China’s fiscal and taxation authorities on Thursday announced its 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 would 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.

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.

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The authorities would also waive collection of national development fund for the film industry in 2020 in province of Hubei, the hardest-hit region by the COVID-19 epidemic in China.

In a separate statement jointly released by the finance ministry and the China Film Administration, the waiver would be valid from Jan. 1 to Aug. 31 this year for the rest of China.

The VAT and the fees can be deducted from the payments in subsequent months or refunded where already collected but eligible to be waived, the statements said.

China’s fiscal and taxation authorities on Thursday announced its 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 would 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.

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.

READ ALSO: China-linked hackers targeting U.S. vaccine research, says FBI

The authorities would also waive collection of national development fund for the film industry in 2020 in province of Hubei, the hardest-hit region by the COVID-19 epidemic in China.

In a separate statement jointly released by the finance ministry and the China Film Administration, the waiver would be valid from Jan. 1 to Aug. 31 this year for the rest of China.

The VAT and the fees can be deducted from the payments in subsequent months or refunded where already collected but eligible to be waived, the statements said.

(Xinhua/NAN)