China's fiscal and taxation authorities on Thursday announced a decision to temporarily waive the value-added tax (VAT) and some fees on certain film-related businesses to support the sector against the COVID-19 shock.
Film screening service providers will enjoy an exemption of VAT for the entire year of 2020, according to a statement issued by the Ministry of Finance and the State Administration of Taxation.
The authorities have also suspended the collection of construction fees for cultural undertakings for the same period.
For businesses in the film industry, the arrangement allows them to carry forward this year's loss for up to eight years instead of five years.
In a separate statement jointly released by the finance ministry and the China Film Administration, the authorities will waive the collection of a national development fund for the film industry in 2020 for the province of Hubei, the hardest-hit region by the COVID-19 epidemic in China. As for the rest of China, the waiver will be valid from Jan. 1 to Aug. 31 this year.
As for businesses whose VAT and the fees have already been collected but are eligible to be waived, the VAT and the fees can be deducted from the payments in subsequent months or refunded, according to the statements.