◎ Revitalization of investment in tourism industry (effective until December 31, 2009)

With respect to the revitalization of investment in the tourism industry, taxation for the developers and hotels within a tourism complex has undergone reform. Firstly, properties acquired for the purpose of tourism development will receive full tax exemption (previously 50% exemption) on acquisition tax and registration tax. Secondly, 50% exemption on property tax shall apply on the land attached to the hotel premises. This exemption only applies to the hotels in the metropolitan area with no less than 30% occupancy rate by foreign tourists and no less than 20% room occupancy rate for hotels in the non-metropolitan areas. Furthermore, under the 'Metropolitan Area Readjustment Planning Act', three-fold increase on acquisition and registration taxes (6%) was imposed on properties acquired within the district designated to control overpopulation, however, such imposition has been converted into the general taxation by reducing the rate to 2%.


◎ Tax exemption on acquisition and registration taxes with respect to reconstruction and renovation of industrial buildings (effective until December 31, 2009)

Previously, exemption on acquisition and registration taxes only applied to new
construction or extension of industrial buildings, however, the scope of exemption has been expanded to reconstruction and renovation. This may contribute to easing tax burden for SMEs that are moving into an industrial complex.


◎ Extension of industry scope for tax exemption for the developers of flatted factory buildings (effective until December 31, 2009)

Currently, tax exemptions on acquisition and registration taxes are given to developers, who have acquired a property for the construction of flatted factory buildings. Previously, in such cases, additional acquisition and registration taxes were imposed for the subdivision, lease and sale of a property for any purpose other than the use of factory (manufacturing) or venture businesses within a 5 year period. The industry scope for additional tax exemption has been extended to 'R&D, information and communications, and knowledge-based industries.

◎ Exemption on registration tax as a result of increased capital and change of address of
startup SMEs

With respect to the registration of startup SMEs, not only is registration tax exempted but
also the registration tax that had been paid as a result of increased capital and change
of address.