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Will tax evasion problems such as the "Yin-Yang contract" of sky-high salary be strictly investigated?
On June 27th, it was reported that Publicity Department of the Communist Party of China, the Ministry of Culture and Tourism, State Taxation Administration of The People's Republic of China, the State Administration of Radio, Film and Television and the State Film Bureau jointly issued a notice, demanding to strengthen the governance of the sky-high film and television industry, the "yin-yang contract", tax evasion and other issues, govern the unreasonable film and television industry, promote tax payment according to law, and promote the healthy development of the film and television industry.

The Notice pointed out that in recent years, China's film and television industry has developed rapidly and the overall situation is good. At the same time, it also exposed some problems such as sky-high salary, "yin-yang contract" and tax evasion. These problems not only push up the production cost of film and television programs, affect the overall quality of film and television creation, destroy the healthy ecology of the film and television industry, but also breed the tendency of money worship, mislead young people to idolize blindly and distort social values. Effective measures must be taken to correct it effectively.

The "Notice" emphasizes that it is necessary to formulate standards for the implementation of film and television programs and clarify the maximum pay limit for actors and guests. At this stage, the existing regulations should be strictly implemented. The total remuneration of all actors and guests of each film, TV series and online audio-visual program shall not exceed 40% of the total production cost, and the remuneration of main actors shall not exceed 70% of the total remuneration. The competent department of film and television industry should strengthen supervision and regulate the participation of film and television stars in variety entertainment programs, parent-child programs and reality shows. Strictly implement the examination and approval system for online audio-visual programs, strictly regulate the contract management of film and television dramas and online audio-visual programs, and increase penalties for tax evasion. Television stations, film and television production institutions, cinema lines, Internet audio-visual websites, and private film and television distribution and projection companies shall not engage in vicious competition and drive up prices to buy and broadcast film and television programs, and resolutely correct the unhealthy trend of inviting stars at high prices and competing for stars. Government funds, tax-free public welfare funds, etc. Do not participate in investment in entertainment and commercial film and television dramas, online audio-visual programs, and encourage excessive payment. Source: People's Daily-People's Daily