Gyeonggi-do Conducts Comprehensive Survey on Local Tax Exemptions for Knowledge Industry Centers... 6.5 Billion KRW Reclaimed

Gyeonggi Provincial Government

Gyeonggi Province investigated 671 knowledge industry centers within the province and uncovered 912 illegal cases where acquisition tax exemptions were received but the properties were not used for their intended purposes, resulting in the recovery of over 6.5 billion KRW in local taxes.

Knowledge industry centers are multi-story collective buildings where manufacturers, knowledge industry and information communication industry workers, and related facilities can coexist.

The current 'Local Tax Special Cases Restriction Act' provides local tax exemption benefits such as acquisition tax, special rural tax, and local education tax to companies that meet the occupancy conditions.

From February 1 to April 28, the province investigated 29,255 companies (20,783 of which received exemptions) occupying 671 knowledge industry centers located in 25 cities and counties including Suwon.

The investigation revealed 912 cases where, without justifiable reasons, the properties were not used for their intended purposes even after one year of acquisition, or were sold, gifted, or used for other purposes within five years from the acquisition date.

The province recovered 6.53 billion KRW in local taxes that had been exempted for the respective companies.

Ryu Young-yong, Director of the Tax Justice Division of the province, emphasized, "We will prevent tax base omissions through regular inspections of cases where knowledge industry centers were acquired with exemption benefits but used for improper purposes."

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