Partial Payment of National R&D Performance Revenue to Certain Countries
Large Corporations to Reduce Rate from 20% to 10%
The 'government payment technology fee' paid by private companies to the government will be reduced to about half. The government payment technology fee is a system where companies pay a portion to the government when they generate profits from research and development (R&D) outcomes supported by the state.
On the 3rd, the Ministry of Science and ICT held an Economic Ministers' Meeting and announced plans to establish the "Technology Fee System Improvement Plan to Promote Virtuous Cycle of R&D." The goal is to reduce the burden of government payment technology fees on private companies participating in national R&D, enabling them to actively invest in R&D and commercialization.
The current payment rates are 20% of profits for large enterprises, 10% for mid-sized companies, and 5% for small businesses; these will be lowered to 10%, 5%, and 2.5%, respectively.
Additionally, incentives such as extra points in the evaluation for selecting other projects will be given to small and mid-sized companies with excellent records of government payment technology fee payments. This aims to encourage companies' willingness to pay the government technology fee and to ensure that companies with outstanding performance continue to participate in national projects and generate additional outcomes.
Minister Lee Jong-ho of the Ministry of Science and ICT stated, "We plan to revise the Enforcement Decree of the Research and Development Innovation Act within this year, and based on these innovative results, we expect the establishment of a virtuous cycle structure for R&D."
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