Five-year corporate income tax exemption, Horgos will start the "Cayman" model

"Big Fish and Begonia", "Journey to the West", "Lao Pao er" and "Beijing meets Seattle 2" all show "some film and television or cultural communication company in Horgos" on the subtitles. Where on earth is Horgos?

original title: stars gather in Horgos registered company, change legal person Chinese version of "Cayman" appear?

Horgos Economic Development Zone, located in Horgos City, Xinjiang Uygur Autonomous region, was established in May 2010, covering an area of 73 square kilometers (including the Xinjiang production and Construction Corps). The development zone also includes a Horgos port of about 30 square kilometers. In 2016, Horgos's GDP was 2.68 billion yuan, an increase of 40% over the same period last year, and the local public budget revenue was 1.2 billion yuan, an increase of 246% over the same period last year.

in recent years, the number of film, television and entertainment companies registered in Horgos has increased significantly. "Film and television companies are only part of them. Tens of thousands of companies have been registered so far this year, and most of the stars have companies in Horgos, but they are registered in other people's names." A local intermediary service provider told reporters.

strong > Star tweets / strong >

"Big Fish and Begonia", "Journey to the West", "old gun" and "Beijing meets Seattle 2" all show the words "some film and television or cultural communication company in Horgos" on the subtitles of the production side.

on June 23, 2017, at the "Belt and Road Initiative" film and television media industry cooperation and development exchange meeting, Wang Gang, executive deputy secretary of the party work committee, director of the management committee and secretary of the municipal party committee of Horgos Development Zone, said that so far, 1476 film and television media enterprises have settled in Horgos, with an average annual growth rate of more than 50%.

A local intermediary service provider told reporters that in April this year, the service provider had completed the task of company registration for the whole year.

the preferential policy offered by Horgos for film and television media, software and hardware development enterprises, venture capital and new energy is to enjoy "five exemptions and five halves" of corporate income tax. If the total value-added tax, business tax and income tax of the retained development zone in that year are more than 5 million yuan, 10 million yuan, 1000 yuan, 20 million yuan and 20 million yuan, they will be supported at the ratio of 20%, 25%, 30% and 35% respectively. Among them, software and hardware development enterprises enjoy value-added tax as soon as they are collected and refunded.

the above-mentioned local intermediary service provider told reporters that the Horgos Taxation Bureau asked the company's legal person to collect portraits in the second half of last year, and the final deadline was June 30 this year. Legal persons must conduct on-the-spot inspection, not on their behalf. Many companies are put off until the end, and the legal persons of all companies are real names, and no one will indiscriminately issue invoices pretending to be legal persons, resulting in a loss of tax revenue.

data show that Fan Bingbing is a legal person of Horgos Aimeishen Film and Television Culture Co., Ltd., registered at 8-12-70, 8th floor, Inspection Business Building, west of Beijing Road and south of Zhuhai Road, Horgos City, Yili Prefecture, Xinjiang.

in fact, it's not just Fan Bingbing. The recent film "ride the Wind and waves" directed by Han Han and starring Deng Chao also has two Horgos film and television companies in the production information and production information. they are Horgos Orange Image Media Co., Ltd. And Horgostine East Film Co., Ltd.

the registered address of Horgos Orange Image Media Co., Ltd. is 8-13-6, 8 / F, Inspection Business Building, west of Beijing Road and south of Zhuhai Road, Yili Prefecture, Xinjiang. The registered address of Horgos East Film Co., Ltd. is 8-4-08, 8 / F, 8-4-08, west of Beijing Road and south of Zhuhai Road, Yili Prefecture, Xinjiang.

strong > Why is Horgos / strong >

learned through interviews that at present, stars basically undertake advertising, filming and other business in the name of studios, and people are familiar with Fan Bingbing Studio, Hu GE Studio, and so on. A studio generally refers to an organization established by several people or one person. it is a space for creative production and work, with a variety of forms, most of which have the embryonic form of the company model.

from the perspective of taxation, the popular explanation of a studio sole proprietorship enterprise or a limited partnership enterprise is similar to that of industrial and commercial households. The tax is paid according to the industrial and commercial households, and the tax is collected when paying taxes. Because many of the costs of film and television companies do not have invoices, the accounting books are not sound, so the combined collection is the consolidation of individual income tax. "some of the studios of entertainers are just registered and not really registered, and most of them are similar to individual industrial and commercial households." A tax official told the reporter. In recent years, stars have registered companies in tax preferential areas, in addition to stars, there are many entertainment companies, film and television companies also choose to register in these areas.

some second-and third-tier stars still choose the studio, but many first-tier stars have adopted the company system. Film income is in the form of a studio, but if stars are deeply involved in the entertainment industry, they will take the form of a company.

strong > Why do so many companies choose Horgos? / strong >

first of all, there are some opinions of the State Council on supporting the Construction of Kashgar Horgos Economic Development Zone. According to the financial support policy in Guofa [2011] No. 33 (abstract), from 2010 to 2020, enterprises newly established in the economic development zone that fall within the catalogue of key industries to encourage the development of industries will be exempted from enterprise income tax for five years from the tax year in which the first production and operation income is obtained. The notice of the Ministry of Finance and the State Administration of Taxation on the preferential policies of enterprise income tax in two special economic development zones in Kashgar and Horgos, Xinjiang, Caifu [2011] No. 112 (abstract) clearly defines this policy.

first of all, enterprise income tax (in line with the catalogue and supplementary catalogue of difficult areas in Xinjiang) is the only "five exemptions and five halves" in the country, that is, local and central governments do not collect enterprise income tax in the first five years, and local governments do not collect it in the next five years.

secondly, VAT (see registered Enterprise Policy) is mainly aimed at software and hardware development, film and television media, venture capital, and headquarters economy.

this means that software and hardware development, film and television media, venture capital and headquarters economy can enjoy the double benefits of income tax and value-added tax, and there are still certain concessions for individual income tax.

A local intermediary service provider told reporters that tax preferential policies were introduced in 2010 and began to be implemented in 2011, but there was no movement in the first two years. Stars have come to register film and television companies one after another from the end of 2013 and the beginning of 2014. Horgos was discovered. "because the film and television companies are in the past, they are now very popular, and many of the producers of films are from Horgos's so-and-so company, which can also be regarded as a party to the distribution of profits. These film and television companies can be exempted from corporate income tax within five years in Horgos, and most of the stars are owned by natural persons, if it is the production side, because it is difficult to obtain invoices in the shooting process of film and television companies, if there is no invoice, corporate income tax increases the tax cost of corporate income tax by 25%. But in Horgos, because corporate income tax is tax-free, even if you don't get an invoice, it's tax-free. " The above intermediary service provider told reporters.

Edit: mary