Display Association Holds Briefing Session to Maximize Use of Tax Credits

On the 5th, the Korea Display Industry Association held a 'Display National Strategic Technology Tax Credit Utilization Briefing' for small and medium-sized enterprises at Samjung Hotel to maximize the use of tax credits for investments in national strategic technologies.

The briefing was organized to provide the industry with information on preparation requirements, administrative procedures, and accounting management methods for utilizing tax credits, following the addition of display technology to the national strategic technologies under the Restriction of Special Taxation Act, which offers high investment incentives for research and development (R&D) and facility investments. Tax accounting expert Tae-ik Park, CEO of Park Jong-min, explained the R&D and facility investment tax credit system for national strategic technologies and how to utilize it. Additionally, key changes in tax laws from this year that companies should refer to were also introduced.

To receive the national strategic technology R&D tax credit, companies must register a dedicated department with the Korea Industrial Technology Association, separately manage accounting for new growth and source technology R&D and national strategic technology R&D expenses, and submit a tax credit application form when filing corporate tax returns. Post-management of R&D tax credits has been strengthened, so companies applying for tax credits need to pay more attention to the preparation and retention of research plans, reports, and research notes.

The tax credit rate for national strategic technology facility investments is 15% for large and medium-sized enterprises and 25% for small enterprises. If the investment amount in the current year exceeds the average investment amount of the previous three years, an additional 10% credit on the difference can be received. Tangible assets such as machinery and equipment are eligible for facility investment, but land, buildings, and other constructions are not applicable.

Lee Dong-wook, Vice Chairman of the Korea Display Industry Association, said, “With display technology designated as a national strategic technology that offers the highest investment incentives, a foundation has been laid for the display industry to make a new leap forward. Given the industry's high localization rate, we expect a stronger industrial ecosystem to be built through the joint growth of panel conglomerates' investments and small and medium-sized materials, parts, and equipment companies.”

The association plans to continue holding quarterly policy seminars in areas such as export support and environmental regulations following the investment tax credit sector to strengthen companies' ability to respond to changes in the industrial environment.

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