A bill to raise the tax credit rate for semiconductor research and development and facility investment by 5 percentage points passed the National Assembly's planning and finance committee on the 18th. The expiration date for the tax credit was also extended to the end of 2031. As the ruling and opposition parties pursue various tax cuts in the early presidential election phase, the implementation of the so-called 'K-Chips Act,' which failed last year, has become imminent.
The committee held a full meeting that day and passed the revision of the Tax Special Cases Restriction Act. It is expected to pass through the National Assembly's Legislative and Judiciary Committee and the plenary session within this month.
Under current law, the semiconductor industry is included in 'national strategic technologies' along with secondary batteries, vaccines, displays, and biopharmaceuticals, and receives investment tax credits. The credit rate is 15% for large and medium-sized corporations and 25% for small and medium-sized enterprises. If the revised bill is implemented, the tax credit rates for semiconductor research and development and facility investment will rise to 20% and 30%, respectively.
The deduction period has also been extended by seven years to the end of 2031. The items covered include labor costs, material costs, facility rental fees, and commissioned research and human resource development costs incurred by corporate research institutes and dedicated research and development departments.
The application deadline for tax credits for national strategic technologies and new growth and source technologies, excluding semiconductors, has also been extended by five years. Accordingly, large and medium-sized corporations will benefit from a tax credit rate of 15% and small and medium-sized enterprises from 25% until the end of 2029.
◇'Joint ownership by couples' homeowners also eligible for comprehensive real estate tax deferment
A revision that includes 'joint ownership by couples' homeowners in the eligibility for applying for the deferment of the comprehensive real estate tax has also been passed. Lim Kwang-hyun, a member of the Democratic Party, proposed the bill. However, the income standard for the deferment, based on total salary, will remain at 70 million won, the same as before.
Under current law, the deferment system applies to homeowners who are 60 years of age or older, or those who have owned their homes for more than five years, for comprehensive real estate tax amounts exceeding 1 million won. The revision aims to widen the eligibility in light of the prolonged economic downturn and increasing burdens of the comprehensive real estate tax.
◇Mandatory submission of 'quarterly transaction statements' for shared accommodation businesses
The committee has also passed a revision of the value-added taxes law that mandates operators of shared accommodation platforms like Airbnb to submit 'quarterly transaction statement data.' Members Park Seong-hoon from the People Power Party and Yoon Ho-jung from the Democratic Party proposed the bill.
The revision pertains to shared accommodation platform operators, mandating non-residents and foreign corporations acting as agents for sales or payments to submit transaction details by the end of each quarter (by the 15th of the following month) to the National Tax Service and other authorities.
◇Expansion of foreign exchange brokerage retail operators
A bill to introduce 'customer-oriented foreign exchange brokerage' has also passed the committee. This system allows foreign exchange users, such as corporations, to simultaneously receive exchange rate quotes from multiple institutions through specialized electronic brokerage firms and transact at more favorable prices. The bill was proposed by Park Dae-chul from the People Power Party.
Once the law is enacted, brokerage can occur in foreign exchange transactions between corporate and individual clients and financial institutions, thereby allowing new retail operators in the foreign exchange brokerage sector.