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STUDIOS TO GET $200M BACK PAYMENTS FROM CHINA

August 14, 2013 by · Leave a Comment 

A hold on some $200 million in payments to Hollywood studios for movies released in China since last fall will be released following a settlement between the Motion Picture Association and China Film Group. Under a 2012 agreement, China had agreed to pay U.S. studios 25 percent of gross ticket sales. But a new Value Added Tax (VAT) would have reduced that amount by 2 percent. The MPAA had protested, refusing the lower amount, and China had halted payments to them until the matter could be settled. “We are pleased to hear that the Chinese government has addressed the matter and all money due will be paid in full,” MPAA chief Chris Dodd said in a statement. According to a report by the official Xinhua news agency, China’s film regulator has reportedly agreed to ask the country’s tax bureau to waive the 2 percent tax on all theater tickets.