People who are dedicated to the investigation of Distributed Ledger Technology may ask the government for credits and tax reductions to sustain their research

As a measure of support for the development of new technologies, the South Korea’s government announced it will include in the amendment of the tax laws the reduction of some taxes to companies dedicated to the development of blockchain technology. This is in order to promote their growth and sustenance. This was announced through an official press report published on 8th January.

The Ministry of Strategy and Finance reported they will include changes that had been proposed to last-year-tax-law decree. Probably, it will come into force next February of this year. Among the proposed changes, this idea also includes benefits to other types of companies dedicated to robotics, to reduce the environmental impact and the development of Artificial Intelligence.

This tax reform will benefit companies dedicated to innovate in the field of blockchain, so they can significantly reduce taxes payments causing, in this way, a higher profit rate and favoring a better private and public investment in the sector which is raising different spaces around the world.

About the payment of these new taxes, it is known that they will vary according to the company’s size, as well as their level of investment in the research area. With this, small businesses can reduce their taxes by 30 to 40% less. Medium and large companies between 20% and 30% less expenditure on taxes for their development and research fund.

It is known that at present, taxes turned out to be high and with few benefits for the innovation of these technological companies. Since large companies had a tax deduction of between 0% to 2%; medians between 8% to 15%, and small businesses up to 25% less compared with law payment.

Big Government Efforts

In June 2018, the government of South Korea announced a large investment fund that will seek to raise, by 2022, more than 200 million dollars. This money will be used for the development and research about blockchain technology, cryptocurrencies, and their different aspects.

This great collection will be granted to more than 100 companies and 10,000 experts in the area, who seek to promote sectors such as telecommunications for the effective exchange of information between countries and improve the system of public voting, among others.

These policies have been gestating due to the growth of the cryptoactive sector in the Asian country. Recently the cryptocurrency bag has passed the tests of government security audits. Just as the government itself, in December last year, through its various ministries, have launched various research projects on blockchain technology for implementation in different areas such as maritime and port.

The main idea is to create, through the Ministry of Science and Technology, an intensive program of training, growth, innovation, and development for experts in the area of ​​blockchain technology and cryptocurrencies, in order to develop new projects.

By María Rodríguez


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