|Title||Tax reduction in Jeju investment promotion zones to be extended by 3 years|
Ministry of Strategy and Finance makes an advanced announcement on a revision to the Act on Restriction of Special Tax Exemptions
(Jeju = Yonhap News) Hong Jeong-pyo = Tax reduction for investors in the Jeju investment promotion zones will be extended for three years.
The Jeju Provincial Government said on September 6 that the Ministry of Strategy and Finance drafted and made and advanced announcement on a bill to revise the Act on Restriction of Special Tax Exemptions, which calls for extension of tax reduction benefits in the Jeju investment promotion zones by three years through the end of 2015.
The duration of tax reduction on goods imported for research and development by companies housed in the Jeju High-Tech Science Technology Complex has also been extended, as is the case for the Juju investment promotion zones.
Taxation policies and tax reduction system for these districts were introduced in 2002 and have been renewed on a temporary basis every one to two years.
The Jeju provincial government expects that if the revision is legislated into law without modification, investment in the province will rise because companies in Korea and abroad can invest in Jeju in a more stable way.
The Jeju Provincial Government designates development projects entailing more than $5 million each as investment promotion zones, and gives investors exemption from tariffs, acquisition and registration taxes and development fees, a 10-year exemption of property tax, three-year exemption of corporate tax and income tax, followed by 50-percent reduction of these two taxes for two years thereafter, and a reduction of rent for national and public property.
Projects that have been designated as investment promotion districts are at 27 sites, including the Yeryae resort residential complex developed by Berjaya Jeju Resort, Shinhwa History Park and Jeju Healthcare Town by the Jeju Free International City Development Center, Halla Healing Park by Hwihyun Development Company[k2], and Chefline World by Woosam Development[k3].
Businesses that are eligible for the designation of investment promotion zones include 24 sectors, including hotels, marine tourist hotels, general and special resort businesses, tour ferry businesses, general entertainment facilities, the culture industry, international schools, research and development projects in healthcare and medical technology, and alternative energy businesses.
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