Study On Tax Policy Of Film And Television Industry

As a part of the comprehensive national strength, cultural soft power has been paid more and more attentions. In recent years, China has been committed to promoting the development of cultural industries. The film and television(TV) industry is a core cultural industry with great value. The growth of China’s film and TV industry is rapid with the maturing market of late years, and the film and TV industry is becoming the backbone of cultural industries, which is thanks to the tax policy support. However, there are also some problems and contradictions between the industry and the tax policy at the same time. Firstly, whether the long time implementation of previous policies can meet the requirements of the industry development in new stage. Secondly, how is the practical effect of the new policy, and whether the new policy fits the characteristics of the industry. Therefore, exploring and studying the film and television industry’s tax policy is particularly necessary.This paper summarizes the tax issues affecting the development of the Beijing Enlight Media Company Limited(Co., Ltd.) by analyzing its main business, tax burden and related factors from 2010 to 2014. According to those tax issues, paper puts forward tax policies proposals combining the current development of the film and TV industry.This paper puts forward tax policy that promoting the film and TV industry rapidly development from three aspects. Firstly, Replacing Business Tax with the value added tax(VAT) should be promoted firmly, and the VAT deduction imposed on film and TV companies should be adjusted. Thus, the rationality of this tax policy is enhanced. Secondly, it should keep the film and TV industry have a balanced development and reduce the market distortions by adjusting turnover tax preference policies or building a preferential tax system based on income tax instead. Finally, government should promoted film and television companies to expend overseas markets by using tax policies to eliminate international double taxation, and reward outstanding films and TV programs.