Parliamentary committee passes bill on expanding tax incentives for chipmakers

Lawmakers attend a plenary meeting of the parliamentary strategy and finance committee at the National Assembly, March 22. Yonhap

The parliamentary strategy and finance committee Wednesday passed a bill aimed at supporting the semiconductor industry by giving bigger tax incentives to chipmakers.

The revision to the Act on Restriction of Special Taxation, nicknamed the K-Chips Act, centers on expanding the tax credit rate for companies that make facility investments in national strategic industries, including semiconductors, secondary batteries and future cars.

Under the bill, the tax credit rate for conglomerates will rise to 15 percent from the current 8 percent, while the rate for small and medium-sized businesses will increase to 25 percent from 16 percent.

The revision bill is set to be put to a vote at a parliamentary plenary session scheduled for March 30. (Yonhap)