Free Economic Zone foreigner investment tax incentives
| Subject | Tax type | Reduction period and rate | Dictating mandate | |
|---|---|---|---|---|
| Development Project Implementer / resident foreigner investment business (Tax Reduction and Exemption Control Act Article 121-2) | National tax | Customs, sales tax, VAT | 100% if meets condition (※Condition: brought in within 5 years of reporting) | Tax Reduction and Exemption Control Act Article 121-3, Enforcement Ordinance Article 116-5 |
| Corporate tax, Income tax | 100% for 3 years 50% for 2 years after that | Tax Reduction and Exemption Control Act Article 121-2, Enforcement Ordinance Article 116-2⑤,⑥ | ||
| Local tax | Acquisition tax (city tax) | 100% for 15 years | Incheon Tax and Reduction Ordinance Article 94 | |
| Asset tax (borough tax) | 100% for 10 years 50% for 3 years after that | Incheon Jung-gu Borough Tax Reduction Ordinance Article 4 | ||
Tax reduction standard: total tax X foreigner investment ratio X tax rate