To boost the countries cultural industry, the Chinese government recently introduced a five-year preferential tax policy to cultural companies. Cultural companies are companies that are engaged in film, press, publication, broadcasting, cultural and artistic businesses. In its circular, the Ministry of Finance said that cultural companies could enjoy exemption of value-added tax, business tax or import duties from 2009 to 2013.
According to the circular, cultural products (i.e. books, newspapers, periodicals, electronic publications etc) can enjoy value-added tax rebates on exports, while cultural companies are exempt from business tax for revenues made from overseas performances. High-tech companies supporting the cultural industry are subject to preferential income tax of 15 percent, as opposed to the current statutory income tax rate of 25 percent.
Film companies, broadcasting and television companies can be exempt from value-added tax and business tax, the circular said.
