Tax benefits for fishermen and fishing corporations will no longer have an expiration date, and the support period for tax-exempt fishing fuel will be extended for three years until 2029.
According to the Ministry of Oceans and Fisheries on August 9, the expiration date for tax benefits, including corporate tax exemptions for fishing cooperatives, will be removed. This means that income tax on member dividends and value-added tax exemptions for fishing management and service operations provided by fishing corporations will continue to apply.
The corporate tax exemption limit is set at 30 million won per member for fishing income, while other income is exempt up to 12 million won per member. Annual dividend income is also exempt from income tax up to 12 million won.
Starting next year, fishermen will be able to receive permanent tax benefits when contributing fishing land and other assets to fishing corporations. For contributions made after January 1, 2027, fishermen will not have to pay capital gains tax at the time of contribution. However, the corporation receiving the land will be required to pay the relevant tax as corporate tax when it is later sold.
Additionally, some value-added tax and capital gains tax exemptions will continue. Fishermen will receive value-added tax exemptions on fishing equipment imported directly. The 100% capital gains tax exemption for land and buildings used for fishing for over eight years will also have its expiration date removed.
The government has also extended the support period for tax-exempt fishing fuel, which was set to end this year. The extension will last until December 31, 2029, allowing fishermen to purchase fishing oil without paying value-added tax, individual consumption tax, transportation, energy, and environmental tax, education tax, or automobile tax.
Choi Hyun-ho, head of the Fisheries Policy Office at the Ministry of Oceans and Fisheries, stated, "This tax reform is expected to alleviate the burdens faced by the fishing industry under difficult management conditions due to the climate crisis and support stable management. We will continue to work with relevant departments to support stable management for fishermen."
Meanwhile, the tax reform proposal for 2026 is currently undergoing legislative notice from August 4 to August 20. The final proposal will be submitted to the National Assembly next month and is expected to be finalized during the National Assembly's plenary session in December.
* This article has been translated by AI.
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