R&D spending on key technologies eligible for tax benefits

SEOUL, Feb. 8 (Yonhap) -- The government said Monday that it has designated
scores of promising technologies for tax benefits to boost corporate spending on
research and development (R&D) as part of efforts to secure new growth resources.

R&D spending on a total of 91 technologies from 28 sectors will be eligible for
tax benefits in a new government move that will go into effect retrospective to
Jan. 1, said the Ministry of Strategy and Finance.
The spending refers to labor costs and other expenses incurred in purchasing raw
materials and others needed for research activities.
Under the measure, 20 percent of R&D expenses will be deducted from what they
would have to pay in income or corporate taxes. For small and medium-sized
companies, the deduction rate will be 30 percent.
Eligible for the tax benefits are technologies in areas ranging from LED
application, bio medicine medical equipment to nuclear power, space and carbon
reduction sectors, the ministry said.
Also eligible for such benefits are new technologies related to software,
semiconductor and high-tech display based on their future growth potential that
require state support for their development, the ministry said.
The selection was made through consultations among officials from the knowledge
economy ministry, the science ministry, related government agencies along with a
group of private-sector experts, it added.
The move is in line with the government-led efforts to bolster corporate
investment and help accelerate the nation's overall economic recovery.
On Sunday, the government unveiled a raft of measures aimed at bolstering R&D
activities by local drug makers through expanded investment support, tax
incentives and construction of better industrial infrastructure.
kokobj@yna.co.kr
(END)