The Chinese government has introduced a five-year preferential tax policy to cultural companies this weekend to boost the country's cultural industry.
Cultural companies could enjoy exemption of value-added tax, business tax or import duties from 2009 to 2013, the Ministry of Finance said in a circular on its Web site over the weekend. Cultural enterprises are those engaged in press, publication, broadcasting, film, television, cultural and artistic businesses, it said.
Film companies are exempt from value-added tax and business tax for revenues made from copy sales, copyrights transfer, distribution and film production in rural areas, according to the circular.
Broadcasting and television enterprises can be exempt from business tax for basic maintenance fees for cable digital television upon government approval by the end of 2010, it said.
Cultural products, such as books, newspapers, periodicals, audio-visual products, electronic publications, films and TV series, can enjoy value-added tax rebate on exports, it said.
Cultural enterprises are free from business tax for revenues made from overseas performances, it said.
High-tech companies supporting cultural industry can enjoy a preferential income tax of 15 percent, it said. Companies in China are currently subject to a statutory income tax rate of 25 percent.
Publication and distribution enterprises can deduct their stocks from the taxable amount as lost assets, according to the circular.
These stocks include print books in storage for more than five years, audio-visual products, electronic publications and projection products for more than two years, and print periodicals, calendars and new year paintings for more than one year, it said.
The equipment and accessories for production of key cultural products are free from import duties, according to the circular.
These preferential tax policies will expire on Dec. 31, 2013, it said.
Source: Xinhua
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