China 🇨🇳

China offers tax exemptions, reductions, subsidies, and grants as film incentives to promote its domestic film industry and attract international collaborations. Below is an overview of these incentives:

1. China Film Incentive Types

• Tax Exemptions and Reductions:

  • Exemptions from value-added tax (VAT) and cultural construction fees for eligible film enterprises.

• Subsidies and Grants:

  • Financial support for film production, distribution, and exhibition, particularly for projects aligning with national cultural objectives.

• Local Incentives:

  • Regional governments offer additional incentives, such as rent subsidies and special funds, to support film enterprises.

2. Detailed Breakdown of the Film Incentive

Tax Exemptions:

• Film enterprises are exempt from VAT on income derived from film screening services.
• Exemption from the cultural construction fee, which is typically 3% of turnover for recreational and advertising businesses.

Subsidies and Grants:

• One-time publicity and distribution subsidies for Beijing-made films not released due to unforeseen circumstances.
• Special production subsidies for key film projects.
• Rent subsidies of up to 30% for qualified film enterprises, supporting small and medium-sized theaters facing difficulties.

Local Incentives:

• Beijing, Shanghai, Zhejiang, and Guangdong:
  • Measures to strengthen financial support, increase credit supply, and reduce corporate rent costs.
  • Guangdong Film Bureau: Allocated approximately RMB 50 million (US$14 million) in special film funds to over 1,000 theaters, with funds ranging from RMB 10,000 (US$1,414) to several hundred thousand yuan.

3. Terms and Conditions Associated with the Incentive

Eligibility:

• Film production, distribution, and screening companies holding the ‘Film Projection Operation Permit’ can benefit from these policies.
• Film broadcasting platforms and networks, such as internet-based streaming services, telecommunications networks, and broadcasting networks, are excluded from these benefits.

Application Requirements:

• Enterprises must comply with national regulations and obtain necessary permits.
• Specific application procedures may vary by region and type of incentive.

4. Governing Body for the Incentive

National Level:

• Ministry of Finance and State Taxation Administration: Oversee tax-related incentives.
• China Film Administration: Regulates film industry policies.

Local Level:

• Municipal Film Bureaus and Cultural Departments: Implement regional incentives.

5. Process/Outline of Applying or Being Eligible for the Incentive

1. Obtain Necessary Permits:

• Secure the ‘Film Projection Operation Permit’ and other required licenses.

2. Consult Relevant Authorities:

• Engage with local film bureaus or cultural departments to understand specific incentives available.

3. Prepare Documentation:

• Compile necessary documents, including:
  • Business licenses.
  • Financial statements.
  • Project proposals.

4. Submit Application:

• Apply for incentives through designated government platforms or offices, adhering to regional guidelines.

5. Compliance and Reporting:

• Ensure compliance with all regulations and submit required reports to maintain eligibility for ongoing incentives.

Resources for More Information

• Visit the official websites of the Ministry of Finance, State Taxation Administration, and local film bureaus for detailed guidelines and application procedures.
• Contact the respective government offices directly for personalized assistance.