This image provided by Netflix shows a scene from “Squid Game.”
SEOUL, Dec. 26 (Korea Bizwire) — The Ministry of Culture, Sports and Tourism said Sunday that tax support will be expanded for the production and enjoyment of video content, as the revision to the tax code recently passed the National Assembly.
Tax incentives will be offered for streaming content production costs for projects both in and outside South Korea Starting from January, according to the ministry.
Tax credits will be up to 10 percent for small companies, 7 percent for mid-sized companies, and 3 percent for large companies.
In addition, tax deduction for video content production costs that was scheduled to expire this year will be extended to 2025.
According to an analysis from the Korea Culture and Tourism Institute, the tax support is expected to have a strong economic ripple effect, contributing to increasing investment in streaming content by 41.4 billion won (US$32.4 million) and overall video content production investment by 283.9 billion won by 2027.
Taking the preparation period into consideration, income deduction for movie tickets will be implemented from July 2023.
Just like the tax credit for cultural expenses, tax deductions will be offered to workers whose credit card spending exceeds 25 percent of their salaries among those whose annual salary is less than 70 million won.
With a deduction rate of 30 percent, the value of tax credit has a maximum of 3 million won, including income deductions for credit card payments made for traditional markets, public transportation and cultural expenses.
J. S. Shin (js_shin@koreabizwire.com)
