What is the application procedure for tax reductions or exemptions for high-technology businesses and industrial support services
The documents required when applying for a tax reduction or exemption are as follows:
• Three copies of the Application Form for Tax Reduction or Exemption and documentary evidence should be submitted. Also, the Application Form for High Technology, which is attached at the request of the supervisory department, must be filled in and submitted.
Where the Application Form for Tax Reduction or Exemption should be submitted and how long it will take for a final decision1)
•The Application Form for Tax Reduction or Exemption should be submitted to the Minister of Strategy and Finance. The application deadline is the end of the taxation year of the business commencement day of the foreign-invested company.
•It is the Ministry of Strategy and Finance shall review with the relevant minister whether the application is eligible for a tax reduction or exemption, and determine and notify the applicant of the eligibility of reduction or exemption within 20 days of the application.
Deadline for Application for Tax Reduction or Exemption2)
•It is the end of the taxation year of the business commencement day of the foreign-invested company. For example, both the incorporation established on January 1, 2010 and another incorporation established on December 25, 2010 should apply for tax reductions or exemptions by December 31, 2010.
Applications for reductions or exemptions accepted after the application deadline3)
•If applications for reduction or exemption are accepted after the application deadline has passed, reductions or exemptions will be granted for the taxation year of the reduction or exemption application date. However, taxes paid before the acceptance of the tax reduction or exemption application shall not be refunded.
Source : Invest Korea
