????HOLLYWOOD studios haven’t been paid their share of China box office revenue since fall of last year and are collectively owed well north of US$150 million. ????Motion Picture Association of America (MPAA) chairman and CEO Christopher Dodd announced late Tuesday that the China Film Group will pay Hollywood studios in full for money owed to them for more than a year. ????The China Film Group had withheld payment because of a new 2 percent tax that it wanted studios to cover. Film companies haven’t been paid since October or November and are collectively owed more than US$150 million, if not closer to US$200 million. As it is, Hollywood only receives 25 percent of box office receipts (before a landmark trade agreement was reached in 2012, studios only received 13 percent to 17 percent). ????“The MPAA understands that the China Film Group stopped payments owed to MPAA studios in China pending resolution of the application of a new value-added tax due to be implemented nationwide as of Aug. 1. We are pleased to hear that the Chinese Government has addressed the matter and all money due will be paid in full. It is our understanding that the payment process has recommenced,” Dodd said in a statement. ????Dodd and his team have been furiously working to end the standoff, with Dodd traveling to China earlier this summer. ????Going by the 25 percent rule, Warner Bros. would be owed north of US$31 million for “Man of Steel,” “The Hobbit: An Unexpected Journey” and “Jack the Giant Slayer” (“Pacific Rim” hasn’t yet ended its run in China, earning a stellar US$76.5 million to date); Sony would be due US$23 million for “Skyfall” and “After Earth” (“White House Down” is still in the midst of its China run); Paramount would be owed roughly US$30 million for “Into Darkness,” “G.I. Joe: Retaliation” and “Jack Reacher;” Disney’s “Iron Man 3” made more than US$121 million in China, which would mean a return of more than US$30 million for the studio, while “Oz the Great and Powerful” would mean about US$5 million in payments (“Monsters University” is headed to China later this month). ????Universal’s “Fast & Furious 6” has grossed north of US$55 million to date in China. Universal would also be owed for “Oblivion” and “Les Miserables,” which took in US$23.9 million and US$10 million, respectively. ????Some studios say there are due money from 2012 titles, as well. Fox hasn’t received payment for Ang Lee’s “Life of Pi,” a check that’s expected to come in at US$23 million. ????At the same time, the State Administration of Press, Publication, Radio, Film and Television is in talks with the tax bureau to waive the 2 percent luxury tax on theater tickets, and the issue is due to be tabled at the next meeting of the State Council, which is chaired by Premier Li Keqiang. ????The tax had previously been waived in a bid to boost the film business, but under changes in China’s corporate tax law, the tax bureau insisted on a 2 percent withholding tax for all imported movies, similar to a 2 percent withholding tax that other foreign companies in China have to pay. ????China trails the U.S. in terms of the size of the market, but with box-office grosses of roughly US$2.75 billion last year, it is widely expected to assume the No. 1 spot within the next couple of years. ????(SD-Agencies) | 