Gwangyang port hinterland is designated as 'Port Free Trade Zone' and tenants may eligible for below tax incentives.
Duty exemption, duty drawback, zero value-added tax, etc.
Duty incentives
- ① Foreign goods FTZ carry-in report : duty exemption
- ② Domestic goods FTZ carry-in report : duty drawback
- ③ Domestic goods carry-out from FTZ to overseas (considered as export) : duty drawback
- ④ Foreign goods FTZ carry-in : payment of duty
Zero 'Liquor tax', 'individual consumption tax', 'transportation tax', and 'value-added tax'
- Only for case② and case③ above
Corporate tax and income tax incentives for foreign investment companies
Incentives for foreign investment companies
- The term "foreign investment company" means a domestic or foreign corporation established by 'foreign investment' by Article 2(1)4 of 'Foreign investment promotion act'.
- The amount of one foreigner's investment(acquisition cost of stock or shares) should be KRW100,000,000 or more.
AND one of the forementioned foreign investor should have 10% or more of 'voting stock' or 'equity investment' of a 'Korean company(including a company to be established)' or a company owned by Korean nation. - A company which wants to apply for the foreign investment company incentive should submit a copy of 'Certificate of Registration of a Foreign-Invested Enterprise'
Exemption of acquisition tax, registration tax and property tax
- Acquisition tax and property tax shall be exempted for both domestic and foreign companies by Jeollanamdo provincial tax exemption regulations.
- 50% of property tax shall be exempted for first 5 years for all tenants.
Type of tax
| Type of tax | Exemption period and exemption rate | Legal grounds | |
|---|---|---|---|
| National taxes | Corporate tax, income tax | 100% for first 3 years 50% for next 2 years |
Restriction of special taxation act (Corporate tax reductions and exemptions for foreign investment) |
| Local taxes | Acquisition tax, Registration tax | 100% | Jeollanamdo provincial tax exemption regulations |
| Property tax | 50% for first 5 years | Gwangyangsi municipal tax exemption regulations | |
