Movie distribution involves the upstream: film producers and distributors, and the downstream: the distribution of interests among the four parties of theaters and theaters, generally referring to the ratio of 45:55.

1. Downstream: The theater chain pays business tax on box office revenue. The ratio of 3 is applicable to the cultural industry. For every 100 yuan of box office revenue, a special film development fund of 5, a business tax of 3.3 and surcharges are deducted, and the box office The withdrawal of the National Film Development Special Fund shall not be deducted before business tax (Caishui 2009 No. 111).

Policy benefits: Movie screening income obtained in rural areas is exempt from business tax.

2. The distribution income, film rental income and copyright transfer income of film distribution units are exempt from business tax.

1. Distribution income: and the distribution share income obtained by the film distributor from the film exhibitor.

2. Film rental income: Film rental income obtained from renting films to exhibitors according to the rental price or quota agreed in the contract or agreement shall be taxed as a service industry - leasing industry.

3. Income from transfer of copyright: Business tax should be paid based on the transfer of intangible assets.

3. Impact of replacing business tax with value-added tax: Finance and Taxation 2011 (Document No. 111): The business activities of transferring trademarks, goodwill and copyrights belong to trademark and copyright transfer services in cultural and creative services, and are included in value-added tax.