On July 17, the Korean industry and related departments reported that the Korea Ministry of Industry, Trade and Resources and the Ministry of Finance and Planning are planning to hold a “New Growth Power Source Technical Review Committee” at the Korea Industrial Technology Promotion Agency (KITA), and finally approve the decision whether to approve Samsung. Shows the tax exemption for the new OLED's new growth power R&D expenses.
Flexible OLED is the core technology of Samsung's small and medium size display. Samsung has shown that it has submitted a tax exemption for R&D investment of 140 billion won (about 830 million yuan). The relevant government executives also stated that “the tax incentive for new growth and development investment in the application will be approved in the middle of this month”.
In accordance with the Korean Tax Special Restriction Act, tax exemption for 157 technologies in 11 areas of new growth momentum, ordinary companies can exempt 20% of research and development expenses, and SMEs can exempt 30% of R&D expenses. If additional conditions are met, additional Get a 10% exemption. The amount of Samsung's exemption is about 28 billion to 42 billion won (170 million to 250 million yuan).
According to relevant sources in the financial sector, the way to increase competitiveness in new industries such as OLEDs can only be to expand the market through investment in equipment and other means. Tax incentives for equipment investment may help to open up the competitive gap with China.