China Blinks: Communist Country to Pay Hollywood for Revenues Held in Tax Dispute
China apparently has blinked in its battle to squeeze extra money from Hollywood's overseas grosses but details of the matter remain murky.
TheWrap.com reports a simmering dispute between the country and six Hollywood studios regarding extra taxes on film revenues is over.
The Chinese government had demanded a 2 percent tax on box office receipts above and beyond rules laid out in a previous trade agreement. China was holding onto the money in question pending a resolution.
We are pleased to hear that the Chinese government has addressed the matter and all money due will be paid in full. It is our understanding that the payment process has recommenced,” said Chris Dodd, head of the MPAA, in a statement confirming the news first reported by the Wall Street Journal....
What's still not entirely clear: Whether studios would be allowed to forgo the tax entirely -- or would have to pay a fraction of it. Dodd's use of the words "paid in full" would seem to indicate that the government has dropped the matter, but the MPAA declined to elaborate when contacted by TheWrap.