accountant Act enacted in December last year,” adding, “The National Tax Service reviewed existing advertising cases to define the advertisements subject to prohibition. At the same time, it adopted a ‘principle prohibition with exceptions’ approach, which allows advertisements that display work performance based on objective supporting data.”

Under this new notice, tax professionals are prohibited from: ▲ Advertising that directly compares service fees with those of other tax professionals; ▲ Advertising that promises monetary or economic benefits; ▲ Advertising that emphasizes superiority such as “Best in Korea,” “Best in the Industry,” or “No. 1 in refund rate” without objective evidence; ▲ Advertising that displays outcomes such as refund rates, tax savings rates, or success rates without providing calculation bases.

However, it is permitted to display one’s own service fees accurately, or to advertise work performance results when objective supporting data or statistical calculation bases are clearly presented. Tax professionals who choose to advertise such results must retain the objective supporting data, the size of the sample population, the period covered, and the statistical methods used for three years from the date the advertisement is posted or sent.

The new rules prohibiting exaggerated and misleading advertisements apply not only to individual tax accountants but also to tax firms. In addition, certified public accountants and attorneys engaged in tax agency work—either individually or as part of a corporation—are also required to comply. Furthermore, foreign tax advisors and their firms, including so-called "US tax agents," must comply with the standards established in this new notice as well.

The National Tax Service plans to establish a dedicated reporting channel on its website and continue close communication with relevant organizations such as the Korea Association of Certified Public Tax Accountants and the Korean Institute of Certified Public Accountants. The agency will also strengthen monitoring and enforcement against violative advertisements to ensure that the new system becomes firmly established.

This content was produced with the assistance of AI translation services.