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The South Korean government is giving the blockchain industry a tax reduction in an attempt to foster innovation in decentralized technologies.
The Ministry of Strategy and Finance has announced that the blockchain will be included in the amendments to the tax law of 2018, which sees companies receiving benefits for innovation with certain technologies, reports The News Asia.
This means that companies that develop blockchain technologies will be able to deduct part of the tax from their research and development (R & D) expenses.
The amount of tax that an enterprise will be able to deduct depends on its size. Small businesses will be able to claim the maximum 30 to 40 percent. Medium to large businesses will be able to deduct 20 to 30 percent of research and development costs.
This marks a dramatic increase compared to the current tax breaks offered to companies. According to today's guidelines, small businesses can deduct up to 25%, vehicles up to 15% and large companies up to two percent.
Together with the blockchain pioneers, companies that are innovating in fine dust reduction technologies and wearable robots will also be able to demand tax cuts.
Who knows, maybe 2019 will be the year of the blockchain robot that filters dust to wear?
This news further highlights the pro-active position of the South Korean government on blockchain innovation and development. Last year, the South Korean Ministry of Science and Technology launched a program to educate the next generation of blockchain experts.
Published 10 January 2019 at 14:26 UTC
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