Tax Incentives

 

Various tax benefits are provided by the government for the IFEZ [ Possible to simultaneously apply for the various incentives of the IFEZ ]

“Foreign Investment Corporation”

Foreign Investment Corporation
1. Customs Reduction Benefits2. National Tax Reduction Benefits : Corporation tax/income tax3. Local Tax Reduction Benefits
100% reduction for 5 years50% reduction for 2 years following 100% reduction for the first 3 years100% reduction for 10 to 15 years

Import of capital goods

  • Tour/Sightseeing Business: Reduction by 10 billion KRW or more
  • Logistics and Distribution Business: Reduction by 0.5 billion KRW or more
  • Real Estate Development: Reduction by 30 billion KRW or more OR by 500 billion KRW or more if the foreigner investment rate is 50% or more of the total project expenses
  • Acquisition Tax: 100% reduction for 15 years
  • Property Tax: 50% reduction for 3 years following 100% reduction for the first 10 years

Estate Investment Immigration System

A system for conferring residence qualification (F-2) on those engaged in free economic zone activities and permanent residence qualification (F-5) after 5 years on persons investing the standard or greater amount in the leisure facilities in the region has been announced by the Minister of Justice

  • Investment Region
    • The entire area of Wunbuk-dong and Wunseo-dong, Jung-gu, Incheon (Part of the Yeongjong district)
    • The entire area of Yeonsu-gu and Seo-gu, Incheon (The Songdo district and the Cheongna International City) [Including the International Passenger Terminal site]
  • Investment Target
    • One facility each of the real estate projects in ‘The Wunbuk Leisure Complex’, ‘The stage 1-② (the Complex Resort District) of the Yeongjong Sky City’, Songdo district [Including the International Passenger Terminal project site], and the Cheongna International City will be designated and approved by the Minister of Trade, Industry and Energy according to Articles 4 and 9 of the Special Act on Designation and Management of Free Economic Zones Investment targets of ① leisure condominiums, ② hotels, ③ houses constructed in linkage with fitness facilities, ④ country houses, and ⑤ tourism pensions
  • Investment Standards
    • An investment amount of 0.7 billion KRW or more / In the case of selling condominiums in lots, the regulations on selling-in-lots will be relaxed from one room for five persons to one room for one person.
  • Effective Period
    • May 1, 2013 to April 30, 2018