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- Korean Film News
- Korean Film and TV Industries to Receive Tax Credits
- by KIM Hyun-jung / Mar 27, 2017
- At Most 10% of Tax Credit
Korea’s Ministry of Culture, Sports and Tourism announced to offer at most 10% of tax credit for the Korean productions of film and television content on March 20th. Under the revised law, production costs spent in Korea can be set against corporate tax bills with a 10% tax-break for small companies, a 7% break for medium-sized companies and a 3% break for bigger corporations.Films that can receive tax breaks must be complied with article 2 of the Promotion of the Motion Pictures and Video Products Act and need to be screened in cinemas for seven consecutive days or more. The exception is for art films and independent films recognized by the Korean Film Council (KOFIC), in which case they are eligible after a single day of screening.In addition, the new tax credit policy covers production costs including royalties, payments for players, personnel expenses and material costs of directing, filming, lighting, costumes, makeup and special effects and equipment rental fees. However, overseas production cost, entertainment expenses, advertising and promotion costs and government supports are excluded from the tax credits.Producers must fulfill at least three requirements as follows and produce films themselves for tax deductions. 1) make a contract with a writer (person who writes a screenplay or scenario) 2) make contracts with main cast 3) make contracts with people in charge of at least two fields among main staff of directing, filming, editing, lighting and art 4) take charge of all the decision-making to operate the production costs.
- Any copying, republication or redistribution of KOFIC's content is prohibited without prior consent of KOFIC.
