(Photo :Universal Studios)

Payment flow is well until an argument for the new movie tax by the China Film Group was implemented.  The said new foreign movie tax is 2%, which is going to be taken from the 25% net income tax for the Hollywood Studios as per the World Trade Organization.

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This dispute started when the payment of tax for blockbuster movies summed-up into an enormous owed amount. Some of the Hollywood studios who are responsible for the creation of blockbuster movies like SkyFall and Man of Steel claimed to have a collection of up to $200 Million (£129 Million).

This movie tax dispute will soon be resolved according to the Motion Picture Association of America (MPAA). MPAA released a statement that the Chinese Government intervened and guaranteed that involved Hollywood Studios are going to be paid in full. And that the payment of current and future movies have resumed to its smooth flow.

The dispute on movie tax issue is starting to cool down after the Chinese Government promised to pay the owed money to the Hollywood Studios. Until China Film Group published a statement in a Chinese magazine, stating that it will still pass the 2% tax on the 25% blockbuster movie ticket sales income of the respective Hollywood Studios, which woke up the dispute again.

Despite the ongoing blockbuster movie tax negotiations, some of the Hollywood movie producers, especially Disney, are still determined to woo the Chinese people of their movies. Actually, Disney released a special Chinese Version of the Iron Man 3. It featured a different storyline as well as an introduced special character for Chinese People to relate to. The effort done by Disney was well appreciated by the Chinese movie goers and the movie garnered a record-breaking blockbuster record of $65 Million in China for its first week alone.