R&D Tax Credit: Who Qualifies and What You Get
Learn how companies in South Korea can receive tax deductions for research and development expenses, including blockchain technology.
The R&D Tax Credit is a financial incentive designed to support companies that invest in research and development activities.
Who it's for
This scheme is intended for companies that invest in research and development. This includes specialized technical work such as blockchain development. If your business is engaged in creating new technologies or advancing existing technical processes, you may be eligible to claim these credits.
What you get
If you qualify, you can receive a tax deduction of up to 25% of your research and development expenses. This deduction is intended to help offset the high costs associated with technical innovation and experimental development.
What it costs you
To claim this benefit, you must provide rigorous documentation. You will need to keep detailed records of all R&D hours worked by your team and the specific expenses incurred during the process. This requires a high level of administrative organization to ensure every hour and every cost is accounted for accurately.
The catch to know
It is not enough to simply be working on new technology or software. You must be able to prove the technical novelty of your development work. This means you must demonstrate that the work involves solving a technical problem in a way that is not already common practice in your field.
How to apply
- Maintain detailed and organized logs of all R&D-related hours and costs.
- Ensure your development work meets the specific criteria for technical novelty.
- Prepare all necessary documentation regarding your research expenses.
- Submit your completed documentation to the National Tax Service.