This study aims to suggest tax policy to enhance competitiveness in the era of the 4th Industrial Revolution. In order to prepare for the future industry referred to as a destructive innovation, it is required for government as well as corporations and individuals to put forth a multilateral effort. Especially, government needs to create an environment where private sectors successfully adapt to the new industrial change. For that, we view that tax incentive will make an important role in inducing such private sectors to invest in the new industry since it can influence the after-tax return on investment. Thus we discuss what will be required in order to establish a comprehensive and systematic tax policy in response to the 4th industrial revolution. In order to promote the new industry, the policy of government needs to focus on cultivating people of talent and building the enterprise system. As a way of cultivating people of talent, we recommend expanding the charitable contribution deduction in order that private funds can be attracted into the public education sectors. In relation to building the enterprise system, we recommend tax incentives for starting/restarting entrepreneurs to be equipped with human capital and tangible assets and those for investors to achieve high after- tax return on investment. In order to revitalize investment in the area of the 4th industry, we propose tax benefits for the activities relevant to joint research and development/ in-house venture/ transfer, rent and acquisition of technology/ M&A/ blending different industries. In addition, we focus on the incentives to induce a man of ability to work in the new industry and those to encourage employers in the new industry to expand employment. Lastly, we suggest minimizing the side effect followed by supporting specific industry and class of people.