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Document of Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication & Qingdao Municipal Finance Bureau

2017/7/31

Document of Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication & Qingdao Municipal Finance Bureau

QWGXF【2016】No.14

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Circular on Printing and Issuing the Methods for the Management and Usage of Film and TV Industrial Development Fund of Qingdao

Districts, Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication, Finance Bureau, relevant departments,

In accordance with the Several Opinions of the General Office of the Qingdao Municipal Government on Promoting the Development of the Film and TV Industry (QZBF[2014]No.21), Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication and Municipal Finance Bureau have jointly formulated the Methods for the Management and Usage of Film and TV Industrial Development Fund of Qingdao, which is hereby printed and issued to you. Please implement the methods earnestly.

Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication

Qingdao Municipal Finance Bureau

April 29, 2016


Methods for the Management and Usage of Film and TV Industrial Development Fund of Qingdao

I General Provisions

i The methods, formulated on the basis of the Several Opinions of the General Office of the Qingdao Municipal Government on Promoting the Development of the Film and TV Industry (QZBF[2014]No.21) and in light with the situation of Qingdao, aims to promote the development of the film and TV industry of Qingdao and to regulate the management and usage of the Film and TV Industrial Development Fund of Qingdao.

ii The scale of the Film and TV Industrial Development Fund of Qingdao is RMB 1 billion yuan per year, 5 billion yuan from the municipal and district fiscal budgets and 5 billion yuan from social capital. The term of the fund is 5 years and the fund will be set up first in eligible districts (cities).

iii The Film and TV Industrial Development Fund of Qingdao takes the form of guidance fund for investment in the film and TV industry, special fund for excellent film and TV production or the combination of both.

The guidance fund is mainly used to attract social capital to participate in the film and TV investment fund, which is used to invest in growth film and TV enterprises that are eligible for national film and TV industrial development policies and have comparative advantages in the Qingdao region, as well as in film and TV projects with good social and economic benefits.

The special fund is mainly used to subsidize the production cost of excellent films and TV shows shot and produced in Qingdao. Film and TV works are qualified to apply the subsidy. Domestic films should obtain the public screening permit and be released in theatre chain cinemas; domestic TV shows should obtain the TV show distribution permit and be broadcast on TV channels at or above provincial level. Overseas films should obtain the film project approval of the State Administration of Press, Publication, Radio, Film and Television; overseas TV shows should obtain the approval for Sino-foreign joint production of TV and animation shows and register with Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication for documentation.

iv. The management and usage of the Film and TV Industrial Development Fund of Qingdao should conform to relevant national, provincial and municipal film and TV industrial development policies, follow the principle of “guided by the government, allocated by the market, performance oriented, targeted support to excellent projects.” Guided by the Leadership Group for Cultural Institution Reform and Cultural Industrial Development of Qingdao (hereafter referred to as Cultural Reform Leadership Group) , the fund should be jointly organized and implemented by the Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication, relevant districts (cities), and non-public stakeholders that have invested in the fund.

II Responsibilities

v The main responsibilities of Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication are:

i) As for the guidance fund, the bureau will work together with the Municipal Finance Bureau, the Municipal Financial Affairs Office and relevant districts (cities) to set up the board of directors for film and TV industry guidance fund, formulate the methods for the management and usage of the guidance fund, select fund management institution as trustee, guide the trustee institution to publicly recruit shareholding partner institutions, and select fund manager (GP).

ii) As for the special fund, the bureau will work together with the Municipal Finance Bureau, relevant districts (cities) and social capital investors to set up the board of directors of the special fund and to set out the subsidy standards and application procedures.

iii) Report the situation and performance of the fund to the Cultural Reform Leadership Group on a regular basis.

vi The main responsibilities of the Municipal Finance Bureau are:

i) Decide the annual fund budget together with Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication, and allocate the money as stipulated.

ii) Participate in the verification of the production cost of excellent films and TV shows and the establishment of the guidance fund.

iii) Practice supervision and inspection of the management and usage of the industrial development fund together with Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication.

vii. The main responsibilities of relevant districts (cities) are:

i) Arrange fiscal fund at a ratio of 1:1 between municipal and district (city) budget.

ii) Participate in the verification of the production cost of excellent films and TV shows and the establishment of the guidance fund.

iii) Allocate the money as stipulated.

iv) Participate in the operation and management of the industrial development fund.

viii The main responsibilities of social capital investors are:

i) Arrange the capital as agreed.

ii) Participate in the verification of the production cost of excellent films and TV shows and the establishment of the film and TV industrial investment fund.

iii) Allocate the money as stipulated.

iv) Participate in the operation and management of the industrial development fund.

III The Management and Usage of the Guidance Fund

ix Municipal and district (city) fiscal budgets can jointly set up the guidance fund to attract social capital to initiate and set up film and TV industry investment fund.

x The film and TV industry investment guidance fund should be established in accordance with the Circular by the Ministry of Finance on Printing and Issuing the Interim Provisions on Government Investment Fund and should apply for the approval of the Municipal Government.

IV Management and Usage of the Special Fund

xi Representatives designated by Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication, the Municipal Finance Bureau, relevant districts (cities) and social capital investors will compose a board of directors as the decision making organ of the special fund. A special account will be set up and the sources (municipal budget, district budget and social capital) will transfer the money into this account according to the specified ratio and the special fund is ring-fenced for the designated purpose.

An office will be set up under the board of directors at Qingdao Municipal Bureau of Culture, Radio, Television, Press and Publication to be responsible for the daily management of the account and the routine work of the board.

xii The subsidy will be granted following the procedure of application—review and approval—allocation.

Organizations intending to apply for the subsidy should register with the office of the board for documentation before the shooting and production commence in Qingdao.

xiii Conditions

The scope of the subsidy should be based on the shooting and production expenses in Qingdao, including the rent for outdoors settings and studios, scenery setting, equipment renting, amateur actors hiring, expense of catering, accommodation and transport occurring during the shooting and production, costumes and properties, post-production, etc.

As to overseas films and TV shows, overseas institutions should partner up with Chinese ones and let the Chinese side file the application. The subsidy will be paid in RMB. The partnership can take the form of:

a. Joint production: Chinese and overseas partners jointly invest (capital, labor or materials) in the shooting and production, share the benefits and shoulder the risks together. Neither side is allowed to invest more than 80% or less than 20%.

b. Collaborative production: The film or TV show is invested by the overseas partner and shot and produced in China; the Chinese partner provides fee-charging assistance in equipment, devices, venues, labor, etc.

c. Entrusted production: The overseas partner pays the Chinese partner and trusts it with the film and TV production inChina.

xiv Subsidy Standard

Oversea and domestic works adopt different benchmarks of subsidy. Different cash subsidy ratios are applied according to different benchmarks. The maximum subsidy for a single work should be no more than RMB 120 million yuan. The annual total amount of subsidy allocation should not exceed the total amount of fund provided by the sources in the same year.

Eligible works should be subsidized in the order of application time. In case when the applied amount exceeds the yearly maximum, it should be automatically counted into the subsidy of the next year.

By-laws should be formulated based on the specific situations of different localities.

xv Subsidy Application Procedures

i) Eligible film and TV production institutions should apply to the office with the following paperwork:

1. Documentation materials of production in Qingdao;

2. Business license and other registration certification of film and TV production institutions;

3. Screening and distribution permit for domestic films and TV shows; project approval documents for overseas films and TV shows;

4. Contract, invoice and other proof materials for the expense of shooting production in Qingdao;

5. Application report, amount of applied subsidy, designated account, etc.

With regard to the oversea works, the Chinese partner is responsible for the subsidy application and pay the overseas partner according to the agreement after it is granted.

ii) The office of the board of directors entrusts eligible intermediaries to carry out cost verification of the subsidy application.

iii) The office of the board of directors reports the verified subsidy-applying project and relevant subsidy-related proposal to the board of directors for approval.

iv) The office of the board of directors will transfer the subsidy to the designated account of the film and TV production institution.

The office of the board of directors reports the work to the Municipal Cultural Reform Leadership Group as required.

xvi If the film and television producers getting the subsidy by cheating, using false information, making false claims or through other illegal means shall return the subsidy and be dealt with according to the Provisions on Punishment of Fiscal and Financial Related Illegal Behaviors and other applicable laws and regulations. Those who commit crimes will be handed over to the law enforcement department.

V Supplementary Articles

xvii The methods come into force on June 1, 2016.

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Office of Qingdao Municipal Culture, Radio, TV, Press and Publication Bureau Printed and issued on April 29, 2016


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