NTS will provide tax support for bio companies

to address the tax-related burden felt by bio companies

Chang-ki Kim holds meeting with bio companies at the Songdo Bio Cluster

Listened to the companies' tax difficulties… “Will simplify tax deduction documents, etc.”

NTS Commissioner

Biopharmaceutical companies are set to receive tax support from the National Tax Service.

 

The National Tax Service (Commissioner Chang-ki Kim) held a roundtable meeting at the Incheon Free Economic Zone located in Songdo, Incheon to listen to the difficulties experienced by those in the field with leaders of small-to-mid-sized enterprises that are residing in the Songdo Bio Cluster.

 

The roundtable meeting was prepared to listen to the tax-related difficulties experienced by SMEs in high-tech industries that represent Incheon as a region and devise tax support measures for their resolution.

 

At the meeting, Commissioner Chang-ki Kim said, “We have been providing liquidity support by extending the payment deadline and providing early refunds for SMEs that are suffering from high prices, high interest rates, and high oil prices.

 

We also have a tax support promotion task force in place based around tax offices nationwide to continuously monitor the damages in each region and provide customized tax support measures that fit their needs.” Commissioner Kim emphasized, “We are working to foster an environment that encourages corporate growth, by expanding exempting regular tax audits for SMEs in their early stages or those that created jobs to support economic revitalization, etc.”

Commissioner Kim also added, “This year, we will simplify the document requirements to enable easier use of the prior review system for tax deduction provided to research and human resource development expenses while providing consulting on tax deduction and reductions that SMEs have difficulty with, as well as the family business succession system.

 

Commissioner Kim added, “This year, we will simplify the document requirements to enable easier use of the prior review system for the tax deduction of research and human resource development expenses while providing consulting on tax deduction and reductions that SMEs have difficulty with as well as the family business succession system." The SME leaders that attended the meeting proposed ▲improving the tax credit system for integrated investments ▲reducint the tax audit burden ▲ expanding tax reduction for consigned R&D in the bioindustry ▲expanding tax deductions for companies that increase employment, etc.

 

To such requests, Commissioner Kim said, “We will actively discuss the suggestions that were made with relevant departments so that the voices of the field can be reflected in the tax administration process.” Meanwhile, the Songdo Bio Cluster is located in Zones 4,5 (Bio cluster, high tech industry cluster) where companies and institutions in the bio-industry including universities, research institutions, hospitals, foreign companies, etc.

 

are located.

 

By 2030, about 700 companies and research institutes are expected to move in to the cluster.

 

Major residents include Samsung Biologics, Celltrion, DM Bio, and Janssen Vaccine.