Five Year Tax Exemptions for Media and ‘Cultural’ Industries

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Apr. 14 -The Chinese government has announced a preferential tax policy spanning five years to help boost the country’s “cultural  industries.”

According to the Ministry of Finance, cultural companies will be qualified for an exemption of value-added tax, business tax or import duties from 2009 to 2013.

Cultural companies are defined as those dealing with the press, publication, broadcasting, film, television, cultural and artistic businesses.

This definition also includes film companies and will qualify them for are exempt from value-added tax and business tax for revenues earned from copy sales, copyrights transfer, distribution and film production in rural areas.

The circular also added that broadcasting and television businesses can be exempt from business tax for basic maintenance fees for cable digital television pending government approval by the end of 2010.

There will be VAT rebates on exports including “cultural products,” such as books, newspapers, periodicals, audio-visual products, electronic publications, films and TV series. Cultural enterprises are free from business tax for revenues made from overseas performances, according to the Xinhua.

High-tech companies supporting cultural industry are qualified for a preferential income tax of 15 percent.

The new preferential tax policies will last for five years ending on December 31, 2013.