Types of tax support systems 
Types of tax support systems
- There are various tax support systems related to foreign investment that contribute to the development of the national economy by promoting the transfer of high technologies and attracting foreign capital. The reduction regulations that foreign-invested companies can directly benefit from can be classified as follows (Foreign Corporation and Foreign-Invested Company Tax Information, p.161).
1. Reduction or exemption of corporate tax and income tax on income generated from projects subject to reduction or exemption
2. Reduction or exemption of acquisition tax and property tax on property acquired and held
3. Exemption from customs duties, special consumption tax, and value-added tax for the introduction of capital goods
√ The corporate (income) tax reduction on the income of a foreign-invested company applies only to foreign-invested companies that applied for tax reduction by December 31, 2018, and will be excluded from the application for tax reduction after January 1, 2019.
Foreign investment subject to tax reduction
Foreign investment subject to tax reduction
- Foreign investment exempted from corporate tax, income tax, acquisition tax, and property tax refers to a foreign investment that meets certain standards for any of the following business (Article 120-2 (1) of of the Act On Restriction Of Special Taxation and Foreign Corporation and Foreign-Invested Company Tax Information, p163-170).
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Support type
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Relevant statutory provisions
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A business belonging to the new growth engine industry, which involves new growth engines, original technology, etc.
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Subparagraph 1 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company moving into a foreign investment zone
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Subparagraph 2 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company moving into a free economic zone
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Subparagraph 2-2 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company that is the operator of a free economic zone development project
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Subparagraph 2-3 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company, which is a development project operator of the Jeju Investment Promotion Zone
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Subparagraph 2-4 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company moving into a foreign investment zone
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Subparagraph 2-5 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company occupying the enterprise cities development zone
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Subparagraph 2-6 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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An enterprise cities development business operated by a foreign-invested company designated as an operator of an enterprise cities development project
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Subparagraph 2-7 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business operated by a foreign-invested company moving into the Saemangeum Project Area
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Subparagraph 2-8 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business run by a foreign-invested company which is a Saemangeum project operator
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Subparagraph 2-9 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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A business in which tax reduction or exemption is inevitable to attract foreign investment and business of located enterprises (only manufacturing business) under Article Subparagraph 2 of 10 (1) of the Act on the Designation and Management of Free Trade Zones or business of located enterprise under Subparagraph 5 of Article 10 (1)
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Subparagraph 3 of Article 121-2 (1) of the Act On Restriction Of Special Taxation
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