The Ministry of SMEs and Startups and the National Tax Service announced on October 11 that they will provide technology development and commercialization support, along with tax assistance, to 2,559 artificial intelligence (AI) small and medium-sized enterprises (SMEs) and startups.
This initiative follows a memorandum of understanding signed by the two agencies in December of last year aimed at supporting the growth of AI SMEs and startups.
The Ministry will identify promising AI companies and support them in research and development (R&D), commercialization, financing, entrepreneurship, and international expansion, while the National Tax Service will offer tax assistance to these companies.
This year, the Ministry shared a list of companies participating in 20 projects, including commercialization of AI applications, preferential guarantees for AI transformation, AI-based smart factories, deep tech startup support, and global acceleration, with the National Tax Service.
In return, the National Tax Service will provide these companies with measures such as minimizing tax audits, prioritizing pre-review of research and development tax credits and corporate tax deductions, extending payment deadlines, early refunds for liquidity support, and dedicated tax consultations for AI companies.
AI startups within five years of establishment will be exempt from regular tax audits, while other AI SMEs can defer regular tax audits for two years from the scheduled audit start date upon taxpayer request. Additionally, companies with no clear evidence of tax evasion will be excluded from verification of reported information. The tax support period runs from October 1 of this year until February 28, 2028.
Lee So-young, Minister of SMEs and Startups, stated, “The competitiveness of the AI industry depends on how quickly startups with innovative technologies and ideas can grow in a supportive environment. Through this collaboration, we aim to create a foundation that allows promising AI SMEs and startups to focus more on technology development and growth by integrating the Ministry's support for R&D, commercialization, financing, and global expansion with the National Tax Service's tax assistance.”
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.