On 26 March 2009, the Ministry of Finance issued Notice No. 31 of 2009, to support the development of local cultural activities and entertainment industry.
According to the notice, several tax incentives will be introduced from 1 January 2009 to 31 December 2013:
- Movie or TV production companies in China are exempted from the business tax and VAT on sales of copyrights, movie copies(e.g. DVD), and publications.
- Cable TV subscription fees are exempted from the business tax for 3 years, when the companies apply for the approval before end of 2010.
- Export of books, magazines, CDs, digital publications, movies, or TV programs may benefit from the current VAT rebate policy.
- Revenues from cultural performances or activities abroad are exempted from the business tax.
- Innovations of cultural-related technologies may benefit from a reduced business tax rate of 15%.
- Paper publications older than 5 years, digital publications older than 2 years, or magazines older than 1 year may be written off as loss on companies' financial reports.
- Import of important production-related machines may be exempted from the import tariffs.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.