Despite, the government has been promoting tax credit for investment in related facilities by fostering cutting-edge new industries such as autonomous vehicles, such as futuristic automobiles, bio-health, and robots, it is pointed out that the standards for tax credits in industrial sites are so difficult that not only small- and medium- have. It is the voice of whether it is only the so-called ？hope torture？ in the unrealistic exhibition administration.

According to industry sources on February 18, the Ministry of Strategy and Finance is applying for tax credits for investments in new growth technology commercialization facilities. However, an official of a large company said, "It is good to induce early investment in new industries. However, it is impossible to meet this condition realistically."

The Ministry of Strategy and Finance has received a tax credit for investment in facilities for commercialization of new growth technologies for companies that have completed the settlement of accounts last year according to Article 5 of the Tax Exemptions Act. The law applies only to the end of the year by accounting standards, so it is only March and March next year.

This system is a system which allows SMEs to receive deductions from income and corporate taxes by 10% of their investment and 8% and 7% respectively for medium and large enterprises when R & D investment results in commercialization of new growth technologies. Nine new growth technologies such as futuristic automobile, intelligence information, next generation electronic information device, next generation broadcasting communication, bio ？ health, energy new industry, environment, fusion composite material, robot, The department shall establish a new growth engine and source technology deliberation committee and decide whether to deduct the tax amount after deliberation.

However, few companies seem to be able to receive the benefits. The reason is because of the low realistic application conditions.

Meanwhile, the industry recognizes that the `research and manpower development cost (tax law standard)` should be more than 5% of total sales revenue, and only the research and development (R & D) personnel registered in the Korea Industrial Technology Development Association `There is no way to meet the conditions. According to the tax law, research and manpower development costs include salaries, R & D raw material costs, and contracted development costs. It is difficult to meet this condition even for large corporations, assuming that only the R & D organization`s budget for the project is included. It is virtually impossible for small and medium-sized companies to meet the requirement of recognizing only R & D personnel.

The industry is advising that at least R & D revenues can be eased to general corporate accounting standards, and that if the scope of R & D investment is extended to administrative and research assistants in the institute, there will be more substantial benefits. If the bill is not amended before the end of the year, no one will be able to benefit next year.

An industry specialist said, "In order to reduce the investment risk on the new high-tech industries and actively and boldly induce corporate investment, it is necessary to support the government`s meticulous policies." "We must relax conditions to get tax credits in practice." He stated.

"I do not think the condition itself is impossible, but if there is a problem, I will review the plan to supplement it," a representative from the accounting department said.

By Park Jung Il comja77@


[ copyright ⓒ The Digitaltimes ]