ASIAPEDIA
Q&A
What did the 2014 VAT reform change for businesses in the entertainment industry?

What did the 2014 VAT reform change for businesses in the entertainment industry?
As of January 2014, taxation for “Modern Services” was made subject to Value-added Tax (VAT) rather than the previous Business Tax (BT). “Modern Services” includes radio, film and television production, distribution and broadcasting services. The VAT rate is set at 6 percent; however, there are certain exceptions such as small-scale VAT taxpayers who are subject to a lesser VAT rate of 3 percent.

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