The #chinamarket is the largest for #mobilegames in the world. It also has the strictest #regulations. In my talk at the WhiteNight Legal Roundtable, I covered all the key topics for #gamepublishing in #chinabusiness. The video and article is here: https://lnkd.in/g4nHP9H
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Mobile Game Regulation Overview - China
1. China: Largest Game Market.
Toughest Regulatory Policies.
A Guide To Compliance in China
James LaLonde, Co-Founder, Yodo1 Games
2. Today's Topics
"The Great Delisting" on China iOS store
The ISBN process for games in China
Real Name Verification & Anti-Addiction Policies
Tax policy with regard to publishing games
Specific recommendations, Q&A
3. Games Require
ISBNs in China
Paid games or games with In App Purchases (IAP) require
an ISBN. Games that are F2P and only monetize on ads do
not.
What has changed is enforcement. Apple now has to
comply.
From July 1, 2020 over 70,000 games have been delisted
from the China App Store
4. The ISBN Process
is Tough
the game must have no content that
the Chinese government considers
controversial
requires a 12-18 month time
investment and submission of about
300 pages of documentation in
Chinese regarding business
registration, copyright proof, detailed
storyline, gameplay, list of SW & HW
used in making the game, etc.
a Chinese company (or China-
based partner company) is required
to be legally responsible for the
game
a system must be added to the
game to do real name verification
and comply with anti-addiction laws
The State Administration of Press and Publication (国家新闻出版总署)
or NPPA is the primary game industry regulator.
5. China-specific Compliance
Real Name Verification that is tied to the Chinese National ID Card that every Chinese
citizen holds and is unique to the China market.
A granular Anti-Addiction Policy that restricts game play time and purchase amounts
by age, time of day the game is played and total time spent playing per day.
6. Anti-Addiction Policy
As this is an initiative specifically promoted by Xi Jinping, most industry players
complement this system with proactive notices on the splash screens of their games
Leveraging Real Name Verification, gamers must be locked out of games for 24 hours
when they exceed playing time and purchase limits
7. Tax Considerations
Withholding Tax (WHT) 10%
Value-Added Tax (VAT) 6%
Additional Surtax 0.72%
Total Tax Assessed 16.72%
Tax levied on the foreign developer’s income generated in China.
If a Double Taxation Agreement (DTA) exists between the
developer's own country and China the WHT (10%) can be
exempted in the developer's home country. Effectively reducing the
tax to 6.72%.
Consult the following website for a list of countries with a DTA
http://www.chinatax.gov.cn/chinatax/n810341/n810770/index.html
8. You Can't Afford Not To Be In China!
Choose A Reputable Partner
China represents 33% of the $44 billion
global market for mobile phone games
9. For more information contact: BD@yodo1.com
https://www.yodo1.com/en/yodo1s-2020-guide-to-
publishing-your-mobile-game-in-china/
Thank You!