Regulations Governing Tax Credit for Businesses Investing in Motion Picture Production Enterprises for the Production of Domestically Produced Motion Pictures Article 2

The terms used in these Regulations are defined as follows:1.Credit against business income tax to be paid: This refers to credit against the tax payable calculated on the basis of the stipulated rate for the business income as appraised and determined by the tax bureau, and to the additional tax payable calculated on the basis of 10 percent of the undistributed earnings as appraised and determined for the previous year by the tax bureau.2.Original share subscription: This refers to shares that promoters subscribe to in cash at the time of establishment, and those that shareholders acquire with cash as a result of capitalization increase for business expansion.3.Underwriting of shares: This refers to the solicitation of shares at the time of establishment or expansion through capitalization increase, and the acquisition of shares during the period of public offering.4.Establishment: This refers to the completion of registration for business establishment in accordance with the law during the period between January 9, 2004 and January 8, 2014.5.Expansion: This refers to the completion of modified registration according to law, during the period between January 9, 2004 and January 8, 2014, upon capitalization increase.6.Holding for at least three years the original share subscription or the registered shares underwritten: This refers to the period of three consecutive years or longer beginning from the date of payment for the shares by a business shareholder.7.The then current year: This refers to the fourth year of continuous holding of shares subscribed or registered shares underwritten.