South Korean tax reform proposal includes enhanced R&D incentives

A tax reform bill introduced by the South Korean government on July 26 includes research and development (R&D) measures aimed at promoting certain industries and technologies.

For semiconductors, batteries, and vaccines, the reform would increase the tax credit by 10 percentage points for associated R&D investments. This would increase the maximum credit from 40% to 50%, as announced with respect to semiconductors earlier this year.

In addition, the reform would expand the types of R&D investment that are eligible for the 40% R&D tax credit to include carbon emission reduction technologies and phase 3 clinical trials for biosimilars. The credits would be available through 2024. 

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