This press release intends to clarify whether the expansion of the scope of national strategic technologies and new growth/fundamental technologies in the amended enforcement decree of the 2023 tax revision bill are subject to only to R&D tax credits.
In general, the law on national strategic technologies defines their fields with the enforcement decree specifying detailed technologies and enforcement rules outlining specific commercialization facilities.
The Enforcement Decree of the Restriction of Special Taxation Act stipulates the detailed technologies, including national strategic technologies and new growth/fundamental technologies, which are subject to the R&D tax credit.
R&D tax credit rates (%)
|
Category |
General |
New growth/fundamental technology |
National strategy technology |
|
Ratio
for the current term |
Increment |
|
Current |
Revised (2024) |
|
Small and medium sized enterprise (SME) |
25 |
50 |
60 |
30-40 |
40-50 |
|
Middle market enterprise |
8-15 |
40 |
50 |
20-30
(25-40 for KOSDAQ listed companies) |
30-40 |
|
Major company |
Up to 2 |
25 |
35 |
20-30 |
In the Enforcement Rule on the Act on Restriction on Special Cases Concerning Taxation, detailed facilities related to national strategic technologies and new growth/fundamental technologies are specified as eligible for integrated investment tax credits. The announcement of the amended enforcement rules is scheduled for March, and it will include detailed information on the expansion of commercialization facilities.
Integrated investment tax credit rates (%)
|
Category |
Ratio for the current term |
Increment |
|
Major company |
Middle market enterprise |
SME |
|
General |
1 → 3 |
5 → 7 |
10 → 12 |
3 → 10 |
|
New growth/fundamental technology |
3 → 6 |
6 → 10 |
12 → 18 |
|
National strategic technology |
15 |
15 |
25 |
4 → 10 |
Please refer to the attached files.
