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Tax incentives

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
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