China targets tax evasion by film stars
CGTN
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(Photo: Xinhua)

China will tighten regulations governing the film and TV industries, targeting exorbitant salaries and tax evasion that officials say drive up production costs.

The directive is contained in a circular issued jointly by multiple departments, including the Publicity Department of the Communist Party of China Central Committee and the State Administration of Taxation.

Local authorities should strengthen supervision of the salary contracts of performers and increase punishment for tax evaders, the circular said.

It also noted that the salaries of performers and TV show guests should be capped.

According to the existing rules, the pay should not exceed 40 percent of the overall cost, and the main stars should take no more than 70 percent of the total payment to the cast.