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Tax Reduction
Foreign Tax Incentives
Tax reduction incentives are provided when foreign investors invest in free economic zones and meet certain requirements as stipulated in the tax incentive systems of the Tax Exemption Restriction Act.
Tax Reduction Foreign Tax Incentives Table - Category, Method of Participation, Remarks, Reduction Limit provided table
Category Method of Participation Remarks Reduction Limit
National Taxes Tariffs Exemption within 5 years Imported Capital Goods
Local taxes Acquisition taxes 100% reduction for 15 years
  • Manufacturing : more than $10 million or more
  • Tourism: more than $10 million or more
  • Logistics: more than $5 million or more
  • Business, information, creative arts services: $10 million or more
  • Medical institutions: $5 million or more
  • R&D: $1 million or more (Master's degree 3 years or more, 10 full-time staff)
  • 13-year reduction: 100% reduction for the first 10 years
  • 50% reduction for the next 3 years
  • Manufacturing, computer programming system integration, data processing, and hosting: $30 million or more
  • Tourism: $20 million or more
  • Logistics: $10 million or more
  • R&D: $2 million or more (Master's degree 3 years or more, 10 full-time staff)
Property taxes
  • 13-year reduction: 100% reduction for the first 10 years
  • 50% reduction for the next 3 years
Acquisition tax reduction requirement for 15 years or more than the Investment amount

All benefits are based on the current legislation

Relevant laws and regulations: Articles 16 and 25 of the Act on the Designation and Operation of Free Economic Zones, Article 121 of the Tax Limitation Act (2) (1) (2) and Trend No. 2 (2), Trend No. 2 (3), Article 12 (3) of the Act

Foreigners (Article 2 of the Foreign Investment Promotion Act, Article 2 of the Enforcement Decree)