R&D spending on key technologies eligible for tax benefits

The government said Monday that it has designated scores of promising technologies for tax benefits to boost corporate spending on research and development as part of efforts to secure new growth resources, according to Yonhap News.

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.