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China keeps VAT refunds for animation industry

Updated: 2012-01-01 03:28

(Xinhua)

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BEIJING -- The Chinese government announced Saturday that the nation will continue offering value-added tax (VAT) refunds to the animation industry next year in its efforts to boost cultural development.

For companies that develop and make their own animation software products, a 17-percent VAT will be levied, but the portion of VAT which exceeds 3 percent of the taxpayers' actual VAT burden will be refunded upon tax collection, the Ministry of Finance said in a statement on its website.

Meanwhile, business tax for animation companies and their income from the sales of their copyrights will remain at 3 percent.

The statement said the policies had been in effect since the beginning of this year, and will remain in effect for 2012.

Thanks to the country's supportive policies, China produced 385 animated films last year, a 28-percent year-on-year increase. The industry also earned more than 500 million yuan ($79.35 million) from exports in 2010, marking a rise of 60 percent year-on-year, according to the State Administration of Radio, Film and Television.

China's central authorities in October released the full text of a guideline adopted by a plenary session of the Communist Party of China (CPC) Central Committee, urging more importance be given to cultural development.

The 17th Central Committee of the CPC held its Sixth Plenary Session in Beijing from Oct 15 to 18, and the plenum discussed issues regarding the reform of the country's cultural system.

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