Hollywood sees victory in China tax dispute

Hollywood studios have settled a tax dispute in China that has held up the payment of hundreds of millions of yuan in ticket sales, The Wall Street Journal reported. A standoff over whether a new value-added tax should be taken out of their cut of box-office receipts was resolved in Hollywood’s favor, according to The Motion Picture Association of America head Chris Dodd. State-owned distributor China Film Group attempted to deduct the tax from Hollywood studios’ share of ticket sales in the country. Under a 2012 agreement, foreign movie producers can collect as much as 25% of ticket sales in China.