The government of South Korea has taken a vital step to become a global blockchain giant soon as the nation's Ministry of Strategy and Finance announced new amendments to tax laws this weekend.
According to reports from The News Asia, South Korea's amended tax law stipulates that any company innovating with specific technologies such as blockchain will be entitled to some tax deductions.
The deductions will be from the company's research and development (R&D) expense and will vary in value depending on the size of the business.
For instance, small and medium-sized enterprises (SMEs) will enjoy the highest tax benefits since the new law allows them to between 30-40% deductions. For large companies, the amended tax law in South Korea promises a 20-30% reduction from their R&D expense.
Notably, the new tax reduction percentage for blockchain innovators in the country represents a significant improvement on the former. Before now, small companies were only entitled to 25% deductions while medium and large corporations got 15% and 2% respectively.
Other innovators that will enjoy the tax cut in South Korea include those working in the fine dust reduction technologies space and wearable robots.
Governments Encouraging Blockchain Growth
Although several world regions have adopted a different approach to cryptocurrencies, there seems to be unison when it comes to the underlying technology, blockchain.
Records show that different countries are encouraging the growth of blockchain innovation and seeking practical ways to utilize them in the improvement of private and public sectors.
In November, Malta and seven other EU-member nations signed a declaration to incorporate blockchain technology within their separate economies. France has also reportedly proposed a $569 million for deployment of the technology while more recently, the Italian Government appointed 30 experts to form part of its blockchain advisory team.
There have also been similar efforts across different continents like in Asia where China just released regulations for blockchain startups. Right now it is only a matter of time until blockchain products and services begin to storm global markets.
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