China Gives Tax Support to Film and Related Industries

The Ministry of Finance and the State Taxation Administration jointly announced on 14 May the exemption of value-added tax on taxpayers’ income from the provision of film screening service from 1 January 2020 through 31 December 2020 in a bid to support the development of film and other related industries (Announcement No. 25 [2020]). The film screening service mentioned in the announcement refers to the film screening and audio-visual services provided to audiences by holders of the Film Screening Licence using professional-quality movie screening equipment.

The announcement also extends the maximum carryforward period of losses incurred by film industry enterprises in 2020 from five years to eight years. The film industry enterprises concerned are limited to film production, distribution, screening and other enterprises. Enterprises that deliver films through the internet, telecoms networks, broadcast networks and other information networks are not included.

Source: Ministry of Finance