Do I have to depreciate rental gear like cranes and specialty lenses used on shoots?
No. Rental equipment is not an asset you have acquired — you are paying a usage fee — so it is expensed in full at the time of payment, with no depreciation involved. Equipment you purchase outright that costs more than 1,000,000 KRW per unit, such as cameras, lenses, and drones, is different: it is classified as a depreciable asset and must be expensed gradually over its useful life. If the rental company issues a tax invoice, we also recommend claiming the input VAT credit.
Revenue and cost structures vary widely by role
Even within the same photo and video business, the tax issues facing a studio owner, a freelance editor, and a content creator look completely different
A mix of registered business owners and freelancers
This field includes studios and production companies run as registered businesses, alongside freelance photographers and editors who receive 3.3% withholding. VAT filing obligations and the scope of deductible expenses depend on which form you work under.
High-value equipment depreciation and staff withholding are common issues
Investment in expensive equipment — cameras, lenses, drones, editing workstations — tends to be heavy, and shoot/edit staff are often hired on a per-project basis, making it easy to miss withholding filings. Whatever your role, these two issues always deserve attention.
Income structure of the photo & video business
Key expense categories
Must-read for photo & video businesses
Filming equipment: tax treatment differs completely by category
Professional film and broadcast-grade gear often runs into the millions of won, so misclassifying it costs you money. Whether an item is an asset, a consumable, or a rental fee determines how it is expensed — getting this right is how you save on taxes.
① Long-term fixed assets — depreciable equipment bought once and used for years
Camera bodies: cinema cameras (RED, ARRI, Sony Venice, etc.), broadcast camcorders, full-frame mirrorless/DSLR
Cinema lenses: PL-mount lenses, cine prime/zoom lens sets
Audio equipment: boom mics, wireless lavalier mics, field mixers/recorders
Lighting: LED panels, HMI lights, softboxes, light stands
Support gear: gimbals, steadicams, tripods, camera sliders
Anything over 1,000,000 KRW per unit is classified as a depreciable asset (typically a 5-year useful life for filming gear) and must be expensed gradually. Expensing the full amount in the year of purchase can be disallowed in a tax audit.
② Project-based consumables — expensed in full immediately
Spare batteries, SD/CFexpress memory cards, ND/color filters, cables and adapters, lighting diffusers/gels, gimbal counterweights, lens and sensor cleaning supplies, and more.
Filming consumables used up on each project are not booked as assets — they are expensed in full at the time of purchase. The amounts may be small individually, but with a high volume of shoots the total adds up, so keep every receipt.
③ Rental costs — specialty equipment rented per project
Specialty lens/camera rentals, crane/jib/drone rentals, generator trucks for shoots, studio rental, special effects (SFX) equipment, and more.
Since you are not acquiring an asset but paying a usage fee, these are expensed in full at the time of payment. If the rental company issues a tax invoice, you can also claim the input VAT credit — so prioritize vendors that can issue invoices over cash-only ones where possible.
④ Personal service costs — model/staff withholding
Model/actor booking fees, extra fees, hair and makeup/styling costs, second-shooter/assistant photographer/on-set staff labor, and more.
Amounts paid per contract for personal services are treated as business income subject to 3.3% withholding, filed and paid by the 10th of the following month. If a model is booked through an agency, check whether the agency issues an invoice or whether payment is made directly to the individual.
⑤ Post-production infrastructure and recurring subscriptions — do not miss these repeat expenses either
High-performance workstations: Mac Studio/Mac Pro, high-spec custom PCs, color grading monitors
Backup/storage equipment: large external hard drives, NAS (network storage) units
NAS maintenance: hard drive replacement, firmware/maintenance contracts
Cloud costs: subscription fees for Google Drive, Dropbox, Frame.io, and other collaboration/backup cloud storage
Editing software subscriptions: Adobe Creative Cloud, DaVinci Resolve Studio, and more
Equipment such as Mac Studios and NAS units that exceed 1,000,000 KRW per unit is depreciated, while monthly recurring costs like cloud subscriptions and maintenance fees are expensed immediately. Tracking recurring payments through your card's auto-debit history helps ensure nothing is missed.
| Category | Examples | Tax treatment |
|---|---|---|
| Long-term fixed assets | Camera bodies, cinema lenses, lighting, audio, support gear | Depreciated if over 1,000,000 KRW (typically 5-year useful life) |
| Consumables | Batteries, memory cards, filters, cables, cleaning supplies | Expensed in full immediately upon purchase |
| Rental costs | Specialty lenses, cranes, generator trucks, studios, SFX equipment | Expensed in full at time of use; input VAT credit available with a tax invoice |
| Personal services | Models, extras, hair/makeup, assistant photographers | 3.3% withholding, filed/paid by the 10th of the following month |
| Post-production infrastructure/subscriptions | Workstations, NAS, cloud, Adobe subscriptions | Workstations/NAS depreciated if over 1,000,000 KRW; subscriptions expensed immediately |
A tax accountant who understands equipment protects both your taxes and your profit
Whether each piece of equipment is correctly sorted into asset, consumable, or rental categories makes a real difference in your actual tax savings. Without a solid grasp of the industry, high-value equipment often gets misclassified — leading either to overpaying tax or missing deductions for consumable-type spending. Working with a tax accountant who understands the structure of filming and video equipment cuts unnecessary tax outlays and leaves more room to reinvest in your business.
Frequently Asked Questions
Tax priorities differ by role
Select the form your work takes to see content tailored to your specific role
Wedding & Studio Photographer
Deposit/balance revenue recognition, second-shooter withholding
We may not capture life's biggest moment for you, but we will handle your tax filing
Freelance Video Editor
Combined filing of multiple 3.3% withholdings, workstation depreciation
You cut clips by the second — do not put off your tax filing the same way
Video Planner/Producer
Withholding on behalf of outsourced staff, production budget settlement timing
You call the cues; we handle your crew's withholding filings
YouTube & Content Creator
Reporting overseas AdSense income, PPL sponsorship revenue recognition
Subscribers respond with a like; the NTS wants a revenue report
Drone & Aerial Photographer
High-value aircraft depreciation, aerial filming permit costs
Get your flight clearance from the aviation authority, and your tax advice from us
Stock Photo & Video Contributor
Reporting overseas sales income, reviewing zero-rated VAT on services
One photo can sell worldwide, but you still report it under domestic rules
Commercial & Product Photographer
B2B tax invoice issuance, shoot liability management
Your products shine under the lights; make sure your tax invoices are just as sharp
Event & Conference Snap Photographer
Withholding for multiple partner photographers, corporate tax invoices
Many hands work the event; we consolidate the tax filing in one place
ID & Passport Photo Studio
Mandatory cash receipt issuance, franchise fee expense treatment
Keep your turnover fast; we will keep your tax filing thorough
Pet Specialty Studio
VAT on goods like frames/calendars, prop and cleaning supply expenses
Cherish the moment with a pet; we will handle the tax filing with precision