Hydrogen Tax Incentives under the Restriction of Special Taxation Act

Country / jurisdiction: Korea · Year: 2023 · Status: In force · Level: National · Type: Voluntary

In 2023, hydrogen technologies were designated as "National Strategic Technologies" besides their previous designation as "New Growth-Core Technologies". This status means they can access special R&D (Article 10) and investment tax incentives (Article 12). The R&D tax credit for National Strategic Technologies consists of two components: Base Rate: 40% for SMEs, 30% for non-SMEs (with a 3-year transitional rate of 35% for companies graduating from SME status). This also applies to equipment manufacturing and fuel cells provided they are classified as "new growth and core technologies" For general R&D expenses, companies can choose between an incremental credit (based on the amount exceeding the previous year's spending) and a proportional credit (based on the current year's total spending). However, the incremental option is restricted if the previous year's spending falls below the four-year average.

Official source: https://www.law.go.kr/%EB%B2%95%EB%A0%B9/%EC%A1%B0%EC%84%B8%ED%8A%B9%EB%A1%80%EC%A0%9C%ED%95%9C%EB%B2%95