Small and medium-sized enterprises (SMEs) will receive more tax deductions if they attract foreign capital or advanced technology.
The National Tax Service (NTS) decided yesterday to reduce the tax burden on domestic firms that launch joint ventures with foreign companies.
“We have offered tax cuts only for the portion of local investment so far, an official from the NTS’ corporate tax bureau,” Cho Se-hee, said. “From now on, however, the portion of foreign investment will also enjoy the same benefit.”
He added that the incentive is aimed at shoring up foreign investment in the SME sector, which is facing difficulties.
Under the new tax program, a company will be given additional tax deductions if half of its investment comes from abroad.
Taxes will be also deducted for the introduction of cutting-edge technology from overseas.
