The Ministry of Strategy and Finance said, “We would like to inform you that sufficient tax support is provided for electric vehicles.”
[기사 내용]
ㅇ In the United States, through the Inflation Reduction Act, when an electric vehicle factory is built, a tax credit of up to 30% is given, but in Korea, it is reported that it is only 1% (5% for medium-sized enterprises, 10% for small and medium-sized enterprises).
[기재부 입장]
□ The basic tax credit rate for EV manufacturing facilities in the US is 6%.
ㅇ Additional deduction rate is applied when the requirements such as payment of wages above a certain level to the construction workers of the relevant facility are applied, and tax credits of up to 30% are granted.
□ Tax support for EV-related investments in Korea is at a sufficient level.
ㅇ Currently, secondary batteries (batteries), a key part of electric vehicles, are designated as national strategic technologies, and tax support is provided at a higher level than general investments.
– In the case of facility investment, the tax credit is currently at the level of 8% (8% for medium-sized enterprises, 16% for small and medium-sized enterprises), and the deduction rate is raised to 15% (15% for medium-sized enterprises, 25% for small and medium-sized enterprises), and the tax credit rate for the increase in investment is 4→10 The amendment to the 「Special Law on Special Law」, which includes a temporary increase in 2023 to %, is scheduled to be discussed at the extraordinary National Assembly in February.
– 30% to 50% tax credit for R&D expenses
ㅇ In addition, core technologies for electric vehicles, such as electric vehicle driving system efficiency technology and ultra-high-speed and high-efficiency wireless charging technology, are being designated as new growth and source technologies.
– In the case of facility investment, the tax credit is currently at the level of 3% (6% for medium-sized enterprises, 12% for small and medium-sized enterprises), and it is planned to temporarily expand to 6% (10% for medium-sized enterprises, 18% for small and medium-sized enterprises) in 2023*
* The tax credit rate for the increase in investment is also temporarily raised in 2023 from 3% to 10%
– Receives 20%~40% tax credit for R&D expenses
□ Korea not only provides tax support for investment and R&D, but also provides tax support for corporate employment.
ㅇ Through the integrated employment tax credit introduced this year, the government is providing a wider range of employment-related tax support than the United States, including support for tax credits of KRW 4 million to KRW 15.5 million per person for each increase in employment, regardless of industry and wage requirements.
□ The government will continue to provide support for investments in cutting-edge technologies such as electric vehicles.
Inquiries: Ministry of Strategy and Finance, Taxation Division, Special Tax System Division (044-215-4130)
