[ad_1]
From February, the South Korean government is planning to give blockchain companies a tax break to encourage and promote innovation in decentralized technologies.
According to The NewsAsia, the Korean Ministry of Strategy and Finance has announced that it will be added to its 2018 tax law, which sees companies receive benefits for innovating with certain technologies. The bill will come into force in February.
This implies businesses developing blockchain technologies will be entitled to deduct a part of their research and development (expenses) from their tax bill.
Besides blockchain, 15 other areas including wearable robots and fine dust reduction technology will be added to the existing R & D tax amendments for new industries.
The amount of tax deduction will depend on the company's size. Small businesses will be able to get the highest percentage, between 30 and 40 percent. 20 to 30 percent of R & D spending.
This is a significant increase in the comparison with the current tax breaks offered to businesses dealing with innovative technologies. 25% of R & D spending, medium businesses up to 15%, and large corporations up to two percent.
Government support
The news further demonstrates the South Korean government's proactive approach to blockchain innovation and development. In 2018, the South Korean Ministry of Science and Technology began a specialized program to educate the next generation of blockchain experts.
Besides the educational program, the government pledged its support for the domestic blockchain companies to promote the booming industry in the country further. "Blockchain Technology Development Strategy" and committed $ 9 million to the program. Applications include safe school food, used car history management, and social sharing.
South Korea unveiled a blockchain pilot for tracking containers at the Port of Busan. The focus is mainly on moving containers from one ship to another.
A month ago the government unveiled plans for a blockchain-based virtual power plant. Essentially that's an electricity grid where power comes from multiple sources.
And last June the government announced plans for a blockchain beef traceability project.
