The local news report says that the Ministry of Strategy and Finance at Korea reveals blockchain to add within its 2018 tax law amendments. However, this means that firms will receive advantages to innovate the emerging new technologies. The bill will come into force in February.
This is applicable to businesses currently establishing blockchain technologies. Moreover, they will have to remove a part of their R&D levy from their tax bill. Apart from blockchain, there are other 15 sectors such as fine dust reduction and wearable robots technology which will get added to the ongoing R&D tax amendments for recent industries.
Meanwhile, the tax deduction amount will surely depend on the size of its company. Relatively, a small organization will receive the highest percentage within 30 – 40 percent. Whereas medium to large firms will receive a tax deduction within 20 – 30 percent approx. R&D expenses.
Moreover, this shows significant growth in comparison with the present tax breaks for companies dealing with innovative technologies. According to the current laws, small firms will only get a deduction of up to 25%, medium firms up to 15%, and large organizations up to 2% from R&D spending.
The South Korean Government Support
Further, the news says that they analyze a proactive approach by the South Korean government for blockchain development and innovation. Back in 2018, the Ministry of Science and Technology at South Korea initiates a specializing program for providing an education to the next generation regarding blockchain experts.
Apart from this educational program, the government promises to support domestic blockchain firms to promote this booming blockchain industry. Moreover, it is also backing up 6 pilot projects along with “Blockchain Technology Development Strategy” at Korea.
It also commits to $9 million worth of the program. Some of the applications are social sharing, secure school food, usable car history management, etc. Back in December, South Korea reveals a blockchain pilot specifically to track the containers at the Busan Port.
Recently, the government also announces their plans regarding a blockchain virtual power plant. Specifically, that is an electricity grid which drives in power from multiple sources.
Also, back in June, the government unveils plans relating a blockchain beef traceability project too. So, the South Korean government is planning their moves carefully to step ahead with this innovative space of technologies.