Invest KOREA

(CHEONGJU=NEWSIS) Companies will be able to benefit from a tax deduction for two additional years when they purchase industrial land or newly establish or expand plants.

"The partial amendment of the Local Tax Incentives Limitation Law, which was proposed last April, has been passed in the plenary session under the Security and Public Administration Committee. Therefore, tax benefits on industrial complexes will be extended to 2016," said Jeong Woo-taek, Chairman of the Supreme Council of the Saenuri Party, on January 4.

Considering that industrial complexes drive economies of scale and expand the finances of local governments, the government has enacted the Local Tax Incentives Limitation Law to temporarily provide tax deductions, including acquisition, property and all kinds of local taxes, for companies that purchase industrial land or build plants.

As the benefits expired at the end of 2014, relevant industries called for an extension of time.

"The law helped resolve issues regarding the unsold industrial complexes around the country and boost stagnant regional economies. However, the law was revised from a 100 percent exemption of acquisition tax and 50 percent exemption of property tax to a 35 percent exemption of both taxes," said Jeong.

jyy@newsis.com