Govt to grant tax relief to e-businesses

A plan is underway to reduce income taxes for businesses that make money through electronic commerce.

A plan is underway to reduce income taxes for businesses that make money through electronic commerce.

KOREA (JoongAng IIbo) - Officials from the Ministry of Commerce, Industry and Energy and 15 other government ministries finalized their plan on August 30 to promote electronic commerce in Korea.

In addition to the income tax relief, e-businesses will get a 5 percent break on their corporate taxes levied on research and development expenses.

The government plans to implement these changes once they get parliamentary approval later this year. Separately, the government is also contemplating whether to introduce 3 to 5 percent relief on value-added tax for electronic commerce.

In addition, foreign computer specialists will be able to obtain 'goldcards' which will allow them to work in Korea for three years without the hassle of having to renew their visas everytime they leave and re-enter the country.