Melbourne, Aug. 14 (ANI): Hollywood studios have announced that China Film Group (CFG) will pay the delayed box office revenues after an agreement has been reached on the tax payments.
The Motion Picture Association of America (MPAA), which represents the studios, has revealed that CFG has recommenced the payment after the nationwide implementation of a new value-added tax (VAT) rule on August 1, News.com.au reports.
Earlier, the CSG had stopped paying a share of takings to Hollywood in wake of a dispute over a new two percent VAT on foreign films.
The affected U.S. studios include Sony, Warner, Fox, Disney, Paramount and Universal.
According to the report, CFG had owed more than US 31 million dollars to Warner for Man of Steel, US 23 million dollars to Sony for Skyfall and US 23 million dollars to Fox for Life of Pi.
Earlier, the U.S. studios had said that CFG had violated a trade agreement governing the film trade between the two countries.
According to the agreement, China had agreed to increase the number of films allowed to be screened in the country from 20 to 34, which increased the China's box office revenues manifold.
This agreement had put the share of profits enjoyed by foreign studious at 25 percent. (ANI)
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