In support of the country's cartoon and animation industries, the Ministry of Culture, Ministry of Finance and State Taxation Administration jointly released the Rules on Certifying Cartoon and Animation Companies (Tentative), providing for tax breaks for cartoon and animation producers owning IPRs and key products.

The definition of such companies covers companies engaging in creation and production of animation and cartoon, Internet products (including those on mobile sets), stage plays, performance, software development, derivate products and design.  Companies with over 50% turnover generated by self-developed products are eligible to apply for the certification.  Those who export and generate over 2 million yuan from external trade as well as having 30% of the total turnover from the export may apply for certification of key companies.

Products generating over 1 million yuan from export may apply for certification of key products.  Those mere outsourcing, imitation or offshore production that are not supported by IPRs and not competitive do not fall in this scope.

(China IP News)