The Beijing Municipal Radio and Television Bureau has announced that all dramas will now have to declare its production costs and have it verified before they are allowed to be broadcasted. This unprecedented move is believed to have been introduced to avoid actors being overpaid.
The new guidelines state that drama production companies are now legally responsible for any violation of laws or regulations.
This puts greater pressure on companies to not get involved with ‘yin-yang contracts’, also known as double contracts. This method was employed by disgraced celebs such as Fan Bingbing and Zheng Shuang to evade taxes.
Typically, one “official” contract with a lower declared value would be submitted for tax purposes, while one or more other contracts made with the company will pay the actors additional sums of money.