Korea Fleshes Out Tax Breaks for Chips, Battery, Vaccine Sectors

July 26, 2021, 6:30 AM UTC

South Korea plans to increase tax breaks on research and capital spending by semiconductor, battery, and vaccine makers as it looks to secure future economic growth, according to a finance ministry tax proposal.

  • For industries seen as critical for economy in coming years, government will apply tax deduction of up to 50% of small companies’ R&D costs and 16% of their facilities investment
    • For large companies, tax deduction to be applied up to 40% of R&D investment and 6% of facilities investment
    • Deductions to be applied until end-2024
    • For other industries, deduction currently ranges from 2-25% of R&D costs depending ...



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