Tuesday, July 30, 2013

China holds movie profits hostage as Hollywood studios refuse to pay new tax

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Despite big box office welcomes for movies like Skyfall, Man of Steel, and Star Trek Into Darkness in China, a dispute over tax has meant Hollywood studios are yet to see a dollar in revenue from them. According to The Hollywood Reporter , the China Film Group began restricting payments to studios last year as it sought to impose a new 2 percent value-added tax on movie profits. US studios refused to pay the duty, saying it should not be deducted from its pre-agreed revenue split, and sources say the matter has now escalated to a government level.


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via The Verge - All Posts http://www.theverge.com/2013/7/30/4570562/hollywood-studios-tax-china-box-office-profits

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