Blockchain Industry Innovators See South Korean Government Rewards with a 2018 Tax Break Law
Developers and other innovators in the blockchain industry are the reason that it has continued to expand to multiple use cases.
While the reward of being acknowledged is a benefit in itself, TheNextWeb reports that the South Korean government is doing much more than that. To stir up more innovation, the Ministry of Strategy and Finance is going to be providing the innovators with a tax break.
The ministry has already announced the inclusion of blockchain technologies to the amendments that they are making to 2018 tax law. The law involves providing benefits to companies that innovate for various technologies. Essentially, this makes it possible for developers to claim some of the expense of their research and development spending.
The deductions that businesses can take off will mostly depend on the size of the business, with small businesses actually having the largest deduction at 30% to 40%. Medium and large corporations will have a 20% to 30% tax break on their R&D expenses.
These numbers are drastically greater that the current opportunities that companies have to get a tax great. Presently, small businesses max out at 25% deductions, while medium companies can deduct 15% and large companies only have a 2% break.
Tax cuts for this year are not just singling out blockchain technologies. Fine dust reduction technology is of special interest to the ministry, which means that these companies can apply for tax cuts. Wearable robots have the option to apply as well. With those factors in mind, TheNextWeb jests,
“Who knows, maybe 2019 will be the year of the wearable dust filtering blockchain robot?”
South Korea is becoming increasingly proactive on the innovation of blockchain technology, while developing it further for additional use cases, which is shown with this tax break.
Last year, their Ministry of Science and Technology took a similarly progressive stance to promote blockchain by creating a program that educated the future developers of the industry.