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2025-03-31 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > IT Information >
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Shulou(Shulou.com)11/24 Report--
CTOnews.com January 3 news, according to Yonhap news agency, the South Korean government on January 3 issued a plan to strengthen tax incentives to support semiconductor investment. Under the plan, the tax deduction rate for large enterprises that invest in semiconductor facilities will be increased to a maximum of 25%.
Specifically, the tax deduction rate applicable to large companies investing in national strategic technologies such as semiconductors, batteries, vaccines and displays will be raised to 15 per cent from the current 8 per cent. At the same time, regardless of whether the investment area belongs to national strategic technology or not, this year's investment will enjoy a 10% tax deduction compared with the average increase in the past three years. As a result, large enterprises can enjoy a tax deduction of up to 25%.
For national strategic technological R & D investment, the government will continue to apply the current tax deduction rate of 3050% for relevant enterprises, which is the highest in the world. The government will also re-implement the temporary investment tax deduction system after 12 years. Accordingly, large enterprises, backbone enterprises and small and medium-sized enterprises that invest in new industries and original technology can apply a tax deduction rate of 6% to 18%.
The government will formulate relevant legal amendments within this month and strive to be passed by Congress as soon as possible. According to government estimates, if the bill is passed, the government's tax revenue will be reduced by 3.65 trillion won (19.75 billion yuan) next year and 1.37 trillion won a year from 2025 to 2026.
"after the COVID-19 pandemic and chip supply shortages, the international community has re-recognized the economic and security value of having production capacity at home," South Korea's Ministry of Finance said. in the context of the upgrading of global technology and supply chain competition, there is an urgent need to provide comprehensive support for chips and other strategic projects with high economic security value. " The South Korean government plans to propose a detailed revision within this month and submit it to the National Assembly for approval.
CTOnews.com learned that South Korea passed the Korean version of the Chip Act, K-Chips Act, in December 2022. The bill aims to support the development of South Korea's semiconductor industry and will provide incentives for key technologies such as semiconductors and batteries. The Korean version of the Chip Act is officially called (Restriction of Special Taxation Act). The bill increases tax breaks for facilities investment companies such as Samsung Electronics and SK Hynix to 8 per cent from 6 per cent, while tax breaks for medium-sized enterprises and companies classified as small or medium-sized remain unchanged at 8 per cent and 16 per cent, respectively.
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