China resumes payment to Hollywood after tax dispute
Wednesday 14 August 2013
China has agreed to resume payments owed to the U.S. film industry after the two sides resolved a tax dispute, the Motion Picture Association of America, a trade group for Hollywood studios, has confirmed.
The MPAA said the China Film Group Corp, a state-owned distributor, had stopped payments to the Hollywood studios because of problems with a new value-added tax applied across China on 1 August.
The MPAA did not say when the payments stopped, but the film trade publication Variety said they might have been withheld as far back as March and that the amount owed to Hollywood studios could exceed $200 million.
"We are pleased to hear that the Chinese government has addressed the matter and all money due will be paid in full," said MPAA chief executive and chairman Chris Dodd. "It is our understanding that the payment process has recommenced."
The Chinese group had wanted to deduct the tax from what the studios earn in ticket sales in what is now the second-biggest film market.
Under a 2012 agreement between the Chinese and U.S. governments, the American studios increased their share of revenue to 25 percent of the Chinese box office from a previous rate of between 13.5 percent and 17.5 percent.
Deducting the new tax would have cut the studios' take by 2 percentage points.
Prior to the 2012 agreement, U.S. studios had long complained of China's tight restrictions on foreign films, which they said helped fuel demand for pirated DVDs that are widely available in China.
Maisie Williams single-handedly rises to the challengeTV
Academy criticised after no non-white actors nominated
tvAn expose of hooliganism masquerading as an ideological battle
artLee Hadwin can't draw when he's awake, but by night he's an artist
Arts & Ents blogs
- 1 Double chins could be 'cured' without surgery or dieting using new injection
- 2 The BBC has just done more to eradicate ‘terrorism’ than all our wars since 9/11
- 3 Dog thinks owner is drowning in lake, dives in and tries to pull him out
- 4 Thank heavens for Louise Mensch and her foul-mouthed tweets to world leaders
- 5 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ed Sheeran texts Noel Gallagher to offer him tickets after that Wembley Stadium rant
Blink-182 split: Tom Delonge is 'disrespectful and ungrateful' say Travis Barker and Mark Hoppus
Emma Watson to play Belle in Beauty and the Beast
Roald Dahl letter warning student to 'eschew beastly adjectives' rediscovered after 35 years
Sia apologises for 'Elastic Heart' music video that sees Shia LaBeouf wrestle 12-year-old Maddie Ziegler
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
Islamic history is full of free thinkers - but recent attempts to suppress critical thought are verging on the absurd
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia