Tuesday, April 26, 2016

In the State Duma introduced a bill on the progressive tax on foreign films – RIA Novosti

26.04.2016

(updated: )

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MOSCOW, April 26 -. RIA Novosti The deputies of the faction “Fair Russia” Ildar Samiev and Oleg Pakholkov made in State Duma a bill that introduces a progressive tax on the rental of foreign films in Russia.

The corresponding amendments shall be made to the tax Code.

according to the bill, films of foreign distributors, companies and their subsidiaries will be taxed at the tax rates income depending on the number of cinemas in which the film is showing. So, if the film is 80-100% of cinemas in the country, the rate is 20%, if 60-80% of the cinemas – the rate of 15%, with 40-60% of the show in cinemas – the rate of 10%, 20-40% cinemas – the rate of 5% and less than 20% of cinemas rate will be 0%.

So, entertaining films of foreign production, with significant volumes of circulation in the Russian Federation, will be subject to an increased tax rate, the income is from the rare films distributed in smaller quantities, will be taxed at a lower tax rate or not at all be taxed, explain members.

Gains from the aforementioned tax, are invited to submit, first of all, in the cinema Fund of the Russian government on the support and funding of films of domestic production, according to the accompanying documents.

How to write The authors of the bill, in recent years, has repeatedly raised the issue of quotas for Russian cinema production in theaters such as the measures applied in France.

“Such measures have been found to be ineffective cinematic community as their introduction would lead to a significant deterioration of the financial situation of the theater, and would not allow them to continue to expand the network of cinema “, – said in a memorandum

according to the MPs, together with the need of small amount of distributed copies of protection. but valuable in terms of cinematography films.

In June 2015 Prime Minister Dmitry Medvedev has proposed to the Ministry of culture and the Ministry of economic development to think about changing the tax system of film distribution through the introduction of a sales tax ticket value added tax (VAT), and the funds spent on the support of Russian cinema, according to the accompanying documents.

“However, as a result of the analysis of the implications for the measure MER and professional community have requested not to introduce VAT as this is primarily reflected in the audience – ticket prices have risen sharply, and unprofitable cinemas will have to close “, -. says in the explanatory documents

The initiators of the document believe that the measures proposed by them will help develop cinemas without restricting show highly, but more rare in terms of the distribution of movies, will provide substantial support and determine an advantageous position for the domestic film production compared with large foreign film companies and will significantly reduce budgetary spending in financing the national film industry.

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