Deqing county in Zhejiang has been developing an AI film industry, and the local tax bureau has followed the sector closely. One local animation company uses a mix of hand-drawing and AI generation; its AIGC animated series made the top ten at an international animation festival's investment forum. Inside the Moganshan AI film city stands the world's largest single LED virtual studio, powered by a computing centre and 1.5-billion-pixel real-time rendering, turning scenery work that once took months into a quick process. The tax bureau compiled a plain-language guide covering VAT refunds and corporate income tax breaks for animation firms, and ran a briefing attended by more than 20 company tax staff where over ten practical problems were resolved. The 1-billion-yuan base expects over 4 million yuan in tax savings, which the company says will go back into technology upgrades. A sector risk early-warning model combining 16 indicators such as tax credit rating and invoice compliance was also built to issue risk-prevention guidance.
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Deqing Tax Authorities Support AI-Driven Film Industry, From Virtual Studios to AIGC Animation
Deqing county in Zhejiang is building an AI film industry base through culture-technology integration, and the local tax bureau is matching policy support to the sector's needs. Animation firm Mange Times combines hand-drawing with AI generation, and its AIGC animated series reached the top ten of the China International Cartoon and Animation Festival's investment forum. The tax bureau compiled a plain-language guide to film and animation tax incentives and ran a briefing that resolved more than ten practical issues. The 1-billion-yuan Boke AI virtual film base with five LED studios is expected to enjoy over 4 million yuan in tax benefits.
2026-09-22