1. Introduction to the businesses
  2. Energy saving in buildings
  3. Countermeasures 
against climate change
  4. Energy saving 
in transportation
  5. New? renewable 
energy
  6. Inspection of heat-using machines and equipment
  7. Energy Audit
  8. Energy Service Company (ESCO)
  9. Support in the form of funds and tax incentives
  10. Integrated Energy Supply (IES)
  11. Consultation for Energy Use plan
  12. Efficiency management system
  13. bottom
HOME >INTRODUCTION TO THE BUSINESSES > Support in the form of funds and tax incentives
Support in the form of funds and tax incentives

Energy use rationalization projects shall be financially supported.

Support in the form of funds and tax incentives

Energy saving facilities agreement Submission of application for funds fund applicant -> Korea Energy Management Corporation) Review of application for funds Korea Energy Management Corporation) Issuance of recommendation(Korea Energy Management Corporation) Loan fund user->bank) Survey of actual conditions (Korea Energy Management Corporation -> fund applicant) Survey of outcomes(Korea Energy Management Corporation -> fund applicant)
Overview
A system for deducting a certain percentage based on the amounts invested by any corporation or individual in any of the energy saving facilities specified under the law from the relevant tax amount pursuant to the provision under the special taxation case restriction act (“special tax act”) to pursue the reinforcement of businesses’ competitiveness through energy saving.

Contents of the support

  1. Grounds: Article 25-2 of the special taxation case restriction act
  2. Content : If any domestic person invests in any of the energy saving facilities by December 31, 2013(except investments using used goods), an amount equal to 10/100 of the relevant investment amount shall be deducted from the income tax or corporate tax for the relevant taxation year.
    1. ※ Domestic person: resident under the income tax law and domestic corporation as per the corporate tax act
  3. Method
    1. - Apply for tax reduction in the taxation year covering the date of completion of investment.
    2. - If any investment is made for 2 or more years, this provision may apply to each taxation year when investment of the relevant investment amount is made.
    3. -The application for tax reduction shall be submitted to the head of the tax office having jurisdiction over the location of tax payment along with the assessment standard report.

Procedure and method for tax reduction

  1. Energy saving facilities specified by the order of the Ministry of Strategy and Finance (annexed Table 8-3, Article 13-2 of the enforcement decree of the special taxation case restriction act)
    1. - Directly report to the competent tax office.