Tax Reduction System

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Tax Reduction System

Tax Reduction System

Tax reduction system: Classification, An entity eligible for a reduction, Detailed reduction, Sunset deadline, Applicable statutes
Classification	An entity eligible for a reduction	Detailed reduction	Sunset deadline	Applicable statutes
Tenant companies of an industrial complex	Construction and extension of industrial buildings, etc. (Including the construction of factory buildings to be leased to SMEs)	50% of the acquisition tax(additional 25% reduction under the city’s Regulations)	Late 2022	Article 78 (4) and (8) of the Restriction of the Special Local Taxation Act
		Reduction in the property tax by 75% for 5 years
	Substantial repairs for industrial structures, etc.	25% of the acquisition tax (additional 15% reduction under the city’s Regulations)	Late 2022
Tenant companies of the Gwangju Special Research and Development Zone	Business properties of high-tech companies and research institutes	Exemption of the acquisition tax (85% reduction if the exempted tax exceeds 2 million won)	Late 2020	Article 9 of the Regulations on the Municipal Tax Reduction of Gwangju Metropolitan Government, Regulations on the District Tax Reduction
		Exemption of the property tax for 7 years, and then a 50% reduction for 3 years
Foreign investor	Business properties	Reduction of the acquisition and the property tax for 15 years from the business commencement date Amount of exemption: Calculated tax amount X Proportion of the foreign investmen		Article 121-2 of the Restriction of the Special Taxation Act, Article 4 of the Regulations on the Municipal Tax Reduction of Gwangju Metropolitan Government, Regulations on the District Tax Reduction
Tenant companies in the Investment Promotion Districts	Real property acquired within 15 years from the date of business commencement	Exemption of the acquisition tax (85% reduction if the exempted tax exceeds 2 million won)	Late 2021	Article 10 of the Regulations on the Municipal Tax Reduction of Gwangju Metropolitan Government
Excellent companies for job creation	Real properties for business use acquired during the certified period	Exemption of the acquisition tax (85% reduction if the exempted tax exceeds 2 million won)	Late 2021	Article 8 of the Regulations on the Municipal Tax Reduction of Gwangju Metropolitan Government
A corporation moving to the jurisdiction of a local government	Real properties for business use acquired while relocating headquarters or main offices to Gwangju from an overpopulation control area	Exemption of the acquisition tax (85% reduction if the exempted tax exceeds 2 million won) Exemption of corporate registration, real estate registration and license fees arising from the relocation	Late 2021	Article 79 of the Restriction of Special Local Taxation Act
		Exemption of the property tax for 5 years, and then a 50% reduction for 3 years		Article 79 of the Restriction of Special Local Taxation Act
A factory moving to the jurisdiction of a local government	Acquired real property for business use where the company is relocating its factory facilities from a large city to Gwangju	Exemption of the acquisition tax (85% reduction if the exempted tax exceeds 2 million won) Exemption of the property tax for 5 years, and then a 50% reduction for 3 years	Late 2021	Article 80 of the Restriction of the Special Local Taxation Act
Company-affiliated research institute	Real property for company-affiliated research institutes	SMEs: 60% reduction in the acquisition tax and a 50% reduction in the property tax Large enterprises and enterprises of middle standing: 35% reduction in the acquisition tax and 25% reduction in the property tax		Article 46 of the Restriction of the Special Local Taxation Act