The Government of South Korea has added blockchain to the list of sectors which are eligible for the country’s research and development (R&D) tax credit.
The Ministry of Strategy and Finance announced the proposed blockchain tax credit as part of an enforcement decree of the 2018 tax law, which comes into effect next month.
The move will result in 30-40% of R&D expenses for small blockchain enterprises and 20-30% of R&D expenses for large and medium-sized blockchain enterprises, becoming tax deductible.
In September 2018, the Government of South Korea publicly pledged support for blockchain companies.
Following a meeting with blockchain startups, the Second Vice Minister of Science and ICT, Wonki Min, hinted tax incentives for South Korea blockchain firms would be implemented.
“Considering the fact that there is no significant blockchain technology gap between South Korea and the other countries, it is a good opportunity for South Korea to lead the industry,” said Mr Min.
“The government will actively back domestic companies to help them lead the global blockchain market.”