Tax deduction for content production costs proposed to expand to game and music industries
Quick Look
- A bill to amend the law expanding the tax credit system for content production costs, which only applied to the video industry, to the game and music industries has been proposed to the National Assembly.
- The amendment changes ‘video content’ to ‘cultural content’ and includes games, albums, etc.
AI-generated summary
three line summary
A bill to amend the law to expand the content production cost tax credit system, which was mainly applied only to the video industry, to the game and music industries was proposed to the National Assembly.
Last year, even the webtoon sector was included in the tax credit list, but the content industry has long pointed out that the game and music industries, which account for a high proportion of global exports, are still excluded from the support system.
The amendment changed 'video content' in the provision specifying tax deduction targets to 'cultural content', and included games, albums, music files, and music videos in the cultural content eligible for deduction.
We use ‘three-line summary’ technology, which is automatically shortened by artificial intelligence.
To understand the full story, you should read it in conjunction with the main text of the article.
Cho Seung-rae of the Democratic Party said, “We must have a tax support system appropriate for export-generating industries.”
(Seoul = Yonhap News) Reporter Kim Joo-hwan = A law amendment was proposed to the National Assembly to expand the content production cost tax credit system, which was mainly applied only to the video industry, to the game and music industries.
Cho Seung-rae, a member of the Democratic Party of Korea, announced on the 23rd that he proposed an amendment to the Restriction of Special Taxation Act with this content.
According to Rep. Cho, the current law is designed to provide tax support centered on video content such as broadcasts and movies. This is a method of deducting a certain percentage from income tax and corporate tax for the costs incurred in production.
Last year, even the webtoon sector was included in the tax credit list, but the content industry has long pointed out that the game and music industries, which account for a high proportion of global exports, are still excluded from the support system.
The amendment changed 'video content' in the provision specifying tax deduction targets to 'cultural content', and included games, albums, music files, and music videos in the cultural content eligible for deduction.
Rep. Cho proposed a bill with the same content last year, but pointed out that during the discussion of the bill, the corresponding clause was omitted and the alternative was discarded, creating a legislative vacuum.
Rep. Cho said, “Games and music are core industries that are already proving Korea’s cultural competitiveness to the world,” and emphasized, “As the system remains in the past industrial structure, we need to switch to a tax support system appropriate for an export-generating industry.”
He said, "Through the passage of this amendment, we will restore the growth ladder of the overall K-content industry and contribute to securing the global competitiveness of game and music content."
Report: KakaoTalk okjebo <Copyright (c) Yonhap News, unauthorized reproduction and redistribution, AI learning and use prohibited>
