Table of Contents
- Overview of Venture Tax Benefits
- Income Tax Reduction
- Acquisition Tax and Property Tax Exemptions
- Capital Gains Tax Benefit for Investors
- Stock Option Tax Deferral
- How to Qualify
- FAQ
1. Overview of Venture Tax Benefits
Companies certified as venture enterprises by KOSME receive significant tax advantages under the Venture Enterprise Promotion Act. These incentives encourage R&D-based growth.
2. Income Tax Reduction
- 50% reduction in corporate income tax for 5 years from first profit date
- Applies to SMEs with KOSME venture certification
- Available for domestic and foreign-invested venture companies
3. Acquisition Tax and Property Tax Exemptions
- 100% exemption on acquisition tax for business-use real estate
- 50% reduction in property tax for 5 years
- Exemptions apply only while venture certification is maintained
4. Capital Gains Tax Benefit for Investors
- Individuals investing in certified venture companies: 100% income deduction up to KRW 30 million/year
- Investments via venture funds or angel associations qualify for additional tax credit
5. Stock Option Tax Deferral
- Employees can defer income tax until time of stock sale (not at grant or exercise)
- Significant cash-flow benefit for startup employees
6. How to Qualify
- Obtain venture certification from KOSME
- Three main routes: technology evaluation, investment-based, research lab-based
- Certification renewed every 2 years
FAQ
Q. Can I claim venture tax benefits retroactively?
A. Tax benefits begin from the date of certification. You cannot retroactively claim benefits for periods before certification.
Q. What happens to tax benefits if certification lapses?
A. Benefits cease immediately upon certification lapse. Previously claimed exemptions are generally not clawed back if certification was legitimately held.
Get Your Venture Certification and Tax Benefits
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