The Chinese actress Zheng Shuang was exposed to a total of 160 million yuan in 77 days of filming two years ago, with an average daily income of 2.08 million yuan, causing a sensation. In this regard, Hu Xijin, editor-in-chief of the Chinese media “Global Times” commented that such abnormal high income is not uncommon in the global entertainment industry, but in China, this does not work, and the scale of socialist fairness and justice must not be biased.
Hu Xijin posted on the Chinese social platform Weibo on April 27, “Entertainment stars are now super-rich everywhere, and people from all over the world are not surprised. But in China this does not work, not only the state made an explicit prohibition, the public will not accept, the reason is simple: this is a socialist country, fairness and justice can not be false, there must be a real bottom-line to defend it.”
He pointed out that China has announced the salary cap for some time, and this sensational 160 million salary contract occurred after the very famous actor tax evasion incident, so the sensational scandal and severe investigation failed to deter new illegal operations from being staged, but I want to know to what extent some people’s contempt for the regulations has reached.
Hu Xijin said, “It seems that a more severe attack on the ‘yin-yang contract’ is needed to protect the majesty of the law and protect people’s belief in fairness and justice. Not only the artists involved need to be held accountable in accordance with the law, but the company that signed the ‘yin-yang contract’ with them should also be punished. China is not Brazil and India, and the market here is not designed for a few celebrities to unscrupulously grab wealth.”
On April 26, Chinese actress Zheng Shuang’s ex-boyfriend Zhang Heng revealed on Weibo that Zheng Shuang was suspected of tax evasion and signed a “yin-yang contract.” He disclosed the content of the WeChat chat with Zheng Shuang’s parents, and revealed that Zheng Shuang had wanted to increase the pay of the TV series “A Chinese Ghost Story”. The original contract was 150 million yuan, and she hoped to increase it to 180 million yuan, but Zheng Shuang’s mother felt that it was a bit high and let her see good close.
“A Chinese Ghost Story” finally paid Zheng Shuang 160 million yuan in remuneration, which was credited to the account four times for tax avoidance and signed a “yin-yang contract.” The so-called “yin-yang contract” refers to two contracts with different amounts signed by both parties to the transaction. A “yang contract” with a smaller amount is used for filing registration and tax payment; the other “yin contract” with a higher amount actually stipulates the transaction between the two parties.
Due to the huge income of celebrities, the progressive tax rate generally applies to the highest grade, namely 45% individual tax, 40% labor tax, 20% interest dividend income tax and 35% individual industrial and commercial household tax. According to industry analysts, in order for celebrities to pay less tax, many tax avoidance methods have also emerged.
It is worth mentioning that the Chinese actress Fan Bingbing, who was reported to have signed a “yin-yang contract”, has struggled until now and has yet to make a successful comeback.
Public reports show that Chinese officials announced Fan Bingbing’s penalty for tax evasion in October 2018. Fan Bingbing was fined 883 million yuan, avoiding criminal penalties.
Source: dwnews