"Save Semiconductors" Up to 50% Tax Credit on National Core Technology R&D

MoEF to Announce 'Expanded Tax Support Plan for Semiconductor R&D Investment' on the 13th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] As global competition for semiconductor supremacy intensifies, the government is strengthening research and development (R&D) and tax benefits for 'core strategic technologies' such as semiconductors. Going forward, small and medium-sized enterprises (SMEs) can receive tax credits of up to 50%, and large corporations up to 40%, when investing in core strategic technology R&D.

The Ministry of Economy and Finance announced on the 13th the 'Expansion Plan for Tax Support on Semiconductor R&D Investment' containing these details. The amendment will be included in this year's tax reform bill and submitted to the National Assembly in September.

The policy announced this time aims to secure core semiconductor technologies and promote the expansion of mass production facilities.

First, when investing in core strategic technology R&D, large and medium-sized enterprises will receive tax credits of 30-40%, and SMEs 40-50%. This raises the credit rate by 10 percentage points compared to new growth and original technologies.

Additionally, tax credits for national core technologies and related facility investments have been increased. For facility investments related to core strategic technologies, large corporations will receive 6%, medium-sized enterprises 8%, and SMEs 16% tax credits. Furthermore, an additional 4% credit on increased investment amounts will be granted to all companies. Ultimately, the maximum facility investment credit rate will rise to 10-20%.

Meanwhile, considering the investment lead time, the government plans to apply these measures temporarily for three years from the second half of this year through investments made in 2024.

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