Article 25-6 (Tax Credit for Video Content Production Costs)

Where a domestic company prescribed by Presidential Decree incurs costs, inside and outside the Republic of Korea, for the production of video content falling under any of the subparagraphs of item 1 and prescribed by Presidential Decree (hereinafter referred to as "video content" in this Article), such costs (hereinafter referred to as "video content production costs" in this Article) are incurred by December 31, 2028, an amount equivalent to the sum of the basic deduction amount and additional deduction amount under the subparagraphs of item 2 shall be deducted from income tax (limited to income tax on business income) or corporate tax for the taxable year in which the video content is first broadcast, screened in a movie theater, or made available for viewing through an online video service, in accordance with Presidential Decree. <Amended by Dec. 31, 2019, Dec. 29, 2020, Dec. 28, 2021, Dec. 31, 2022, Dec. 31, 2023, Dec. 23, 2025> 1. Video content eligible for deduction a. Dramas, animations, documentaries, and entertainment programs broadcast by broadcasters prescribed by Article 2 (3) of the 「Broadcasting Act」 as broadcasting programs prescribed by Article 2 (17) of the same Act. b. Films prescribed by Article 2 (1) of the 「Act on the Promotion of Motion Pictures and Video Materials」. c. Video materials prescribed by Article 2 (12) of the 「Act on the Promotion of Motion Pictures and Video Materials」, which have been rated under the same Act and made available for viewing through online video services prescribed by Article 2 (12-2) of the 「Telecommunications Business Act」. 2. Deduction amount a. Basic deduction amount: An amount equivalent to 10 percent (15 percent in the case of small and medium-sized enterprises) of the video content production costs. b. Additional deduction amount: In the case of video content that meets the requirements prescribed by Presidential Decree, taking into account the ratio of production costs incurred in the Republic of Korea to total production costs, an amount equivalent to 10 percent (15 percent in the case of small and medium-sized enterprises) of the production costs.

When applying paragraph (1), the scope of video content, the calculation method of production costs, and other necessary matters shall be prescribed by Presidential Decree.