ANNOUNCEMENT 31 May 2014In May 2014, the government of China announced a targeted tax change.
NUMBER OF INTERVENTIONS
On 31 May 2014, the Ministry of Finance issued the Notice No.56 of 2014, aiming to support the development and exports of the Chinese movie industry.
According to the notice, sales revenue from movie copies (digital copies included) from the movie producers, transfer of copy rights, movie publishing activities, and film screening services in rural areas can be exempted from VAT from 1 January 2014 to 31 December 2018.
In addition, the central government will support 5 to 10 selected movie productions with a total annual funding of RMB 100 million (ca. USD 16 million). The government also encourages the local banks to provide loans or other financial aids to the Chinese movie industry.
The affected trading partners are identified based on the UNESCO report "UIS INFORMATION PAPER NO. 14", published in August 2013. These countries accounte for approximately two thirds of global movie production in 2011 (see Table 4, p.11).