New Chinese Film Industry Law Targets Tax Evading Superstars

New Actor Pay Law in China Targets Tax Evaders

China recently passed legislation that would prevent actors from taking home astronomical paydays in films.

How Did the Chinese Film Industry Get Here?

You might be thinking “If they’re a major blockbuster name that will sell tickets, they should be paid whatever.”

And you would be correct if it wasn’t for some actors engaging in tax evasion–something apparently rampant among major stars. In addition to this, intense bidding wars between studios over a small pool of big stars have become a thing to the point ticket prices in China have spiked.

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The face of the offending actors is Fan Bingbing, the country’s blockbuster actress. It was television personality Cui Yongyuan revealed two important documents.

One was a contract with Fan’s earnings being at $1.6 million while the other contract showed her pay at $7.8 million. Fan’s studio states that it did nothing wrong financially.

The New Law

The new law states that the overall cast pay should be capped at 40-percent of the film’s budget. On top of that, the pay for stars shouldn’t be over 70-percent of what the rest of the cast is paid. This was decided by a regulatory alliance of five government agencies.

It will be interesting to see what will happen because of the law. Will these major stars head elsewhere to break into a new market and take on native films more rarely? It would mean the Chinese film market would have to create more native stars or make contracts worth entertaining for established stars.

We’ll have to wait and see.

Starting with Kabir News in 2013, James has focused on tech, gaming, and entertainment. When not writing, he enjoys catching up on sci-fi and horror shows and comics. He can be followed on Twitter @MetalSwift.

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